Financial Data and Key Metrics Changes - Maximus reported revenue of $1.31 billion for Q3 2024, representing a 10.6% year-over-year growth, or 11.2% on an organic basis [4] - Adjusted operating income margin was 12.6% and adjusted EPS was $1.74 for the quarter, compared to 6.9% and $0.78 respectively for the prior year period [4] - Cash provided by operating activities for Q3 was $199 million, and free cash flow was $165 million [7] Business Line Data and Key Metrics Changes - U.S. Federal Services segment revenue increased 17.0% to $683 million, driven by volume growth on expanded clinical programs [5] - U.S. Services segment revenue increased 5.2% to $472 million, attributed to strong performance across the Medicaid-related portfolio [6] - Outside the U.S. segment revenue increased 2.3% year-over-year to $159 million, with organic growth of 6.8% primarily from the UK [7] Market Data and Key Metrics Changes - The total debt at the end of Q3 was $1.16 billion, with a net debt to EBITDA ratio improving from 1.7 to 1.5 times [8] - The signed awards for Q3 totaled $1.3 billion, with a book-to-bill ratio of approximately 0.6 times for the trailing 12-month period [25] Company Strategy and Development Direction - The company continues to focus on executing its strategy outlined in the 2022 Investor Day, emphasizing technology modernization and digitally enabled customer services [17] - Recent contract wins include a task order under the IRS EDOS valued at $87 million and a TSA contract worth $171 million [18][19] - The company is optimistic about the transition to modular solutions supporting state Medicaid programs, which is expected to positively contribute in the coming years [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit organic growth over the long term, despite potential fluctuations year-to-year [14] - The company anticipates a normalization of extraordinary revenue growth in fiscal 2025, with expectations of similar revenue levels to fiscal 2024 [14][38] - Management noted that the upcoming election may create a dynamic environment but does not expect significant impact on long-term success [28] Other Important Information - The company amended its credit agreement, extending maturity dates and maintaining flexibility for capital allocation priorities [8] - Maximus was recognized by Time Magazine as one of America's best midsize companies, highlighting employee satisfaction, revenue growth, and sustainability efforts [30] Q&A Session Summary Question: Updates on the CCO protest timeline - Management expects a response from the Government Accountability Office by September 30 regarding the protest [32][34] Question: Clarification on guidance for 2025 - Management indicated that fiscal year 2025 revenue may look similar to the current guidance for fiscal year 2024, with some moderation expected in U.S. Services due to redetermination volumes [36][38] Question: Expectations for the VA business and automation tools - Management noted that the VA is grappling with funding issues but expects volumes to remain steady, with technology investments aimed at improving veteran experiences [39][42]

| --- | --- | |--------------------------------------|-------| | | | | | | | | | | | | | Fiscal 2024 | | | Third Quarter | | | Earnings Call | | | David Mutryn Chief Financial Officer | | | August 8, 2024 | | Forward-looking Statements & Non-GAAP Information These slides should be read in conjunction with our most recent quarterly earnings press release, along with listening to or reading a transcript of management comments from our most recent quarterly earnings conference call. This document may contain n ...

