Exhibit 99.1
 
 
MAXIMUS Reports Fourth Quarter and Full Year Financial Results for Fiscal 2013
 
- Company Reiterates Fiscal 2014 Guidance -
 
RESTON, Va.--(BUSINESS WIRE)--November 15, 2013--MAXIMUS (NYSE: MMS), a leading provider of government services worldwide, today reported financial results for its fourth quarter and fiscal year ended September 30, 2013.
 
Highlights for the fourth quarter and the full fiscal year include:
 
 
●
Fourth quarter revenue grew 28% to $384.3 million; GAAP diluted earnings per share from continuing operations increased 50% to $0.51; and adjusted diluted earnings per share increased 38% to $0.51.
 
 
●
Fiscal 2013 revenue grew 27% to $1.33 billion; GAAP diluted earnings per share from continuing operations increased 54% to $1.68; and adjusted diluted earnings per share from continuing operations increased 36% to $1.60.
 
 
●
Cash and cash equivalents totaled $125.6 million at September 30, 2013.
 
 
●
Signed contract awards reached a record level at $1.9 billion for fiscal 2013 and the sales pipeline remained strong at $2.4 billion at September 30, 2013.
 
For the fourth quarter of fiscal 2013, revenue increased 28% (30% on a constant currency basis) to $384.3 million, compared to revenue of $300.7 million reported for the same period last year, driven by growth in the Health Segment. Organic revenue growth was 23%. Fiscal 2013 fourth quarter income from continuing operations, net of taxes, totaled $35.6 million, or $0.51 per diluted share. This represents a 50% increase compared to $0.34 reported, on a GAAP basis, for the same period last year.
 
Revenue for fiscal year 2013 increased 27% (28% on a constant currency basis) to $1.33 billion compared to $1.05 billion reported for fiscal 2012. Fiscal 2013 included approximately $16.0 million in revenue from a terminated contract that the Company excluded from its fiscal 2013 guidance. Fiscal 2013 revenue grew 19% organically compared to the same period last year. Revenue increases for the fiscal year were driven by new work, the expansion of existing contracts, and the acquisition of PSI and Health Management.
 
For the full fiscal year, income from continuing operations, net of taxes, totaled $117.1 million, or $1.68 per diluted share. This included approximately $0.01 of net legal, settlement and acquisition-related expenses and $0.09 of benefit from a terminated contract that was recorded in the second quarter. Excluding the $0.08 contribution from these items, fiscal 2013 adjusted diluted earnings per share from continuing operations increased 36% to $1.60 compared to adjusted diluted earnings per share from continuing operations of $1.18 reported for fiscal 2012. The year-over-year increase to earnings for the quarter and the year is principally attributable to growth in the Health Segment. A reconciliation to this non-GAAP measure is included in the accompanying financial schedules.
 
 
 
 
 
“We are very pleased with the solid financial results for the fourth quarter and fiscal year. Over the last year, we achieved important milestones under our three long-term growth objectives of securing our fair share of work related to the Affordable Care Act, growing our federal services business, and expanding our international operations,” commented Richard A. Montoni, Chief Executive Officer of MAXIMUS.
 
Health Services Segment
 
Health Services Segment revenue for the fourth quarter of fiscal 2013 increased 49% to $271.0 million compared to the same period last year. The increase was driven by new work, including contracts supporting the Affordable Care Act in the United States, expansion on existing programs, and the Health Management acquisition. Health Services Segment operating income for the fourth quarter of fiscal 2013 increased 130% to $45.9 million (16.9% operating margin) and benefitted from transactional-based volume growth in the Company’s federal Medicare appeals business and in its state health operations. This compares to $20.0 million (11.0% operating margin) for the same period last year.
 
For the full fiscal year, Health Services Segment revenue increased 29% to $862.9 million compared to the same period last year. The increase was driven by new work, including contracts supporting the Affordable Care Act in the United States; expansion on existing programs; and, to a lesser extent, acquisitions. For fiscal 2013, Health Services Segment operating income increased 61% to $129.8 million (15.0% operating margin), compared to $80.6 million (12.0% operating margin) for fiscal 2012. Margin expansion in the year was driven principally by the accretive nature of the higher volumes in the Company’s federal Medicare appeals business.
 
