Exhibit 99.1

MAXIMUS Reports First Quarter Results for Fiscal 2015

- Company Reiterates Revenue and Earnings Guidance for Fiscal 2015 -

RESTON, Va.--(BUSINESS WIRE)--February 5, 2015--MAXIMUS (NYSE: MMS), a leading provider of government services worldwide, today reported financial results for its first quarter ended December 31, 2014.

Highlights for the first quarter of fiscal 2015 include:

For the first quarter of fiscal 2015, revenue increased 15% (16% on a constant currency basis) to $467.0 million, compared to the same period last year. The increase in revenue was driven by organic growth from new work and the expansion on existing contracts in both the Health Services Segment and the Human Services Segment. All growth in the quarter was organic.

Fiscal 2015 first quarter net income attributable to MAXIMUS totaled $41.9 million, or $0.63 per diluted share. The first quarter of fiscal 2015 benefitted from $2.4 million of incremental revenue and profit in the Human Services Segment that were previously expected to occur later in this fiscal year and provided an uplift of approximately $0.03 per diluted share. In addition, a lower tax rate also provided a benefit of approximately $0.01 per diluted share. The lower tax rate resulted from the extension of the Work Opportunity Tax Credit at the end of December that was retroactive to the beginning of calendar year 2014. First quarter diluted earnings per share of $0.63 represent a 29% increase compared to $0.49 reported for the same period last year. The year-over-year increase to earnings was driven by income growth in both segments.

“In our Health Services Segment, the second open enrollment period under the Affordable Care Act has proved to be smoother, with call volumes that were in-line with our expectations. At the same time, we are making good progress as we ramp up our new health contracts in the United Kingdom and the United States. We are also pleased with the growth coming from new work and expansion of existing contracts within our Human Services Segment,” commented Richard A. Montoni, MAXIMUS Chief Executive Officer. “Our collective efforts to secure new work, expand existing contracts, and stand up new programs demonstrate our ability to deliver and meet commitments to our clients and the citizens they serve. We believe our solid performance in the first quarter of fiscal 2015 sets a good path for the remainder of the year and beyond.”


Health Services Segment

Health Services Segment revenue for the first quarter of fiscal 2015 increased 18% to $351.7 million, driven by organic growth from new work and the expansion on existing contracts. This compares to $299.2 million for the same period last year.

Health Services Segment operating income for the first quarter increased 21% to $50.4 million (14.3% operating margin). This compares to $41.6 million (13.9% operating margin) for the same period last year. The Segment benefitted from forecasted, accretive change orders that offset the expected start-up of certain new contracts and anticipated volume decreases in the Company’s Medicare appeals business.

Human Services Segment

Human Services Segment revenue for the first quarter of fiscal 2015 increased 7% to $115.4 million, driven by the Company’s international welfare-to-work business. This compares to $107.4 million for the same period last year. Segment revenue was unfavorably impacted by approximately $5.0 million due to changes in currency. As a result, on a constant currency basis, first quarter revenue would have increased 12% compared to last year.

Human Services Segment operating income for the first quarter increased to $15.5 million (13.4% operating margin) compared to $11.8 million (10.9% operating margin) for the same period last year. The first quarter of fiscal 2015 benefitted from growth in Australia and $2.4 million of incremental revenue and profit from signing two international contract extensions that were previously expected to occur later in fiscal 2015.

Sales and Pipeline

Year-to-date signed contract awards at December 31, 2014 totaled $1.3 billion, which includes the previously announced U.K. Health Assessment Advisory Service contract. This compares to $347 million reported for the same period last year. In addition, new contracts pending (awarded but unsigned) totaled $169 million at December 31, 2014.

Sales pipeline at December 31, 2014 was $3.6 billion (consisting of $1.6 billion in proposals pending, $609 million in proposals in preparation, and $1.3 billion in opportunities tracking). This compares to a pipeline of $2.4 billion for the same period in fiscal 2014. The increase in pipeline was attributable to both new work and rebids, and reflects opportunities across both segments and multiple geographies.

