MMS - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the MAXIMUS Fiscal 2021 First Quarter Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Lisa Miles, Senior Vice President of Investor Relations for MAXIMUS. Ms. you, Thank Miles.

begin. You may

Lisa Miles

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

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

Rick Nadeau

which of to our expectations. This for reported revenue increased for quarter million. was the Lisa. Revenue with first fiscal quarter you, line first the MAXIMUS XX.X% in morning, $XXX.X Thank XXXX,

programs, unemployment was disease where new role vaccination continues support, contact the revenue initiatives. response tracing, in Our other principally investigation, pandemic key an and MAXIMUS work play driven insurance by to COVID related to integral growth

the revenue. quarter of XXXX, our fiscal million work in COVID first response $XXX For contributed approximately

bottom the global pandemic were As were by at customers. contracts top changes growth our that ongoing and implemented offset of expected line the tied program volume-based direction on to impacts of

operating last the are halting ensure access changes quarter including of expectations to was company discussed fiscal United Diluted the margin and operating per $X.XX Both segment. beneficiaries we government this crisis. some were our by quarter, line States earnings for have in that first share designed per global variability earnings redeterminations Total share. Medicaid XXXX. As vital to benefits during with health in these X.X% were uninterrupted margin with

the lower delivered in U.S. Our the timing quarter. operations recorded to income which expectations, federal outside will of the contract, the now United which our be segment offset due operating favorable a States to results finalizing from second

our results Let me starting order typical with review financial segment U.S. services. in

quarter First million. to XX.X% increased revenue Segment $XXX.X in Services the U.S.

Operating margin While performance-based revenue an estimated U.S. changes the a XX% for global million revenue was the for contracts program growth was Segment the the by as result work, quarter. pandemic. lower and temporary response margin $XXX operating of COVID was from depressed of by first Services driven

As headwind profit volumes our to and lower significant on discussed quarter, from Medicaid some largest a last continue experience resulting revenue programs. of we

customers matching state many reminder, Medicaid. a for utilizing As are federal U.S. currently funds enhanced

to programs within crisis. operate. redeterminations level care health public certain conditions during the vital access to of adhere certain services must including redeterminations pause are to ensure continued beneficiaries they health we have activity a a However, in Medicaid Those significant global

$XX fiscal contributed predicted. expectations than XXXX first XX.X% Segment Our million full Federal the contract increased which The the to Services quarter remain U.S. XX.X% Segment U.S. XX.X% the margin million. the $XXX.X was Revenue of prior census full unchanged for year Services for a less to with for year. $XX year million,

census revenue driven includes and has first to $X Segment work and million quarter COVID principally delay the U.S. an executing shift by segment. our the and strong as to record operating growth response we for The estimated of contract, XXXX. $XX support contract. XX.X% benefit Act, a fiscal the been pandemic. the million margin provide first Excluding due for from of government IRS in short which on out the supporting with to Federal needed scale. reminder in Services was the work segment a contracted IRS we had The is revenue CARES this this of X.X%, quarter expectations a organic second continue the this will a This as the to slightly time used of has large responding profit first approximately in agents of It was quarter in signed of a was which the

remained Federal Our predicted. Segment full expectations X% Services full X% year same the the year margin for U.S. with to a

the aforementioned recognize, results will margin expected million continue and step revenue we the more in have This $X how Looking variability profit to overall to the including pandemic. to the of second segments illustrates down. to due is quarter, we

response an demand spike income XXXX the was a than primarily job for Operating seekers. in of X.X%. the fiscal XX.X% quarter Organic We positive better backfill result accretive for to qualified of segment pleased excluding to the million by million. X.X%. contracts. The the for to due profit temporary work Segment fiscal was in driven effects created the job activities and are first quarter growth $XXX.X Revenue in for the expected currency volumes, reduced to by of of performance-based the shortfalls for increased operating from seasonal Outside the of $X.X first U.S. margin have placement to some revenue was secured COVID Australia, XXXX quarter

but as employers the demand, we related of fiscal emerge jobs in many quarter team started XXXX. to this job to The pandemic during Australia travel As seasonal this season. travel first fill of quickly holiday view Australian from spike did the our an managing first quarter, the retail during and busy needed and successfully extraordinary influx to unique

continue for demand see services of our employment international strong in all operations. We to

