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Maximus Reports Fiscal Year 2024 Second Quarter Results

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Maximus (NYSE: MMS) reported strong financial results for the second quarter of fiscal year 2024, with revenue up 11.7% to $1.35 billion. Diluted earnings per share were $1.31, and adjusted diluted earnings per share were $1.57. The company raised guidance for FY24, with revenue increasing by $75 million, adjusted operating income by more than $34 million, adjusted diluted earnings per share by $0.40, and free cash flow by $25 million. Net debt to EBITDA ratio improved to 1.7 times. A quarterly cash dividend of $0.30 per share was declared.

Positive
  • Revenue increased by 11.7% to $1.35 billion for the second quarter of fiscal year 2024.

  • Adjusted diluted earnings per share rose to $1.57, reflecting a significant increase compared to the prior year period.

  • The company raised guidance for fiscal year 2024, with revenue, adjusted operating income, adjusted diluted earnings per share, and free cash flow all expected to increase.

Negative
  • Outside the U.S. Segment revenue decreased by 7.2% to $160.5 million, with divestitures impacting revenue negatively.

  • The debt, net of allowed cash, to EBITDA ratio decreased to 1.7 times, compared to the previous quarter, indicating a higher debt level.

  • The Days Sales Outstanding (DSO) increased to 62 days at March 31, 2024, compared to 59 days at December 31, 2023, which could indicate potential issues with receivables collection.

Strong demand drives highest post-pandemic margins and further raise to FY24 guidance

TYSONS, Va.--(BUSINESS WIRE)-- Maximus (NYSE: MMS), a leading provider of government services worldwide, reported financial results for the three and six months ended March 31, 2024.

Highlights for the second quarter of fiscal year 2024 include:

  • Revenue increased 11.7% to $1.35 billion, compared to $1.21 billion for the prior year period. Organic growth was 12.6% and driven by expanded programs in the domestic segments and resumed Medicaid-related activities.
  • Diluted earnings per share were $1.31, and adjusted diluted earnings per share were $1.57, compared to $0.52 and $0.81, respectively, for the prior year period.
  • The company is raising guidance for fiscal year 2024. At the midpoints, revenue is increasing by $75 million, adjusted operating income guidance is increasing by more than $34 million, adjusted diluted earnings per share by $0.40, and free cash flow by $25 million.
  • Net debt to EBITDA ratio improved to 1.7 times at March 31, 2024, compared to 2.1 times in the prior quarter.
  • A quarterly cash dividend of $0.30 per share is payable on May 31, 2024, to shareholders of record on May 15, 2024.

"For the second consecutive quarter, we are able to raise guidance that reflects our confidence in the earnings power of the business," said Bruce Caswell, President and Chief Executive Officer. "We are focused on driving future growth through continued, excellent operational execution coupled with innovative technology solutions to drive long-term shareholder value."

Second Quarter Results

Revenue for the second quarter of fiscal year 2024 increased 11.7% to $1.35 billion, compared to $1.21 billion for the prior year period. Organic growth was 12.6%, driven by a combination of expanded programs in the U.S. Federal Services Segment, such as the Veterans Affairs (VA) Medical Disability Exams (MDE) contracts, as well as expanded and resumed programs in the U.S. Services Segment, such as assessment work and Medicaid-related programs, respectively.

For the second quarter of fiscal year 2024, operating margin was 9.5% and the adjusted operating margin was 11.1%. This compares to margins of 5.2% and 7.2%, respectively, for the prior year period. Diluted earnings per share were $1.31 and adjusted diluted earnings per share were $1.57. This compares to $0.52 and $0.81, respectively, for the prior year period. The strength of this quarter's earnings came from an aggregation of multiple areas across the domestic segments.

U.S. Federal Services Segment

U.S. Federal Services Segment revenue for the second quarter of fiscal year 2024 increased 20.1% to $701.7 million, compared to $584.1 million reported for the prior year period. All growth was organic and driven by volume growth on expanded programs, including the VA MDE contracts, which comprise the Veterans Evaluation Services (VES) business.

