Exhibit 99.1

MAXIMUS Reports Third Quarter Results for Fiscal 2015

RESTON, Va.--(BUSINESS WIRE)--August 6, 2015--MAXIMUS (NYSE: MMS), a leading provider of government services worldwide, today reported financial results for the three and nine months ended June 30, 2015.

Highlights for the third quarter of fiscal 2015 included:

For the third quarter of fiscal 2015, revenue increased 36% (41% on a constant currency basis) to $572.3 million, compared to $419.9 million reported for the same period last year. The increase in revenue was driven by organic growth and revenue from the acquisitions of Acentia and Remploy, both of which closed in early April 2015.

Fiscal 2015 third quarter net income attributable to MAXIMUS totaled $41.7 million, or $0.62 per diluted share, and included approximately $0.02 per diluted share of acquisition-related expenses. This compares to $0.49 per diluted share for the same period last year. Excluding these acquisition-related expenses, adjusted diluted earnings per share for the fiscal 2015 third quarter were $0.64.

“Organic growth in the quarter was strong and driven by the ongoing expansion of existing contracts and new contracts that are in the start-up phase. The integration of Acentia and Remploy is progressing well, and these strategic acquisitions support our long-term growth objectives,” commented Richard A. Montoni, MAXIMUS Chief Executive Officer. “On July 1, 2015, we successfully launched operations under the new jobactive contract in Australia, where we have introduced new technologies and applications to improve connectivity between job seekers and employers, and ultimately, to help more job seekers find and maintain meaningful employment.”

Health Services Segment

Health Services Segment revenue for the third quarter of fiscal 2015 increased 44% (47% on a constant currency basis) to $439.6 million, compared to $305.3 million reported for the same period last year. The majority of growth was organic, with approximately 27% attributable to new work and the expansion of existing contracts, with the remaining revenue increase from the acquisition of Acentia.


Health Services Segment operating income for the third quarter totaled $60.0 million (13.7% operating margin), compared to operating income of $43.2 million (14.2% operating margin) for the same period last year. As expected, operating margin was lower compared to the prior-year period due to the anticipated volume decline in the Company’s federal appeals business, a larger share of cost-reimbursable contracts and new contracts in start-up.

Human Services Segment

Human Services Segment revenue for the third quarter of fiscal 2015 increased 16% (26% on a constant currency basis) to $132.7 million, compared to $114.6 million for the same period last year. Revenue growth in the quarter was driven by revenue from the acquisition of Remploy and the Company’s international welfare-to-work operations. Revenue growth was offset by the unfavorable impact of foreign currency translation.

Human Services Segment operating income for the third quarter totaled $16.8 million (12.7% operating margin), compared to $13.6 million (11.9% operating margin) for the same period last year.

Sales and Pipeline

The Company posted record sales at June 30, 2015 with year-to-date signed contract awards totaling $2.9 billion. At June 30, 2015, new contracts pending (awarded but unsigned) totaled $256.4 million.

The sales pipeline at June 30, 2015 was $2.8 billion (consisting of approximately $1.0 billion in proposals pending, $103 million in proposals in preparation, and $1.6 billion in opportunities tracking). This compares to a pipeline of $3.0 billion for the same period last year, which included several large rebids that have since converted to new awards. The Company’s reported pipeline only reflects opportunities where MAXIMUS expects that the request for proposal will be released within the next six months.

Balance Sheet and Cash Flows

Cash and cash equivalents at June 30, 2015 totaled $81.9 million, of which approximately 80% were held outside the United States. For the third quarter of fiscal 2015, cash provided by operating activities totaled $118.9 million, with free cash flow of $93.2 million. At June 30, 2015, Days Sales Outstanding (DSOs) improved to 64 days compared to the prior quarter, as a result of improved collections.

In April 2015, MAXIMUS borrowed $225 million from its available credit to complete the acquisition of Acentia. At June 30, 2015, the balance on the credit facility was approximately $166 million.

On May 29, 2015, MAXIMUS paid a quarterly cash dividend of $0.045 per share. On July 6, 2015, the Company announced a $0.045 per share cash dividend, payable on August 31, 2015 to shareholders of record on August 14, 2015.

Outlook

MAXIMUS is updating its forecasted fiscal year 2015 revenue guidance and now expects revenue to range between $2.10 billion and $2.14 billion. The Company continues to expect its fiscal year 2015 GAAP diluted earnings per share to range between $2.33 and $2.40. The increase to the Company’s fiscal 2015 revenue guidance is a result of new work from an existing client and expansion of existing contracts in the Health Segment, which will be offset by the start-up of a new contract in the United Kingdom.

The Company is also maintaining its preliminary guidance for fiscal year 2016. As stated last quarter, MAXIMUS is forecasting revenue in the range of $2.4 billion to $2.5 billion for fiscal 2016 and estimates that GAAP diluted earnings per share will range from $2.85 to $3.05. The Company will provide formal guidance for fiscal 2016 in November.


