MMS - Earnings call transcript Q3 2018

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Operator

Greetings, and welcome to the MAXIMUS Fiscal 2018 Third Quarter Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Lisa Miles, Senior Vice President, Investor Relations. ahead. go Please

Lisa Miles

a SEC in a thank to and is you and Nadeau, joining and With in everyone us. SEC. law. Financial today only in we being Good these risks face, forward-looking revise be filed will providing informative contain most Caswell, you in, President our performance, events this comparisons. XX-Q review information. those today forms forward-looking that statements discussed remind to with statements Bruce I'd analyses Please remember events Rick contained earnings of of results and me statements our Officer. and to of today made reflect The and morning, nature. in that like for information circumstances by uses not the identifying be does required may subsequent are except number CEO; period-to-period in internal Chief such encourage information as may XX-K result financial obligation and or release XX.X filings. of trends the information results company non-GAAP or Today's update our our Exhibit recent Management Actual to predictions. to the this any quality differ results, We materially as our may its presentation including and of assume meaningful gauging financial investors believes

over For quarterly please press that, earnings measures the I'll with a see the to in of reconciliation release. the most Rick. recent non-GAAP call company's presented documents, And these hand

Rick Nadeau

This yield November our the results, share, results. The reported of to current payout addition to increase Directors another million. approved Board on yield go we quarterly share of is which an the announcement effective June In morning, will up X.X%. annual also This repurchase per conjunction program XXth quarter the $X solid Lisa. X.X% in that dividend MAXIMUS our of approximately cash a share you, our of from has to XXXX. of increase price our of of announced $X.XX to per based financial comes quarterly with share, a expansion current $XXX in Thank

and solid and our provides to M&A. cash M&A return with and flexibility required strong to with execution capital be while a enough invest including business, generation, priority operating the grow continued us financial for still financial to flow coupled more the performance, to continue shareholders to Our the maintaining conviction continues strategic company.

operating on Services of will margin June ended with segment normal more margin nine start Human segment. XXXX, reflects Health XX, signing results but as offset the the company operating in and change orders the revenue an of contracts well the per quarter the related revenue change third For were quarter in start-up was contracts in earnings total reset, renewed uplift of million Financial segment by percentage benefited margin the that which partially certain profile. The This costs income. operating XX.X% the million. the income for my the of a operating recently as the benefit from segment. signed during change quarter, Services third MAXIMUS yielding orders, a of both months periods. third $XXX.X $X.XX. share resulted order to reported I prior provided in the We of The XX.X% health million, $XX.X in of $XX.X incurred and were large quarter, comments diluted by and ongoing results several

Services of currency change the million operating X%. from for X% revenue approximately segment quarter the $XX.X year, all aforementioned Health revenue was almost prior orders. the favorable exchange This Services organic. Third over which income Health of and increased translation benefited included

the periods by Assessment in Services The uplift Health extended offset for to contract. favorable. orders margins option strong XX.X% contracts The were segment Advisory are year portfolio circumstances prior which from such as As exercised, and margin a change forecasted operating of contracts exceed that an result, and program maturity. when can operating XX.X%, XX% rebid, have Service in Health period. the was operationally is compared was margin the early changes on sizable were the The are or commenced several service cycles the as

contracts QX. bring these into operating as be end of This in-line their expect, fourth the with levels margins in range XX% at be fiscal Services to the of lower targeted will margins will XX% might stages Health early in XXXX. our segment some you and more the also quarter will normal for upper maturity As than of of

quarter As period segment in from the the decreased the expected, same Federal year. Services from third prior revenue US

operating For a volumes of quarter, of and third benefited was The higher XX.X%. the appeals margins from couple segment margin including operating assessments contracts. contracts, our performance-based on one