The segment operating margin for the second quarter of fiscal year 2024 was 11.9%, compared to 8.2% reported for the prior year, and results this quarter slightly beat expectations due primarily to the VA MDE contracts exceeding their production goal. The full-year fiscal 2024 margin for the U.S. Federal Services Segment is now expected to be approximately 12%.

U.S. Services Segment

U.S. Services Segment revenue for the second quarter of fiscal year 2024 increased 8.1% to $486.1 million, compared to $449.7 million reported in the prior year period. All growth was organic and driven by expanded programs, including assessment services and revenue from resumed programs related to the commencement of Medicaid redeterminations.

The segment operating margin for the second quarter of fiscal year 2024 was 14.0%, compared to 9.5% reported for the prior year, which had been impacted by the pause to Medicaid redeterminations. Results this quarter are anticipated to represent a peak for segment profitability and tied to extra volumes from performing redetermination work. The U.S. Services Segment's margin outlook across all periods in fiscal year 2024 has improved, with a full-year margin expected of approximately 13% and in the middle of the segment's 11% to 14% long-term operating margin target.

Outside the U.S. Segment

Outside the U.S. Segment revenue for the second quarter of fiscal year 2024 decreased 7.2% to $160.5 million, compared to $173.1 million reported in the prior year period. The divestiture of businesses in the prior fiscal year reduced revenue by 8.2%, currency was a benefit of 1.8%, and organic growth was flat.

The segment realized an operating profit of $0.7 million for the second quarter of fiscal year 2024, compared to an operating loss of $3.7 million in the prior year period. With some recent stability in the segment, the company remains focused this fiscal year on shaping the Outside the U.S. Segment to be aligned strategically with the rest of the business and deliver consistent profitability.

Sales and Pipeline

Year-to-date signed contract awards at March 31, 2024, totaled $568 million, and contracts pending (awarded but unsigned) totaled $797 million. The book-to-bill ratio at March 31, 2024, was 1.1x calculated on a trailing twelve-month basis.

The sales pipeline at March 31, 2024, totaled $37.8 billion, comprised of approximately $1.31 billion in proposals pending, $987 million in proposals in preparation, and $35.5 billion in opportunities tracking. New work opportunities represent approximately 75% of the total sales pipeline.

Balance Sheet and Cash Flows

At March 31, 2024, cash and cash equivalents totaled $77.4 million, and gross debt was $1.22 billion. The ratio of debt, net of allowed cash, to EBITDA for the quarter ended March 31, 2024, as calculated in accordance with the company's credit agreement, was 1.7x. This compares to 2.1x at December 31, 2023.

For the second quarter of fiscal year 2024, cash provided by operating activities totaled $130.5 million, and free cash flow was $105.2 million. DSO at March 31, 2024, were 62 days, compared with 59 days at December 31, 2023.

Subsequent to March 31, 2024, we purchased approximately 242,000 shares at a cost of $19.3 million.

On April 5, 2024, our Board of Directors declared a quarterly cash dividend of $0.30 for each share of our common stock outstanding. The dividend is payable on May 31, 2024, to shareholders of record on May 15, 2024.

Raising FY24 Guidance

Maximus is raising fiscal year 2024 guidance following second quarter results and an improved outlook for the remainder of the fiscal year. Revenue is now expected to range between $5.15 billion and $5.25 billion, representing an increase of $75 million from prior guidance at the midpoint.

Adjusted operating income is now expected to range between $540 million and $560 million, representing an increase of more than $34 million from prior guidance. Adjusted operating income excludes an estimated $89 million of expense for amortization of intangible assets and $1 million of divestiture-related charges.

Adjusted diluted earnings per share is now expected to range between $5.65 and $5.85 per share, representing an increase of $0.40 per share from prior guidance.

Free cash flow is now expected to range between $330 million and $370 million as a result of the increased earnings guidance. Interest expense is estimated to be $77 million for fiscal year 2024.

