News Details

RESTON, Va.--(BUSINESS WIRE)--MAXIMUS (NYSE: MMS), a leading provider of government services worldwide, today reported financial results for the three months and year ended September 30, 2015.

Highlights for the fourth quarter and full fiscal year 2015 include:

• Fourth quarter revenue growth of 33% to $578.7 million and GAAP diluted earnings per share of $0.53
• Fiscal year 2015 revenue growth of 23% to $2.1 billion, GAAP diluted earnings per share of $2.35 and adjusted diluted earnings per share of $2.39
• Cash and cash equivalents that totaled $74.7 million at September 30, 2015
• Record signed year-to-date contract awards of $3.4 billion, new contracts pending of $149.4 million, and a sales pipeline of $3.2 billion at September 30, 2015

As previously disclosed in an 8-K filing on November 6, 2015, the Company is now reporting information for three segments. All historical segment data in this press release have been reclassified for comparison purposes.

For the fourth quarter of fiscal 2015, revenue increased 33% (38% on a constant currency basis) to $578.7 million, compared to $435.4 million reported for the same period last year. The increase in revenue was driven by organic growth and the acquisitions of Acentia and Remploy. This was offset by a 5% decline related to unfavorable foreign currency translation. For the fourth quarter of fiscal 2015, net income attributable to MAXIMUS totaled $35.4 million, or $0.53 per diluted share. This compares to diluted earnings per share of $0.53 for the fourth quarter of 2014.

Revenue for fiscal year 2015 increased 23% (27% on a constant currency basis) to $2.1 billion, compared to $1.7 billion reported for fiscal 2014. The increase in revenue was driven by organic growth primarily in the Health Services Segment and the U.S. Federal Services Segment, as well as revenue from the acquisitions of Acentia and Remploy. This was offset by a 4% decline from unfavorable foreign currency translation. For fiscal year 2015, net income attributable to MAXIMUS totaled $157.8 million, or $2.35 earnings per diluted share, which included approximately $0.04 per diluted share of acquisition-related expenses. Excluding the acquisition-related expenses, adjusted diluted earnings per share for fiscal year 2015 were $2.39. This compares to GAAP diluted earnings per share of $2.11 for fiscal year 2014.

Health Services Segment

Health Segment revenue for the fourth quarter of fiscal 2015 increased 29% (32% on a constant currency basis) to $296.2 million, compared to $230.5 million reported for the same period last year. Operating income for the fourth quarter of fiscal 2015 totaled $30.5 million (10.3% operating margin), compared to $31.2 million (13.5% operating margin) for the same period last year.

For the full fiscal year, Health Segment revenue increased 22% (25% on a constant currency basis) to $1.1 billion, compared to $906.7 million for the same period last year. All growth was organic. Fiscal 2015 operating income totaled $154.3 million (13.9% operating margin), compared to operating income of $115.6 million (12.7% operating margin) for fiscal 2014.

The increases in revenue for the fourth quarter and the full fiscal year 2015 were driven by new work and the expansion of existing contracts. Operating margins for the fourth quarter and full fiscal year 2015 were tempered by new programs in start-up, most notably the U.K. Health Assessment Advisory Service contract, which is not performing to the Company’s previous expectations.

U.S. Federal Services Segment

U.S. Federal Segment revenue for the fourth quarter of fiscal 2015 increased 70% to $154.3 million, compared to $90.6 million reported for the same period last year. Operating income for the fourth quarter totaled $20.9 million (13.5% operating margin), compared to $12.2 million (13.5% operating margin) for the same period last year.

For the full fiscal year, U.S. Federal Segment revenue increased 47% to $502.5 million, compared to $341.8 million for the same period last year. For fiscal 2015 operating income totaled $59.4 million (11.8% operating margin), compared to operating income of $63.1 million (18.5% operating margin) for fiscal 2014.

Revenue growth for the fourth quarter and full year were driven by new organic growth and the Acentia acquisition. Operating margins were unfavorably impacted by the expected decline in Medicare appeals volumes, which were highly accretive. Offsetting this, the Department of Education debt management contract steadily improved throughout the year and remains on track to achieve breakeven in fiscal 2016. As a result, this helped the year-over-year comparisons in the fourth quarter of fiscal 2015.