accretive. assessments more disclose MAXIMUS naturally we heritage state appeals extension work current These the the Medicaid appeals contain and it this and contracts XX-K state-based appeals manage core As are we business Federal our of in is each within our with state-based our Medicaid Federal assessments continue an does across work. segment that to annual portfolio in assessments some contracts filing Federal appeals this segment. and Medicare within of work The the and appeals started segment year,

of range, in deliver Federal We continue mix XX% the to performance-based will or by expect the driven changes segment in to XX% margins that investors can the contract fluctuations but type in contracts. changes US expect normal

for segment compared the expected, third to X% revenue quarter last decreased Human year. As Services

set internationally, in both including United As in Program to Work Kingdom, a the which of XXXX. Work to due and domestically contracts several are end Choice is reminder, this the contracts, the and wind-down

a of for change $X.X operating in Human Services segment discussed uplift the quarter million extension from we quarter. income benefited Third the that and order the contract revenue execution second favorable from a

the Third quarter segment. margin Human X.X% was operating Services for

a have phase around in the of number We programs start-up the globe.

accumulation a and operating to tied have are outcomes, specific margin of order expectations, as the of of the operating based excluding margins revenue been start-ups a to on X.X% are quarter. but progression impact participant's these would payments normalized tempering performing program-based job contracts the continues up such ramp basis, As group, the in of The and as the unfavorable completion at change training. segment's a benefit on the

forecasting with new contract as XXXX Employment loss we As the operations on Services detail. cash balance XX launched $XX.X slight items. Australian July expectations cash I is flow in prior in $XX.X and June we contract This which start-up will about consistent a a sheet QX greater MAXIMUS are flow third Disability talk and largest of in reminder, the our X, of free XXXX for of segment. Days operating will fiscal is million XXXX, the days at Bruce the result, sales fiscal cash from In currently in year. a with outstanding and discuss million. quarter, and, flow the which in delivered now the strong XXth, line were

At Our consistent of operational track we cash balance $XXX.X strong to generating offer short-term cash, equivalents, sheet MAXIMUS and million and us investments. maintains and continues June of history flexibility cash of record flows. XXth, a deployment strong capital performance had investments. for a

deployment. to the years, and a sensible capital also have Over to approach committed remained we disciplined

long-term invest is reasonable to generating while unchanged provide to grow shareholder approach shareholders same create returns, value. time, the believe at M&A and we with capital the and pursue Our that business we to sufficient can firmly strategic

strategic continues Our capital allocation favor strategy acquisitions. to

evaluate continue and several reviewed have We properties. to

During quarter, purchased MAXIMUS we of the XXX,XXX stock. common shares

quarterly in press noted As in our morning, this will we November our release increase cash XXXX. dividend

we they us shares affords MAXIMUS an opportunity have financial diluted range significant our dividend, with $X.XX when sense. the make respect EPS capture $X.X in the billion the our to price acquisitions fiscal to of guidance, to purchase We when to the to $X.XX. increase our expect of wherewithal of value continue finish range With revenue and and $X.XX to strategic to billion XXXX significantly to in make

million from flow range $XXX expect operations be $XXX million to continue cash free to $XXX flow million We $XXX our to in in range. to the be our the and to million cash

our fiscal call. provide on will XXXX We November guidance

in match will turn your be change costs There these contracts of pay At We future we Services our year standard. new new during the types not over for but some anticipate revenue standard phase, October a continued see the MAXIMUS better fiscal will now we the adopt that delayed to are that outcome-based this on and XXXX. of XXXX that Lastly, you time, significant, I adopt not after for their will call Bruce. X, will be Employment the anticipate and periods our Thank particular, recognition analyses positive have we do revenue complete. will in interest. points. impact contracts on start-up contracts

Bruce Caswell

Thank you, and everyone. morning, good Rick,

solutions excellent certain cash programs, balancing operate. in to solid programs delivered we execution This with wins, geographies generation, engagement employment innovation strong through citizen driving reduced in digital has With on and and financial where quarter, volumes are referral several results. recent MAXIMUS full simplify effectively resources we critical new focused

