Maximus : Q4 FY24 Financial Results Presentation

MMS

Fiscal 2024

Year End

Earnings Call

Bruce Caswell

President & Chief Executive Officer

November 21, 2024

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| 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.

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| Maximus: Q4 FY24 Earnings Presentation

FY24 Highlights

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| 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.