Exhibit 99.1

MAXIMUS Reports Fiscal 2011 Second Quarter Results

- Company Delivers Record Revenue and Increases Fiscal 2011 Guidance -

RESTON, Va.--(BUSINESS WIRE)--May 5, 2011--MAXIMUS (NYSE: MMS), a leading provider of government services worldwide, today reported financial results for its fiscal second quarter ended March 31, 2011.

Key highlights include:

Revenue for the fiscal 2011 second quarter increased 11% (8% on a constant currency basis) to $227.1 million compared to $204.4 million reported for the same period last year. Income from continuing operations, net of taxes, increased to $19.0 million for the second quarter compared to $18.0 million last year (which included a pre-tax benefit of $6.0 million, or $0.21 per diluted share, related to a net legal recovery and is reflected in the supplemental pro forma table included on the last page of the financial tables). For the second quarter, diluted earnings per share from continuing operations increased 39% to $1.07 compared to adjusted diluted EPS of $0.77 for the same period last year.

Second quarter revenue and profit growth were driven by business expansion, as well as strong operational performance in both segments and across all geographies, which resulted in an operating margin of 13.0%.

“We generated very strong results for the period and made measurable progress on several key initiatives, including the expansion of our global operations and the growth of our domestic health care business,” commented Richard A. Montoni, Chief Executive Officer of MAXIMUS. “In April, we were notified of award for three new welfare-to-work contracts in the United Kingdom. These awards offer attractive economics that we can build upon to grow our presence in the U.K. and, longer-term, into other geographies. On the domestic front, we are benefiting from increased demand as states transition Medicaid and CHIP program participants into more cost-effective managed care programs and seek to comply with regulations as part of federal health care reform.”

Health Services Segment

Health Services Segment revenue for the second quarter of fiscal 2011 increased 8% to $137.8 million compared to $127.3 million in the same period last year. The year-over-year increase was driven primarily by organic growth and a spike in accretive transaction-based revenue, which resulted in an operating margin of 14%. Operating income for the second quarter increased 52% to $19.4 million compared to $12.7 million for the same period last year.


Human Services Segment

Human Services Segment revenue for the fiscal 2011 second quarter increased 16% (10% on a constant currency basis) to $89.3 million compared to $77.1 million in the prior-year period. Revenue growth was driven by the Company’s international welfare-to-work business in Australia and the United Kingdom. Operating income for the second quarter increased 12% to $10.1 million compared to $9.0 million in the same period last year. Segment operating margin was 11.3% and consistent with the same period last year.

Sales and Pipeline

At May 2, 2011 fiscal year-to-date signed contract wins totaled $904 million compared to $304 million reported last year, and new contracts pending (awarded but unsigned) totaled $526 million compared to $470 million last year. Sales opportunities (pipeline) at May 2, 2011 totaled $1.2 billion (consisting of $122 million in proposals pending, $203 million in proposals in preparation and $900 million in proposals tracking) compared to $1.8 billion the prior year.

Balance Sheet and Cash Flows

Cash and cash equivalents totaled $183.2 million at March 31, 2011. For the fiscal 2011 second quarter, cash provided by operating activities from continuing operations totaled $6.0 million with free cash flow of $0.4 million. The Company defines free cash flow as cash provided by operating activities from continuing operations less property, equipment and capitalized software.

Days Sales Outstanding (DSO) from continuing operations were 61 days. On February 28, 2011, MAXIMUS paid a quarterly cash dividend of $0.15 per share. On April 12, 2011, the Company announced its next quarterly cash dividend of $0.15 per share, payable on May 31, 2011 to shareholders of record as of May 13, 2011.

Share repurchases were not material in the second quarter of fiscal 2011 and at March 31, 2011, the Company had $122.2 million available for repurchases under the current program.