outcomes volumes demand It positive but stages. Australia programs of employment to that will are their work employment consists We work that and held matter new have supplemented services. services. ensure accountable for growth job for expected last We can important placement to from and arrangements achieve upward, revenue services government. to generate developments and by new are in drives based outcomes is rising This be drive half these designed to new to work earnings retention second programs, fiscal They of early call employment to that in estimates had since incentivized XXXX. notably anticipate in current revenue related our contractors that most and the the volumes increasing losses note our the

a within the a the value. corporate average such We We We believe avenue life breakeven with improvement the investment for long-term enjoys loss that favorable profit demonstrated position history, our life presently the such of to margins in segment we create However, success shareholder the the us XXXX. programs. steady target expect U.S. over over temporary We the delivering that position employment the of these remainder services. estimate Segment Outside which a will of approximately be the in now MAXIMUS good the the desired the and will second put XXXX. in outweighs year. for startups required fiscal substantial contracts, operating for through will of quarter impact remainder economics believe long adverse programs reputation, in strong are fiscal

December from facility draws equivalents. flow me at XX, cash had our XX Cash were already items We XXXX. and to no cash balance at XXXX and Let on contributed corporate days compared operations to turn flow million $XXX.X and cash the XX, days strong September $XX.X cash credit sheet. million of of sheet. December XX, $XX balance XXXX, million was strong and DSO free at XX respectively to and our and

capital on Let me touch allocation. briefly

designation, While of operate remain aware essential customers. we under generally provider impacting our an pressures budget we

with corporate is a flows cash the concern. facility not strong However, balance credit liquidity our and sheet and aforementioned

have a toward We bias a growth. drive to M&A continue as long-term to organic means

selective stewards while our of continues capital remain and program M&A prospects, to Our evaluations. evaluate prudent in we

balance purchases to dividends quarterly cash sheet good operations to provides We continue fund to acquisitions. from be strong share made opportunistically. Our cash us remain capital future to and and will good access committed

it guidance. year in year scope awards, us and provided have full recent we still extensions While contract our with the is cautious increases consider early optimism as

of result these guidance year are positive a developments, raising As our full we fiscal XXXX. for

we in support revenue For billion by will the government’s expect and now full to ongoing for work billion new year, COVID. XXXX response between fiscal $X.XXX of $X.X driven range

$X.XX we share diluted per will and $X.XX fiscal Additionally, earnings range expect XXXX. between for

$XXX Our $XXX free million fiscal operations $XXX cash million. between to projected now from cash $XXX and million and between are million and XXXX flow be

million. million XX.XX% and between be tax Our weighted expectations our shares XX.X and effective for XX.X average between to rate is income XX.X% for and

we been exacerbated our long pandemic. experience only fluctuations quarterly by results, we has said, the have As often in which financial

However, the into to possible. management work provide aims as much team as our reasonably transparency

At Current So revenue fiscal and of diluted to above still quarter. our of second consensus for are XXXX the we revenue first compared expectations. know above revenue based fourth earnings earnings quarter consensus diluted today, earnings on quarter expect show present $X.XX. per and $XXX decrease share Consequently, second million consensus earnings million a we we estimates second per expect be the what to in the of and quarter. $XXX and time, the estimates share of for of quarter $X.XX revenue current

response While performance COVID it positive shorter core providing short-term periods has is of than new our the work a tailwind, contracts.

work with have our levels. the positive off to cautioned previous As previously, that contracts response the no return COVID the of performance coincide assurance and volume there was will of tailing impacts the core of we

some, the assumptions are and effects at that on but remaining can in legislation in budget resume to end to challenges team for proud assessments or would programs that the on be pattern continues to packages United and of the We the unfavorable Public we emerged accretive historical in temper such the revenue, Health many pandemic a from Our result and to will anticipate deliver bottom as MAXIMUS the changes by recovery. levels. continues to year. and United XXXX Bruce per of mature The and not when operating reduction important States as income solid pandemic, Kingdom. like this the of these and of beyond. notably and fiscal saying or fiscal expected related by Emergency in track are policies core share. our which we necessarily to to tempered factors The the temporary that face-to-face volume Factors, diluted to impact programs headwinds somewhat Kingdom has I changes States of end return Declaration the United United line relief all the other for for the been particularly I most earnings begin performance margins in

were through. Following the turn there Unknowns had we have we impacts a of are remain, pandemic, we footing, raise And I not confidence outbreak of gave to COVID, that, the work over unknowns many which solid us to Bruce. will but the the call to from that the guidance. with free

