Slide 1: Fiscal 2022 Year End Earnings Call
Fiscal 2022 Year End Earnings Call David Mutryn Chief Financial Officer November 22, 2022 1 | Maximus: Q4 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 – FY22
Total Company Results – FY22 ($ in millions, except per share data) FY22 FY21 % Change • Revenue increase of 8.9% is net of $800 million decline in COVID-19 response work. Revenue U.S. Federal Services $ 2,259.7 $ 1,893.3 19 % Adjusting for the COVID-19 response work, U.S. Services Outside the U.S.
Slide 4: U.S. Federal Services Segment
U.S. Federal Services Segment • Revenue increased 19.4% due to full-period ($ in millions) FY22 FY21 % Change contributions from Attain, VES, and Revenue Aidvantage acquisitions, partially offset by U.S. Federal Services $ 2,259.7 $ 1,893.3 19 % decline in COVID-19 response work Operating Income U.S
Slide 5: U.S. Services Segment
U.S. Services Segment • Revenue decreased 3.3% but, normalizing for ($ in millions) FY22 FY21 % Change COVID-19 response work, organic growth Revenue was over 30%, driven by new work wins and U.S. Services $ 1,607.6 $ 1,662.1 (3)% successful conversion of some short-term Operating Income work into l
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment • Revenue increase of 9% is net of currency ($ in millions) FY22 FY21 % Change headwinds of 6%. Organic growth was 11%, Revenue driven primarily by the U.K. Restart Programme Outside the U.S. $ 763.7 $ 699.1 9% as it ramped across FY22 Operating Income/(Loss) Outside the U.S
Slide 7: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Balance Sheet • At September 30, 2022, $1.37 billion of debt and unrestricted cash and cash equivalents of $41 million • Paid down approximately $128 million of debt in Q4 FY22. Resulting ratio of debt, net of allowed cash, to pro-forma EBITDA (calculated in accordance w
Slide 8: Fiscal Year 2023 Guidance
Fiscal Year 2023 Guidance • No redetermination activities assumed in Fiscal Year 2023 Guidance FY23 guidance. Upside potential to Revenue $4.75B - $4.90B guidance once there is a projected date for resuming redeterminations Adjusted operating income $390M - $415M • COVID response work has concluded,
Slide 9: Fiscal Year 2023 Guidance Commentary
Fiscal Year 2023 Guidance Commentary • Revenue guidance midpoint of $4.825 billion represents mid-single digit organic revenue growth over FY22 and overcomes $300 million COVID-19 response work erosion. Primary drivers of core business growth are FY22 new work wins and higher volumes in the VES busi
Slide 10: Fiscal 2022 Year End Earnings Call
Fiscal 2022 Year End Earnings Call Bruce Caswell President & Chief Executive Officer November 22, 2022 10 10 | Maximus: Q4 FY22 Earnings Presentation
Slide 11: Moving Into FY23 Stability
Moving Into FY23 Stability FY22: Affirmed Solid Business Model FY23: Core Business = Stability & Reliability • Ability to grow our core business through • Continue to be well-positioned for organic significant new contract wins growth – and to deliver on our near and mid- • Highly recurring nature o
Slide 12: New Work Success
New Work Success • $425 million eligibility operations support contract, four-year base period • Project teams worked closely with the customer to seamlessly transition the program during Q4 from Indiana Family the incumbent to Maximus, experiencing minimal turnover in personnel and no interruption
Slide 13: Successful Wins with CCO & CDC
Successful Wins with CCO & CDC • Contact Center Operations (or CCO) award by the Centers for Medicare & Medicaid Services • The total value of the contract is $6.6 billion, with Both wins are key drivers in our just over a 9-year period of performance contract backlog, which stands at • Reflects the
Slide 14: Strong Partnerships with Key Agencies
Strong Partnerships with Key Agencies Veterans Volumes in our VES division remain high while we work closely with the VA to reduce the Affairs current caseload in anticipation of further increased volumes due to the PACT Act. Department We have a long-standing partnership to support the Department o
Slide 15: FY23 Financial Resilience
FY23 Financial Resilience • Prepared FY23 forecast excluding any presumed benefit from Medicaid redeterminations; we continue to work closely with our clients to be ready to respond when the PHE is lifted. • Our balance sheet is strong, our business model providing essential government services enab
Slide 16: New Awards & Pipeline
New Awards & Pipeline • As of September, our New Awards (YTD) September 30, 2022 book-to-bill ratio was Signed Contracts $10.5 billion approximately 2.3 times Unsigned Contracts $800.1 million • Pipeline consists of opportunities specifically related to our refreshed Our total pipeline of sales oppo
Slide 17: Closing Remarks
Closing Remarks • We ended FY22 with growing momentum in our core business – supported by organic expansion in all segments and the full-year contributions of our FY21 acquisitions. These achievements enable us to overcome the revenue reduction we see as short-term COVID-19 work exits our portfolio.
Slide 18: Appendix
APPENDIX 18 | Maximus: Q4 FY22 Earnings Presentation
Slide 19: Normalized Organic Growth for FY22 Results
Normalized Organic Growth for FY22 Results U.S. Federal U.S. Services Outside the U.S. Total $ % $ % $ % $ % Revenue Bridge (see Form 10-K) a FY21 Revenue 1,893 1,662 699 4,254 b Organic Effect (275) -14.5% (54) -3.3% 80 11.4% (249) -5.9% c Acquired Growth 641 33.9% - 0.0% 26 3.8% 667 15.7% d Curren
Slide 20: Maximus: Q4 FY22 Earnings Presentation
20 | Maximus: Q4 FY22 Earnings Presentation