- Company Reiterates Guidance -
RESTON, Va.--(BUSINESS WIRE)--MAXIMUS (NYSE: MMS), a leading provider of government services
worldwide, today reported financial results for its second quarter ended
March 31, 2013.
Highlights for the quarter ended March 31, 2013 include:
-
Revenue grew 34% to $326.4 million for the second quarter compared to
$243.5 million reported for the same period last year, driven by the
PSI acquisition, growth on existing contracts and new work. The second
quarter of fiscal 2013 included $16.0 million of non-recurring revenue
from a previously disclosed contract termination; excluding this,
revenue grew 27%.
-
Adjusted diluted earnings per share from continuing operations
increased 47% to $0.72 for the second quarter of fiscal 2013 compared
to $0.49 reported for the same period last year.
-
Cash and cash equivalents totaled $187.3 million at March 31, 2013.
-
Year-to-date signed contract awards totaled $886 million at March
31, 2013.
Revenue for the fiscal 2013 second quarter increased 34% to
$326.4 million, which includes $16.0 million of non-recurring benefit
related to a previously disclosed contract termination in the Human
Services Segment. This compares to revenue of $243.5 million reported
for the same period last year. Excluding the $16.0 million benefit,
year-over-year second quarter revenue increased 27%, driven by the April
2012 acquisition of PSI, new work in both segments, and growth on
existing contracts, which includes the ongoing revenue ramp up in the
United Kingdom. Excluding PSI, revenue grew 15% organically compared to
the prior-year period.
For the second quarter of fiscal 2013, income from continuing
operations, net of taxes, totaled $31.7 million, or $0.91 per diluted
share, and included pre-tax income of $10.9 million ($6.5 million, net
of taxes), or $0.19 per diluted share, related to the previously
disclosed contract termination. Excluding the benefit of $0.19 per
diluted share, second quarter adjusted diluted earnings per share from
continuing operations increased 47% to $0.72 compared to $0.49 reported
for the same period last year. The year-over-year increase to earnings
is attributable to accretive revenue growth in both segments. A
reconciliation to non-GAAP measures is included in the accompanying
financial schedules.
“Financial results in the quarter were solid and in-line with our
expectations, supporting our growth trajectory for the remainder of
fiscal 2013 and beyond. As expected, organic revenue growth accelerated
in the second quarter, driven by strong performance from both segments.
The long-term demand trends remain positive for MAXIMUS, with multi-year
growth drivers in place as governments require a higher level of
value-added services that deliver measurable and meaningful outcomes.
These trends, coupled with our demonstrated experience and proven
success, set the stage for our long-term success to grow the business
and maximize shareholder value,” commented Richard A. Montoni, Chief
Executive Officer of MAXIMUS.
Health Services Segment
Health Services Segment revenue for the second quarter of fiscal 2013
increased 23% to $197.9 million compared to $161.2 million for the same
period last year, driven by the PSI acquisition, organic growth on
existing contracts, and new work. Health Services Segment operating
income for the second quarter of fiscal 2013 increased 59% to
$28.9 million (14.6% operating margin) and benefitted from accretive
revenue growth. This compares to $18.2 million (11.3% operating margin)
for the same period last year.
Human Services Segment
Human Services Segment revenue for the second quarter of fiscal 2013
increased to $128.4 million compared to $82.3 million for the same
period last year. Excluding the $16.0 million benefit from the
aforementioned contract termination, revenue grew 37%, driven by the PSI
acquisition, the ramp-up in the United Kingdom, as well as new work in
Canada and Saudi Arabia. Human Services Segment operating income for the
second quarter of 2013 totaled $21.5 million, which includes
non-recurring pre-tax income of $10.9 million related to the contract
termination. Excluding the $10.9 million benefit, operating income for
the human services segment increased to $10.6 million (9.4% operating
margin) compared to $8.6 million (10.5% operating margin) for the same
period last year. The year-over-year operating income increase was
driven by the expected improvement in the United Kingdom and growth in
new programs, which offset the expected lower profit margin in Australia.