Outlook

The Company is increasing its fiscal 2011 revenue and earnings guidance on the strength of its performance in the first half of fiscal 2011. MAXIMUS now expects revenue from continuing operations in the range of $910 million to $920 million and diluted earnings per share from continuing operations in the range of $4.10 to $4.25. The Company expects operating margin for the full year to range between 12.5% and 13.0%.

Mr. Montoni concluded, “Our recent wins in the U.K. meet our sound criteria for scope and profitability and are expected to yield an operating margin in excess of 15% over the life of the contracts. Revenue from these contracts is expected to ramp-up over a two-year period. As a result, the contracts are expected to generate significant start-up losses in the range of $9 million to $11 million, pre-tax, for fiscal 2012, but are expected to approach break-even profitability in the fourth quarter of fiscal 2012. Even considering the start up effects of the U.K. contracts in fiscal 2012, the overall dynamics in our portfolio today set the stage for continued top-line and bottom-line growth in fiscal 2012 and beyond.”

Website Presentation, Conference Call and Webcast Information

MAXIMUS will host a conference call this morning, May 5, 2011, 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 12, 2011. Callers can access the replay by calling:

877.660.6853 (Domestic)/201.612.7415 (International)
Replay account number: 316
Replay conference ID number: 371369

About MAXIMUS

MAXIMUS is a leading provider of government services worldwide and is devoted to providing health and human services program management and consulting services to its clients. The Company has more than 6,500 employees located in more than 220 offices in the United States, Canada, Australia, and the United Kingdom. Additionally, MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index.

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 Quarterly Report filed with the Securities and Exchange Commission, found on www.maximus.com.


   
MAXIMUS, Inc.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
 
March 31, September 30,
2011 2010
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 183,155 $ 155,321
Restricted cash 4,930 4,182
Accounts receivable — billed, net of reserves of $2,961 and $1,845 138,153 136,260
Accounts receivable — unbilled 15,228 17,245
Income taxes receivable 14,919 4,149
Deferred income taxes 16,074 13,290
Prepaid expenses and other current assets 24,386 25,702
Total current assets 396,845 356,149
 
Property and equipment, at cost 120,694 115,740
Less accumulated depreciation and amortization (71,335 ) (66,867 )
Property and equipment, net 49,359 48,873
Capitalized software 38,418 35,648
Less accumulated amortization (11,438 ) (10,933 )
Capitalized software, net 26,980 24,715
Deferred contract costs, net 7,991 6,708
Goodwill 72,832 71,251
Intangible assets, net 6,963 7,778
Deferred income taxes 453 1,844
Deferred compensation plan assets 9,176 8,317
Other assets, net 2,019 2,106
Total assets $ 572,618 $ 527,741
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 62,206 $ 49,200
Accrued compensation and benefits 36,288 40,807
Deferred revenue 47,112 58,070
Acquisition-related contingent consideration 1,028 923
Income taxes payable 7,835 7,120
Other accrued liabilities 6,817 7,934
Liabilities of discontinued operations 634
Total current liabilities 161,286 164,688
Deferred revenue, less current portion 4,854 4,083
Long-term debt 1,802 1,411
Acquisition-related contingent consideration, less current portion 2,360 2,138
Income taxes payable, less current portion 1,851 1,793
Deferred income tax liability 7,332 4,946
Deferred compensation plan liabilities 10,543 9,893
Total liabilities 190,028 188,952
 
Shareholders’ equity:
Common stock, no par value; 60,000,000 shares authorized; 27,776,260 and 27,487,725 shares issued and 17,325,097 and 17,174,141 shares outstanding at March 31, 2011 and September 30, 2010, at stated amount, respectively 367,739 352,696
Treasury stock, at cost; 10,451,163 and 10,313,584 shares at March 31, 2011 and September 30, 2010, respectively (367,822 ) (359,366 )
Accumulated other comprehensive income 20,918 14,530
Retained earnings 361,755 330,929
Total shareholders’ equity 382,590 338,789
Total liabilities and shareholders’ equity $ 572,618 $ 527,741