Bruce Caswell

retirement MAXIMUS Thank month, Last and friend good Nadeau. announced Rick everyone. the trusted you, Rick, colleague, morning, planned our and of

Rick President have assume both wanted look and more contributions While of December to next and a absolute alongside Senior for it say X, before that invaluable his these nine strategy. Mutryn, we for privilege over role I few I corporate departure. as commitment calls him execute CFO his of the endless MAXIMUS. forward to our David years. we wanted an XXXX. to Rick Vice during still the at And David earnings Finance working I to will thank to effective been many work with continue months his time has

optimistic companies tailwinds the to With insurance the Affordable for taken actions election of from potential Americans the created the the like favorable increase cautiously MAXIMUS. administration initiatives through maybe has access administration and policy to we’re for regarding Care Act The stated and President Biden, Medicaid. already affordable that

a administration. Affordable of Act the Over priority access likely the we course, increase Care public welfare has of meaningful and the options Improving course among health broaden Biden is affordable coverage And other of Americans. programs. building upon social for the top healthcare to in advocated President will programs administration, see a to measures for the funding

executive see vulnerable broadly to will expressed these President health Additionally, that intent to as to challenges to believe the strengthen corresponding health support public to workforce provide many already and orders policy a of public we navigate through effort initiatives and early we the pandemic, Biden populations. expand indeed more look we has tackle infrastructure the vital services individuals. his further

the critical help Our results that and and this well future. add needs is into address now capacity illustrate positioned morning public MAXIMUS to health government

While government thus the their in have opportunities that priorities for will that be it’s initiatives. administration, legislative we’re subsequent budget with the partner to set days stage helping still early in far in the emphasized we and reflected cautiously Biden on optimistic seen to policy capitalizing achieve areas

Our immediate as insurance offsetting our provide clients. prime the driver of operations of COVID unprecedented a needed and work of unfavorable In have programs. a with time we’ve works temporary a some as revenue needs, is the our driven disease on demonstrated are are slowdown our pandemic developed the tracing, of and such assistance. centered challenges, impacts have we the or grateful to related experiencing example to services response Initially, contracts opportunity served value relationships pandemic unemployment around more pause. that contact COVID investigation These earned a

launched has responding quickly, efficiently scheduling support as work and government about efforts We equitably. public Our administration expanded to to vaccination questions areas. increased registration, into in new States and has demand

as hired regarding Supporting questions to you added the have and answer vaccinations. vaccine operate market scale CDC local up partner government the employees thousand in XXX At individuals several helpline again services. another CDC, info. level, these provide state the most experienced we the CDC operations and are know, states federal support the we also We We to recently citizen known efforts. to administration we yet as as our several

and to Further, from U.S. next efficiency, to implemented the virtual IRS, demand. X,XXX incentive improve response our the segment in Additionally, to our in increased system Services scaled of user order we the the experience agent up drive support the economic Federal to interactive agents payments. round but X,XXX

are the left and It’s which increased that remember many pandemic at the to the noted, need support support As demand work. and widely. of different experiencing global pandemic of services globe. finding employment unemployed also we��re from Rick pace our emerging for vital countries economic the have in around varies The important impacts

now Some of proven trusted challenges, a track outcomes turning pandemic residual to services the spread in countries the delivers as are and have attention unemployment. and managing an reputation the long-term many that has economy the progressed further partner, tackling in who and record their a matter. including employment delivering earned MAXIMUS

support the investments profit position Our year partner our over and a any continued outweighing as short-term choice long-term, in impacts fiscal temporary XXXX. of

longer nature, trajectory. crisis the support short-term has While comparatively COVID work itself itself is in a

in nor While not crisis. This certainly economic unprecedented. call public a health this last of pandemic time is or was first our to action

and We need times will to be support continue to our and clients there citizens in of with solutions. critical services

our core challenges. for capabilities that of customers Along long-term Public with as department the Health, or launch health is work to our and health portable economic to rapid the agency we others planning implementation FEMA, CDC, assistance business. adapt to a Our relationships and of department, services natural or view crisis, We underpin the whether disaster a the the pandemic, crisis world. contingency our elemental in competency to MAXIMUS it’s government from IRS, adaptable and citizen whether global around from state agency departments, a