Human Services Segment
 
Human Services Segment revenue for the fourth quarter of fiscal 2013 decreased 5% to $113.3 million compared to the same period last year. Human Services Segment operating income for the fourth quarter of 2013 decreased to $11.9 million (10.5% operating margin) compared to $21.8 million (18.3% operating margin) for the same period last year. The prior-year period included short-term work in the Company’s U.S. operations that bolstered both revenue and profit in the fourth quarter of fiscal 2012.
 
For the full fiscal year, Human Services Segment revenue increased 24% to $468.4 million compared to the same period last year, driven principally by the ongoing ramp-up in the United Kingdom, new work in Saudi Arabia and the PSI acquisition. Fiscal 2013 included $16.0 million in GAAP-basis revenue from a terminated contract that the Company excluded from its fiscal 2013 guidance. For the full fiscal year, Human Services Segment operating income totaled $58.1 million (12.4% operating margin) compared to $49.9 million (13.2% operating margin) for fiscal 2012. Both fiscal 2012 and fiscal 2013 included infrequently occurring benefits to operating income. In fiscal 2012, the segment benefitted primarily from reductions to the cost to complete a fixed-price contract, which offset the start-up losses in the United Kingdom. In fiscal 2013, excluding the $10.9 million benefit from the terminated contract, the ongoing margin improvement in the United Kingdom offset the expected lowered margins in Australia and lower margins in the U.S. operations.
 
Backlog, Sales and Pipeline
 
Record backlog was $3.4 billion at September 30, 2013, compared to $2.9 billion at September 30, 2012.
 
Signed contract awards reached a record level in fiscal 2013. Year-to-date signed contract awards at September 30, 2013 totaled $1.9 billion, of which a substantial portion was derived from new work. This compares to $1.4 billion reported for the same period last year. New contracts pending (awarded but unsigned) totaled $362 million at September 30, 2013.
 
Sales pipeline at September 30, 2013 was $2.4 billion (consisting of $358 million in proposals pending, $32 million in proposals in preparation, and $2.0 billion in opportunities tracking) and includes opportunities across multiple geographies and both segments. This is slightly lower compared to $2.6 billion in sales pipeline reported for the same period last year, due to opportunities converting into new sales. On a sequential basis, the pipeline is slightly higher compared to the third fiscal quarter of 2013.
 
 
 
 
 
Balance Sheet and Cash Flows
 
Cash and cash equivalents at September 30, 2013 totaled $125.6 million, of which approximately 60% were held overseas. For the fourth quarter of fiscal 2013, cash provided by operating activities from continuing operations totaled $32.4 million, with free cash flow of $8.7 million. For the full fiscal year, cash provided by operating activities from continuing operations totaled $121.6 million, with free cash flow of $59.4 million. Days Sales Outstanding (DSO) from continuing operations were 69 days and remain within the Company’s previously stated range of 65 to 80 days.
 
On August 30, 2013, MAXIMUS paid a quarterly cash dividend of $0.045 per share. On October 8, 2013, the Company announced a $0.045 per share cash dividend, payable on November 29, 2013 to shareholders of record on November 15, 2013.
 
MAXIMUS repurchased 145,600 shares of the Company’s common stock for approximately $5.5 million during the fourth quarter of fiscal 2013. For the full year, MAXIMUS repurchased 974,498 shares for approximately $32.5 million. At September 30, 2013, the Company had approximately $97 million available for future repurchases under its Board-authorized share repurchase program. All amounts reflect the stock split on June 28, 2013.
 
Outlook
 
MAXIMUS is formalizing its fiscal year 2014 revenue and earnings guidance. The Company continues to expect fiscal year 2014 revenue to range between $1.555 billion and $1.650 billion and diluted earnings per share to range between $1.75 and $1.85. This guidance does not include any future mergers and acquisition activity or any significant legal expenses or recoveries.
 
Mr. Montoni concluded, “With our formalized fiscal 2014 guidance in place, we continue to focus on the areas where we can best maximize shareholder value. We continue to see opportunities in the U.S. and abroad that dovetail nicely with our core capabilities, and we remain confident about our continued growth into fiscal 2014 and beyond.”
 
Website Presentation, Conference Call and Webcast Information
 
MAXIMUS will host a conference call this morning, November 15, 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 http://investor.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 November 29, 2013. Callers can access the replay by calling:
 
877.660.6853 (Domestic)/201.612.7415 (International)
Replay conference ID number: 422475
 
 
 
 
 
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 12,000 employees worldwide. For more information, visit www.maximus.com.
 