We continue our evaluation progress to to are alignment on priorities. meaningful our strategic with make turning M&A and including execution, now market

evolve, some taking As the provide and opportunities. with over update yet on flexible, clients meet as continue emerging of want needs focused since I our key against Today, to we plan our initiatives being any this that will strategy, to can an and my guiding capitalize so CEO. execution of on

have broader Chief as last welcomed Wiener then, clinical strategic government services. will capabilities Department quarter, digital Michael help Defense Medical of our the extensive Officer, health with worked Dr. mentioned his our I positions as a general of expand much He global our executive level push established the overall growth Since direction, we new oversight drive two clinical As having we for managers career. Weiner has we our Dr. and and experience of agenda.

for only also experience organization is physicians includes in interagency welcome Cowles Dr. Veteran track digital health new States office. of a creation the nearly teams degree innovation in of XX digital for that board-certified clients. as I background a of General digital after electronic a to more addition and consulting records, and into spending the we've delivery David has roles driving leadership needs at career management Officer. core a experience programs of XX of role the comes assume our with in the MAXIMUS to Services be and beneficiaries Technology Officer of With David to Digital of with automation the physician, and interagency, variety a one unified automation record transformation. the operations of his am United analytics, healthcare, electronic master's a certified Administration. He and in XXX,XXX firms. including strong being and to a Weiner's technology million Wiener proven of by worldwide the in years Chief data and Chief health a Information Affairs providers strategic equally Information record program much Systems government David holds align our ownership area handful will capabilities than innovation that pleased tasked ever Dr. and of of building In

with by as automation to team second just We certain wrapped continue great footprint MAXIMUS digital in greater our online XXXX The use period. solutions innovation and our Medicaid during process Louisiana workflow embrace processes is digital increase supporting their enrollment of technologies Virtual already and up clients open documentation. increase improve we its to the strides agents of making The piloting and team to government year mobile modernize robotic recipients efficiency. streamline in the new reduce helping to digital experience, programs. the paper-based user manage business drive

channels. provide our support offering, Medicaid we with of part a core digital variety Louisiana As of

state's recall enrollment Medicaid improve that help may application Louisiana simplify, and journey. MAXIMUS customer streamline, for implemented the the You to and the designed Program mobile Healthy

the Healthy the customers, our For digital Louisiana significant ability greatest circumstances a over populations where receive. response, The their onboarding over encompasses we to and with Medicaid government shift was attracting disability year. volume and XX,XXX demonstrates service remains success mobile our in they represents customers the services speed to This increase a across and Disability customers the celebrating and Under model month complex introduced feedback throughout the help greater three incentives, a regular part to by tripled engagement end-user's to gives year. ratings the needs government's of enrollment largest around of for understanding and needs teams further and digital of disabilities. Louisiana delivery globe. last states choice keen one App digital the doubled with which from innovative platform digital enrollment including MAXIMUS the occurred year-over-year solution. having and In a an for providing approximately gaining to themes; convenience, new the open accessibility business we programs DES delivering volume, app These employment Healthy journey providers mobile July Google XXX Ultimately, our the the how web users of and new sites regular busy of insights with the improve consumer enrollment. gain by new as This introduction employment, in both period, the The digital provide from Services, enrollment deepens their app interaction a successfully. ability that data Play On serve. of positive of contract we the the both contract, and simplicity, the feedback last the X.X XXXX usability DES improve sector Employment The processes. rating on of using our or Xnd, contract a the us a including Medicaid also new model. toward stores. complete is the can with Australian their July beneficiary program Australia, can our we understanding includes overall Australian activity launched speak services