Website Presentation, Conference Call and Webcast Information

MAXIMUS will host a conference call this morning, August 6, 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 August 20, 2015 by calling:

877.660.6853 (Domestic)/+1.201.612.7415 (International)
Replay conference ID number: 13614953

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 approximately 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 www.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 www.maximus.com.


   
MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
 
Three Months
Ended June 30,
Nine Months
Ended June 30,
2015   2014 2015   2014
Revenue $ 572,301 $ 419,899 $ 1,521,138 $ 1,265,506
Cost of revenue 428,503 307,296 1,133,728 926,315
Gross profit 143,798 112,603 387,410 339,191
Selling, general and administrative expenses 66,997 55,838 178,350 160,727
Amortization of intangible assets 3,275 1,542 6,182 4,365
Acquisition-related expenses 2,459 4,573
Legal and settlement expenses 600
Operating income 71,067 55,223 198,305 173,499
Interest and other income/(expense), net (681 ) 495 439 1,304
Income before income taxes 70,386 55,718 198,744 174,803
Provision for income taxes 28,127 21,290 75,108 65,559
Net income 42,259 34,428 123,636 109,244
Income attributable to noncontrolling interests (593 ) (290 ) (1,302 ) (40 )
Net income attributable to MAXIMUS $ 41,666 $ 34,138 122,334 $ 109,204
 
Basic earnings per share attributable to MAXIMUS $ 0.63 $ 0.50 $ 1.86 $ 1.61
 
Diluted earnings per share attributable to MAXIMUS $ 0.62 $ 0.49 $ 1.83 $ 1.57
 
Dividends paid per share $ 0.045 $ 0.045 $ 0.135 $ 0.135
 
Weighted average shares outstanding:
Basic 65,901 67,659 65,900 67,982
Diluted 67,098 69,031 67,003 69,369

   
MAXIMUS, Inc.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
 
June 30,
2015
September 30,
2014
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 81,877 $ 158,112
Accounts receivable — billed and billable, net of reserves of $4,331 and $3,138 377,729 263,011
Accounts receivable — unbilled 27,578 26,556
Deferred income taxes 31,567 28,108
Prepaid expenses and other current assets 64,336 56,673
Total current assets 583,087 532,460
 
Property and equipment, net 118,169 80,246
Capitalized software, net 34,787 39,734
Goodwill 379,895 170,626
Intangible assets, net 106,621 39,239
Deferred contract costs, net 19,715 12,046
Deferred compensation plan assets 20,904 17,126
Other assets, net 12,467 9,519
Total assets $ 1,275,645 $ 900,996
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 164,486 $ 103,181
Accrued compensation and benefits 88,413 94,137
Deferred revenue 63,586 55,878
Income taxes payable 38,640 4,693
Other liabilities 10,843 7,432
Total current liabilities 365,968 265,321
Deferred revenue, less current portion 56,734 32,257
Deferred income taxes 16,543 21,383
Long-term debt 166,844 1,060
Deferred compensation plan liabilities, less current portion 20,906 18,768
Other liabilities 8,252 6,022
Total liabilities 635,247 344,811
 
Shareholders’ equity:
Common stock, no par value 442,135 429,857
Accumulated other comprehensive income/(loss) (12,487 ) 230
Retained earnings 208,404 125,875
Total MAXIMUS shareholders’ equity 638,052 555,962
Noncontrolling interests 2,346 223
Total equity 640,398 556,185
Total liabilities and equity $ 1,275,645 $ 900,996

   
MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands) (Unaudited)
 
Three Months
Ended June 30,
Nine Months
Ended June 30,
2015   2014 2015   2014
Cash flows from operating activities:
Net income $ 42,259 $ 34,428 $ 123,636 $ 109,244
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and capitalized software 13,911 10,996 37,617 31,932
Amortization of intangible assets 3,275 1,542 6,182 4,365
Deferred income taxes 1,213 810 (8,921 ) (577 )
Non-cash equity based compensation 4,349 4,248 12,785 12,809
 
Change in assets and liabilities:
Accounts receivable — billed (547 ) 36,154 (81,430 ) (1,362 )
Accounts receivable — unbilled 4,520 3,330 2,209 3,280
Prepaid expenses and other current assets 2,547 (3,882 ) (3,496 ) (1,343 )
Deferred contract costs (285 ) (1,423 ) (7,390 ) 556
Accounts payable and accrued liabilities 17,790 (9,313 ) 45,064 (5,686 )
Accrued compensation and benefits 7,717 9,960 (4,546 ) 2,510
Deferred revenue 10,566 6,299 32,424 88
Income taxes 17,893 (3,991 ) 37,476 6,162
Other assets and liabilities (6,294 ) (468 ) (10,630 ) 3,172
Cash provided by operating activities 118,914 88,690 180,980 165,150
 
Cash flows from investing activities:
Purchases of property and equipment (24,017 ) (8,873 ) (68,243 ) (18,389 )
Capitalized software costs (1,677 ) (1,860 ) (4,924 ) (9,177 )
Acquisition of business (289,612 ) (289,612 ) (2,670 )
Proceeds from note receivable 124 196 406 350
Cash used in investing activities (315,182 ) (10,537 ) (362,373 ) (29,886 )
 