Financial Performance - Revenue for the three months ended June 30, 2024, was $1,314,929 thousand, representing a 10.6% increase from $1,188,677 thousand in the same period of 2023[86] - Gross profit for the three months ended June 30, 2024, was $332,314 thousand, with a gross profit margin of 25.3%, up from 22.2% in the prior year[86] - Operating income for the three months ended June 30, 2024, was $141,739 thousand, compared to $58,388 thousand for the same period in 2023, resulting in an operating margin of 10.8%[86] - Net income for the three months ended June 30, 2024, was $89,752 thousand, significantly higher than $30,863 thousand in the same period of 2023[86] - Organic revenue growth for the nine months ended June 30, 2024, was $372,624 thousand, representing a 10.2% increase compared to the same period in 2023[89] - Revenue for the three months ended June 30, 2024, increased by 17.0% to $683.3 million compared to $584.0 million for the same period in 2023[97] - Revenue for the U.S. Services Segment for the three months ended June 30, 2024, increased by 5.2% to $472.3 million compared to $449.1 million in the same period of 2023[101] - The Outside the U.S. Segment reported revenue of $159.3 million for the three months ended June 30, 2024, a 2.3% increase from $155.7 million in the prior year[104] Expenses and Margins - Selling, general, and administrative expenses for the three months ended June 30, 2024, were $167,033 thousand, down from $182,545 thousand in the same period of 2023[86] - The company expects to return to normal profit margin levels in the coming quarters, with a full-year operating profit margin anticipated at approximately 13%[102] - The U.S. Federal Services Segment is expected to continue growing, driven by additional volumes in clinical services, with a full-year operating margin anticipated at around 12.5%[98] - Adjusted operating income margin excluding amortization of intangible assets and divestiture-related charges was 12.6% for the three months ended June 30, 2024, up from 6.9% in the same period last year[130] Tax and Effective Rates - The effective tax rate for the three months ended June 30, 2024, was 25.4%, compared to 15.1% for the same period in 2023[95] - The company expects an effective tax rate between 24.5% and 25.5% for fiscal year 2024[95] Cash Flow and Liquidity - As of June 30, 2024, the company had $102.8 million in cash and cash equivalents, indicating sufficient liquidity for operating requirements over the next 12 months[108] - Free cash flow for the nine months ended June 30, 2024, was $269.2 million, compared to $110.9 million in the prior year[124] - The net change in cash and cash equivalents and restricted cash for the nine months ended June 30, 2024, was $25.7 million, compared to a decrease of $45.1 million in the same period last year[111] - The company reported a net cash provided by operating activities of $351.4 million, an increase of $181.7 million compared to the same period in the prior year[112] Debt and Financing - The principal debt agreement totals $1.15 billion, with access to an additional $750 million through a revolving credit facility[116] - The Consolidated Net Total Leverage Ratio was reported at 1.47 as of June 30, 2024, complying with the Amended Credit Agreement's requirement of not exceeding 4.00:1.00[120] - The company incurred new financing costs of $9.7 million due to the amendment of its credit agreement in May 2024[114] Earnings and Shareholder Returns - Diluted earnings per share for the three months ended June 30, 2024, was $1.46, up from $0.50 in the same period last year, representing a growth of 192%[130] - Adjusted diluted earnings per share excluding amortization of intangible assets and divestiture-related charges was $1.74 for the three months ended June 30, 2024, compared to $0.78 in the same period last year, an increase of 123.1%[130] Operational Insights - The company is monitoring the recompete status of significant contracts, including a $6.6 billion contract with the Centers for Medicare & Medicaid Services, which could represent 10% to 15% of total revenue annually[98] - The company has undertaken divestitures in fiscal year 2024, including its employment services business in Canada and operations in Italy and Singapore, to improve performance in the Outside the U.S. Segment[106] - The company generated 12% of its revenue from international markets for the three months ended June 30, 2024[127] Financial Risk Management - The company remains exposed to financial risks such as changes in interest rates and foreign currency exchange rates, with no material changes in market rate risk disclosures since the last report[132] - The company utilizes derivative instruments to manage selected interest rate exposures, maintaining a proactive approach to financial risk management[132]

For the quarter ended June 2024, Maximus (MMS) reported revenue of $1.31 billion, up 10.6% over the same period last year. EPS came in at $1.74, compared to $0.78 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.28 billion, representing a surprise of +3.02%. The company delivered an EPS surprise of +18.37%, with the consensus EPS estimate being $1.47. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they c ...

Maximus (MMS) came out with quarterly earnings of $1.74 per share, beating the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 18.37%. A quarter ago, it was expected that this government health services provider would post earnings of $1.31 per share when it actually produced earnings of $1.57, delivering a surprise of 19.85%. Over the last four qu ...

1 | --- | --- | --- | |----------------------------|----------|------------------------------------------------------------------------| | FOR IMMEDIATE RELEASE | CONTACT: | James Francis, VP - IR Jessica Batt, VP - IR & ESG | | Date: August 7, 2024 | | IR@maximus.com | | | | | | | | | Maximus Reports Fiscal Year 2024 Third Quarter Results Favorable tailwinds persist and drive third consecutive raise to FY24 guidance (Tysons, Va. - August 7, 2024) - Maximus (NYSE: MMS), a leading provider of government serv ...

Wall Street analysts forecast that Maximus (MMS) will report quarterly earnings of $1.47 per share in its upcoming release, pointing to a year-over-year increase of 88.5%. It is anticipated that revenues will amount to $1.28 billion, exhibiting an increase of 7.4% compared to the year-ago quarter. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this ...

Maximus, Inc. (MMS) shares have had an impressive run in the past three months. The stock has rallied 11% compared with the 7% growth of its industry and the 8.8% increase of the Zacks S&P 500 composite. This rally aligns with the performance of its closest competitors, Booz Allen Hamilton (BAH) , which has risen 7%, and Accenture (ACN) , which has rallied 4% over the same period. Zacks Investment Research Image Source: 3 Months Price Performance The stock closed at $89.98 in its last trading session, close ...

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with ...

A month has gone by since the last earnings report for Maximus (MMS) . Shares have added about 2.9% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Maximus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Maximus Beats Q2 Earnings Estimates Maximus, Inc.'s reported ...