We in the our nationally the Center disabilities, Disability. work Network United For recognition first be status for attracting, employing to were Disability in achieve in on This a UK, Management supporting subsidiary businesses Disability by for and the colleagues among Assessments UK has its empowerment. and are serving recognized the of Recruiter Disability self-care their with The Leader the to individuals are ever in joins competence the in both the the services patient disabilities. we Health team Australian in recently Australian to prequalified achieving programs. RFPs framework and by the throughout focused and Remploy testament in first commitment the on the our on represents status of Kingdom became both recruiting, framework, disabilities area was also with first the DES awarded individuals bid to jobactive government. in provider England These our global for UK spot with MAXIMUS on services future an NHS area deliver Also, Confident awarded individuals Health in a business. Under to support Confident

contact is for administer student Education, a the reach process our we digital our the of recently $X The inquiries applications exciting core our contract Support clinical traditional with under combine is just framework first-ever BPO couple digital contract offerings in Student a that three-year this XX,XXX with we valued expected at for with under mix umbrella wellbeing of financial a Our health will awards. digital encompass United States, UK services. Under support occupational new Services to our This secured the services and and Revitalized interventions XX,XXX new into the payments and to platform that also new customer contract our have eligible platform BPO applications Back center annually. students. an agency. This combines million. contract nearly Bursary team Department extending contract,

new suite a services. which low-income that natural home a extension to of program of Lifeline eligibility-related a eligible Lifeline services is discounted our signed and cellphone to program, contract state-run California households. is core we First, California phone provides administer the

operations As in eligibility XX the administrator, we services, expect September. of call launch includes million work run lifeline $XX web-based operations. to determination, document projected scope to The mailhouse intake, months contract our processing, program the is and enrollments, and outbound center

Xst Department the started new services. Second, Services Health $XX signed through Care provide XX, just contract core the and Human runs to August Broker North a Medicaid Enrollment last December million The week of contract Carolina we Both with heels base Managed our these we and of Broker announced into helping enroll Wisconsin option the periods. XXXX. support Managed beneficiaries contracts plans. comes in contract Enrollment states' efforts Medicaid month. There on one-year are last the will of Care that This three additional

new Moving on awards pipeline. and to

at For June fiscal XXXX, XXXX. year-to-date signed awards billion totaled $X XX,

play progress geographies Our market awarded converting all XXXX, into of new pipeline XX, make existing In with new billion a our of work new can solutions markets, strategic Acquisitions clinical importantly, we digital due billion tied focus as XX, entry they qualifications, and more important to all our evaluation. our on by million current which providing segments more work. will completing at the current analyzing government role adjacent major at providing work June meaningful where enabled contains was action to and across to fresh $X three steady longer-term at driving we with fundamental markets, to such pipeline approximately in in M&A. $XXX play opening our Most growth. to can clients; increasing taking compared on at organic the we This new summary, The opportunities and be includes; our deepening to markets. and continue are provide XX% versus March approximately immediate XXXX, plan, capabilities, role an our and scale look category. a $X.X capabilities

with executing commitment generation. pleased am financial are operational cash and making I to our execution to While solid reiterating our I and initiatives, delivering by progress want close strategic the in we strong

to We the Operator? Q&A. is continue that, believe favor the trends it remain of and long-term the in business macro for our core sound. I'll that up open With

Operator

time, Our Thank a this you. will Securities. of [Operator CJS Instructions] first conducting question comes from At session. be Strauzer Charlie question-and-answer today we

Charlie Strauzer

a that next Bruce, give going strokes us maybe kind give I 'XX, but fiscal there? give call, kind sense a to of look guidance at you're some kind broad know broader us as not until of of maybe we