Sales and Pipeline
Year-to-date signed contract awards at March 31, 2013 totaled
$886 million compared to $812 million reported for the same period last
year. On a sequential basis, signed contract wins were strong with
approximately $700 million of new signed awards during the fiscal second
quarter of 2013. New contracts pending (awarded but unsigned) totaled
$425 million compared to $284 million last year.
Sales pipeline for the quarter ended March 31, 2013 was $2.3 billion
(consisting of $888 million in proposals pending, $85 million in
proposals in preparation, and $1.3 billion in proposals tracking) and
includes opportunities across multiple geographies and both segments.
This compares to $1.7 billion in sales pipeline for the same period last
year and $2.7 billion reported in the first fiscal quarter of 2013.
Pipeline was lower on a sequential basis principally due to the large
number of contracts shifting into the awarded categories.
Balance Sheet and Cash Flows
Cash and cash equivalents at March 31, 2013 totaled $187.3 million, of
which approximately 70% is held overseas. For the second quarter of
fiscal 2013, cash provided by operating activities from continuing
operations totaled $29.4 million, with free cash flow of $18.3 million.
Excluding the $16.0 million revenue benefit from the terminated
contract, Days Sales Outstanding (DSO) from continuing operations were
66 days and remain within the Company’s previously stated range of
65 to 80 days.
On February 28, 2013, MAXIMUS paid a quarterly cash dividend of
$0.09 per share. On April 18, 2013, the Company announced a $0.09 per
share cash dividend, payable on May 31, 2013 to shareholders of record
on May 15, 2013. In addition, on June 28, 2013 MAXIMUS will complete a
two-for-one stock split where each shareholder of record on June 14,
2013 will receive an additional share of stock for each outstanding
share.
MAXIMUS did not repurchase any shares of the Company’s common stock
during the second quarter of fiscal 2013. At March 31, 2013, the Company
had $114.6 million available for future repurchases under its
Board-authorized share repurchase program.
Outlook
MAXIMUS is reiterating its fiscal 2013 revenue, earnings and cash flow
guidance. The Company continues to expect fiscal 2013 revenue to range
between $1.25 billion and $1.30 billion and adjusted diluted earnings
per share from continuing operations to range between $3.00 and $3.15.
The Company continues to expect cash provided by operating activities
from continuing operations to range between $115 million and $135
million, and free cash flow from continuing operations to range between
$70 million and $90 million.
Mr. Montoni concluded, “The recently announced two-for-one stock split
underscores our confidence in the underlying, long-term fundamentals of
MAXIMUS and our future outlook. The management team remains firmly
committed to offering the highest quality of value-added services,
enhancing our established brand recognition, and expanding our offerings
to advance new opportunities.”
Website Presentation, Conference Call and Webcast Information
MAXIMUS will host a conference call this morning, May 9, 2013, at 9:00
a.m. (ET). The call is open to the public and can be accessed under the
Investor Relations page of the Company’s website at www.maximus.com
or by calling:
877.407.8289 (Domestic)/201.689.8341 (International)
For those unable to listen to the live call, a replay will be available
through May 23, 2013. Callers can access the replay by calling:
877.660.6853 (Domestic)/201.612.7415 (International)
Replay
conference ID number: 412909
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.
Non-GAAP Measures
This release refers to non-GAAP financial measures, including free cash
flows from operating activities, adjusted diluted earnings per share
from continuing operations, organic growth, as well as revenues,
operating income, net income and earnings per share excluding a
terminated contract.
To provide organic growth information, revenue in the prior year is
compared to the current year without PSI revenues. We believe organic
growth provides a useful basis for assessing the performance of the
business excluding PSI. We have provided a reconciliation of free cash
flow to operating cash flow from continuing operations. We believe that
free cash flow from operations is a useful basis for investors to
compare our performance across periods or across our competitors. Free
cash flow show the effects of the Company’s operations and routine
capital expenditure and exclude the cash flow effects of acquisitions,
share repurchases, dividend payments and other financing transactions.