Conference Call and Webcast Information

Maximus will host a conference call tomorrow, May 9, 2024, at 9:00 a.m. ET. Shareholders are invited to submit questions for management’s consideration by emailing IR@maximus.com up to one hour prior to the call.

The call is open to the public and available by webcast or by phone at:

877.407.8289 (Domestic) / +1.201.689.8341 (International)

For those unable to listen to the live call, a recording of the webcast will be available on investor.maximus.com.

About Maximus

As a leading strategic partner to governments across the globe, 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.

Non-GAAP Measures and Risk Factors

This release refers to non-GAAP measures and other indicators, including organic growth, free cash flow, operating income and EPS adjusted for amortization of intangible assets and divestiture-related charges, adjusted EBITDA, and other non-GAAP measures.

A description of these non-GAAP measures, the reasons why we use and present them, and details as to how they are calculated are included in our earnings presentation and forthcoming Form 10-Q.

The presentation of these non-GAAP numbers is not meant to be considered in isolation, nor as alternatives to cash flows from operations, revenue growth, operating income, or net income as measures of performance. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures presented by other companies.

Statements that are not historical facts, including statements about the company’s confidence and strategies, and the company’s expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand, or acceptance of the company’s products are forward-looking statements that involve risks and uncertainties.

These risks could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements. A summary of risk factors can be found in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended September 30, 2023, which was filed with the Securities and Exchange Commission (SEC) on November 16, 2023. The Company's SEC reports are accessible on maximus.com.

Maximus, Inc.

Consolidated Statements of Operations

(Unaudited)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

March 31, 2024

 

March 31, 2023

 

March 31, 2024

 

March 31, 2023

 

(in thousands, except per share amounts)

Revenue

$

1,348,357

 

 

$

1,206,852

 

 

$

2,675,398

 

 

$

2,456,098

 

Cost of revenue

 

1,030,768

 

 

 

978,249

 

 

 

2,057,755

 

 

 

1,982,748

 

Gross profit

 

317,589

 

 

 

228,603

 

 

 

617,643

 

 

 

473,350

 

Selling, general, and administrative expenses

 

168,454

 

 

 

142,448

 

 

 

337,649

 

 

 

288,900

 

Amortization of intangible assets

 

21,641

 

 

 

23,650

 

 

 

44,990

 

 

 

47,168

 

Operating income

 

127,494

 

 

 

62,505

 

 

 

235,004

 

 

 

137,282

 

Interest expense

 

20,366

 

 

 

20,999

 

 

 

41,873

 

 

 

42,605

 

Other expense/(income), net

 

(822

)

 

 

(818

)

 

 

(334

)

 

 

(1,084

)

Income before income taxes

 

107,950

 

 

 

42,324

 

 

 

193,465

 

 

 

95,761

 

Provision for income taxes

 

27,440

 

 

 

10,536

 

 

 

48,807

 

 

 

23,978

 

Net income

$

80,510

 

 

$

31,788

 

 

$

144,658

 

 

$

71,783

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

1.31

 

 

$

0.52

 

 

$

2.36

 

 

$

1.17

 

Diluted

$

1.31

 

 

$

0.52

 

 

$

2.35

 

 

$

1.17

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

61,371

 

 

 

61,120

 

 

 

61,330

 

 

 

61,119

 

Diluted

 

61,622

 

 

 

61,383

 

 

 

61,573

 

 

 

61,265

 

 

 

 

 

 

 

 

 

Dividends declared per share

$

0.30

 

 

$

0.28

 

 

$

0.60

 

 

$

0.56

 

Maximus, Inc.