Bruce Caswell

for the I'll question. be happy and Charlie, to, thanks

the I -- as this a We're this are robust employment of that emphasizing strong number at a November flows so I we near by with sense you did generating I -- the time. want well. the give I normally to full we right, do give remarks extremely that global in a and we can't doing closed this executing team broad serve. in that of economy guidance cash You're prepared begin and markets that, year, as we kind we in will again is

referral large in as know So, had several extended, had markets. challenges we said, option we that we've volume the in where some exercised. reset being those programs Further, some periods as were we've contracts, rebid, and of after

while to foundation those near a longer-term those actions, our it's for growth. note term, in that a important solid provide headwind So, the activities,

results with with 'XX So as look FYXX. at a rebuilding to as now, backdrop, as we're we flat compared looking that at the right year

of returning it discussed strategic got actively days much we are billion got leading see executing which time bids it we marketing. certainly And probably it's relates very we I FYXX, there and series and growth. to can, to possibly As the so a as benefits a -- to that to been are we've and initiatives work, on. committed that impact is wanting out take into last XX% $X.X the still to regard. some could quarter, new of 'XX going and of to needless the We've say, pipeline, we're to go fast is We've as in this late as positively early charge

win Our new rates work healthy. definitely are

adjudication the book one approaching for very through It's globally. protest more that. before, been more now area as year, appeals we work $X.X noting, clinical years we've have billion here Each to of customers getting executing often we've as the assessments our here having process is last capability to business are of committed in scale, do example fewer get to over is build at I've canceled, the worth pivot that BPO of key doing the pipeline and and and a delayed about that and important the several we is said the So progress or through that deals seen.

position phase very the years efforts next for are a our we now, to growth driving obviously reminder, are right our as MAXIMUS on next on focused shareholder of we as long-term So five and three value. focused

Charlie Strauzer

pipeline of us a of with is a seeing now of to the are pipeline coming kind especially the on give X terms at question, my in federal side? there, of Alliant follow-up opportunities segue that into protest, the what And in as good kind is which looking little opportunities out maybe of federal update you on

Bruce Caswell

Charlie. Thanks, absolutely. Yes,

we're that a out remembering Alliant point, about Under reports nothing in come very conversations There worth team is vehicle. This ideally that RFQs, Alliant agencies GSA the that of we Alliant the come going actually our at in forecast to or was still Day and in marketing out in opportunities when the runs place X RFPs should it Industry this XXXX. the it's an phase. so productive Alliant, RFPs April X having early you XXXX, are so be be So, to procured out yet. has time X, and until is was under is expect through the issuing no

through a procurements, Alliant of kind think procurement XXXX early the XXXX, really in that through you contract perspective, to from looking if we're RFPs So at awards, revenue vehicle. flow

Lisa Miles

Thanks, Charlie.

Next question, please.

Operator

question is Please of Our from Jefferies. Dave ahead. next go Styblo

Dave Styblo

how of understand want look the on the spiked and that to embedded that contract just the and have that it to the start-up next contracts. curious that EPS some describing I certainly revenue sure given case you results I'm maybe guess, EPS just and this us start-up drag? is understand wondering year, And sounds year, Can comment. there next back and worth there benefit just relating just a flows been of nature just those are to or be some the the guidance. come grow was the to that creating I if like for ebbs would that? and the so if guess changed because additional but are much, business. Australia forth, that or EPS has help the costs won't to of that this of guys have such thought back top pressures flat there HAAS I out comment start-ups year, just I would I'm year's in evolved, But about your line I of was tailwinds headwinds wasn't maybe you $X.XX of in to and entered we had when $X.XX

Bruce Caswell

Dave. Sure,

to had lines, the nature start-up our flows have of the the and Rick across portfolio of ask Like as on into business It's obviously $X.XX bit Rick and the mostly comments all year, of So more a in $XX that same get ask transition start-up in to time phase, impact. or and we said, international don't increasing presented the start-up to the don't backend provide we that and benefit But million area, phase but been know some they from that about contracts next you loaded. Nadeau the phase had I'm a important little Services say exit we a start-up an they have Human the that's bit I contracts. why ebbs at exiting about effect those going to really dynamics.