Non-GAAP Measures
 
This release refers to non-GAAP financial measures, including free cash flow, adjusted diluted earnings per share from continuing operations, constant currency and organic growth. We also adjust certain revenue and operating income comparatives to reflect the one-time benefit of a contract termination in the current year.
 
We have provided a reconciliation of free cash flow to cash provided by operating activities from continuing operations. We believe that free cash flow is a useful basis for investors to compare our performance across periods or across 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.
 
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 the costs of acquiring PSI and Health Management, as well as net legal and settlement expenses.
 
To provide constant currency information, we calculate fiscal year 2013 revenue for all international businesses using the exchange rates used in fiscal year 2012. We believe constant currency provides a useful basis for assessing the performance of the business excluding the unpredictable effects of foreign exchange fluctuations.
 
In order to calculate organic growth, we remove the revenue from the acquired businesses from all periods being compared. We believe organic growth provides a useful basis for assessing the performance of the underlying business.
 
We have provided a reconciliation of revenue and operating income adjusted for the effects of a termination of a contract. We believe that the presentation of these numbers provides a useful basis for assessing the performance of this segment compared to prior periods or the results of our competitors.
 
The presentation of these non-GAAP numbers is not meant to be considered in isolation, nor as alternatives to cash flows from operating activities, diluted earnings per share, revenue growth or net income 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
    
Year
  
   
Ended September 30,
    
Ended September 30,
  
   
2013
    
2012
    
2013
    
2012
  
Revenue
  
$
384,339
    
$
300,737
    
$
1,331,279
    
$
1,050,145
  
Cost of revenue
  
266,840
    
216,108
    
945,246
    
762,202
  
Gross profit
  
117,499
    
84,629
    
386,033
    
287,943
  
Selling, general and administrative expenses
  
59,763
    
42,810
    
197,859
    
157,402
  
Acquisition-related expenses
  
668
    
766
    
2,168
    
2,876
  
Legal and settlement expenses/(recoveries), net
  
—
    
1,080
    
(202
)
  
90
  
Operating income from continuing operations
  
57,068
    
39,973
    
186,208
    
127,575
  
Interest and other income, net
  
407
    
1,084
    
2,851
    
4,176
  
Income from continuing operations before income taxes
  
57,475
    
41,057
    
189,059
    
131,751
  
Provision for income taxes
  
21,883
    
17,303
    
71,934
    
55,652
  
Income from continuing operations
  
35,592
    
23,754
    
117,125
    
76,099
  
                         
Discontinued operations, net of income taxes:
                        
Income (loss) from discontinued operations
  
(38
)
  
—
    
(635
)
  
—
  
Gain (loss) on disposal
  
72
    
(83
)
  
241
    
34
  
Income (loss) from discontinued operations
  
34
    
(83
)
  
(394
)
  
34
  
                         
Net income
  
$
35,626
    
$
23,671
    
$
116,731
    
$
76,133
  
                         
Basic earnings (loss) per share:
                        
Income from continuing operations
  
$
0.52
    
$
0.35
    
$
1.72
    
$
1.12
  
Income (loss) from discontinued operations
  
—
    
—
    
(0.01
)
  
—
  
Basic earnings per share
  
$
0.52
    
$
0.35
    
$
1.71
    
$
1.12
  
                         
Diluted earnings (loss) per share:
                        
Income from continuing operations
  
$
0.51
    
$
0.34
    
$
1.68
    
$
1.09
  
Income (loss) from discontinued operations
  
—
    
—
    
(0.01
)
  
—
  
Diluted earnings per share
  
$
0.51
    
$
0.34
    
$
1.67
    
$
1.09
  
                         
Dividends per share
    
0.045
      
0.045
      
0.18
      
0.18
  
                         
Weighted average shares outstanding:
                        
Basic
  
68,157
    
68,089
    
68,165
    
67,734
  
Diluted
  
69,950
    
70,066
    
69,893
    
69,611
  
 
 
 
 
 
MAXIMUS, Inc.
  
