RESTON, Va.--(BUSINESS WIRE)--MAXIMUS (NYSE:MMS), a leading provider of government services issued
preliminary fiscal year 2014 guidance today.
With several new awards to operate the customer contact operations of
health insurance exchanges at the state and federal level, MAXIMUS has
achieved its goal of winning its fair share of the health insurance
exchange market. The Company estimates that it has added more than $125
million in new annual contract value related to the health insurance
marketplaces under the Affordable Care Act (ACA).
As a result, MAXIMUS is establishing preliminary fiscal year 2014
revenue and earnings guidance, which includes the contributions from the
acquisition of Health Management. Based on the midpoint of $1.285
billion of the Company’s revenue guidance for fiscal year 2013, MAXIMUS
expects that revenue for fiscal year 2014 will increase between 21% and
28% and will range between $1.555 billion and $1.650 billion. Based upon
the midpoint of $1.54 of the Company’s adjusted diluted earnings per
share guidance for fiscal year 2013, MAXIMUS expects that its adjusted
diluted earnings per share for fiscal year 2014 will increase between
14% and 20% and will range between $1.75 and $1.85. Earnings estimates
reflect the split of the Company’s common stock, which occurred at the
close of the market on June 28, 2013.
The Company’s fiscal year 2014 guidance reflects a number of dynamics,
including:
-
A margin mix shift due to an increase in new work performed for the
United States Federal Government that is cost reimbursable and
lower-margin, with typical operating margins between 4% and 6%
-
Revenue that occurred in fiscal 2013 that is not expected to repeat in
fiscal 2014, from certain contracts, primarily in the Health Segment
-
A tax rate of 37% with the expectation that there will be an increased
contribution of operating income from operations outside the United
States
Richard Montoni, Chief Executive Officer of MAXIMUS, commented, “MAXIMUS
has successfully established a leading position in the health insurance
exchange market and we are pleased with the many new ACA-related
contracts that we have won thus far. Our long-term growth is not
dependent on a single award, but rather upon macro trends and long-term
growth drivers. We believe that there will be additional ACA-related
opportunities over the next several years as states consider
transitioning to their own state-based exchanges and expanding companion
programs.”
Montoni continued, “Further, we believe that demand for our services
will continue to present significant short- and long-term business
opportunities across both segments. We see many new emerging
opportunities for our core health and human services capabilities in all
of our geographies, but most notably outside the United States, where we
are well-positioned to receive new work. We are also equally excited to
further enhance our offerings in existing markets, such as the United
Kingdom where we recently acquired Health Management, and set the
platform for new growth engines for fiscal 2014 and beyond.”
About MAXIMUS
MAXIMUS is a leading operator of government health and human services
programs in the United States, United Kingdom, Canada, Australia and
Saudi Arabia. The Company delivers business process services to improve
the cost effectiveness, efficiency and quality of government-sponsored
benefit programs, such as Medicaid, Medicare, Children's Health
Insurance Program (CHIP), Health Insurance BC (British Columbia), as
well as welfare-to-work and child support programs around the globe. The
Company's primary customer base includes federal, provincial, state,
county and municipal governments. Operating under its founding mission
of Helping Government Serve the People®, MAXIMUS has
approximately 8,800 employees worldwide. For more information, visit www.maximus.com.
