MAXIMUS Investor Presentation

Transcription

1 MAXIMUS Investor Presentation Bruce L. Caswell President & General Manager of the Health Services Segment Lisa Miles Senior VP, Investor Relations & Corporate Communications 1

2 Established Partner for Government Social Programs Leading Operator of Government Health and Human Services Programs Worldwide Economic and demographic factors driving social reforms Superior positioning in core programs for health & welfare reform Leading operator of health insurance exchange customer contact centers, and state Medicaid and CHIP programs Largest provider of government-sponsored health benefit appeals in the U.S. Biggest occupational health provider in the UK Established welfare-to-work provider in US, UK, Australia, Canada, KSA Healthy balance sheet: $131.3 million in cash at March 31, 2014 Quarterly cash dividend & opportunistic share buyback program No long-term debt Strong growth: Forecasted FY 14 revenue growth of 26-30% Forecasted FY 14 EPS growth of 25-31% Multi-year growth drivers in place 2

3 Growth, Consistency & Predictability in Earnings Annual Revenue Adjusted Diluted EPS from Continuing Operations 5-year CAGR: 18.8% $ in Millions $1,331.3 $1,680 $1,730E 5-year CAGR: 23.3% $ in EPS $2.00 $2.10E $720.1 $831.7 $929.6 $1,050.1 $0.72 $0.91 $1.13 $1.18 $1.60 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14E FY 09 FY 10 FY 11 FY 12 FY 13 FY 14E Notes: FY12 Adjusted EPS tempered by start up of Work Programme contract in the UK; CAGR calculated on the midpoint of FY14 estimated ranges. 3

4 Increasing Mix of International Work FY06 Revenue FY13 Revenue 14% Int l 25% Int l 86% Domestic 75% Domestic Macro forces compelling governments to rethink social programs, which increases global demand for MMS core competencies. 4

5 Deliver Services Through Two Segments FY13 Health Services Revenue FY13 Human Services Revenue 65% 35% Average Weighted Contract Life 5+ Years (including options) Typical Contract Margins of 10-15% Highly Predictable Revenue 5

6 Health Services Segment Overview What We Do Eligibility & enrollment Multilingual customer contact centers Consumer education Health plan choice counseling Health insurance appeals & assessments How We Get Paid Call volumes & mailings Applications & enrollments Choice rates (health plan selection) Outreach & field operations support Number of program participants Number & type of health appeals Programs We Serve Affordable Care Act, Medicaid, CHIP, Medicare and Health Insurance BC 1 out of 2 Medicaid and CHIP managed care beneficiaries served by MAXIMUS 6 state-based health insurance exchange contact centers operated by MAXIMUS 60 Occupational Health (OH) physicians the largest OH network in the United Kingdom 6

7 Leveraging Core Capabilities for ACA Services 15 States & D.C. Running State-Based Exchanges Operating 6 customer contact centers: Connecticut, District of Columbia, Hawaii, Maryland, New York & Vermont Providing ACA support work in Minnesota, California, Oregon & West Virginia 35 States Participating in Federal Exchange Operating 2 of 17 customer contact centers for the federal health insurance marketplace Managing eligibility appeals process ACA Phase II Some states likely to transition to own state exchange States likely to expand Medicaid over next several years Won $200M+ in New Annual Contract Value Related to ACA Ongoing Services 7

8 Human Services Segment Overview What We Do Welfare-to-work case management (help job seekers find employment) Job training & employer networks Child support case management Multilingual in-person case management & contact centers How We Get Paid Attachment fees Outcome fees Sustained employment fees Tasks completed Fee for service 500,000 individuals employed & transitioned from public assistance to self-sufficiency $6 billion in child support collected Programs We Serve United Kingdom: The Work Programme Australia: Job Services, Disability Employment Services & Young Refugee Assistance North America: TANF & Ticket to Work, Employment Program of British Columbia Saudi Arabia: The Ta Qat Pilot Program 8

9 Cornerstone of Growth Strategy: Land and Expand Australia Growth FUTURE GROWTH 2013 Organic Growth $157 million* 2010 New Programs $135 million* 2009 Added 40 New Sites Site Expansion 2002 Acquisition $15 million* What we look for in a new market: Extension of core capabilities Match services with rising social demands in unsustainable programs (welfare reform in UK) Stable countries, developed economies, democracy, favorable regulatory environment Australia became the model for outcomes-based performance program structures Breaking News May 2014: MMS to receive new service areas under JSA and DMS programs via the government s Star Rating reallocation system *Fiscal Year Revenue in USD 9

10 MMS Value Add: Proven Partner for Government Proven track record operating social programs Deliver outcomes that matter to governments Cost effective Experience working with diverse populations Independent with no conflict of interest Innovative, scalable and flexible Successful operation of performance-driven programs - Local hiring and workforce development - Implementation of government policies - Rapid deployment of operations - Achievement of critical program outcomes Governments value the level of expertise, proven delivery, and brand recognition that MAXIMUS brings to critical safety net programs. 10

11 Human Services Health Services Multi-Year Growth Drivers FY 2014 FY 2015 FY 2016 Beyond U.S. Health Insurance Exchanges (Phases 1 and 2) and Other ACA-Related Work Health Opportunities Outside the U.S. U.S. Federal Market Expansion Welfare Reform Efforts Outside the U.S Immigration Reform Efforts Changes in population demographics, increased caseloads, and government fiscal challenges 11

12 Poised to Capitalize on Growth Opportunities Established global leader Capitalizing On Growing Demand Positioned for significant growth across both Segments Strong financial position Experienced management team 12

13 Non-GAAP Information & Forward-looking Statements This presentation contains non-gaap financial information, such as adjusted diluted earnings per share and revenue adjusted for a terminated contract. These non-gaap numbers should not be considered in isolation, nor as alternatives to revenue or diluted earnings per share to assess performance. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results, and providing meaningful periodto-period comparisons. For a reconciliation of non-gaap measures presented in this document, see the Company s most recent quarterly earnings press release and the table below. Year Ended September 30, GAAP diluted EPS from continuing operations $ 0.75 $ 0.97 $ 1.16 $ 1.09 $ 1.68 Legal & settlement expense and acquisition-related expense (0.03) (0.05) (0.01) Tax adjustments - (0.01) (0.02) Adjustment for terminated contract (0.09) Adjusted diluted EPS from continuing operations $ 0.72 $ 0.91 $ 1.13 $ 1.18 $ 1.60 A number of statements being made today will be forward-looking in nature. Such statements are only predictions and actual events or results may differ materially as a result of risks we face, including those discussed in our SEC filings. We encourage you to review the summary of these risks in Exhibit 99.1 to our most recent Form 10-K filed with the SEC. The Company does not assume any obligation to revise or update these forward-looking statements to reflect subsequent events or circumstances. 13