CONDENSED CONSOLIDATED BALANCE SHEETS
  
(Dollars in thousands)
  
       
   
September 30,
  
   
2013
    
2012
  
ASSETS
  
(Unaudited)
        
Current assets:
            
Cash and cash equivalents
   $ 125,617     $ 189,312  
Restricted cash
     12,176       11,593  
Accounts receivable—billed, net
     272,636       172,705  
Accounts receivable—unbilled
     20,320       10,539  
Prepaid income taxes
     358       3,800  
Deferred income taxes
     26,443       22,207  
Prepaid expenses and other current assets
     32,049       33,061  
Total current assets
     489,599       443,217  
                 
Property and equipment, net
     77,710       58,798  
Capitalized software, net
     40,456       27,390  
Goodwill
     171,867       112,032  
Intangible assets, net
     42,039       25,330  
Deferred contract costs, net
     14,318       9,284  
Deferred income taxes
     1,179       1,369  
Deferred compensation plan assets
     10,314       9,220  
Other assets, net
     10,496       8,653  
Total assets
   $ 857,978     $ 695,293  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts payable and accrued liabilities
   $ 109,020     $ 73,128  
Accrued compensation and benefits
     83,280       56,105  
Deferred revenue
     53,137       45,501  
Current portion of long-term debt
     170       178  
Income taxes payable
     8,327       3,100  
Other accrued liabilities
     8,373       6,599  
Total current liabilities
     262,307       184,611  
Deferred revenue, less current portion
     32,953       34,075  
Long-term debt
     1,319       1,558  
Acquisition-related contingent consideration, less current portion
     388       406  
Income taxes payable, less current portion
     1,191       1,412  
Deferred income taxes
     16,359       10,384  
Deferred compensation plan liabilities, less current portion
     13,953       11,741  
Total liabilities
     328,470       244,187  
                 
Total shareholders’ equity
     529,508       451,106  
Total liabilities and shareholders’ equity
   $ 857,978     $ 695,293  
 
 
 
 
 
MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands; Unaudited)
                 
   
Three Months
    
Year
  
   
Ended September 30,
    
Ended September 30,
  
   
2013
    
2012
    
2013
    
2012
  
Cash flows from operating activities:
                                
Net income
  
$
35,626
    
$
23,671
    
$
116,731
    
$
76,133
  
Adjustments to reconcile net income to net cash provided by operating activities:
                        
(Income) loss from discontinued operations
  
(34
)
  
83
    
394
    
(34
)
Depreciation and amortization
  
10,053
    
7,947
    
35,816
    
26,460
  
Deferred income taxes
  
(634
)
  
1,355
    
2,396
    
(3,274
)
Stock compensation expense
  
3,847
    
3,236
    
14,555
    
12,077
  
Changes in assets and liabilities, net of effects of business combinations and divestitures:
                        
Accounts receivable — billed
  
(43,020
)
  
(14,297
)
  
(93,092
)
  
(7,213
)
Accounts receivable — unbilled
  
(3,984
)
  
1,996
    
(9,905
)
  
2,214
  
Prepaid expenses and other current assets
  
30
    
2,227
    
(2,492
)
  
(6,018
)
Deferred contract costs
  
(2,622
)
  
(2,540
)
  
(5,073
)
  
(1,221
)
Accounts payable
  
15,198
    
9,759
    
31,678
    
6,485
  
Accrued compensation and benefits
  
14,367
    
1,372
    
21,308
    
(2,648
)
Deferred revenue
  
9,244
    
(1,334
)
  
6,304
    
9,827
  
Income taxes
  
(3,955
)
  
(2,656
)
  
2,034
    
6,885
  
Other assets and liabilities
  
(1,721
)
  
(720
)
  
903
    
(4,513
)
Cash provided by continuing operations
  
32,395
    
30,099
    
121,557
    
115,160
  
Cash used in discontinued operations
  
(32
)
  
—
    
(619
)
  
—
  
Cash provided by operating activities
  
32,363
    
30,099
    
120,938
    
115,160
  
                         
Cash flows from investing activities:
                        
Acquisition of business, net of cash acquired
  
(71,435
)
  
—
    
(71,435
)
  
(66,003
)
Proceeds from settlement of final PSI price
  
—
    
—
    
3,380
    
—
  
Purchases of property and equipment
  
(18,711
)
  
(6,485
)
  
(43,580
)
  
(18,369
)
Capitalized software costs
  
(4,944
)
  
(1,932
)
  
(18,596
)
  
