Maximus Board Authorizes $200 Million Increase to Purchase Program of Maximus Common Stock

Rhea-AI Summary

Maximus (NYSE:MMS) has announced a $200 million increase to its stock purchase program. The previous authorization of $200 million, announced in June 2024, had $171.4 million available as of September 30, 2024, but recent purchases have exhausted this capacity.

The company will buy shares at market prices, through 10b5-1 plans, or privately negotiated transactions, with the timing and amount of purchases based on market conditions and corporate needs. This program has no expiration date and can be modified or discontinued at any time.

Bruce Caswell, President and CEO, emphasized that this move aligns with their strategy to maximize shareholder value and reflects confidence in their future as a partner to government.

Positive

• Maximus has authorized an additional $200 million for stock repurchase, indicating strong financial health and confidence in future growth.
• The company has flexibility in purchasing shares based on market conditions, which can optimize shareholder value.

Negative

• The previous $200 million authorization was fully utilized, indicating potential high cash outflow.

Insights

Financial Analyst

The $200 million share buyback authorization increase demonstrates Maximus's strong financial position and confidence in its business outlook. With the previous authorization nearly exhausted, this new capacity allows for continued capital return to shareholders. Share repurchases can be viewed positively as they reduce the number of outstanding shares, potentially increasing earnings per share and creating shareholder value. The flexible, opportunistic approach to buybacks shows prudent capital management, allowing the company to take advantage of market conditions while maintaining financial flexibility. The absence of an expiration date provides additional strategic latitude. For a company with a $4.2 billion market cap, this authorization represents approximately 4.7% of market value, a meaningful commitment to shareholder returns while preserving capital for operational needs.

Previous $200 million authorization has been completed

TYSONS, Va.--(BUSINESS WIRE)-- Maximus (NYSE:MMS), a leading employer and provider of government services, announced today that its Board of Directors has authorized a $200 million increase to the purchase program for Maximus common stock, enabling ongoing, opportunistic purchase activity.

The previous $200 million authorization announced in June 2024 had $171.4 million available capacity at September 30, 2024. Recent share purchase activity in the current quarter consumed the remaining capacity.

The Company intends to purchase shares opportunistically at prevailing market prices in the open market, via 10b5-1 plans, or in privately negotiated transactions, with the amount and timing of purchases depending on market conditions, corporate needs, and other factors.

This program does not obligate the Company to acquire any particular amount of Common Stock, has no specified expiration date, and may be extended, modified, suspended or discontinued at any time at the Company’s discretion.

“We are confident in our future and ability to be an effective and efficient partner to government. Increasing the amount authorized under this program is consistent with our opportunistic approach to purchasing our common stock,” commented Bruce Caswell, President and Chief Executive Officer of Maximus. “Our capital allocation priorities are unchanged and continue to be based on a disciplined approach to maximize value for our shareholders.”

About Maximus

As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, environmental, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus delivers innovative business process management, impactful consulting services, and technology solutions that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.

Forward-Looking Statements

Except for historical information, all of the statements, expectations, and assumptions contained in this Current Report on Form 8-K are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s stock purchase program and capital allocation priorities. Actual results may differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include, but are not limited to: the fact that common stock purchases may not be conducted in the time frame or in the manner the Company expects, or at all, the Company’s capital allocation priorities may shift and the other risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended September 30, 2024, as updated by the Company’s other filings with the Securities and Exchange Commission, copies of which are available free of charge on the Company’s website at investor.maximus.com. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241211653790/en/

Investor Relations

James Francis

Jessica Batt

IR@maximus.com



Media & Public Relations

Eileen Cassidy Rivera

media@maximus.com

Source: Maximus

FAQ

What is the new stock repurchase authorization amount for MMS?

Maximus has authorized an additional $200 million for its stock repurchase program.

When was the previous stock repurchase authorization for MMS announced?

The previous $200 million stock repurchase authorization was announced in June 2024.

What does the MMS buyback mean for shareholders?

The buyback reflects the company's confidence in its future and aims to maximize shareholder value.

How will Maximus execute its stock repurchase program?

Maximus will buy shares at market prices, through 10b5-1 plans, or privately negotiated transactions.

Does the Maximus stock repurchase program have an expiration date?

No, the stock repurchase program has no specified expiration date and can be modified or discontinued at any time.