   
MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
Three Months Six Months
Ended March 31, Ended March 31,
2011   2010 2011   2010
Revenue $ 227,116 $ 204,386 $ 441,230 $ 407,706
Cost of revenue 164,050 153,835 322,205 304,980
Gross profit 63,066 50,551 119,025 102,726
Selling, general and administrative expenses 33,572 28,787 62,239 56,216
Legal and settlement expense (recovery), net (6,037 ) (5,351 )
Operating income from continuing operations 29,494 27,801 56,786 51,861
Interest and other income, net 919 186 1,410 285
Income from continuing operations before income taxes 30,413 27,987 58,196 52,146
Provision for income taxes 11,375 9,996 21,571 19,555
Income from continuing operations 19,038 17,991 36,625 32,591
 
Discontinued operations, net of income taxes:
Income (loss) from discontinued operations (265 ) 752 (265 ) (1,220 )
Loss on disposal (554 ) (659 )
Income (loss) from discontinued operations (819 ) 752 (924 ) (1,220 )
 
Net income $ 18,219 $ 18,743 $ 35,701 $ 31,371
 
Basic earnings (loss) per share:
Income from continuing operations $ 1.11 $ 1.03 $ 2.13 $ 1.86
Income (loss) from discontinued operations (0.05 ) 0.05 (0.05 ) (0.07 )
Basic earnings per share $ 1.06 $ 1.08 $ 2.08 $ 1.79
 
Diluted earnings (loss) per share:
Income from continuing operations $ 1.07 $ 1.00 $ 2.06 $ 1.81
Income (loss) from discontinued operations (0.05 ) 0.04 (0.05 ) (0.07 )
Diluted earnings per share $ 1.02 $ 1.04 $ 2.01 $ 1.74
 
Dividends paid per share $ 0.15 $ 0.12 $ 0.27 $ 0.24
 
Weighted average shares outstanding:
Basic 17,211 17,408 17,196 17,503
Diluted 17,787 17,980 17,750 18,012

   
MAXIMUS, Inc,
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands, except per share data)
(Unaudited)
 
Three Months Six Months
Ended March 31, Ended March 31,
2011   2010 2011     2010
Cash flows from operating activities:
Net income $ 18,219 $ 18,743 $ 35,701 $ 31,371
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations 819 (752 ) 924 1,220
Depreciation and amortization 5,551 4,478 10,783 9,018
Deferred income taxes 156 8,337 1,146 (155 )
Deferred interest income on note receivable 118 179
Non-cash equity based compensation 2,438 2,088 4,495 3,953
Change in assets and liabilities:
Accounts receivable — billed (23,741 ) (4,572 ) (1,596 ) 4,777
Accounts receivable — unbilled 3,575 (2,103 ) 2,021 (4,430 )
Prepaid expenses and other current assets 628 (1,456 ) 1,669 (414 )
Deferred contract costs (649 ) 487 (1,229 ) 966
Other assets 38 (253 ) (1,246 ) (287 )
Accounts payable 8,339 1,219 12,287 1,806
Accrued compensation and benefits 4,986 4,952 (6,567 ) 2,917
Deferred revenue (6,026 ) 992 (11,296 ) 14,126
Income taxes (6,864 ) (11,099 ) (10,334 ) 3,768
Other liabilities (1,464 ) 694 (372 ) 1,945
Cash provided by continuing operations 6,005 21,873 36,386 70,760
Cash used in discontinued operations (212 ) (7,139 ) (951 ) (1,005 )
Cash provided by operating activities 5,793 14,734 35,435 69,755
 
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired (10,673 ) (10,673 )
Purchases of property and equipment (4,057 ) (2,093 ) (6,464 ) (6,031 )
Capitalized software costs (1,574 ) (1,684 ) (3,872 ) (4,325 )
Proceeds from note receivable 173 390
Cash used in investing activities — continuing ops (5,631 ) (14,277 ) (10,336 ) (20,639 )
 
