MMS
Fiscal 2024
Year End
Earnings Call
Bruce Caswell
President & Chief Executive Officer
November 21, 2024
1
| Maximus: Q4 FY24 Earnings Presentation
Looking Ahead
When we set our latest strategic vision for the company, there was deliberate focus on bi-partisan priorities that are fundamental to the government's role supporting its citizens.
3
| Maximus: Q4 FY24 Earnings Presentation
FY24 Highlights
4
| Maximus: Q4 FY24 Earnings Presentation
Recent Wins
In FY24, we successfully secured two task orders under the IRS Enterprise Development, Operations Services (EDOS) Blanket Purchase Agreement. Combined, the task orders contribute total contract value of $128 million and represent two of the six task orders awarded to date. These victories are key milestones in our strategic focus on Technology Modernization and underscore our role with the IRS as one of their trusted partners.
Within our Federal segment, we recently secured the rebid of our California Independent Medical Review project, valued at $120 million total contract value over a base three-year period. Since 2013, we've supported the Department of Industrial Relations' Division of Workers' Compensation by providing independent medical reviews. This program serves as a cornerstone for our Future of Health strategic pillar and showcases the long-term customer relationships that are a key element of our business model.
Maximus has secured a recent victory, collaborating with an agency within the Department of Defense to enhance its artificial intelligence capabilities. This initial contract is particularly notable as it introduces us to a new client and reflects a new contracting model for Maximus that enables customer-driven R&D. In a crowded market with many companies offering strategic advisory services on AI, we believe our selection acknowledges the practical capabilities we have built and the credibility of our subject-matter experts in this area.
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| Maximus: Q4 FY24 Earnings Presentation
Our latest victories not only
showcase our ongoing success in
executing on the pillars of our three-to-five-year strategy but also highlight our capability to enter new agencies and expand into related markets.
Enterprise Technology
In FY24, under our Maximus Forward initiative, our Enterprise Technology organization undertook significant change. The Office of the CDIO sharpened service delivery and execution, deepened our capacity to identify, shape, and respond to customer needs, and positioned Maximus to drive greater innovation in our operations and offerings.
Our CDIO team has
mapped more than 90% of
Through Maximus Forward,
We launched our Global
the known requirements in
Capability Center (or GCC)
our near-term pipeline to
Enterprise Technology has
through a small acquisition
our capability sets. We
contributed significant,
of a long-time delivery
have concurrently identified
annual recurring savings
partner. Our GCC is now
certain accelerators (like
and efficiencies, some of
part of how we solution,
AI/ML) that we believe will
which have been
deliver, and innovate as a
further differentiate our
reinvested.
company.
solutions and contribute to
improved win rates.
We view Maximus Forward as an ongoing transformation initiative that will continue to have us challenge established structures and processes, promote more efficient operations, and provide for re-investment in the business to address priorities from talent acquisition and development to technology and innovation.
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| Maximus: Q4 FY24 Earnings Presentation
New Awards & Pipeline
New Awards (YTD)
September 30, 2024
Signed Contracts
$2.2 billion
Unsigned Contracts
$312 million
Book-to-Bill ratio (TTM)
0.4x
Given circumstances as best known today, the volume of adjudications for both rebids and new work are expected to increase over the next 12 months and result in an improved book-to-bill.
total pipeline
$54.3B ofopportunitiessales
48% new work
68% U.S. Federal Services Segment
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| Maximus: Q4 FY24 Earnings Presentation
$4.2B
$7.1B
$42.9B
Proposals
Proposal in
Opportunities
pending
preparation
tracking
Fiscal 2024
Year End
Earnings Call
David Mutryn
Chief Financial Officer
November 21, 2024
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| Maximus: Q4 FY24 Earnings Presentation
Total Company Results - Fiscal Year 2024
($ in millions, except per share data)
FY24
Margin
FY23
Margin
% Change
U.S. Federal Services
$
2,737.2
$
2,403.6
13.9 %
U.S. Services
1,911.8
1,812.1
5.5 %
Outside the U.S.
657.1
689.1
(4.6)%
Total Revenue
$
5,306.2
$
4,904.7
8.2 %
U.S. Federal Services
$
333.6
12.2%
$
249.7
10.4%
33.6 %
U.S. Services
247.0
12.9%
182.6
10.1%
35.3 %
Outside the U.S.
7.7
1.2%
(9.1)
-1.3%
nm
Intangibles amortization
(91.6)
(94.6)
(3.2)%
Divestiture-related charges
(1.0)
(3.8)
nm
Other
(7.2)
(30.0)
nm
Total Operating Income
$
488.5
9.2%
$
294.8
6.0%
65.7 %
Intangibles amortization
$
91.6
$
94.6
(3.2)%
Divestiture-related charges
1.0
3.8
nm
Depreciation & amortization (PP&E/CapSW)
34.0
54.7
(37.9)%
Adjusted EBITDA (Non-GAAP)
$
615.0
11.6%
$
447.9
9.1%
37.3 %
Interest expense
$
82.4
$
84.1
(2.0)%
Effective Tax Rate
24.5 %
23.1 %
Net Income
$
306.9
$
161.8
89.7 %
Diluted EPS
$
4.99
$
2.63
89.7 %
Intangibles amortization per share
$
1.10
$
1.14
(3.5)%
Divestiture-related charges per share
0.02
0.06
nm
Adjusted Diluted EPS (Non-GAAP)
$
6.11
$
3.83
59.5 %
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| Maximus: Q4 FY24 Earnings Presentation
U.S. Federal Services Segment
($ in millions)
FY24
FY23
% Change
Revenue
U.S. Federal Services
$
2,737.2
$
2,403.6
13.9 %
Operating Income
U.S. Federal Services
$
333.6
$
249.7
33.6 %
Operating Margin %
12.2 %
10.4 %
10 | Maximus: Q4 FY24 Earnings Presentation
Disclaimer
Maximus Inc. published this content on November 20, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 20, 2024 at 22:06:48.441.