Human Services Segment

Human Services Segment revenue for the fourth quarter of fiscal 2015 increased 12% (23% on a constant currency basis) to $128.2 million, compared to $114.4 million for the same period last year. Operating income for the fourth quarter totaled $13.4 million (10.4% operating margin), compared to $9.9 million (8.7% operating margin) for the same period last year.

For the full fiscal year, Human Services Segment revenue increased 8% (16% on a constant currency basis) to $488.1 million, compared to $452.4 million for the same period last year. For fiscal 2015, Human Services Segment operating income totaled $60.2 million (12.3% operating margin), compared to operating income of $53.2 million (11.7% operating margin) for fiscal 2014.

The increase in revenue for the fourth quarter and the full fiscal year was driven by organic growth and revenue from the Remploy acquisition, but was offset by unfavorable foreign currency translation. Operating margins for the quarter and the full year benefitted from strong delivery across North America, the United Kingdom and Saudi Arabia, which was offset by the expected start-up losses on the Australian jobactive contract that launched on July 1, 2015.

Backlog, Sales and Pipeline

Backlog was $4.6 billion at September 30, 2015. Year-to-date signed contract awards at September 30, 2015 totaled $3.4 billion. New contracts pending (awarded but unsigned) totaled $149.4 million.

The sales pipeline at September 30, 2015 was $3.2 billion (consisting of approximately $771 million in proposals pending, $38 million in proposals in preparation, and $2.4 billion in opportunities tracking). Included in the $3.2 billion sales pipeline is the anticipated rebid for the U.K. Work Programme. This rebid is not expected to be awarded until fiscal year 2017, but the lengthy rebid process is expected to begin in the spring of 2016. The Company’s reported pipeline only reflects those opportunities where MAXIMUS expects that the request for proposal will be released within the next six months. This compares to a pipeline of $3.5 billion for the same period last year, which included $1.2 billion in rebids.

Balance Sheet and Cash Flows

Cash and cash equivalents at September 30, 2015 totaled $74.7 million. For the fourth quarter of fiscal 2015, cash provided by operating activities totaled $25.2 million, with negative free cash flow of $6.7 million. For the full fiscal year 2015, cash provided by operating activities totaled $206.2 million, with free cash flow of $101.1 million.

At September 30, 2015, Days Sales Outstanding (DSOs) were within the Company’s expected range at 67 days, compared to 64 days for the prior quarter.

On August 31, 2015, MAXIMUS paid a quarterly cash dividend of $0.045 per share. On October 8, 2015, the Company announced a $0.045 per share cash dividend, payable on November 30, 2015 to shareholders of record on November 13, 2015.

During the fourth quarter of fiscal 2015, MAXIMUS repurchased approximately 865,000 shares of the Company’s common stock for $52.2 million (a weighted average price of $60.20). For the full fiscal year, MAXIMUS repurchased approximately 1.6 million shares for $82.8 million (a weighted average price of $51.11). Subsequent to September 30, 2015, the Company repurchased approximately 103,000 additional shares of stock for $6.1 million (a weighted average price of $59.41). The Company currently has an estimated $162.5 million available for repurchases under its Board-authorized share repurchase program.

Outlook

MAXIMUS is establishing formal fiscal year 2016 guidance. The Company still expects revenue to range between $2.4 billion and $2.5 billion for fiscal 2016. The Company is updating its preliminary fiscal year 2016 GAAP diluted earnings per share guidance and now expects GAAP diluted EPS to range between $2.40 and $2.70. The lowered earnings outlook is attributable to a slower ramp and hence a reduced contribution from the U.K. Health Assessment Advisory Service contract. This guidance does not include any acquisitions or significant legal expenses or recoveries. The Company estimates that approximately 93% of its fiscal 2016 forecasted revenue is in the form of backlog or option periods.