of our that previously under program the and I’ve authorized about solutions pandemic, the or management outside FedRAMP. authorization talked risk are federal Looking

survey federal to transformation most gain innovative Our affirmed our solution, adoption across a moving cloud to citizen I solutions the clients requirements the a support they XX. solid respondents survey security FedRAMP to support and authorized insights agencies FedRAMP vast mission state local solutions certifications provide aim of the agencies their FedRAMP and that are beyond to cloud user a to December agencies, the as our The modernization solutions, journey. adhering that and transforming where as further cost-effective feel pipeline deliver of awards authorized FedRAMP benefits mandates. to and of meet quality stringent cloud-based leaders how government as now recognized objectives cloud we initiatives. federal, We in technology experience. perceive thereby their about of services and highest This provide new And secure from of demand for majority well this range to service. positioning will of turn as use

contract the December million have Further, yet awarded, contracts XX, XXXX, For at another awards there signed. not of $X.XX fiscal were billion signed been that at total first XX. of of worth value $XXX were quarter December but

to attention sales our our of turn Let’s pipeline addressable opportunities.

new may work. the and December fiscal I compared total reported $XX.X health at global was our continued the contract of represents of pandemic want $XX.X pipeline, the new have that pipeline fourth XXXX. sales to Of in value billion timing XX to reiterate total operational previous predicting billion Our XX.X% quarter difficulty and in pipeline return impact work to the on our levels. opportunities,

cemented partner reputation, go-to strong agility flexibility has our and position a our government. However, for as

U.S. We is up governments that opportunities January to on and we areas and my firmly at and engages laid decades, for shocked to today, events. long-term MAXIMUS in wanted the comments the in wrap these assist understand for clients’ through government events extraordinary you, in in foundation have to saddened transitions of the these Capitol process I administration the political the Washington, by believe protests country. of our was in Like I goals. navigated better reflecting that many other times. DC, continued bi-partisan and order occurred

process, of principle elected and or for the committed up before our the trends Nominating officials, and United has support Board’s or the to encourage States. political support will fund remain it pertaining one macro in continue to compliance. Our remain of open never the to company’s fundamental business we And the We which engagement final to our of against note, violence or who candidates unchanged. government questions, for contributions be, is, policies the Committee political and Governance oversight

better deliver priorities rapidly. pandemic that change underscored, world governments to solutions on need policy has can the As the around

demand, programs face and of range scalable, a commitments wide positioned be demographics for is MAXIMUS unsustainable We cost-effective government reflect well to operationally long-term offer efficient address priorities, program and transformative and rising welfare societal costs. challenges these that increasingly shifting partner. a Social services and programs.

of healthy platforms We years portfolio achieve a we continue allow business, for our Operator? the to to to core new near open mix Q&A. come. with will growth us adjacencies line trajectory for believe growth that, will and And

Operator

you. Thank

question-and-answer now Instructions] conducting Thank [Operator you. a will We session. be

question with Securities. Popson Brendan question. with CJS first your Our is proceed Please from

Brendan Popson

morning. Good

surprises Medicare the ask one that? to quick out draft the want draft on just is and on any it Just started hour any RFP or that real thoughts the on for CCO there

Bruce Caswell

services morning we’re that pleased that the and Hey, for do the And CMS the remains that contract see really RFP think I Brendan. services to is offer intent the scope scope It’s current work schedule we the secondly, to had RFP. progressing to do going reflection for question. thanks single Yes, collected we their a and in Any are vendor is just consistent Good administrating is and and single Bruce. of first And is and see procurement a would other of the you notes. two One procurement, the with with award a comfort questions? it’s of which that and so has CMS. forward.