Consolidated Statements of Operations

(Unaudited)

 

 

March 31, 2024

 

September 30, 2023

 

(unaudited)

 

 

 

(in thousands)

Assets:

 

 

 

Cash and cash equivalents

$

77,370

 

 

$

65,405

 

Accounts receivable, net

 

916,004

 

 

 

826,873

 

Income taxes receivable

 

14,167

 

 

 

16,556

 

Prepaid expenses and other current assets

 

110,912

 

 

 

146,632

 

Total current assets

 

1,118,453

 

 

 

1,055,466

 

Property and equipment, net

 

35,371

 

 

 

38,831

 

Capitalized software, net

 

141,943

 

 

 

107,811

 

Operating lease right-of-use assets

 

148,413

 

 

 

163,929

 

Goodwill

 

1,780,158

 

 

 

1,779,215

 

Intangible assets, net

 

676,909

 

 

 

703,648

 

Deferred contract costs, net

 

49,102

 

 

 

45,372

 

Deferred compensation plan assets

 

51,786

 

 

 

42,919

 

Deferred income taxes

 

2,129

 

 

 

2,459

 

Other assets

 

36,880

 

 

 

46,147

 

Total assets

$

4,041,144

 

 

$

3,985,797

 

Liabilities and Shareholders' Equity:

 

 

 

Liabilities:

 

 

 

Accounts payable and accrued liabilities

$

276,199

 

 

$

282,081

 

Accrued compensation and benefits

 

172,601

 

 

 

194,251

 

Deferred revenue, current portion

 

76,574

 

 

 

60,477

 

Income taxes payable

 

15,792

 

 

 

451

 

Long-term debt, current portion

 

88,517

 

 

 

86,844

 

Operating lease liabilities, current portion

 

48,470

 

 

 

49,852

 

Other current liabilities

 

50,563

 

 

 

49,058

 

Total current liabilities

 

728,716

 

 

 

723,014

 

Deferred revenue, non-current portion

 

33,374

 

 

 

38,849

 

Deferred income taxes

 

192,890

 

 

 

203,898

 

Long-term debt, non-current portion

 

1,121,337

 

 

 

1,163,149

 

Deferred compensation plan liabilities, non-current portion

 

53,539

 

 

 

46,432

 

Operating lease liabilities, non-current portion

 

112,780

 

 

 

129,367

 

Other liabilities

 

9,365

 

 

 

13,253

 

Total liabilities

 

2,252,001

 

 

 

2,317,962

 

Shareholders' equity:

 

 

 

Common stock, no par value; 100,000 shares authorized; 61,037 and 60,998 shares issued and outstanding as of March 31, 2024, and September 30, 2023, respectively

 

594,387

 

 

 

577,898

 

Accumulated other comprehensive loss

 

(30,149

)

 

 

(27,615

)

Retained earnings

 

1,224,905

 

 

 

1,117,552

 

Total shareholders' equity

 

1,789,143

 

 

 

1,667,835

 

Total liabilities and shareholders' equity

$

4,041,144

 

 

$

3,985,797

 

 

 

 

 

Maximus, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

March 31, 2024

 

March 31, 2023

 

March 31, 2024

 

March 31, 2023

 

(in thousands)

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

80,510

 

 

$

31,788

 

 

$

144,658

 

 

$

71,783

 

Adjustments to reconcile net income to cash flows from operations:

 

 

 

 

 

 

 

Depreciation and amortization of property, equipment, and capitalized software

 

8,205

 

 

 

14,041

 

 

 

16,616

 

 

 

26,321

 

Amortization of intangible assets

 

21,641

 

 

 

23,650

 

 

 

44,990

 

 

 

47,168

 

Amortization of debt issuance costs and debt discount

 

601

 

 

 

601

 

 

 

1,202

 

 

 

1,635

 

Deferred income taxes

 

(6,150

)

 

 

(37

)

 

 

(8,315

)

 

 

(1,368

)

Stock compensation expense

 

8,697

 

 

 

9,540

 

 

 

18,124

 

 

 

13,943

 

Loss on sale of businesses

 

 

 

 

883

 

 

 

1,018

 

 

 

883

 

Change in assets and liabilities, net of effects of business combinations:

 

 

 

 

 

 

 

Accounts receivable

 

(57,006

)

 

 