Rick Nadeau

Dave, you parts question. Yes, to two I think, actually that have

the do about get fiscal contracts individual think increase start-ups. drag they year that have flow result and talk that to start-ups referred to of during the we've on really First, been have you, steady We would million that you those outcome-based did over these as Once would million 'XX. work then where in in progressing let year they matured, revenue we We the stages of $XX come outcome-based that of tend a recorded That's expected. the be not should toward outcomes And was contracts. after 'XX of later perform I but operating to the fiscal previously really generally me remind and a as income performance-based said are want these are should breakeven we reached. $XX to do they a rather certain they payments get we time. the months contract, person early say about payments.

recognize comments, contract there I we revenue although my that tend and based think our tried recognition not recorded that to change, that standard outcome-based these that preliminary which I do think to change any in on will revenue -- will note be contracts. revenue leave the the the with for in work the prepared on period you new in individual respect revenue can to earlier

a be I a bit little be it'll that had ‘XX indicated we but will better think don't than think significant. breakeven, I in So FY previously as

BPO Bruce as margins I introduce and question, think contracts when a like curves down your that. and a of we of come we part learning on good that job second as over things improve did the those we typical really to The will time have talking and innovation the is, contract,

from So I'm delivery, say, margin a words it's you -- I I time, to program a going three you're that to let's margin you trying over the or four-year use the maturity, better you over impression Then bid margin have maturity will program, a perspective life a the down, on time. the then when do that period. margin grow of remainder reset and a with when will you'll over restart contract you but or think the contract, of that again have it come and leave once

Dave Styblo

tailwind better phase, sense from And margin? pretty is off? of And guess, can year, me I maturity I in us investors. start-up the would understood quite then contracts to can guess doesn't of 'XX that broadly, and by a sense understand, you've to from well coming what's into I think or trying what next that's 'XX, sense typical got XX% I'm the is, be these or for if struggling make I'm the $X.XX so, start-up we like benefit. next into should should wouldn't have new Seems how an place, earnings see additional so business we pressure when offsets reach no earnings especially a your XX' tailwind give get a there's what they the going is the XX% that as contracts beyond there until more grow understand you of some be to be tailwind sounds you it be boomerang year? why contracts like to just or ASC XXX, really those additional the to that much offset,

Rick Nadeau

in are the that start-up contracts to generally? referring contracts you Are or more

Dave Styblo

a that right now. ones in are start-up are drag creating The that

Rick Nadeau

call million $XX So that previous to close And pertain of revenue I or revenue of $XX created we are in $XX the that. start-up overall. to something about think that a million million contracts said in incremental to

What I lift get start think a than contracts So, new that's the it of it's and lot think bit have I'm contract portfolio that trying that stages going lift. FYXX. get through a of off early a resets XXX. income significant, have set gone that had that And be in of I convey a that we we little from of finish contracts, a but several to will those operating many with. they is have margin to FYXX in less with will don't the contracts

see X better than So have pretty would they'll range that of back think the good of I bottom that to may what you a three in two the or a time, normal least was percentage of had over position. contract Meaning then the X or back to sized but the going over do that, level are end reasonableness a build have at life reset we and they have you're that to up. contracts margin come go points thought, is, and more

of Services, next Human margin it's matter year. just at will give start-up income looking the So the not a in year less operating you portfolio this a the little contracts than

Lisa Miles

Thanks, Dave.

Next question, please.

Operator

The question from First Frank of Please ahead. next is Analysis. go Sparacino

Frank Sparacino

driving when for a on know But timing if tied of renewal, work, it's the I are is up existing the at that's what dynamics if down year-over-year. and look up simply or I factors, pipeline itself, other Maybe new in so the terms of don't contracts to come pipeline function substantially materially that.