We have provided a reconciliation to adjusted diluted earnings per share
and operating income excluding legal, settlement and acquisition-related
expenses and the benefits of the terminated contract. We have also
provided a reconciliation between revenue and revenue excluding the
terminated contract. We believe that these measures are a useful basis
for assessing the Company’s performance excluding the effect of the
terminated contract, the costs of acquiring PSI, and net legal and
settlement expenses.
The presentation of these non-GAAP numbers is not meant to be considered
in isolation, nor as alternatives to net income, cash flows from
operating activities, diluted earnings per share, revenue growth,
operating income and operating margin as measures of performance.
Statements that are not historical facts, including statements about
the Company's confidence and strategies and the Company's expectations
about revenues, results of operations, profitability, future contracts,
market opportunities, market demand or acceptance of the Company's
products are forward-looking statements that involve risks and
uncertainties. These uncertainties could cause the Company's actual
results to differ materially from those indicated by such
forward-looking statements and include reliance on government clients;
risks associated with government contracting; risks involved in managing
government projects; legislative changes and political developments;
opposition from government unions; challenges resulting from growth;
adverse publicity; and legal, economic, and other risks detailed in
Exhibit 99.1 to the Company's most recent Annual Report filed with the
Securities and Exchange Commission, found on www.maximus.com.
|
MAXIMUS, Inc.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Dollars in thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Six Months
|
|
|
|
Ended March 31,
|
|
|
Ended March 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Revenue
|
|
$
|
326,351
|
|
|
$
|
243,452
|
|
|
$
|
612,617
|
|
|
$
|
483,055
|
|
Cost of revenue
|
|
228,907
|
|
|
178,686
|
|
|
438,643
|
|
|
358,442
|
|
Gross profit
|
|
97,444
|
|
|
64,766
|
|
|
173,974
|
|
|
124,613
|
|
Selling, general and administrative expenses
|
|
46,693
|
|
|
37,959
|
|
|
88,915
|
|
|
70,715
|
|
Acquisition-related expenses
|
|
16
|
|
|
233
|
|
|
164
|
|
|
233
|
|
Legal and settlement expenses/(recoveries), net
|
|
—
|
|
|
(824
|
)
|
|
142
|
|
|
(638
|
)
|
Operating income from continuing operations
|
|
50,735
|
|
|
27,398
|
|
|
84,753
|
|
|
54,303
|
|
Interest and other income, net
|
|
637
|
|
|
824
|
|
|
1,743
|
|
|
1,928
|
|
Income from continuing operations before income taxes
|
|
51,372
|
|
|
28,222
|
|
|
86,496
|
|
|
56,231
|
|
Provision for income taxes
|
|
19,658
|
|
|
14,011
|
|
|
32,999
|
|
|
24,362
|
|
Income from continuing operations
|
|
31,714
|
|
|
14,211
|
|
|
53,497
|
|
|
31,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations
|
|
(91
|
)
|
|
—
|
|
|
(594
|
)
|
|
—
|
|
Gain on disposal
|
|
66
|
|
|
62
|
|
|
102
|
|
|
108
|
|
Income (loss) from discontinued operations
|
|
(25
|
)
|
|
62
|
|
|
(492
|
)
|
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
31,689
|
|
|
$
|
14,273
|
|
|
$
|
53,005
|
|
|
$
|
31,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.93
|
|
|
$
|
0.42
|
|
|
$
|
1.57
|
|
|
$
|
0.95
|
|