263,278

 

 

 

(92,385

)

 

 

62,529

 

Prepaid expenses and other current assets

 

9,876

 

 

 

2,788

 

 

 

19,932

 

 

 

13,412

 

Deferred contract costs

 

(2,712

)

 

 

1,596

 

 

 

(3,600

)

 

 

583

 

Accounts payable and accrued liabilities

 

9,242

 

 

 

(10,003

)

 

 

(6,301

)

 

 

(6,361

)

Accrued compensation and benefits

 

56,836

 

 

 

39,049

 

 

 

(10,556

)

 

 

(14,222

)

Deferred revenue

 

9,828

 

 

 

(33,111

)

 

 

10,705

 

 

 

(18,347

)

Income taxes

 

(8,940

)

 

 

(16,043

)

 

 

13,310

 

 

 

(6,578

)

Operating lease right-of-use assets and liabilities

 

703

 

 

 

(1,124

)

 

 

(385

)

 

 

(2,072

)

Other assets and liabilities

 

(843

)

 

 

(17,200

)

 

 

3,083

 

 

 

(14,272

)

Net cash provided by operating activities

 

130,488

 

 

 

309,696

 

 

 

152,096

 

 

 

175,037

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property and equipment and capitalized software

 

(25,300

)

 

 

(18,054

)

 

 

(47,547

)

 

 

(33,751

)

Asset acquisition

 

(18,006

)

 

 

 

 

 

(18,006

)

 

 

 

Proceeds from divestitures

 

1,263

 

 

 

9,124

 

 

 

3,078

 

 

 

9,124

 

Net cash used in investing activities

 

(42,043

)

 

 

(8,930

)

 

 

(62,475

)

 

 

(24,627

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Cash dividends paid to Maximus shareholders

 

(18,309

)

 

 

(17,016

)

 

 

(36,608

)

 

 

(34,033

)

Tax withholding related to RSU vesting

 

 

 

 

 

 

 

(13,455

)

 

 

(8,475

)

Payments for contingent consideration

 

(5,349

)

 

 

(2,626

)

 

 

(8,168

)

 

 

(4,041

)

Proceeds from borrowings

 

195,000

 

 

 

193,696

 

 

 

423,409

 

 

 

462,398

 

Principal payments for debt

 

(298,129

)

 

 

(469,105

)

 

 

(464,787

)

 

 

(530,460

)

Cash-collateralized escrow liabilities

 

3,918

 

 

 

(47,587

)

 

 

5,122

 

 

 

(57,060

)

Net cash used in financing activities

 

(122,869

)

 

 

(342,638

)

 

 

(94,487

)

 

 

(171,671

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(731

)

 

 

765

 

 

 

1,115

 

 

 

3,186

 

Net change in cash, cash equivalents, and restricted cash

 

(35,155

)

 

 

(41,107

)

 

 

(3,751

)

 

 

(18,075

)

Cash, cash equivalents, and restricted cash, beginning of period

 

153,495

 

 

 

159,827

 

 

 

122,091

 

 

 

136,795

 

Cash, cash equivalents, and restricted cash, end of period

$

118,340

 

 

$

118,720

 

 

$

118,340

 

 

$

118,720

 

Maximus, Inc.

Consolidated Results of Operations by Segment

(Unaudited)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

March 31, 2024

 

March 31, 2023

 

March 31, 2024

 

March 31, 2023

 

Amount

 

% (1)

 

Amount

 

% (1)

 

Amount

 

% (1)

 

Amount

 

% (1)

 

(dollars in thousands)

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal Services

$

701,702

 

 

 

 

$

584,075

 

 

 

 

$

1,378,780

 

 

 

 

$

1,202,242

 

 

 

U.S. Services

 

486,115

 

 

 

 

 

449,703

 

 

 

 

 

975,960

 

 

 

 

 

889,181

 

 

 

Outside the U.S.