“There were many positive developments for the Company over the past year. We secured new work and expanded existing contracts across all three of our segments. With the acquisitions of Acentia and Remploy, we introduced new growth platforms that strengthen our position for future opportunities in key markets. We also successfully launched operations under the Australian jobactive contract, a key rebid that included an increase in our market share,” commented MAXIMUS CEO Richard A. Montoni.

Montoni continued, “While the slower-than-expected ramp-up of the U.K. Health Assessment Advisory Service contract resulted in a reduced earnings outlook for fiscal year 2016, we remain confident that we will bring about the necessary changes to put this start-up contract on a path to success, as we have done with many large start-up contracts in the past. This is a single contract in our global portfolio and the overall macro demand trends for our services remain very favorable.”

Website Presentation, Conference Call and Webcast Information

MAXIMUS will host a conference call this morning, November 12, 2015, 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 http://investor.maximus.com or by calling:

877.407.8289 (Domestic)/+1.201.689.8341 (International)

For those unable to listen to the live call, a replay will be available through November 25, 2015 by calling:

877.660.6853 (Domestic)/+1.201.612.7415 (International)
Replay conference ID number: 13623294

About MAXIMUS

Since 1975, MAXIMUS has operated under its founding mission of Helping Government Serve the People^®, enabling citizens around the globe to successfully engage with their governments at all levels and across a variety of health and human services programs. MAXIMUS delivers innovative business process management and technology solutions that contribute to improved outcomes for citizens and higher levels of productivity, accuracy, accountability and efficiency of government-sponsored programs. With more than 16,000 employees worldwide, MAXIMUS is a proud partner to government agencies in the United States, Australia, Canada, New Zealand, Saudi Arabia and the United Kingdom. For more information, visit maximus.com.

Non-GAAP Measures

This release refers to non-GAAP financial measures, including adjusted diluted earnings per share, free cash flow, constant currency and days sales outstanding.

We have provided a reconciliation to adjusted diluted earnings per share. We believe that this measure is a useful basis for assessing the Company’s performance excluding the effect of acquisition expenses.

We have provided a reconciliation of free cash flow to cash provided by operating activities. We believe that free cash flow is a useful basis for investors to compare our performance across periods or against our competitors. Free cash flow shows the effects of the Company’s operations and routine capital expenditure and excludes the cash flow effects of acquisitions, share repurchases, dividend payments and other financing transactions.

To provide constant currency information, we calculate fiscal year 2015 revenue for all international businesses using the exchange rates used in the comparative period in fiscal year 2014. We believe constant currency provides a useful basis for assessing the performance of the business excluding the unpredictable effects of foreign exchange fluctuations.

Days sales outstanding, or DSO, is a measure of how efficiently we manage the billing and collection of our receivable balances. We calculate DSO by dividing billed and unbilled receivable balances at the end of each quarter by revenue per day for the period. Revenue per day for a quarter is determined by dividing total revenue by 91 days.

The presentation of these non-GAAP numbers is not meant to be considered in isolation, nor as alternatives to cash flows from operating activities, revenue growth or net income as measures of performance. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures presented by other companies.

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 maximus.com.

MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
		Three Months Ended September 30,							Year Ended September 30,
		2015			2014				2015			2014
Revenue		$	578,683		$	435,406			$	2,099,821		$	1,700,912
Cost of revenue			453,376			322,474				1,587,104			1,248,789
Gross profit			125,307			112,932				512,717			452,123
Selling, general and administrative expenses			60,442			59,597				238,792			220,925
Amortization of intangible assets			3,166			1,527				9,348			5,890
Acquisition-related expenses			172			—				4,745			—
Operating income			61,527			51,808				259,832			225,308
Interest expense			709			—				1,398			—
Other income, net			257			758				1,385			2,061
Income before income taxes			61,075			52,566				259,819			227,369
Provision for income taxes			24,663			16,414				99,770			81,973
Net income			36,412			36,152				160,049			145,396
Income/(loss) attributable to non-controlling interests			975			(84	)			2,277			(44	)
Net income attributable to MAXIMUS		$	35,437		$	36,236			$	157,772		$	145,440
Basic earnings per share		$	0.53		$	0.54			$	2.37		$	2.15
Diluted earnings per share		$	0.53		$	0.53			$	2.35		$	2.11
Dividends per share		$	0.045		$	0.045			$	0.18		$	0.18
Weighted average shares outstanding:
Basic			66,466			66,784				66,682			67,680
Diluted			67,133			68,233				67,275			69,087