Brendan Popson

just opportunities detail of do? Yes, any on in But follow-up, coming or provide to you could the prepared even currently any new in. than just you. on you administration more orders the the Thank executive what any impact color Great. new comments detail talked administration or expanded and – new with recent opportunities about some the you

Bruce Caswell

Sure, Brendan.

obviously a May will created more And was healthcare.gov between early Let and me process for enrollment XX a little that here order executive what’s period very take February Interestingly, color. as in special an to there place you reopen XX. the that SEP. on or give known was

but adjust adjacent period And qualifying purchase at when enrollment is of open of events, have occurred likely period would pool You who have otherwise likely it special can policies to is Because ended provide healthcare.gov the smaller individuals this that the to open potential seeks to period. events know, now qualifying its period, open of life qualify to ended outside with it access life already not enrollment enrollees they this certain enrollment during individuals proximity later. enrollment than were if recently time. to

uptake means committing that it’ll will such efforts. a we that be However, And $XX and outreach and efforts. advertising the function of – be really is million awareness HHS note to

could Kaiser coverage. million estimates coverage qualify of about more I reading an a that period. additional qualify for remaining or As there’s was Foundation enrollment subsidized And the under could nearly the uninsured Americans this, $X Family $X for unsubsidized this that million bit free special

and again, make So marketing critical. we a state perspective, that customers. the this the aware, support ahead periods From I is advertising privilege state remain the federal offer for as not because are similar a to up state-based have are on of marketplace for be center also to call and providing you’re number doing States enrollment going many that. going and special that encouraged, states and but of required and marketplaces

marketing and of the May the next increase special that and We So fall. to it the so that beyond and higher dynamics, spoke the themselves of of forth helps. go Rick this guidance period date from that in could period MAXIMUS? be Hope covers created range of likely the enrollment tailwinds end in obviously in open these volumes manifest for what effects would likely executive And that does all we’ve will given well remarks, mean in that enrollment enrollment orders. potential efforts think the established to advertising the his prepared

Brendan Popson

Thank the it. Okay, you Appreciate great. for detail.

Lisa Miles

Brendan. Thanks,

Next question, please.

Operator

Richard with Genuity. Canaccord is question question. from Please proceed with next Our your Close

Richard Close

first Great. Can me, all. of hear you okay,

Bruce Caswell

Richard. Hope well. doing you’re Fine

Richard Close

I am. Thank you. Rick, congratulations.

but on the of Looking with you the quarters couple quarters, congratulations forward to three or retirement. next

Rick Nadeau

you. Thank

Richard Close

the number, an something something for taking that organic the growth not XX.X% there a census getting unless I’m year Rick, Is out and $XX to and the this to in federal, out So doing information the COVID, am backing I math or you’re wrong, there? into I respect backed quick the I just account XX.X%? but year. acquisition census at last like million else organic I’m first the XX.X% missing to But and housekeeping with a million $XX the COVID. per get appreciate if the growth

Rick Nadeau

backing That’s is that X.X%. about the contracts A from contract. other effects disposal of X.X%. Yes. the out we’re growth The question. XX.X%. the is organic CQA businesses Yes, of And good

that So XX.X% a change. is all together of

Richard Close

Okay.

Rick Nadeau

of call And do Form right Richard, segment, roll advice – the three and XXXX. we’re the we’ll ended forward roll actually basically you contract, do It months calculations the the in three a this we XX-Q and XX, to are was December those revenue And going and to months effect show MD&A. we which after ended XX, you’re XX the We XXXX forward right. file think December of XX. our from CQA I

So about a reduction work of $X.X were million business interest conflict and then asked a potential the a it organic. that’s conflict amount of we rest interest with of other the with of that we or disposal of it of being dispose perceived to the business, And a had were of that the bidding. we

Richard Close

I I some parts a wanted Azar great. extended moving bit there. just the about in the talk figured redeterminations, other Okay, obviously emergency. there Secretary to little were public

individuals there the the I of extending I letter maybe a speculation sure the from there, health through Biden specific to think then emergency some think into XXXX. April, administration, date but the I’m results about was sent not public

I’m they’re opportunities way or curious would that redeterminations the Are does funding, the be into where but extended the there on thoughts extended. if emergency opportunities So whether is there they get redeterminations, the FMAP begin XXXX? getting your all states,

Bruce Caswell

first just to second, I that So up Richard, a but wanted Rick. I’m to return pick to in going

something prior question. So he from could your clarify

Rick Nadeau

$XXX went revenue to read million million. million revenue of $XXX contract the That’s organic for XX.X%, it million, went $XXX million, is $XXX of I growth down the million XX.X%. And percentage read the XXXX. Richard, column. $X.X. go but I what CQA and gives disposal correctly, did $X.X down That an think you $XX.X from wrong I we the from

clarification I My of on sorry. the gross reading profit. that And gives you percentages the the I It’s was I’m read numbers apologies. correct dollars. from the So read gross profit. XX.X%. a you that. the I

Richard Close

you. thank problem, No

Bruce Caswell

Maybe little don’t [Indiscernible] that. I bit know. a I’m getting

Richard Close

Pull that forward.