Cash flows from financing activities:
Cash dividends paid (3,036 ) (3,043 ) (8,966 ) (9,181 )
Repurchases of common stock (24,658 ) (32,616 ) (59,354 )
Tax withholding related to RSU vesting and option exercises (1,776 ) (12,451 ) (14,681 )
Stock option exercises 521 627 521 1,145
Expansion of credit facility (1,444 )
Borrowings under credit facility 255,993 255,993 15,000
Repayment of credit facility and other long-term debt (90,038 ) (40 ) (90,112 ) (15,122 )
Tax benefit/(provision) due to option exercises and RSU vesting (1,208 ) (1,208 ) 2,925
Cash used in financing activities 162,232 (28,890 ) 109,717 (79,268 )
 
Effect of exchange rate changes on cash and cash equivalents 1,378 2,356 (4,559 ) 1,329
 
Net increase/(decrease) in cash and cash equivalents (32,658 ) 51,619 (76,235 ) 57,325
 
Cash and cash equivalents, beginning of period 114,535 131,323 158,112 125,617
 
Cash and cash equivalents, end of period $ 81,877 $ 182,942 $ 81,877 $ 182,942

   
MAXIMUS, Inc.
SEGMENT INFORMATION
(Amounts in thousands)
(Unaudited)
 
Three Months Ended June 30, Nine Months Ended June 30,
  2015   % (1)   2014   % (1) 2015   % (1)   2014   % (1)
 
Revenue:
Health Services $ 439,560 100 % $ 305,253 100 % $ 1,161,242 100 % $ 927,435 100 %
Human Services 132,741 100 % 114,646 100 % 359,896 100 % 338,071 100 %
Total 572,301 100 % 419,899 100 % 1,521,138 100 % 1,265,506 100 %
 
Gross Profit:
Health Services 104,593 23.8 % 79,532 26.1 % 281,895 24.3 % 240,906 26.0 %
Human Services 39,205 29.5 % 33,071 28.8 % 105,515 29.3 % 98,285 29.1 %
Total 143,798 25.1 % 112,603 26.8 % 387,410 25.5 % 339,191 26.8 %
 
Selling, general, and administrative expense:
Health Services 44,587 10.1 % 36,333 11.9 % 119,618 10.3 % 105,641 11.4 %
Human Services 22,402 16.9 % 19,470 17.0 % 58,624 16.3 % 55,072 16.3 %
Other 8 NM 35 NM 108 NM 14 NM
Total 66,997 11.7 % 55,838 13.3 % 178,350 11.7 % 160,727 12.7 %
 
Operating income:
Health Services 60,006 13.7 % 43,199 14.2 % 162,277 14.0 % 135,265 14.6 %
Human Services 16,803 12.7 % 13,601 11.9 % 46,891 13.0 % 43,213 12.8 %
Amortization of intangible assets (3,275 ) NM (1,542 ) NM (6,182 ) NM (4,365 ) NM
Acquisition-related expenses(2) (2,459 ) NM NM (4,573 ) NM NM
Legal and settlement expenses(3) NM NM NM (600 ) NM
Other (8) NM (35 ) NM (108 ) NM (14 ) NM
Total $ 71,067 12.4 % $ 55,223 13.2 % $ 198,305 13.0 % $ 173,499 13.7 %
 
(1) Percentage of respective segment revenue. Changes not considered meaningful are marked “NM.”
 
(2) Acquisition-related expenses are costs directly incurred from the purchases of Acentia and Remploy, including legal, accounting and valuation services and severance costs.
 
(3) Legal and settlement expenses consist of costs related to significant legal settlements and non-routine legal matters, including future probable legal costs expected to be incurred in connection with those matters. Legal expenses incurred in the ordinary course of business are included in their respective operating segments.

     
MAXIMUS, Inc.
ADJUSTED DILUTED EARNINGS PER SHARE
(Unaudited)
 
Quarter Ended

Nine
Months
Ended

Dec. 31,
2014

   

Mar. 31,
2015

   

Jun. 30,
2015

Jun. 30,
2015

Diluted EPS-GAAP basis $ 0.63 $ 0.58 $ 0.62 $ 1.83
Acquisition-related expenses     0.02   0.02   0.04
Adjusted Diluted EPS $ 0.63 $ 0.60 $ 0.64 $ 1.87
   
MAXIMUS, Inc.
FREE CASH FLOW
(Amounts in thousands)
(Unaudited)
 
Three Months
Ended June 30,
Nine Months
Ended June 30,
2015   2014 2015   2014
Cash provided by operating activities $ 118,914 $ 88,690 $ 180,980 $ 165,150
Purchases of property and equipment (24,017 ) (8,873 ) (68,243 ) (18,389 )
Capitalized software costs (1,677 ) (1,860 ) (4,924 ) (9,177 )
Free cash flow $ 93,220 $ 77,957 $ 107,813 $ 137,584

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