Slide 1: Final Transcript: Q3 2009 MAXIMUS Earnings Conference Call
F I N A L T R A N S C R I P T Aug. 06. 2009 / 1:00PM, MMS - Q3 2009 MAXIMUS, Inc. Earnings Conference Call C O R P O R A T E P A R T I C I P A N T S Lisa Miles MAXIMUS - IR David Walker MAXIMUS - CFO Rich Montoni MAXIMUS - President, CEO C O N F E R E N C E C A L L P A R T I C I P A N T S Charles St
Slide 2: David N. Walker, Chief Financial Officer and Treasurer
David N. Walker Chief Financial Officer and Treasurer Third Quarter Fiscal Year 2009
Slide 3: Third Quarter Fiscal 2009 Financial Results
Third Quarter Fiscal 2009 Financial Results Revenue of $185.2 million, up 1% on a constant currency basis compared to same period last yearNet income from continuing operations of $15.0 millionQ3 09 diluted EPS of $0.84 from continuing operationsPro Forma diluted EPS from continuing operations of $0
Slide 4: Operations Segment
Operations Segment Other Placeholder: Revenue increased 8.3% to $165.5 million on a constant currency basisDriven by organic growth in the base businessSequential growth over Q2 driven principally by contribution from the recently launched PA Medicaid managed services program and healthy revenue str
Slide 5: Consulting Segment
Consulting Segment Other Placeholder: Revenue totaled $19.7 million in Q3 09Segment is nearing break-even with a nominal loss of $146,000Focus on bringing the Segment to consistent profitability through:Tightly managed labor utilizationAggressive cost controlsBringing the last remaining legacy contr
Slide 6: Balance Sheet
Balance Sheet Other Placeholder: MAXIMUS maintains strong liquidity and flexibility in this demanding marketIn Q3 09, MAXIMUS generated cash from operating activities related to continuing operations of $12.4 million and free cash flow1 from continuing operations of $6.3 millionIncludes the insuranc
Slide 7: Guidance
Guidance Other Placeholder: Reiterating fiscal 2009 guidance Revenue to be in the range of $745 million to $755 millionEarnings per share in the range of $2.75 to $2.85, excluding the one-time $0.16 benefit from the legal and settlement reimbursementFourth quarter is driven by seasonality in the Ope
Slide 8: Richard A. Montoni, President and Chief Executive Officer
Richard A. Montoni President and Chief Executive Officer Third Quarter Fiscal Year 2009 August 6, 2009
Slide 9: Strengthening The Base And Adding New Business
Third quarter results in line with expectationsRebids: Strengthening existing client relationshipsTexas Eligibility Support ServicesGeorgia Families Medicaid & CHIPIowa CHIPVirginia MedicaidTicket to WorkAustraliaFiscal year to date, won 91% of total contract value of rebids that were up for bidNew
Slide 10: MAXIMUS work centered around three main California programs
MAXIMUS work centered around three main programs Medicaid Program (California Managed Care Health Care Options)Provide administrative and enrollment servicesNo expected impact. Reductions to this program were outside managed care population which is the group we serveWelfare to Work (CalWORKS)No exp
Slide 11: 2010 Preliminary Outlook
2010 Preliminary Outlook Fiscal 2010 top-line previewProvided preliminary top-line outlook on Q2 call and still believe that 7% top-line growth estimate remains achievable (MAXIMUS has not completed its annual budget planning process)7% compares to midpoint of fiscal 2009 revenue guidance of $745 mi
Slide 12: Capitalizing on New Opportunities: CHIP Reauthorization & Expanded Funding
Capitalizing on New Opportunities CHIP Reauthorization & Expanded FundingThirteen states have moved to expand programs including Iowa which has expanded funding to cover families up to 300% of the Federal Poverty Level (FPL)Other states like California remain challenged by lack of necessary state fu
Slide 13: Health Care Reform
Health Care Reform A must-do initiative for President ObamaSeveral bills on the table with common themes where MAXIMUS is well-positioned to be a partner:Administration of health exchanges or gateways, similar to our current Medicaid and CHIP workMonitoring quality of care and providing medical revi
Slide 14: New Sales Awards and Pipeline
New Sales Awards and Pipeline August 2009 *Restated to reflect divested businesses
Slide 15: Conclusion
MAXIMUS maintains a healthy cash balance, strong balance sheet, and no debt We continue to consider ways to deploy cash in a strategic fashion Stock repurchase and dividend programs Evaluation and pursuit of tuck-in acquisitions as appropriate Q3 results demonstrate that we continue to perform and d