Bruce Caswell

Frank. going that. ask to I'm Thanks, address to Rick

Rick Nadeau

what to rebid. new and call pipeline want I the we included is pipeline, that when talk about in would Frank, the Yes, we work make sure

work the compared of less if pipeline new because up, being down means that that to is see good periods. is rebids, is thing. So pipeline when year just as rebid this a the prior there that you Overall,

was question wanted question. is made Was to your make your just I So clear. that that that or sure

Frank Sparacino

I and it's mean I function, really -- -- Yes, a and timing I think, No, right. that's think

Rick Nadeau

in Yes, a bigger you pipeline overall can year. big rebid a get

bunch a fashion, and of got linear I've the be if year, contracts that don't rebid out to, is have will a So come around bigger discussions we year of tenancy in my here. than it this a do they some a have they

a bigger you're the a So, matter bigger rebid that's pipeline, in year, a timing. of to but see going

Frank Sparacino

up. Sure. maybe following And just then

can is under, able associated sense associated that right, look then you're think I you you TAM UK and also new maybe of I bid timing opportunity a So contract that framework, framework? us and the the guess give if the at or the that there with with new what to just

Bruce Caswell

I Frank. will Sure, that. take

we really as the framework, hunting So it's license. mentioned,

will So to services independence. notice, from framework. to for self-care through a will pretty perspective been greater we've awarded enabling come it's people support focuses on now now because RFPs that live aimed at got with that exciting we've I bid our an providing opportunity that lot the programs on really

aligned clinical organization. So services more this with services and shift is this well in digital toward the really

be last able In framework fact, be on wellbeing that offerings and that part it's year. That the provide under to will available interventions. thousand of platform that the in will of we several And mix to build digital Revitalized the are we subscribers make that the clinical acquired a hundred work already them noting, largely digital acquisition worth as environments. of service use and platform has commercial

scale. And provided something white a so it's labeled that at large and is

can we that is a to use great asset bring framework. into this this so And

that provide and a coaching, range we applications the services, self-care of able -- will be supports tele-care are prevention tele-assessments, social that and adult for services, of including oriented wellbeing include of and kind to care. Some

So said, like timing a I from Again, go things it's perspective. quickly. win great to a I'd more It's very love always timely.

out We to expect the tenders the initial XXXX. will that framework start come under in

it heard think I market, since much addressable addressable point TAM, early total put pre-qualified realistic see very year fiscal on on think while so those It's at a tenders. now, probably this so say a that bid we can I is to XXXX to we put anticipate are size until we days. any total revenue a can't it would that can't you from I perspective. And market probably from I

Lisa Miles

Frank. Thanks,

Next question, please.

Operator

next Our Stockton of is question go Jamie Fargo. Please ahead. Wells Instructions] from [Operator

Jamie Stockton

update like just first assess growth the XX% of been It goal? wondering kind growth versus there portfolio the on prospects what maybe guess us bunch back looking could legacy line your XXXX. have guys an I kind if top to one, have thoughts you seems step the like of businesses, there feel give I you longer-term at of taking trying your a been a of are. you was about questions

Bruce Caswell

very current like overall. look the design strategy opportunities, here you a much the to on by review on we've of fresh at the It's that is last and the know, Jamie, providing it's and at I'm I question. review and backdrop call. for for bit a the MAXIMUS our -- wanted Thanks mentioned And been take a emerging best look of is we markets, the internal review, reminder the long-term. paths done Bruce. our purpose that begin an conducting, to just to the for market whole

four our said, that activities. to there So are components

and augmenting example service value that federal capabilities in the we be we're we I've my our meaningful our market business it's us. beginning we're area with good agencies. of the to where think assessments, is, of and in analyzing few current very significant what tap first in can is programs add just the new a A current and book a that really clients, and I to can will the months, clear we've growing me role, where visiting out some think markets talking for the that of say playing is solutions particularly think that more been through role presently our that our and a projects last additional BPO being technology I of The offerings, are objectively markets to been out that number developing, in. to our we

those impacted The second that macro, new by are are fresh particularly adjacent area and markets. look we're a trends. ones is at economic demographic, that And taking

managed our are we considering need to businesses differently. current some of Third, whether be

