Quarterly report pursuant to Section 13 or 15(d)

Business Segments

v3.22.0.1
Business Segments
 3 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
We conduct our operations through three business segments: U.S. Services, U.S. Federal Services, and Outside the U.S.
U.S. Services
Our U.S. Services Segment provides a variety of business process services ("BPS") such as program administration, appeals and assessments, and related consulting work for U.S. state and local government programs. These services support a variety of programs, including the Affordable Care Act ("ACA"), Medicaid, the Children's Health Insurance Program ("CHIP"), Temporary Assistance to Needy Families ("TANF"), and child support programs. Addressing societal macro trends such as aging populations and rising costs, the segment continues to execute on its clinical evolution strategy by expanding its clinical offerings in public health with new work in contact tracing, disease investigation, and vaccine distribution support services as part of the governments' COVID-19 response efforts. The segment also successfully expanded into the unemployment insurance market, supporting more than 15 states in their unemployment insurance programs.
U.S. Federal Services
From technology solutions to program administration and operations, our U.S. Federal Services Segment delivers end-to-end solutions that help various U.S. Federal Government Agencies better deliver on their mission. This also includes appeals and assessments services, system and application development, IT modernization, and maintenance services. The segment also contains certain state-based assessments and appeals work that is part of the segment's heritage within the Medicare Appeals portfolio which continues to be managed within this segment. Benefiting from the Maximus Federal Consulting (formerly Attain Federal) platform, the segment executes on its digital strategy to deliver technology solutions that advance agency missions, including the challenge to modernize, provide better customer experience, and drive process efficiencies. The segment continues to expand its clinical solutions with the acquisition of VES which manages the clinical evaluation process for U.S. veterans and service members on behalf of the U.S. Department of Veterans Affairs. The segment further supports clinical offerings in public health with new work supporting the U.S. Federal Government's COVID-19 response efforts. This included expanded work with the Centers for Disease Control and Prevention ("CDC") for their helpline and increased support for the IRS Wage and Investment Division's response efforts to general inquiries regarding the Coronavirus Aid Relief & Economic Security ("CARES") Act and Economic Impact Payment Service Plan.
Outside the U.S.
Our Outside the U.S. Segment provides BPS for international governments and commercial clients, transforming the lives of people around the world. Helping people find employment, access vital support, and remain healthy, these services include health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker related services. We support programs and deliver services in the U.K., including the Health Assessment Advisory Service ("HAAS"), the Work & Health Programme, Fair Start, and Restart; Australia, including jobactive and the Disability Employment Service; Canada, including Health Insurance British Columbia and the Employment Program of British Columbia; in addition to Italy, Saudi Arabia, Singapore, South Korea, and Sweden, where we predominantly provide employment support and job seeker services.
Table 3: Results of Operation by Business Segment (1)
For the Three Months Ended
December 31, 2021 December 31, 2020
Amount % (2) Amount % (2)
(dollars in thousands)
Revenue:
U.S. Services $ 386,417  $ 384,934 
U.S. Federal Services 581,871  405,245 
Outside the U.S. 182,588  155,375 
Revenue $ 1,150,876  $ 945,554 
Gross profit:
U.S. Services $ 89,699  23.2 % $ 99,002  25.7 %
U.S. Federal Services 126,576  21.8 % 82,496  20.4 %
Outside the U.S. 11,880  6.5 % 24,557  15.8 %
Gross profit $ 228,155  19.8 % $ 206,055  21.8 %
Selling, general, and administrative expenses:
U.S. Services $ 35,102  9.1 % $ 37,456  9.7 %
U.S. Federal Services 64,925  11.2 % 52,252  12.9 %
Outside the U.S. 21,340  11.7 % 20,032  12.9 %
Other (3) 2,854  NM 2,227  NM
Selling, general, and administrative expenses $ 124,221  10.8 % $ 111,967  11.8 %
Operating income:
U.S. Services $ 54,597  14.1 % $ 61,546  16.0 %
U.S. Federal Services 61,651  10.6 % 30,244  7.5 %
Outside the U.S. (9,460) (5.2) % 4,525  2.9 %
Amortization of intangible assets (22,405) NM (6,516) NM
Other (3) (2,854) NM (2,227) NM
Operating income $ 81,529  7.1 % $ 87,572  9.3 %
(1)Expenses that are not specifically included in the segments are included in other categories, including amortization of intangible assets and the direct costs of acquisitions. These costs are excluded from measuring each segment's operating performance.
(2)Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM."
(3)Other selling, general, and administrative expenses includes costs that are not allocated to a particular segment. This includes expenses incurred as part of our acquisitions, as well as potential acquisitions which have not been or may not be completed.