Maximus, Inc. · NYSE:MMS
Maximus — Q4 FY2010 Earnings Presentation
15 slides from Maximus's earnings presentation, Nov 16, 2010
Slide 1: Fourth Quarter – Fiscal Year 2010 (CFO)
David N. Walker Chief Financial Officer and Treasurer Fourth Quarter – Fiscal Year 2010 November 1, 2010 1
Slide 2: Record Q4 and FY10 Results from Continuing Operations
Continuing Operations Record Q4 and FY 10 Results Q4 revenue grew 9.1% FY 10 revenue grew 15.5% Q4 operating margin bolstered from ($mm, except per share data) Q4 FY09 Q4 FY10 % FY 09 FY 10 % Revenue Actual Change seasonality & timing of international revenue; includes $2.2 million charge related to
Slide 3: Health Services Segment Results
2009 2010 % change 2009 2010 % change Twelve Months Ended September 30 Three Months Ended September 30 Revenue Health Services 129.5 $ 129.0 $ (0.4%) 495.1 $ 514.3 $ 3.9% Operating Income Health Services 19.0 $ 20.0 $ 5.1% 72.9 $ 64.7 $ (11.2%) Operating Margin % (excl legal) 14.7% 15.5% 14.7% 12.6%
Slide 4: Human Services Segment Results
2009 2010 % change 2009 2010 % change Three Months Ended September 30 Twelve Months Ended September 30 Revenue Human Services 65.3 $ 83.5 $ 27.8% 225.0 $ 317.5 $ 41.1% Operating Income Human Services 5.2 $ 12.4 $ 140.5% 12.4 $ 39.5 $ 219.7% Operating Margin % (excl legal) 7.9% 14.8% 5.5% 12.4% $ in
Slide 5: Financial stability and flexibility; cash flow and repurchases
Financial stability has become a pre‐requisite for government partners in the current economic environment and our financial flexibility will continue to be an important differentiator • Solid net income drove record cash flows for the fiscal year differentiator. • Q4 ‘10 cash flow exceeded our expe
Slide 6: FY 2011 Guidance
7%‐11% revenue growth FY 11E Revenue $890‐$920 million Adj d Dil d $3 95 $4 15 9%‐15% earnings growth Adjusted Diluted EPS 3.95‐$4.15 Cash from Continuing Ops $75‐$95 million Free Cash Flow from Cont. Ops $52‐$72 million • At September 30, 2010, 97% of forecasted fiscal 2011 revenue is in the form o
Slide 7: Fourth Quarter – Fiscal Year 2010 (CEO)
Fourth Quarter – Fiscal Year 2010 November 11, 2010 7 richard a montoni president and chief executive officer
Slide 8: Health and Human Services realignment and go-to-market strategy
Our Health Services and Human Services realignment has resulted in an enhanced cross‐collaboration and comprehensive go‐to‐market strategy. • Engaging both existing and potential clients at the state and federal levels. Active on conference panels, W bi di d t d t k Webinars and industry and governm
Slide 9: Key contracts supporting health care reform
Over the past several months, we’ve further established our presence as a market leader by securing key contracts that represent the blueprint of health care reform. • Signed new 5‐year Eligibility and Enrollment Modernization (EEM) contracts in New York and launched Colorado EEM. These represent th
Slide 10: Election results and impact on health care reform
Election results and shift in power in House may lead to minor technical fixes to ACA, but major changes less likely • The current law contains many provisions that appear to have bi‐partisan and stakeholder support: • Addressing pre‐existing conditions within high risk pools • Extending health appe
Slide 11: UK Work Programme rebid
We remain confident that MAXIMUS is a strong contender in the UK’s Work Programme due to our strong performance to date. • UK coalition government implementing austerity measures; key feature is a major welfare reform. Consolidating many welfare‐towork programs into the single ‘back‐to‐work’ Work Pr
Slide 12: International welfare program evolution
The evolution of social welfare programs in many European countries is well underway. • In Q4 FY 10, 27% of revenue was from international programs Other countries interested in our demonstrated ability to run model programs in a cost‐effective way while meeting key performance outcomes • We are rig
Slide 13: Record backlog and contract wins
At September 30th, backlog increased 17% to a record $2.1 billion. • With 97% of forecasted revenue in the form of backlog, we are optimistic with our FY 11 financial targets • At September 30th, signed contract wins totaled $685 million – Includes new enrollment center contract in New York • At Sep
Slide 14: Pipeline of Opportunities and fiscal 2011 rebids
Pipeline of Opportunities at November 5, 2010 Pipeline Nov. 3, 2009 Nov. 5, 2010 Proposals Pending $342M $238M Proposals in Preparation $339M $111M RFPs Tracking $745M $1,458M Total Pipeline $1,426M $1,807M Fiscal 2011 Rebids • Already secured three bids worth $300 million of the 14 rebids in FY 11
Slide 15: Fiscal 2011 guidance reflects pipeline and wins
Our guidance for fiscal 2011 reflects our success in building a robust pipeline and converting indentified opportunities into wins. • New contracts illustrate the traction we are building with our government partners as they prepare for health care reform • Excited about our prospects in internation