Cash flows from financing activities:
Employee stock transactions 3,684 611 8,013 1,615
Repurchases of common stock (89 ) (5,850 ) (8,459 ) (14,511 )
Tax benefit due to option exercises and restricted stock units vesting 2,787 975 3,818 1,110
Issuance (repayment) of long-term debt 300 (7 ) 300 (7 )
Cash dividends paid (2,576 ) (2,083 ) (4,643 ) (4,201 )
Cash used in financing activities — continuing ops 4,106 (6,354 ) (971 ) (15,994 )
 
Effect of exchange rate changes on cash and cash equivalents 1,883 319 3,706 425
 
Net increase in cash and cash equivalents 6,151 (5,578 ) 27,834 33,547
 
Cash and cash equivalents, beginning of period 177,004 126,940 155,321 87,815
 
Cash and cash equivalents, end of period $ 183,155 $ 121,362 $ 183,155 $ 121,362

   
MAXIMUS, Inc.
SEGMENT INFORMATION
(Dollars in thousands)
(Unaudited)
 
Three Months Ended March 31, Six Months Ended March 31,
2011   % (1)   2010   % (1) 2011   % (1)   2010   % (1)
 
Revenue:
Health Services $ 137,779 100 % $ 127,279 100 % $ 267,790 100 % $ 257,919 100 %
Human Services 89,337 100 % 77,107 100 % 173,440 100 % 149,787 100 %
Total 227,116 100 % 204,386 100 % 441,230 100 % 407,706 100 %
 
Gross Profit:
Health services 38,320 28 % 28,932 23 % 72,597 27 % 61,842 24 %
Human Services 24,746 28 % 21,619 28 % 46,428 27 % 40,884 27 %
Total 63,066 28 % 50,551 25 % 119,025 27 % 102,726 25 %
 
Selling, general, and administrative expense:
Health Services 18,968 14 % 16,209 13 % 34,422 13 % 31,611 12 %
Human Services 14,623 16 % 12,582 16 % 27,802 16 % 24,468 16 %
Corporate/Other (19 ) NM (4 ) NM 15 NM 137 NM
Total 33,572 15 % 28,787 14 % 62,239 14 % 56,216 14 %
 
Operating income from continuing operations:
Health services 19,352 14 % 12,723 10 % 38,175 14 % 30,231 12 %
Human Services 10,123 11 % 9,037 12 % 18,626 11 % 16,416 11 %
Corporate/Other 19 NM 4 NM (15 ) NM (137 ) NM
Subtotal: Segment Operating Income 29,494 13 % 21,764 11 % 56,786 13 % 46,510 11 %
Legal and settlement recovery (expense), net NM 6,037 NM NM 5,351 NM
Total $ 29,494 13 % $ 27,801 14 % $ 56,786 13 % $ 51,861 13 %
 
(1) Percentage of respective segment revenue. Changes not considered meaningful are marked “NM.”

 
MAXIMUS, Inc.
Supplemental Pro Forma Diluted EPS from Continuing Operations ("Adjusted EPS")
FY 2010 and Q1/Q2 of 2011
             
Q1 10   Q2 10   Q3 10   Q4 10   Total

FY 10

  Q1 11   Q2 11
Diluted EPS from continuing operations-
GAAP basis $0.81   $1.00     $0.90   $1.16     $3.86     $0.99   $1.07
 
Pro forma adjustments:
Legal and settlement expense (recovery), net 0.02 (0.21 ) - - (0.19 ) - -
Adjustment for taxation rate 0.04   (0.02 )   0.01   (0.08 )   (0.05 )   -   -
Subtotal pro forma adjustments $0.06   ($0.23 )   $0.01   ($0.08 )   ($0.24 )   $0.00   $0.00
                         
Adjusted EPS from continuing operations $0.87   $0.77     $0.91   $1.08     $3.62     $0.99   $1.07

CONTACT:
MAXIMUS
Lisa Miles, 800-MAXIMUS x11637