Loss from discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
Basic earnings per share
|
|
$
|
0.93
|
|
|
$
|
0.42
|
|
|
$
|
1.56
|
|
|
$
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.91
|
|
|
$
|
0.41
|
|
|
$
|
1.53
|
|
|
$
|
0.92
|
|
Loss from discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
Diluted earnings per share
|
|
$
|
0.91
|
|
|
$
|
0.41
|
|
|
$
|
1.52
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per share
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
|
$
|
0.18
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
34,089
|
|
|
33,788
|
|
|
34,085
|
|
|
33,725
|
|
Diluted
|
|
34,954
|
|
|
34,728
|
|
|
34,917
|
|
|
34,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAXIMUS, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
(unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
187,343
|
|
|
$
|
189,312
|
|
Restricted cash
|
|
12,934
|
|
|
11,593
|
|
Accounts receivable — billed, net of reserves of $3,769 and $3,265
|
|
205,397
|
|
|
172,705
|
|
Accounts receivable — unbilled
|
|
18,689
|
|
|
10,539
|
|
Prepaid income taxes
|
|
11,517
|
|
|
3,800
|
|
Deferred income taxes
|
|
20,992
|
|
|
22,207
|
|
Prepaid expenses and other current assets
|
|
36,690
|
|
|
38,528
|
|
Total current assets
|
|
493,562
|
|
|
448,684
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
58,845
|
|
|
58,798
|
|
Capitalized software, net
|
|
32,374
|
|
|
27,390
|
|
Goodwill
|
|
111,670
|
|
|
112,032
|
|
Intangible assets, net
|
|
22,874
|
|
|
25,330
|
|
Deferred contract costs, net
|
|
10,675
|
|
|
9,284
|
|
Deferred income taxes
|
|
1,249
|
|
|
1,369
|
|
Deferred compensation plan assets
|
|
9,831
|
|
|
9,220
|
|
Other assets, net
|
|
3,280
|
|
|
3,186
|
|
Total assets
|
|
$
|
744,360
|
|
|
$
|
695,293
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
80,553
|
|
|
$
|
73,128
|
|
Accrued compensation and benefits
|
|
49,592
|
|
|
56,105
|
|
Deferred revenue
|
|
66,072
|
|
|
60,026
|
|
Current portion of long-term debt
|
|
172
|
|
|
178
|
|
Income taxes payable
|
|
4,434
|
|
|
3,100
|
|
Other accrued liabilities
|
|
9,018
|
|
|
6,599
|
|
Total current liabilities
|
|
209,841
|
|
|
199,136
|
|
Deferred revenue, less current portion
|
|
8,943
|
|
|
19,550
|
|
Long-term debt
|
|
1,420
|
|
|
1,558
|
|
Acquisition-related contingent consideration, less current portion
|
|
393
|
|
|
406
|
|
Income taxes payable, less current portion
|
|
1,460
|
|
|
1,412
|
|
Deferred income taxes
|
|
15,539
|
|
|
10,384
|
|
Deferred compensation plan liabilities, less current portion
|
|
13,573
|
|
|
11,741
|
|
Total liabilities
|
|
251,169
|
|
|
244,187
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
Common stock, no par value; 100,000 and 60,000 shares authorized;
56,883 and 56,516 shares issued and 34,103 and 33,985 shares
outstanding at March 31, 2013 and September 30, 2012, at stated
amount, respectively
|
|
407,685
|
|
|
395,967
|
|
Treasury stock, at cost; 22,780 and 22,531 shares at March 31, 2013
and September 30, 2012, respectively
|
|
(444,282
|
)
|
|
(429,646
|
)
|
Accumulated other comprehensive income
|
|
18,672
|
|
|
20,240
|
|
Retained earnings
|
|
511,116
|
|
|
464,545
|
|
Total shareholders’ equity
|
|
493,191
|
|
|
451,106
|
|
Total liabilities and shareholders’ equity
|
|
$
|
744,360
|
|
|
$
|
695,293
|
|
|
|
|
|
|
|
|
|
|
|