(4,779
)
Proceeds from note receivable
  
113
    
—
    
398
    
299
  
Proceeds from sale of discontinued operations
  
—
    
—
    
—
    
2,240
  
Cash used in investing activities — continuing ops
  
(94,977
)
  
(8,417
)
  
(129,833
)
  
(86,612
)
                         
Cash flows from financing activities:
                        
Cash dividends paid
  
(3,070
)
  
(3,063
)
  
(12,272
)
  
(12,180
)
Repurchases of common stock
  
(5,473
)
  
(3,088
)
  
(33,287
)
  
(12,977
)
Stock compensation tax benefit
  
5,889
    
3,793
    
10,569
    
7,268
  
Tax withholding related to RSU vesting
  
—
    
(19
)
  
(8,868
)
  
(4,464
)
Stock option exercises
  
328
    
30
    
2,168
    
6,441
  
Repayment of long-term debt
  
(42
)
  
(44
)
  
(172
)
  
(44
)
Acquisition-related contingent consideration
  
—
    
(1,809
)
  
—
    
(1,809
)
Cash used in financing activities — continuing ops
  
(2,368
)
  
(4,200
)
  
(41,862
)
  
(17,765
)
                         
Effect of exchange rate changes on cash and cash equivalents
  
2,688
    
2,930
    
(12,938
)
  
5,579
  
                         
Net increase/(decrease) in cash and cash equivalents
  
(62,294
)
  
20,412
    
(63,695
)
  
16,362
  
                         
Cash and cash equivalents, beginning of period
  
187,911
    
168,900
    
189,312
    
172,950
  
                         
Cash and cash equivalents, end of period
  
$
125,617
    
$
189,312
    
$
125,617
    
$
189,312
  
 
 
 
 
 
MAXIMUS, Inc.
SEGMENT INFORMATION – GAAP Basis
(Dollars in thousands)
(Unaudited)
 
   
Three Months Ended September 30,
  
Year Ended September 30,
   
2013
    
% (1)
  
2012
    
% (1)
  
2013
    
% (1)
  
2012
    
% (1)
                                         
Revenue:
                                        
Health Services
  
$
271,032
    
100
%
  
$
181,565
    
100
%
  
$
862,879
    
100
%
  
$
671,181
    
100
%
Human Services
  
113,307
    
100
%
  
119,172
    
100
%
  
468,400
    
100
%
  
378,964
    
100
%
Total
  
384,339
    
100
%
  
300,737
    
100
%
  
1,331,279
    
100
%
  
1,050,145
    
100
%
                                         
Gross Profit:
                                        
Health Services
  
85,322
    
31.5
%
  
44,533
    
24.5
%
  
248,100
    
28.8
%
  
172,456
    
25.7
%
Human Services
  
32,177
    
28.4
%
  
40,096
    
33.6
%
  
137,933
    
29.4
%
  
115,487
    
30.5
%
Total
  
117,499
    
30.6
%
  
84,629
    
28.1
%
  
386,033
    
29.0
%
  
287,943
    
27.4
%
                                         
Selling, general, and administrative expense:
                                        
Health Services
  
39,384
    
14.5
%
  
24,551
    
13.5
%
  
118,266
    
13.7
%
  
91,837
    
13.7
%
Human Services
  
20,245
    
17.9
%
  
18,274
    
15.3
%
  
79,842
    
17.0
%
  
65,565
    
17.3
%
Corporate/Other
  
134
    
NM
    
(15
)
  
NM
    
(249
)
  
NM
    
—
    
NM
  
Total
  
59,763
    
15.5
%
  
42,810
    
14.2
%
  
197,859
    
14.9
%
  
157,402
    
15.0
%
                                         
Operating income from continuing operations:
                                        
Health Services
  
45,938
    
16.9
%
  
19,982
    
11.0
%
  
129,834
    
15.0
%
  
80,619
    
12.0
%
Human Services
  
11,932
    
10.5
%
  
21,822
    
18.3
%
  
58,091
    
12.4
%
  
49,922
    
13.2
%
Corporate/Other
  
(134
)
  
NM
    
15
    
NM
    
249
    
NM
    
—
    
NM
  
Subtotal: Segment Operating Income
  
57,736
    
15.0
%
  
41,819
    
13.9
%
  
188,174
    
14.1
%
  
130,541
    
12.4
%
Legal, settlement and acquisition-related expenses, net
  
668
    
NM
    
1,846
    
NM
    
1,966
    
NM
    
2,966
    
NM
  
Total
  
$
57,068
    
14.8
%
  
$
39,973
    
13.3
%
  
$
186,208
    
14.0
%
  
$
127,575
    
12.1
%

(1) Percentage of respective segment revenue. Changes not considered meaningful are marked “NM.”
 