 

160,540

 

 

 

 

 

173,074

 

 

 

 

 

320,658

 

 

 

 

 

364,675

 

 

 

Revenue

$

1,348,357

 

 

 

 

$

1,206,852

 

 

 

 

$

2,675,398

 

 

 

 

$

2,456,098

 

 

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal Services

$

163,337

 

 

23.3

%

 

$

122,874

 

 

21.0

%

 

$

319,999

 

 

23.2

%

 

$

245,568

 

 

20.4

%

U.S. Services

 

130,122

 

 

26.8

%

 

 

86,016

 

 

19.1

%

 

 

248,485

 

 

25.5

%

 

 

169,614

 

 

19.1

%

Outside the U.S.

 

24,130

 

 

15.0

%

 

 

19,713

 

 

11.4

%

 

 

49,159

 

 

15.3

%

 

 

58,168

 

 

16.0

%

Gross profit

$

317,589

 

 

23.6

%

 

$

228,603

 

 

18.9

%

 

$

617,643

 

 

23.1

%

 

$

473,350

 

 

19.3

%

Selling, general, and administrative expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal Services

$

79,867

 

 

11.4

%

 

$

75,050

 

 

12.8

%

 

$

167,722

 

 

12.2

%

 

$

146,699

 

 

12.2

%

U.S. Services

 

62,201

 

 

12.8

%

 

 

43,415

 

 

9.7

%

 

 

114,501

 

 

11.7

%

 

 

89,257

 

 

10.0

%

Outside the U.S.

 

23,460

 

 

14.6

%

 

 

23,425

 

 

13.5

%

 

 

48,601

 

 

15.2

%

 

 

51,814

 

 

14.2

%

Divestiture-related charges (2)

 

 

 

NM

 

 

 

883

 

 

NM

 

 

 

1,018

 

 

NM

 

 

 

883

 

 

NM

 

Other (3)

 

2,926

 

 

NM

 

 

 

(325

)

 

NM

 

 

 

5,807

 

 

NM

 

 

 

247

 

 

NM

 

Selling, general, and administrative expenses

$

168,454

 

 

12.5

%

 

$

142,448

 

 

11.8

%

 

$

337,649

 

 

12.6

%

 

$

288,900

 

 

11.8

%

Operating income/(loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Federal Services

$

83,470

 

 

11.9

%

 

$

47,824

 

 

8.2

%

 

$

152,277

 

 

11.0

%

 

$

98,869

 

 

8.2

%

U.S. Services

 

67,921

 

 

14.0

%

 

 

42,601

 

 

9.5

%

 

 

133,984

 

 

13.7

%

 

 

80,357

 

 

9.0

%

Outside the U.S.

 

670

 

 

0.4

%

 

 

(3,712

)

 

(2.1

)%

 

 

558

 

 

0.2

%

 

 

6,354

 

 

1.7

%

Amortization of intangible assets

 

(21,641

)

 

NM

 

 

 

(23,650

)

 

NM

 

 

 

(44,990

)

 

NM

 

 

 

(47,168

)

 

NM

 

Divestiture-related charges (2)

 

 

 

NM

 

 

 

(883

)

 

NM

 

 

 

(1,018

)

 

NM

 

 

 

(883

)

 

NM

 

Other (3)

 

(2,926

)

 

NM

 

 

 

325

 

 

NM

 

 

 

(5,807

)

 

NM

 

 

 

(247

)

 

NM

 

Operating income

$

127,494

 

 

9.5

%

 

$

62,505

 

 

5.2

%

 

$

235,004

 

 

8.8

%

 

$

137,282

 

 

5.6

%

(1)  

Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM."

(2)  

We have sold businesses in both fiscal years 2023 and 2024.

(3)  

Other expenses includes credits and costs that are not allocated to a particular segment. This includes expenses incurred as part of our acquisitions, as well as potential acquisitions which have not been or may not be completed.

Maximus, Inc.

