Slide 1: Fiscal 2022 First Quarter Earnings Call
Fiscal 2022 First Quarter Earnings Call David Mutryn Chief Financial Officer February 3, 2022 1 | Maximus: Q1 FY22 Earnings Presentation
Slide 2: Forward-looking Statements & Non-GAAP Information
Forward-looking Statements & Non-GAAP Information These slides should be read in conjunction with the Company’s most recent quarterly earnings press release, along with listening to or reading a transcript of the comments of Company management from our most recent quarterly earnings conference call.
Slide 3: Total Company Results – First Quarter of FY22
Total Company Results – First Quarter of FY22 ($ in millions, except Q1 FY22 Q1 FY21 % Change per share data) • Revenue growth of 21.7% over the prior year period driven Revenue primarily by: U.S. Services $ 386.4 $ 384.9 0% − Expected contributions from acquisitions in U.S. Federal U.S. Federal Ser
Slide 4: U.S. Services Segment
U.S. Services Segment Q1 FY22 Revenue ($ in millions) Q1 FY22 Q1 FY21 % Change • Relatively flat; COVID-19 response work was down by an estimated $32M and the offsetting organic Revenue growth (12% on a normalized basis) came from ramping of new longer-term work U.S. Services $ 386.4 $ 384.9 0% Oper
Slide 5: U.S. Federal Services Segment
U.S. Federal Services Segment Q1 FY22 Revenue • Increased due to contributions from acquisitions; ($ in millions) Q1 FY22 Q1 FY21 % Change primarily Attain Federal and VES • COVID-19 response work was down by an Revenue estimated $8M. The prior year period included U.S. Federal Services $ 581.9 $ 40
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment Q1 FY22 Revenue ($ in millions) Q1 FY22 Q1 FY21 % Change • Increase driven primarily by ramping of the startup contracts in this segment, including the U.K. Revenue Restart Programme Outside the U.S. $ 182.6 $ 155.4 18 % Operating Income/(Loss) Q1 FY22 Operating Loss Outside
Slide 7: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Balance Sheet • At December 31, 2021, $1.61B of gross debt and cash and cash equivalents of $182M • Ratio of debt, net of allowed cash, to pro-forma EBITDA (calculated in accordance with credit agreement) results in 2.5x at December 31, 2021. At September 30, 2021, ratio
Slide 8: Raising Fiscal Year 2022 Revenue Guidance
Raising Fiscal Year 2022 Revenue Guidance • Raising full year FY22 revenue guidance; remainder of guidance is unchanged • Intangibles amortization expense projection is $90M and interest expense forecasted range is $33M – $35M. Tax rate projection is 25% − 26% and WASO projection is 62.5M – Fiscal 2
Slide 9: Fiscal 2022 First Quarter Earnings Call
Fiscal 2022 First Quarter Earnings Call Bruce Caswell President & Chief Executive Officer February 3, 2022 9 | Maximus: Q1 FY22 Earnings Presentation
Slide 10: Changing Nature of COVID Response Work
Changing Nature of COVID Response Work Omicron and Public Health Emergency (PHE) Impacts • Awarded some additional COVID extension work in light of Omicron and extended PHE • CDC task order under our prior sole source award • Illustrates Maximus as a vendor-of-choice, particularly for urgent client
Slide 11: Outside the U.S. Segment
Outside the U.S. Segment Economy Dynamics • Varying conditions in major economies in which we operate, such as U.K. and Australia • Certain elements operating at depressed levels as a result of Omicron variant • Policies often suspend job seeker obligations as a result, leading to lower labor force
Slide 12: New Awards & Pipeline
New Awards & Pipeline New Awards (YTD) December 31, 2021 Sales Pipeline December 31, 2021 New Work % Signed Contracts $454M Proposals Pending $8.9B Proposals in Preparation $2.4B Unsigned Contracts $1.16B Opportunities Tracking $21.8B Total Pipeline $33.2B 62% Award Dynamics • Of the $454M of signed
Slide 13: Acquisition Integration Status
Acquisition Integration Status Acquisitions and organic growth evidence of successful execution on our three-pronged strategy established in 2018 VES Attain Federal Aidvantage • Investing with technology and • Executing on technology bids • Delay of federal student loan people to support addressing
Slide 14: Corporate Strategy
Corporate Strategy • Looking forward at how we leverage capabilities and expand total addressable market • Evolving longer-term strategy (three to five years) • Strategic pillars, operational capabilities, and organization model to be congruent with our plan to deliver ongoing shareholder value thro
Slide 15: Ongoing Dynamics
Ongoing Dynamics • Continue to expect a solid second half of FY22 • Operating in a dynamic environment compared to pre-pandemic Timeline to Unwind the PHE • FY22 expectation would be negatively impacted by potential extension of timeline for PHE unwinding • Positive opportunities also created to res
Slide 16: Appendix
Appendix 16 | Maximus: Q1 FY22 Earnings Presentation
Slide 17: Normalized Organic Growth for Q1 FY22 Results
Normalized Organic Growth for Q1 FY22 Results COVID Census Normalized Acquisition Currency Organic COVID Normalized FY21 Q1 FY22 Q1 Impact FY21 Impact FY21 FY21 Q1 Impact FY22 Impact FY22 Revenue Impact FY22 FY22 Q1 Revenue Actuals Actuals (amounts in $M) Q1 Q1 Actuals Q1 Q1 FY22 Q1 Q1 Actuals U.S.