MAXIMUS, Inc.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Six Months
|
|
|
|
Ended March 31,
|
|
|
Ended March 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
31,689
|
|
|
$
|
14,273
|
|
|
$
|
53,005
|
|
|
$
|
31,977
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Income) loss from discontinued operations
|
|
25
|
|
|
(62
|
)
|
|
492
|
|
|
(108
|
)
|
Depreciation and amortization
|
|
7,959
|
|
|
5,434
|
|
|
17,934
|
|
|
11,545
|
|
Deferred income taxes
|
|
7,368
|
|
|
(2,891
|
)
|
|
6,757
|
|
|
(5,315
|
)
|
Non-cash equity based compensation
|
|
3,587
|
|
|
2,836
|
|
|
7,062
|
|
|
5,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable — billed
|
|
(6,931
|
)
|
|
9,741
|
|
|
(33,311
|
)
|
|
7,268
|
|
Accounts receivable — unbilled
|
|
(7,307
|
)
|
|
355
|
|
|
(8,152
|
)
|
|
(63
|
)
|
Prepaid expenses and other current assets
|
|
(2,593
|
)
|
|
(2,471
|
)
|
|
(2,521
|
)
|
|
(4,092
|
)
|
Deferred contract costs
|
|
3,932
|
|
|
319
|
|
|
(1,413
|
)
|
|
1,109
|
|
Accounts payable and accrued liabilities
|
|
(1,798
|
)
|
|
4,528
|
|
|
8,728
|
|
|
12,298
|
|
Accrued compensation and benefits
|
|
5,817
|
|
|
4,266
|
|
|
(1,877
|
)
|
|
(6,287
|
)
|
Deferred revenue
|
|
(9,397
|
)
|
|
3,662
|
|
|
(2,934
|
)
|
|
11,291
|
|
Income taxes
|
|
(4,328
|
)
|
|
3,932
|
|
|
(6,561
|
)
|
|
8,910
|
|
Other assets and liabilities
|
|
1,352
|
|
|
(2,440
|
)
|
|
2,285
|
|
|
(5,128
|
)
|
Cash provided by operating activities – continuing ops
|
|
29,375
|
|
|
41,482
|
|
|
39,494
|
|
|
69,038
|
|
Cash used in operating activities – discontinued ops
|
|
(61
|
)
|
|
-
|
|
|
(554
|
)
|
|
-
|
|
Cash provided by operating activities
|
|
29,314
|
|
|
41,482
|
|
|
38,940
|
|
|
69,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(6,264
|
)
|
|
(4,022
|
)
|
|
(13,351
|
)
|
|
(6,576
|
)
|
Capitalized software costs
|
|
(4,776
|
)
|
|
(1,112
|
)
|
|
(8,240
|
)
|
|
(1,832
|
)
|
Proceeds from settlement of final PSI price
|
|
3,380
|
|
|
-
|
|
|
3,380
|
|
|
-
|
|
Proceeds from note receivable
|
|
112
|
|
|
124
|
|
|
172
|
|
|
272
|
|
Proceeds from sale of discontinued operations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,240
|
|
Cash used in investing activities
|
|
(7,548
|
)
|
|
(5,010
|
)
|
|
(18,039
|
)
|
|
(5,896
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchases of common stock
|
|
|
-
|
|
-
|
|
|
(15,403
|
)
|
|
(9,749
|
)
|
Employee tax withholding on restricted stock units vesting
|
|
|
-
|
|
-
|
|
|
(6,677
|
)
|
|
(3,088
|
)
|
Tax benefit due to option exercises and RSU vesting
|
|
2,315
|
|
|
770
|
|
|
4,680
|
|
|
2,510
|
|
Cash dividends paid
|
|
(3,067
|
)
|
|
(3,038
|
)
|
|
(6,131
|
)
|
|
(6,061
|
)
|
Stock option exercises
|
|
|
-
|
|
1,959
|
|
|
1,752
|
|
|
4,775
|
|
Repayment of long-term debt
|
|
(43
|
)
|
|
-
|
|
|
(87
|
)
|
|
-
|
|
Cash used in financing activities
|
|
(795
|
)
|
|
(309
|
)
|
|
(21,866
|
)
|
|
(11,613
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(766
|
)
|
|
2,326
|
|
|
(1,004
|
)
|
|
5,058
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
20,205
|
|
|
38,489
|
|
|
(1,969
|
)
|
|
56,587
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period
|
|
167,138
|
|
|
191,048
|
|
|
189,312
|
|
|
172,950
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
187,343
|
|
|
$
|
229,537
|
|
|
$
|
187,343
|
|
|
$
|
229,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAXIMUS, Inc.