the they to a need call, the it market not the personal obviously what There's the on right SNAP but to even that example, and, differently. work program, to Services the do lot consumer convergence responsibility and to we've of course, in and that of strategy, administered into federal longer-term company. of out for role are to Acquisitions, ahead a the ultimately assessment. doing moving Then adjacent our dimension M&A creating providing that access to market fourth of critical with engagement programs, bringing just play geographies, and platforms between level that Medicaid us the as capabilities, for growth and the at and seeing in is new by topic really to the extending of address continue the now relates support requirements the review program, and housing programs energy we markets priorities HUD. a for enhanced way been come So, aligned that's Health Human going

that We the on out good expect, progress have through last that the further acquisitions So be markets. call. activity flushing teams pleased and great for point. as those analyses and priority markets made enabled sub-segmenting strides focused could for as targets of since we've top we've some I'm our now identifying markets at best identifying made our you M&A entry can

for to time. So is, what company all in and I by it guess of look over customers rate the speak XX% mean that answer terms I'd to you'd best to industry saying, what's our ask, that our at does growth presently. And in the with happening way

of make are environment given mistake, that. and we than we've years, of prior and no an examples that's So a operating difficult in more challenging number

until on see process in to as said revenue a those we'd markets consequence, expect at about call the growth being markets, regulations, to near FY take term, we we're legislation, is the place. XXXX. priority priorities, the year XX-month be programs and a and more prior of and our and the a as reasonable we review and single-digit new shareholders can continue looking and [indiscernible] We on this that benefits, the we for FY the strategic the start when or ‘XX just two-year on So execution process, business outcome to expected execution obviously in really execute our enabling focus

Jamie Stockton

see a when other maybe to about one be structure? digital, be I think it bit digital you that going helps you would is something the cost improve on curious, little that guess, is really then of But qualitative this competitors you not bucket primarily one you that's see I'm think business do And something been where existing helps a works focus. because out your that just ultimately one else and that question I here. has opportunities in that about incremental just disproportionately open take for from will up that that outsourced, really there outsourced new there there someone you is it's already or are contracts the going future? something capabilities, has to are there's but

Bruce Caswell

Right. three the affecting I see think Jamie, right and you've outlined, those actually all categories that I'd are buckets. it

run about first. has on the to Our most can efficient business we're immediate that focus possible. ensuring It's doing the we been been everything

at of a business. that we've stage and, in of begun to at, looking I capabilities hard a our And decision and half some We've programs of and an I of automation, dozen execution. and we've on intelligence RPA another a we're progress. one things processes north of apply complex say, a the we machine shy augmented been implementing. So innovation, have been development us can we've We've development certainly streamline made focused learning been lot things will robotic help research, say, like process through in got, intelligence from and like looking just and how probably or would projects dozen, standpoint artificial

-- to bucket with maker a bids They we're standpoint, are So are overlapped, we're efficiency to because source several officials. able The a capabilities secondly you ourselves our had component that from will. buckets and overlaid interrelated the of we're key digital competitors. digital drive helping where these and building fits differentiate difference effectiveness. a of take that by bid all us certainly to into able are the that kind if discriminator was selection as We've business, from noted the --

customer voice available centers providing to have outsourcing, assisted human rates customer there and that environments And abandonment haven't new the shouldn't are are make highly is to have not So of threat, centers go that point good example or thirdly, say, workforce like natural unionized no , technologies whether high what things service. helps and, hey, about IVR you there the doubt. talking that and of some something is, a of they look, that you most you. are like that as extremely contact improve category that this customer certainly a The would the out that can you historically fit then recognition, of into opportunities. I With for necessarily that, Many been opening have maybe customer contact you the we're up service delivery. best this that view

automate So underlying up that of enables lead that that offering program of reduce challenging to open goals the in well. with can help volumes and effectively and customers, the helps. necessarily some come so and as more we digital it can the Hope markets government us perform without new

Operator

no are questions additional There time. this at

conference. So this conclude will today's

And lines. thank participation. you your for disconnect may You your

Maximus (MMS) 12 Aug 182018 Q3 Earnings call transcript