Balance Sheet and Cash Flows

Cash and cash equivalents at December 31, 2014 totaled $149.2 million, of which approximately 30% were held outside the United States. For the first quarter of fiscal 2014, cash provided by operating activities totaled $56.6 million, with free cash flow of $42.5 million. Days Sales Outstanding (DSO) improved to 58 days. The Company expects that DSOs may return to higher levels due to the new contracts in the United Kingdom.

On November 28, 2014, MAXIMUS paid a quarterly cash dividend of $0.045 per share. On January 13, 2015, the Company announced a $0.045 per share cash dividend, payable on February 27, 2015 to shareholders of record on February 13, 2015.

During the first quarter of fiscal 2015, MAXIMUS repurchased 753,010 shares of the Company’s common stock for approximately $30.6 million. At December 31, 2014, the Company had approximately $104.6 million available for future repurchases under its Board-authorized share repurchase program.


Outlook

MAXIMUS is reiterating its fiscal year 2015 revenue and earnings guidance. The Company continues to expect fiscal year 2015 revenue to range between $1.9 billion and $2.0 billion and diluted earnings per share to range between $2.25 and $2.40.

Website Presentation, Conference Call and Webcast Information

MAXIMUS will host a conference call this morning, February 5, 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 February 20, 2015. Callers can access the replay by calling:

877.660.6853 (Domestic)/+1.201.612.7415 (International)
Replay conference ID number: 13599304

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 the Affordable Care Act, 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 more than 13,000 employees worldwide. For more information, visit www.maximus.com.

Non-GAAP Measures

This release refers to non-GAAP financial measures, including free cash flow and constant currency.

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.

In order to calculate organic growth, we remove the revenue generated by the acquired businesses from all periods being compared. We believe organic growth provides a useful basis for assessing the performance of the underlying business.

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 www.maximus.com.


 
MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
 
Three Months
Ended December 31,
2014   2013
Revenue $ 467,043 $ 406,592
Cost of revenue 347,776 300,676
Gross profit 119,267 105,916
Selling, general and administrative expenses 54,036 52,619
Operating income 65,231 53,297
Interest and other income, net 901 332
Income before income taxes 66,132 53,629
Provision for income taxes 23,782 20,274
Net income 42,350 33,355
(Income)/loss attributable to noncontrolling interests (489 ) 504
Net income attributable to MAXIMUS $ 41,861 $ 33,859
 
Basic earnings per share attributable to MAXIMUS: $ 0.63 $ 0.50
 
Diluted earnings per share attributable to MAXIMUS: $ 0.63 $ 0.49
 
Dividends paid per share $ 0.045 $ 0.045
 
Weighted average number of shares outstanding:
Basic 65,935 68,397
Diluted 66,898 69,762
 

 
MAXIMUS, Inc.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
 
December 31, September 30,
2014 2014
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 149,196 $ 158,112
Accounts receivable – billed and billable, net of reserves of $3,208 and $3,138 265,383 263,011
Accounts receivable – unbilled 30,862 26,556
Deferred income taxes 25,152 28,108
Prepaid expenses and other current assets 52,877 56,673
Total current assets 523,470 532,460
 
Property and equipment, net 83,355 80,246
Capitalized software, net 37,665 39,734
Goodwill 166,470 170,626
Intangible assets, net 36,630 39,239
Deferred contract costs, net 15,390 12,046
Deferred compensation plan assets 20,657 17,126
Other assets, net 8,615 9,519
Total assets $ 892,252 $ 900,996
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 113,671 $ 103,181
Accrued compensation and benefits 57,025 94,137
Deferred revenue 56,106 55,878
Income taxes payable 19,449 4,693
Other liabilities 7,702 7,432
Total current liabilities 253,953 265,321
Deferred revenue, less current portion 33,894 32,257
Deferred income taxes 17,653 21,383
Deferred compensation plan liabilities, less current portion 21,444 18,768
Other liabilities 6,867 7,082
Total liabilities 333,811 344,811
 
