Quarterly report pursuant to Section 13 or 15(d)

Business Segments

v3.22.1
Business Segments
 6 Months Ended
Mar. 31, 2022
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. This includes assessments to determine whether personal care services are medically necessary and public health offerings such as contact tracing, disease investigation, and vaccine distribution support services as part of the governments' COVID-19 response efforts.
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 Group, Inc., 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
For the Three Months Ended For the Six Months Ended
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Amount % (1) Amount % (1) Amount % (1) Amount % (1)
(dollars in thousands)
Revenue:
U.S. Services $ 398,077  $ 448,215  $ 784,494  $ 833,149 
U.S. Federal Services 573,288  330,136  1,155,159  735,381 
Outside the U.S. 205,961  180,929  388,549  336,304 
Revenue $ 1,177,326  $ 959,280  $ 2,328,202  $ 1,904,834 
Gross profit:
U.S. Services $ 84,971  21.3 % $ 119,440  26.6 % $ 174,670  22.3 % $ 218,442  26.2 %
U.S. Federal Services 115,153  20.1 % 74,133  22.5 % 241,729  20.9 % 156,629  21.3 %
Outside the U.S. 28,327  13.8 % 37,085  20.5 % 40,207  10.3 % 61,642  18.3 %
Gross profit $ 228,451  19.4 % $ 230,658  24.0 % $ 456,606  19.6 % $ 436,713  22.9 %
Selling, general, and administrative expenses:
U.S. Services $ 38,273  9.6 % $ 36,593  8.2 % $ 73,375  9.4 % $ 74,049  8.9 %
U.S. Federal Services 68,949  12.0 % 50,978  15.4 % 133,874  11.6 % 103,230  14.0 %
Outside the U.S. 24,011  11.7 % 22,013  12.2 % 45,351  11.7 % 42,045  12.5 %
Other (2) (926) NM 2,818  NM 1,928  NM 5,045  NM
Selling, general, and administrative expenses $ 130,307  11.1 % $ 112,402  11.7 % $ 254,528  10.9 % $ 224,369  11.8 %
Operating income/(loss):
U.S. Services $ 46,698  11.7 % $ 82,847  18.5 % $ 101,295  12.9 % $ 144,393  17.3 %
U.S. Federal Services 46,204  8.1 % 23,155  7.0 % 107,855  9.3 % 53,399  7.3 %
Outside the U.S. 4,316  2.1 % 15,072  8.3 % (5,144) (1.3) % 19,597  5.8 %
Amortization of intangible assets (22,856) NM (5,070) NM (45,261) NM (11,586) NM
Other (2) 926  NM (2,818) NM (1,928) NM (5,045) NM
Operating income/(loss) $ 75,288  6.4 % $ 113,186  11.8 % $ 156,817  6.7 % $ 200,758  10.5 %
(1)Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM."
(2)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.