MAXIMUS, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
		September 30,
		2015			2014
ASSETS		(Unaudited)
Current assets:
Cash and cash equivalents		$	74,672		$	158,112
Accounts receivable—billed and billable, net			396,177			263,011
Accounts receivable—unbilled			30,929			26,556
Deferred income taxes			18,992			28,108
Prepaid expenses and other current assets			60,129			56,673
Total current assets			580,899			532,460
Property and equipment, net			137,830			80,246
Capitalized software, net			32,483			39,734
Goodwill			376,302			170,626
Intangible assets, net			102,358			39,239
Deferred contract costs, net			19,126			12,046
Deferred compensation plan assets			19,310			17,126
Other assets			11,863			9,519
Total assets		$	1,280,171		$	900,996
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	155,411		$	103,181
Accrued compensation and benefits			99,700			94,137
Deferred revenue			77,642			55,878
Income taxes payable			11,709			4,693
Long-term debt, current portion			356			157
Other liabilities			11,562			7,275
Total current liabilities			356,380			265,321
Deferred revenue, less current portion			52,954			32,257
Deferred income taxes			15,159			21,383
Long-term debt			210,618			1,060
Deferred compensation plan liabilities, less current portion			20,635			18,768
Other liabilities			8,726			6,022
Total liabilities			664,472			344,811
Total equity			615,699			556,185
Total liabilities and equity		$	1,280,171		$	900,996

MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands; Unaudited)
		Three Months Ended September 30,								Year Ended September 30,
		2015				2014				2015				2014
Cash flows from operating activities:
Net income		$	36,412			$	36,152			$	160,049			$	145,396
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, plant, equipment and capitalized software			9,232				10,844				46,849				42,778
Amortization of intangible assets			3,166				1,527				9,348				5,890
Deferred income taxes			9,728				3,475				807				2,898
Stock compensation expense			4,452				4,469				17,237				17,278
Changes in assets and liabilities, net of effects of business combinations and divestitures:
Accounts receivable — billed			(22,344	)			1,218				(103,774	)			(144	)
Accounts receivable — unbilled			(3,120	)			(1,224	)			(911	)			2,056
Prepaid expenses and other current assets			(2,979	)			(1,197	)			(6,475	)			(2,540	)
Deferred contract costs			145				1,698				(7,245	)			2,254
Accounts payable			(713	)			2,758				44,351				(2,928	)
Accrued compensation and benefits			1,389				9,767				(3,157	)			12,277
Deferred revenue			15,524				2,753				47,948				2,841
Income taxes			(28,342	)			(17,136	)			9,134				(10,974	)
Other assets and liabilities			2,687				(6,654	)			(7,944	)			(3,482	)
Cash provided by operating activities			25,237				48,450				206,217				213,600
Cash flows from investing activities:
Acquisition of business, net of cash acquired			400				—				(289,212	)			(2,670	)
Purchases of property and equipment			(30,751	)			(17,873	)			(98,994	)			(36,262	)
Capitalized software costs			(1,231	)			(1,709	)			(6,155	)			(10,886	)
Proceeds from note receivable			83				79				489				429
Cash used in investing activities			(31,499	)			(19,503	)			(393,872	)			(49,389	)
Cash flows from financing activities:
Cash dividends paid			(2,961	)			(3,006	)			(11,927	)			(12,187	)
Repurchases of common stock			(50,171	)			(51,787	)			(82,787	)			(111,141	)
Stock compensation tax benefit			10,682				6,740				9,474				9,665
Tax withholding related to RSU vesting			—				—				(12,451	)			(14,681	)
Stock option exercises			347				217				868				1,362
Issuance of debt			75,000				—				330,993				15,000
Repayment of debt			(31,499	)			(40	)			(121,611	)			(15,162	)
Expansion of credit facility			—				—				(1,444	)			—
Cash provided by/(used in) financing activities			1,398				(47,876	)			111,115				(127,144	)
Effect of exchange rate changes on cash and cash equivalents			(2,341	)			(5,901	)			(6,900	)			(4,572	)
Net increase/(decrease) in cash and cash equivalents			(7,205	)			(24,830	)			(83,440	)			32,495
Cash and cash equivalents, beginning of period			81,877				182,942				158,112				125,617
Cash and cash equivalents, end of period		$	74,672			$	158,112			$	74,672			$	158,112