Shareholders’ equity:
Common stock, no par value 433,922 429,857
Accumulated other comprehensive income/(loss) (10,250 ) 230
Retained earnings 134,057 125,875
Total MAXIMUS shareholders’ equity 557,729 555,962
Noncontrolling interests 712 223
Total equity 558,441 556,185
Total liabilities and equity $ 892,252 $ 900,996
 

 
MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
 
Three Months
Ended December 31,
2014   2013
Cash flows from operating activities:
Net income $ 42,350 $ 33,355
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization and property, equipment and capitalized software 10,967 10,669
Amortization of intangible assets 1,474 1,353
Deferred income taxes (925 ) 7,659
Stock compensation expense 3,966 4,081
 
Change in assets and liabilities:
Accounts receivable — billed and billable (4,242 ) (5,266 )
Accounts receivable — unbilled (4,314 ) (1,295 )
Prepaid expenses and other current assets (221 ) 201
Deferred contract costs (3,454 ) 1,354
Accounts payable and accrued liabilities 13,441 (566 )
Accrued compensation and benefits (23,901 ) (17,954 )
Deferred revenue 3,610 (1,043 )
Income taxes 18,836 6,072
Other assets and liabilities (993 ) 3,326
Cash provided by operating activities 56,594 41,946
 
Cash flows from investing activities:
Purchases of property and equipment (12,754 ) (4,440 )
Capitalized software costs (1,356 ) (3,584 )
Proceeds from note receivable 160 115
Cash used in investing activities (13,950 ) (7,909 )
 
Cash flows from financing activities:
Cash dividends paid (2,962 ) (3,085 )
Repurchases of common stock (32,616 ) (21,530 )
Tax withholding related to RSU vesting (12,337 ) (12,804 )
Stock option exercises 327
Repayment of long-term debt (39 ) (42 )
Cash used in financing activities (47,954 ) (37,134 )
 
Effect of exchange rate changes on cash and cash equivalents (3,606 ) (1,936 )
   
Net decrease in cash and cash equivalents (8,916 ) (5,033 )
 
Cash and cash equivalents, beginning of period 158,112 125,617
 
Cash and cash equivalents, end of period $ 149,196 $ 120,584
 

 
MAXIMUS, Inc.
SEGMENT INFORMATION
(Amounts in thousands)
(Unaudited)
 
Three Months Ended December 31,
2014   % (1)   2013   % (1)
 
Revenue:
Health Services $ 351,667 100 % $ 299,158 100 %
Human Services 115,376 100 % 107,434 100 %
Total 467,043 100 % 406,592 100 %
 
Gross profit:
Health Services 85,566 24.3 % 76,818 25.7 %
Human Services 33,701 29.2 % 29,098 27.1 %
Total 119,267 25.5 % 105,916 26.0 %
 
Selling, general, and administrative expense:
Health Services 35,209 10.0 % 35,265 11.8 %
Human Services 18,222 15.8 % 17,338 16.1 %
Other 605 NM 16 NM
Total 54,036 11.6 % 52,619 12.9 %
 
Operating income
Health Services 50,357 14.3 % 41,553 13.9 %
Human Services 15,479 13.4 % 11,760 10.9 %
Other (605 ) NM (16 ) NM
Total $ 65,231 14.0 % $ 53,297 13.1 %
       
(1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.”
 

 
FREE CASH FLOW
(Non-GAAP measure)
(Dollars in thousands; Unaudited)
 
Three Months Ended
December 31,
2014   2013
 
Cash provided by operating activities $ 56,594 $ 41,946
Purchases of property and equipment (12,754 ) (4,440 )
Capitalized software costs (1,356 ) (3,584 )
Free cash flow $ 42,484 $ 33,922
 

CONTACT:
MAXIMUS
Lisa Miles, 703-251-8637
lisamiles@maximus.com