Maximus, Inc. · NYSE:MMS
Maximus — Q3 FY2018 Earnings Presentation
18 slides from Maximus's earnings presentation, Aug 13, 2018
Slide 1: Fiscal 2018 Third Quarter Earnings Call
Fiscal 2018 Third Quarter Earnings Call Rick Nadeau Chief Financial Officer August 9, 2018
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 – Third Quarter of FY 2018
Total Company Results – Third Quarter of FY 2018 • Increased quarterly cash dividend to $0.25, effective ($ in millions, Q3 FY18 Q3 FY17 % Change November 2018, ($1.00 per share/year) – a yield of except per share data) approximately 1.5% Revenue Health Segment $ 359.1 $ 335.1 7.2% • Increase comes
Slide 4: Health Services Segment
Health Services Segment ($ in millions) Q3 FY18 Q3 FY17 % Change Revenue Health Services $ 359.1 $ 335.1 7.2% Operating Income Health Services $ 63.8 $ 51.6 23.7% Operating Margin % 17.8% 15.4% Q3 FY18 Revenue • Increase was almost all organic; favorable currency exchange translation of ~1% • Revenu
Slide 5: U.S. Federal Services Segment
U.S. Federal Services Segment ($ in millions) Q3 FY18 Q3 FY17 % Change Revenue U.S. Federal Services $ 112.2 $ 131.6 (14.7%) Operating Income U.S. Federal Services $ 14.9 $ 15.9 (6.3%) Operating Margin % 13.3% 12.1% Q3 FY18 Revenue • Expected decrease from the same period in the prior year as contra
Slide 6: Human Services Segment
Human Services Segment ($ in millions) Q3 FY18 Q3 FY17 % Change Revenue Human Services $ 126.6 $ 133.8 (5.4%) Operating Income Human Services $ 7.5 $ 16.4 (54.4%) Operating Margin % 5.9% 12.2% Q3 FY18 Revenue • Decrease due to the wind-down of domestic and international contracts, including the Work
Slide 7: Cash Flows, DSOs, and Cash
Cash Flows, DSOs, and Cash $ in millions Q3 FY18 Cash flows from operations $72.5 Cash paid for property, equipment & capitalized software ($8.4) Free cash flow $64.1 Days Sales Outstanding (DSO) • 66 days at June 30, 2018, in-line with our expectations and consistent with the prior year Q3 FY18 Bal
Slide 8: Capital Allocation
Capital Allocation MAXIMUS maintains a strong track record of operational performance and a history of generating strong, consistent cash flows. Capital Allocation • Committed to a sensible and disciplined approach to capital deployment • We can provide shareholders with reasonable returns while at
Slide 9: Reiterating Fiscal 2018 Guidance
Reiterating Fiscal 2018 Guidance Fiscal 2018 Guidance New Revenue $2.400B – $2.440B GAAP $3.30 – $3.40 Diluted EPS Cash flow $225M – $275M from operations Free cash flow $195M – $245M • We will provide FY19 guidance on our November call New Revenue Recognition (ASC 606) • MAXIMUS will adopt new reve
Slide 10: Fiscal 2018 Third Quarter Earnings Call – CEO
Fiscal 2018 Third Quarter Earnings Call Bruce Caswell President & Chief Executive Officer August 9, 2018
Slide 11: Introduction
Introduction • This quarter, MAXIMUS delivered solid financial results • With several recent new wins, we are focused on excellent execution and strong cash generation, driving innovation through digital solutions to simplify citizen engagement with critical programs, and effectively balancing resou
Slide 12: Welcoming Our New CMO and CDO
Welcoming Our New CMO and CDO Dr. Michael Weiner, Chief Medical Officer Will help our GMs drive the overall strategic direction, growth and oversight of our global clinical health services. He has extensive government experience having worked with the Department of Defense for much of his career. In
Slide 13: Digital Update
Digital Update Increasing digital footprint as we drive innovation by: Piloting new mobile solutions to improve workflow and reduce paper, Using virtual agents to streamline the online user experience and, Increasing the use of robotic process automation to manage certain business processes wi
Slide 14: Australian DES Contract Launch
Australian DES Contract Launch MAXIMUS remains one of the largest employment services providers, delivering DES across 197 sites to approximately 20,000 customers with disabilities • A significant shift in the Australian disability sector with the government’s introduction of a consumer choice model
Slide 15: United Kingdom New Business Updates
United Kingdom New Business Updates Health Management recently awarded its first ever spot on a Framework to deliver services for NHS England in the area of Patient Empowerment • We are prequalified to bid on future RFPs in an area focused on support services for self-care programs • Our offerings u
Slide 16: U.S. Contract Wins – California Lifeline & NC Medicaid
U.S. Contract Wins – California Lifeline & NC Medicaid New contract to administer the California Lifeline Program – natural extension of our core eligibility-related suite of services • California Lifeline is a state-run program that provides discounted home phone and cell phone services to eligible
Slide 17: New Awards & Sales Pipeline
New Awards & Sales Pipeline New Awards June 30, 2018 YTD Signed Contracts $2.0B Additional Unsigned Contracts $779M Sales Opportunities June 30, 2018 • Our pipeline at June 30, 2018, was $2.9B compared to $3.0B at March 31, 2018, due to approximately Total Pipeline* $2.9B $400M of work converting in
Slide 18: Conclusion
Conclusion • In summary, making steady progress with immediate focus on completing our market evaluation. This includes: ̶ Analyzing current markets where we can play a more meaningful role – such as providing more clinical solutions at scale and increasing the digital capabilities we provide our go