MAXIMUS, Inc.
SEGMENT INFORMATION 2015
(Amounts in thousands)
(Unaudited)
		Quarter Ended																												Year Ended
		Dec. 31,				% (1)			Mar. 31,				% (1)			Jun. 30,				% (1)			Sept. 30,				% (1)			Sept. 30, 2015				% (1)
		2014							2015							2015							2015
Health Services		$	243,570						$	270,918						$	298,549						$	296,201						$	1,109,238
U.S. Federal Services			107,729							99,465							141,011							154,279							502,484
Human Services			115,744							111,411							132,741							128,203							488,099
Revenue			467,043							481,794							572,301							578,683							2,099,821
Health Services			183,723							201,045							228,736							241,626							855,130
U.S. Federal Services			82,161							77,451							106,231							117,995							383,838
Human Services			81,892							78,953							93,536							93,755							348,136
Cost of revenue			347,776							357,449							428,503							453,376							1,587,104
Health Services			59,847			24.6	%			69,873			25.8	%			69,813			23.4	%			54,575			18.4	%			254,108			22.9	%
U.S. Federal Services			25,568			23.7	%			22,014			22.1	%			34,780			24.7	%			36,284			23.5	%			118,646			23.6	%
Human Services			33,852			29.2	%			32,458			29.1	%			39,205			29.5	%			34,448			26.9	%			139,963			28.7	%
Gross profit			119,267			25.5	%			124,345			25.8	%			143,798			25.1	%			125,307			21.7	%			512,717			24.4	%
Health Services			22,007			9.0	%			28,397			10.5	%			25,343			8.5	%			24,068			8.1	%			99,815			9.0	%
U.S. Federal Services			12,250			11.4	%			12,377			12.4	%			19,244			13.6	%			15,381			10.0	%			59,252			11.8	%
Human Services			17,699			15.3	%			18,523			16.6	%			22,402			16.9	%			21,095			16.5	%			79,719			16.3	%
Other / Corporate			5							95							8							(102	)						6
SG&A			51,961			11.1	%			59,392			12.3	%			66,997			11.7	%			60,442			10.4	%			238,792			11.4	%
Health Services			37,840			15.5	%			41,476			15.3	%			44,470			14.9	%			30,507			10.3	%			154,293			13.9	%
U.S. Federal Services			13,318			12.4	%			9,637			9.7	%			15,536			11.0	%			20,903			13.5	%			59,394			11.8	%
Human Services			16,153			14.0	%			13,935			12.5	%			16,803			12.7	%			13,353			10.4	%			60,244			12.3	%
Other / Corporate			(5	)						(95	)						(8	)						102							(6	)
Amortization of intangible assets			(1,475	)						(1,432	)						(3,275	)						(3,166	)						(9,348	)
Acquisition-related expenses			(600	)						(1,514	)						(2,459	)						(172	)						(4,745	)
Total operating income		$	65,231			14.0	%		$	62,007			12.9	%		$	71,067			12.4	%		$	61,527			10.6	%		$	259,832			12.4	%

(1)		Percentage of respective segment revenue.

