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MAXIMUS Inc. Reports Operating Results (10-Q)

August 08, 2012 | About:
10qk

10qk

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MAXIMUS Inc. (MMS) filed Quarterly Report for the period ended 2012-06-30.

Maximus, Inc. has a market cap of $1.73 billion; its shares were traded at around $53.25 with a P/E ratio of 23.1 and P/S ratio of 1.9. The dividend yield of Maximus, Inc. stocks is 0.7%. Maximus, Inc. had an annual average earning growth of 9.4% over the past 10 years.

Highlight of Business Operations:

The Company must pay the former owners of DeltaWare the sum of two million Canadian Dollars ($2 million) in the event that certain profitability targets are reached. The Company believes that these targets have been reached and that payment will be made subject to completion of audit procedures and other administrative matters, which we expect to conclude shortly. This balance is shown as a current liability. The Company recorded charges of $0.1 million and $0.2 million during the nine month periods ended June 30, 2012 and 2011, respectively, with respect to this balance.

Revenue increased 11.8%, or 13.1% on a constant currency basis, for the three months ended June 30, 2012, compared to the same period in fiscal 2011. Revenue increased 10.3%, or 10.4% on a constant currency basis, for the nine months ended June 30, 2012, compared to the same period in fiscal 2011. Organic growth for the three months and nine months ended June 30, 2012 was 2.0% and 6.8% respectively. Revenue during the third quarter of fiscal 2012 included the results of PSI from the acquisition date, which contributed $23.3 million. The organic growth was driven by the Health Services segment offset by declines in revenue from the Human Services segment. The principal drivers of the changes in the Health Services and Human Services Segments are discussed in more detail below.

Revenue increased by 20.2%, or 20.7% on a constant currency basis, for the three months ended June 30, 2012, compared to the same period in fiscal year 2011. Organic growth, excluding PSI, was 13.9%. For the three months ended June 30, 2012, Health Services benefitted from $10.2 million of additional revenue and operating income related to a contract amendment.

Revenue declined by 3.8%, or 3.9% on a constant currency basis, for the nine months ended June 30, 2012, compared to the same period in fiscal year 2011. Excluding the benefit of PSI, revenue declined 9.1%. This decline was principally driven by the transition to the Work Programme noted above. The decline in operating income was driven by the United Kingdom contract offset by the acquisition of PSI and the benefit of $6.8 million related to changes in estimates on a fixed price contract. During the nine months ended June 30, 2011, the same contract had recorded charges of $7.3 million.

Cash provided by operating activities from continuing operations for the nine months ended June 30, 2012 was $85.1 million, compared with $70.5 million in the same period in fiscal year 2011. The increase in net cash flows was driven by a decrease in payments to tax authorities period-over-period. Excluding the effect of taxation, the Company received $90.6 million in additional payments from customers driven by increased revenues and the timing of deferred revenue receipts, offset by an increase of $88.7 million in payments driven by similar factors.

Read the The complete Report

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