 
 
 
 
Non-GAAP Measures
 
ADJUSTED REVENUE AND OPERATING INCOME
(Dollars in thousands)
(Unaudited)
 
   
Year Ended
   
September 30,
   
2013
     
Total company revenue
  
$
1,331,279
  
Revenue from terminated contract
    
(16,035
)
     
Total company revenue excluding terminated contract
  
$
1,315,244
  
     
Total company operating income
  
$
186,208
  
Operating income from terminated contract
    
(10,900
)
Acquisition-related expenses
    
2,168
  
Legal and settlement recoveries (net)
    
(202
)
Total company operating income, excluding terminated contract, acquisition-related expense, and legal and settlement recoveries
  
$
177,274
  
     
Total company operating margin, excluding terminated contract, acquisition expenses, and legal and settlement recoveries
    
13.5
%
 
   
Year Ended
   
September 30,
   
2013
     
Human Services revenue
  
$
468,400
  
Revenue from terminated contract
    
(16,035
)
Human Services revenue, excluding terminated contract
  
$
452,365
  
     
Human Services operating income
  
$
58,091
  
Operating income from terminated contract
    
(10,900
)
Human Services operating income, excluding terminated contract
  
$
47,191
  
     
Human Services operating margin, excluding terminated contract
    
10.4
%
 
 
 
 
 
MAXIMUS, Inc.
  
Non-GAAP Measures
  
   
ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS
  
FY 2013 and FY 2012
  
(Unaudited)
  
           
       
Year
  
 
Quarter Ended
    
Ended
  
 
Dec. 31,
    
Mar. 31,
    
Jun. 30,
    
Sept. 30,
    
Sept. 30,
  
 
2012
    
2013
    
2013
    
2013
    
2013
  
Diluted EPS from continuing operations-GAAP basis
 $ 0.31     $ 0.45     $ 0.40     $ 0.51     $ 1.68  
                                       
Pro forma adjustments:
                                      
Legal, settlement and acquisition-related expenses, net
   –       –       0.01       –       0.01  
Adjustment for terminated contract
   –       (0.09 )     –       –       (0.09 )
Subtotal pro forma adjustments
   –       (0.09 )     0.01       –       (0.08 )
                                       
Adjusted Diluted EPS from continuing operations
 $ 0.31     $ 0.36     $ 0.41     $ 0.51     $ 1.60  
 
       
Year
  
 
Quarter Ended
    
Ended
  
 
Dec. 31,
    
Mar. 31,
    
Jun. 30,
    
Sept. 30,
    
Sept. 30,
  
 
2011
    
2012
    
2012
    
2012
    
2012
  
Diluted EPS from continuing operations-GAAP basis
 $ 0.26     $ 0.21     $ 0.29     $ 0.34     $ 1.09  
                                       
Pro forma adjustments:
                                      
Legal, settlement and acquisition-related expenses, net
   –       –       0.02       0.01       0.03  
Adjustment for tax accounts
   –       0.03       –       0.02       0.06  
Subtotal pro forma adjustments
   –       0.03       0.02       0.03       0.09  
                                       
Adjusted Diluted EPS from continuing operations
 $ 0.26     $ 0.24     $ 0.31     $ 0.37     $ 1.18  
 
FREE CASH FLOW
(Dollars in thousands; Unaudited)
             
   
Three Months
    
Year
  
   
Ended September 30,
    
Ended September 30,
  
   
2013
    
2012
    
2013
    
2012
  
                                 
Cash provided by operating activities – continuing ops
  
$
32,395
    
$
30,099
    
$
121,557
    
$
115,160
  
Purchases of property and equipment
  
(18,711
)
  
(6,485
)
  
(43,580
)
  
(18,369
)
Capitalized software costs
  
(4,944
)
  
(1,932
)
  
(18,596
)
  
(4,779
)
Free cash flow
  
$
8,740
    
$
21,682
    
$
59,381
    
$
92,012
  
 
CONTACT:
MAXIMUS
Lisa Miles, 703-251-8637
lisamiles@maximus.com