MAXIMUS, Inc.
SEGMENT INFORMATION 2014
(Amounts in thousands)
(Unaudited)
		Quarter Ended																												Year Ended
		Dec. 31,				% (1)			Mar. 31,				% (1)			Jun. 30,				% (1)			Sept. 30,				% (1)			Sept. 30, 2014				% (1)
		2013							2014							2014							2014
Health Services		$	216,544						$	230,953						$	228,703						$	230,450						$	906,650
U.S. Federal Services			82,040							92,645							76,550							90,605							341,840
Human Services			108,008							115,417							114,646							114,351							452,422
Revenue			406,592							439,015							419,899							435,406							1,700,912
Health Services			168,350							179,337							173,803							171,432							692,922
U.S. Federal Services			53,728							59,393							51,918							66,008							231,047
Human Services			78,598							79,613							81,575							85,034							324,820
Cost of revenue			300,676							318,343							307,296							322,474							1,248,789
Health Services			48,194			22.3	%			51,616			22.3	%			54,900			24.0	%			59,018			25.6	%			213,728			23.6	%
U.S. Federal Services			28,312			34.5	%			33,252			35.9	%			24,632			32.2	%			24,597			27.1	%			110,793			32.4	%
Human Services			29,410			27.2	%			35,804			31.0	%			33,071			28.8	%			29,317			25.6	%			127,602			28.2	%
Gross profit			105,916			26.0	%			120,672			27.5	%			112,603			26.8	%			112,932			25.9	%			452,123			26.6	%
Health Services			22,650			10.5	%			21,907			9.5	%			25,747			11.3	%			27,868			12.1	%			98,172			10.8	%
U.S. Federal Services			11,525			14.0	%			13,226			14.3	%			10,586			13.8	%			12,358			13.6	%			47,695			14.0	%
Human Services			17,074			15.8	%			18,528			16.1	%			19,470			17.0	%			19,372			16.9	%			74,444			16.5	%
Other / Corporate			17							563							35							(1	)						614
SG&A			51,266			12.6	%			54,224			12.4	%			55,838			13.3	%			59,597			13.7	%			220,925			13.0	%
Health Services			25,544			11.8	%			29,709			12.9	%			29,153			12.7	%			31,150			13.5	%			115,556			12.7	%
U.S. Federal Services			16,787			20.5	%			20,026			21.6	%			14,046			18.3	%			12,239			13.5	%			63,098			18.5	%
Human Services			12,336			11.4	%			17,276			15.0	%			13,601			11.9	%			9,945			8.7	%			53,158			11.7	%
Other / Corporate			(17	)						(563	)						(35	)						1							(614	)
Amortization of intangible assets			(1,353	)						(1,468	)						(1,542	)						(1,527	)						(5,890	)
Total operating income		$	53,297			13.1	%		$	64,980			14.8	%		$	55,223			13.2	%		$	51,808			11.9	%		$	225,308			13.2	%

(1)		Percentage of respective segment revenue.

MAXIMUS, Inc.
Non-GAAP Measures
ADJUSTED DILUTED EPS
FY 2015
(Unaudited)
		Quarter Ended												Year Ended
		Dec. 31, 2014			Mar. 31, 2015			Jun. 30, 2015			Sept. 30, 2015			Sept. 30, 2015
Diluted EPS - GAAP basis		$	0.63		$	0.58		$	0.62		$	0.53		$	2.35
Acquisition-related expenses			–			0.02			0.02			–			0.04
Adjusted Diluted EPS		$	0.63		$	0.60		$	0.64		$	0.53		$	2.39

ADJUSTED DILUTED EPS
FY 2014
(Unaudited)
		Quarter Ended												Year Ended
		Dec. 31, 2013			Mar. 31, 2014			Jun. 30, 2014			Sept. 30, 2014			Sept. 30, 2014
Diluted EPS - GAAP basis		$	0.49		$	0.59		$	0.49		$	0.53		$	2.11
Acquisition-related expenses			–			–			–			–			–
Adjusted Diluted EPS		$	0.49		$	0.59		$	0.49		$	0.53		$	2.11

FREE CASH FLOW
(Dollars in thousands; Unaudited)
		Three Months Ended September 30,								Year Ended September 30,
		2015				2014				2015				2014
Cash provided by operating activities		$	25,237			$	48,450			$	206,217			$	213,600
Purchases of property and equipment			(30,751	)			(17,873	)			(98,994	)			(36,262	)
Capitalized software costs			(1,231	)			(1,709	)			(6,155	)			(10,886	)
Free cash flow		$	(6,745	)		$	28,868			$	101,068			$	166,452