|
SEGMENT INFORMATION
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
|
|
2013
|
|
|
% (1)
|
|
2012
|
|
|
% (1)
|
|
2013
|
|
|
% (1)
|
|
2012
|
|
|
% (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Services
|
|
$
|
197,948
|
|
|
100
|
%
|
|
$
|
161,170
|
|
|
100
|
%
|
|
$
|
373,946
|
|
|
100
|
%
|
|
$
|
319,213
|
|
|
100
|
%
|
Human Services
|
|
128,403
|
|
|
100
|
%
|
|
82,282
|
|
|
100
|
%
|
|
238,671
|
|
|
100
|
%
|
|
163,842
|
|
|
100
|
%
|
Total
|
|
326,351
|
|
|
100
|
%
|
|
243,452
|
|
|
100
|
%
|
|
612,617
|
|
|
100
|
%
|
|
483,055
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Services
|
|
54,651
|
|
|
28
|
%
|
|
41,137
|
|
|
26
|
%
|
|
99,910
|
|
|
27
|
%
|
|
77,136
|
|
|
24
|
%
|
Human Services
|
|
42,793
|
|
|
33
|
%
|
|
23,629
|
|
|
29
|
%
|
|
74,064
|
|
|
31
|
%
|
|
47,477
|
|
|
29
|
%
|
Total
|
|
97,444
|
|
|
30
|
%
|
|
64,766
|
|
|
27
|
%
|
|
173,974
|
|
|
28
|
%
|
|
124,613
|
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Services
|
|
25,742
|
|
|
13
|
%
|
|
22,935
|
|
|
14
|
%
|
|
50,375
|
|
|
13
|
%
|
|
42,151
|
|
|
13
|
%
|
Human Services
|
|
21,334
|
|
|
17
|
%
|
|
15,024
|
|
|
18
|
%
|
|
38,923
|
|
|
16
|
%
|
|
28,564
|
|
|
17
|
%
|
Corporate/Other
|
|
(383
|
)
|
|
NM
|
|
|
—
|
|
|
NM
|
|
|
(383
|
)
|
|
NM
|
|
|
—
|
|
|
NM
|
|
Total
|
|
46,693
|
|
|
14
|
%
|
|
37,959
|
|
|
16
|
%
|
|
88,915
|
|
|
15
|
%
|
|
70,715
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Services
|
|
28,909
|
|
|
15
|
%
|
|
18,202
|
|
|
11
|
%
|
|
49,535
|
|
|
13
|
%
|
|
34,985
|
|
|
11
|
%
|
Human Services
|
|
21,459
|
|
|
17
|
%
|
|
8,605
|
|
|
10
|
%
|
|
35,141
|
|
|
15
|
%
|
|
18,913
|
|
|
12
|
%
|
Corporate/Other
|
|
383
|
|
|
NM
|
|
|
—
|
|
|
NM
|
|
|
383
|
|
|
NM
|
|
|
—
|
|
|
NM
|
|
Subtotal:
Segment Operating Income
|
|
50,751
|
|
|
16
|
%
|
|
26,807
|
|
|
11
|
%
|
|
85,059
|
|
|
14
|
%
|
|
53,898
|
|
|
11
|
%
|
Acquisition-related expenses
|
|
16
|
|
|
NM
|
|
|
233
|
|
|
NM
|
|
|
164
|
|
|
NM
|
|
|
233
|
|
|
NM
|
|
Legal and settlement expenses/(recoveries), net
|
|
—
|
|
|
NM
|
|
|
(824
|
)
|
|
NM
|
|
|
142
|
|
|
NM
|
|
|
(638
|
)
|
|
NM
|
|
Total
|
|
$
|
50,735
|
|
|
16
|
%
|
|
$
|
27,398
|
|
|
11
|
%
|
|
$
|
84,753
|
|
|
14
|
%
|
|
$
|
54,303
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Percentage of respective segment revenue. Changes not considered
meaningful are marked “NM.”
|
|
|
|
|
MAXIMUS, Inc.