Consolidated Free Cash Flows - Non-GAAP

(Unaudited)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

March 31, 2024

 

March 31, 2023

 

March 31, 2024

 

March 31, 2023

 

(in thousands)

Net cash provided by operating activities

$

130,488

 

 

$

309,696

 

 

$

152,096

 

 

$

175,037

 

Purchases of property and equipment and capitalized software

 

(25,300

)

 

 

(18,054

)

 

 

(47,547

)

 

 

(33,751

)

Free cash flow (Non-GAAP)

$

105,188

 

 

$

291,642

 

 

$

104,549

 

 

$

141,286

 

Maximus, Inc.

Non-GAAP Adjusted Results Excluding Amortization of Intangible Assets and Divestiture-Related Charges

(Unaudited)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

March 31, 2024

 

March 31, 2023

 

March 31, 2024

 

March 31, 2023

 

(dollars in thousands, except per share data)

Operating income

$

127,494

 

 

$

62,505

 

 

$

235,004

 

 

$

137,282

 

Add back: Amortization of intangible assets

 

21,641

 

 

 

23,650

 

 

 

44,990

 

 

 

47,168

 

Add back: Divestiture-related charges

 

 

 

 

883

 

 

 

1,018

 

 

 

883

 

Adjusted operating income excluding amortization of intangible assets and divestiture-related charges (Non-GAAP)

$

149,135

 

 

$

87,038

 

 

$

281,012

 

 

$

185,333

 

Adjusted operating income margin excluding amortization of intangible assets and divestiture-related charges (Non-GAAP)

 

11.1

%

 

 

7.2

%

 

 

10.5

%

 

 

7.5

%

 

 

 

 

 

 

 

 

Net income

$

80,510

 

 

$

31,788

 

 

$

144,658

 

 

$

71,783

 

Add back: Amortization of intangible assets, net of tax

 

15,949

 

 

 

17,446

 

 

 

33,158

 

 

 

34,806

 

Add back: Divestiture-related charges

 

 

 

 

883

 

 

 

1,018

 

 

 

883

 

Adjusted net income excluding amortization of intangible assets and divestiture-related charges (Non-GAAP)

$

96,459

 

 

$

50,117

 

 

$

178,834

 

 

$

107,472

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

1.31

 

 

$

0.52

 

 

$

2.35

 

 

$

1.17

 

Add back: Effect of amortization of intangible assets on diluted earnings per share

 

0.26

 

 

 

0.28

 

 

 

0.53

 

 

 

0.57

 

Add back: Effect of divestiture-related charges on diluted earnings per share

 

 

 

 

0.01

 

 

 

0.02

 

 

 

0.01

 

Adjusted diluted earnings per share excluding amortization of intangible assets and divestiture-related charges (Non-GAAP)

$

1.57

 

 

$

0.81

 

 

$

2.90

 

 

$

1.75

 

 

James Francis, VP - IR

Jessica Batt, VP - IR & ESG

IR@maximus.com

Source: Maximus

FAQ

<p>What was Maximus' revenue for the second quarter of fiscal year 2024?</p>

Maximus reported revenue of $1.35 billion for the second quarter of fiscal year 2024.

<p>What were Maximus' adjusted diluted earnings per share for the same period?</p>

Maximus' adjusted diluted earnings per share were $1.57 for the second quarter of fiscal year 2024.

<p>When is the quarterly cash dividend payable to Maximus shareholders?</p>

The quarterly cash dividend of $0.30 per share is payable on May 31, 2024, to shareholders of record on May 15, 2024.

<p>What is Maximus' revised guidance for fiscal year 2024?</p>

Maximus raised its guidance for fiscal year 2024, with revenue expected to range between $5.15 billion and $5.25 billion, adjusted operating income between $540 million and $560 million, and adjusted diluted earnings per share between $5.65 and $5.85.

<p>How did Maximus' Outside the U.S. Segment perform in the second quarter of fiscal year 2024?</p>

Revenue for the Outside the U.S. Segment decreased by 7.2% to $160.5 million, impacted by divestitures and flat organic growth.

MAXIMUS, Inc.

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