Maximus, Inc. · NYSE:MMS
Maximus — Q1 FY2010 Earnings Presentation
19 slides from Maximus's earnings presentation, Feb 19, 2010
Slide 1: First Quarter Fiscal Year 2010 - David N. Walker, CFO
1 David N. Walker Chief Financial Officer and Treasurer First Quarter - Fiscal Year 2010 February 4, 2010
Slide 2: Select Financial Data: Q1 FY10 Compared to Q1 FY09
2 Select Financial Data: Q1 FY10 Compared to Q1 FY09 February 2010 Key Highlights:Strong Q1 results driven by better-than-expected financial performance in international employment services operationsRevenue up $19.2%; 13.3% on a constant currency basisInternational work represents 25% of total reve
Slide 3: Operations Segment First Quarter
3 Operations Segment First Quarter RevenueOperations Segment revenue grew 20.7% to $188.7 million compared to last year On a constant currency basis, revenue grew 14.2%First Quarter Operating IncomeOperations Segment operating income of $24.0 millionSegment operating margin was 12.7%Strong financial
Slide 4: Australia Operations
4 Australia Operations Geographic expansion Established presence; helped manage program growth 40% more cases than forecasted; repeatable, scalable process enabled us to absorb spike and created benefit of efficiencies Expect to sustain higher revenue driven by two new program awards for Green Jobs
Slide 5: Performance on New UK Program
5 Performance on New UK Program Financial results better-than-expected New employment services program under the Government’s Flexible New Deal New program, difficult for client to predict caseload trends Initially program did not produce contracted level of caseloads (cases have since picked up) MA
Slide 6: Consulting Segment
6 Consulting Segment First quarter revenue totaled $13.6 millionOperating income of $970,000Operating margin of 7.1%Performance improved as the team focused on fundamentalsLabor utilizationCost managementBetter mix of work February 2010
Slide 7: Balance Sheet & Cash Flow
7 Balance Sheet & Cash Flow Healthy cash and cash equivalents totaling $126.9 million at December 31, 2009 Fourth quarter DSOs of 64 days Benefited from large outstanding receivable that was collected in the quarter Generated exceptionally strong levels of cash in the first quarter Strong earnings A
Slide 8: MAXIMUS Share Repurchase Program
8 MAXIMUS Share Repurchase Program Date Executed Total Shares Purchased Average Share Price Total Cost November - December 2009 186,801 $46.49 $8.7 million January 2010 91,940 $49.01 $4.5 million Total 278,741$47.75 $13.2 million MAXIMUS purchased 186,801 shares during the first quarter At December
Slide 9: Raising FY 2010 Guidance From Continuing Operations
9 Raising FY 2010 Guidance From Continuing Operations FY 2010E FY 2009A Growth % Revenue $830 - $850 million $717 million 16% - 19% Adjusted EPS $3.35 - $3.45 $2.91 15% - 19% Updated FY 2010 guidance from continuing operations For the second quarter, we expect adjusted diluted EPS to be in-line with
Slide 10: Richard A. Montoni, President and CEO - First Quarter Fiscal Year 2010
10 Richard A. Montoni President and Chief Executive Officer First Quarter - Fiscal Year 2010 February 4, 2010
Slide 11: Strong first quarter results confirm our strategy is working
11 Strong first quarter financial results are confirmation that our strategy is working as we aim to deliver long-term shareholder value. Operational Focus - Focused on health and human services program administration and divested non-core operations Profitable Growth and Solid Execution - Pursued n
Slide 12: International Market Strategy
12 International Market Strategy International revenue now represents 25% of our business mix International market strategy largely an extension of domestic strategy Helping foreign governments manage the delivery of public health and human services programs Governments around the world are contendi
Slide 13: Land, Execute, Expand – UK Market Example
13 Land, Execute, Expand – UK Market Example Dispatched a combined team from the U.S. and Australia more than a year ahead of the bid to search for acquisition targets The team found the right target, developed relationships, and pre-marketed our capabilities Operations in the UK trending in the rig
Slide 14: International Operations
14 International Operations Recently visited several MAXIMUS locations in the UK and AustraliaSeveral productive meetings with government officials in the agencies we serveGovernments trying to adopt new ways to deliver service more efficiently and effectivelySpent time with on-the-ground leadership
Slide 15: Domestic Operations
15 Domestic Operations Stable demand; opportunities offsetting any softness in the market In fiscal 2009, we estimated that project reductions from state budget pressures only impacted 1.5% of our total revenue base State governments likely to continue to wrestle with budgetary pressures but demand
Slide 16: Domestic Legislative Trends
16 Domestic Legislative Trends Governments will continue to require our services to meet ever changing demographics and increasing demands Health care reform is a long-term process; whether sweeping legislation or smaller components, governments must still be able to respond in an efficient and cost
Slide 17: Sales and Pipeline
17 February 2010 Sales and Pipeline *Restated to reflect divested businesses and ERP Pipeline Q1 2009* Q1 2010* Proposals Pending $517M $299M Proposals in Preparation $237M $60M RFPs Tracking $488M $1,277M Total Pipeline $1,242M $1,636M Twelve-Month Trailing Sales (Signed)($ in millions)
Slide 18: Continue to maintain healthy levels of cash
18 Continue to maintain healthy levels of cash Cash deployment strategy focused on a mix of options, including investments in organic growth, tuck-in acquisitions, and returning cash to shareholders Resumed our board-authorized share repurchase program; remain committed to realizing shareholder valu
Slide 19: Conclusion
19 Solid first quarter results driven by stronger-than-expected contribution from international operations and consistent solid performance in domestic business Benefiting from our strategy of operational focus, profitable growth, solid execution, client diversification, and geographic expansion Foc