|
Non-GAAP Measures
|
|
ADJUSTED REVENUE AND OPERATING INCOME
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
Three Months
|
|
|
Six Months
|
|
|
|
Ended March 31,
|
|
|
Ended March 31,
|
|
|
|
2013
|
|
|
2013
|
|
|
|
|
|
|
|
|
Total company revenue
|
|
$
|
326,351
|
|
|
$
|
612,617
|
|
Revenue from terminated contract
|
|
16,035
|
|
|
16,035
|
|
Total company revenue excluding terminated contract
|
|
$
|
310,316
|
|
|
$
|
596,582
|
|
|
|
|
|
|
|
|
|
|
Total company operating income
|
|
$
|
50,735
|
|
|
$
|
84,753
|
|
Operating income from terminated contract
|
|
|
10,900
|
|
|
|
10,900
|
|
Total company operating income, excluding terminated contract
|
|
$
|
39,835
|
|
|
$
|
73,853
|
|
|
|
|
|
|
|
|
|
|
Total company operating margin, excluding terminated contract
|
|
|
12.8
|
%
|
|
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Six Months
|
|
|
|
Ended March 31,
|
|
|
Ended March 31,
|
|
|
|
2013
|
|
|
2013
|
|
|
|
|
|
|
|
|
Human Services revenue
|
|
$
|
128,403
|
|
|
$
|
238,671
|
|
Revenue from terminated contract
|
|
16,035
|
|
|
16,035
|
|
Human Services revenue, excluding terminated contract
|
|
$
|
112,368
|
|
|
$
|
222,636
|
|
|
|
|
|
|
|
|
|
|
Human Services operating income
|
|
$
|
21,459
|
|
|
$
|
35,141
|
|
Operating income from terminated contract
|
|
|
10,900
|
|
|
|
10,900
|
|
Human Services operating income, excluding terminated contract
|
|
$
|
10,559
|
|
|
$
|
24,241
|
|
|
|
|
|
|
|
|
|
|
Human Services operating margin, excluding terminated contract
|
|
|
9.4
|
%
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
MAXIMUS, Inc.
|
ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS
|
FY 2013 and FY 2012
|
(Unaudited)
|
|
|
Quarter Ended
|
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|
|
|
|
|
|
2012
|
|
2013
|
|
|
|
|
|
|
Diluted EPS from continuing operations-GAAP basis
|
$0.62
|
|
$0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Legal, settlement and acquisition-related expenses
|
0.01
|
|
–
|
|
|
|
|
|
|
Adjustment for terminated contract
|
–
|
|
(0.19)
|
|
|
|
|
|
|
Subtotal pro forma adjustments
|
0.01
|
|
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted EPS from continuing operations
|
$0.63
|
|
$0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Year Ended
|
|
Dec. 31,
|
|
Mar. 31,
|
|
Jun. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
2011
|
|
2012
|
|
2012
|
|
2012
|
|
2012
|
Diluted EPS from continuing operations-GAAP basis
|
$0.51
|
|
$0.41
|
|
$0.59
|
|
$0.68
|
|
$2.19
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Legal, settlement and acquisition-related expenses (recovery), net
|
–
|
|
(0.01)
|
|
0.03
|
|
0.03
|
|
0.05
|
Adjustment for tax accounts
|
–
|
|
0.09
|
|
–
|
|
0.03
|
|
0.12
|
Subtotal pro forma adjustments
|
–
|
|
0.08
|
|
0.03
|
|
0.06
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS from continuing operations
|
$0.51
|
|
$0.49
|
|
$0.62
|
|
$0.74
|
|
$2.36
|
|
|
|
|
|
|
|
|
|
|
|
MAXIMUS, Inc.
|
FREE CASH FLOW
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
Three Months
|
|
|
Six Months
|
|
|
|
Ended March 31,
|
|
|
Ended March 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Cash provided by operating activities – continuing operations
|
|
$
|
29,375
|
|
|
$
|
41,482
|
|
|
$
|
39,494
|
|
|
$
|
69,038
|
|
Purchases of property and equipment
|
|
|
(6,264
|
)
|
|
|
(4,022
|
)
|
|
|
(13,351
|
)
|
|
|
(6,576
|
)
|
Capitalized software costs
|
|
(4,776
|
)
|
|
(1,112
|
)
|
|
(8,240
|
)
|
|
(1,832
|
)
|
Free cash flow from continuing operations
|
|
$
|
18,335
|
|
|
$
|
36,348
|
|
|
$
|
17,903
|
|
|
$
|
60,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