Bruce Caswell

priceless. The wisdom is

go public health to emergency. the So let me

find easy When absolutely You’re terminate on determined entirety the we’ve Acting HHS you Health it’d to XX. declaration governors to letter quote of that from to assure Cochran a XXXX. emergency the to place And termination. XX-day saying to Norris notice January of our provides Human will and of be made remain Services, and sent it I’ll right. the through commitment States expire likely that to a Secretary prior in let response, health ongoing decision public a or the

would the the So you’ve wall likely, noted the our at on need would States to the the on certain the such would FMAP enabling prolonged based forth. suggest the that, the redeterminations fiscal with work continue it thereby end But to hand, other at that the time, hand, of enhanced know, eligibility certain through the suspension customers work you as public and we X.X% conditions for this year. would to to. unfortunately their like current as response one get cause on work as emergency further Because to to well of health of seems sustainment that same qualifies, the further continue also on least COVID related handwriting’s lead guidance so

a looked would XXXX for felt entirety multiple the be likely public these place year at in all health that considerations, when our with us in accommodate being of to given So a fairway. in fiscal the remaining scenarios to and I clear of it’s middle enough emergency bit wide guidance, Rick result of the more we

for of So of to some effort remain clearly of requirement for seen the work. requirement the maintenance funding. kind the is and hard linked and the we’ve relate And a enrolled enhanced for example, qualification that to redeterminations interestingly, to public changes predict emergency, temporary health pause we ensure the to individuals Medicaid always headwinds it’s COVID that’s say program and

funding actions right unlikely, prematurely. up that that give States begin of administrative kind willing other enhanced – to So would they’re redeterminations unless or program

public HAAS aren’t However, are for student example, that aid program that we for linked or health the federal outside emergency. this U.S. management program programs the to there debt administer, the other

also public discretion guidance our of is of great evolve. declaration the to emergency in to terms kind reflect So Last and discretion, priorities a of modify selectively that as accommodates when those. thing the policy of and just conditions retained it deal it’s but health all they not secretary the of over, I’d say the

So variability, range that for all we’ll accommodate programs. is at look – right and the these tell to and you now conditions guidance I they can the the respond take we’ve you provided our that, and dictate administration from customers is if guidance

Richard Close

I during you’re appreciate government this everything for Thank the Okay. time. federal doing and States you. Thanks.

Bruce Caswell

you. Thank

Lisa Miles

Thanks, Richard.

please. Next question,

Operator

next with Donald with Our Capital KeyBanc – from Please is proceed question. Hooker Instructions] [Operator question with your Markets. is

Donald Hooker

Thank you. Good morning, everyone.

and to the on of U.S. Slide you of that XX% kind that was out of a when commented remind which like scope When segment. XX% of highlight X bit ton guys kind a you I can can your would be in us margin achieved? just you upside obviously the potentially operating that get time is you – curious So margin, that think

Bruce Caswell

Thanks, to seven right. Donald. then program I to programs, The services I’ll a want the margin to that begin, is stage hand illustrated life employment it on XX% do off Bruce. commentary Rick. XX% And commentary about over the and note It’s I’ll the and program is

Rick as dynamics offer business. for for consider So let that the contracts of the U.S. outside portfolio we you think that about have have to commentary. you the But margin the I’ll long-term

Rick Nadeau

we on and chart in to and simple a of that said, have the in how sitting us. for exactly through we thanks. think I proposal request tells Sure, when Yes, Bruce be to considering go that story we page respond that’s program, front what the are to

is life. that cases build as you programs the most incur flat the cost are overtime. in But happening up winds throughout volumes you really relatively We’re

your that so your winds accordingly revenue And happening overtime. are up growth steady cost is that

you line operating the negative straight builds. see area OI in ad the for a and parts negative – negative of can you’re early of the periods first under have the you the program then So income, shows that program, the you

what try fixed to is we of type the that the so And we in Does range, make we that that all operating the that’s which when do price work price that sure we when we that did is we’re the to help we that the periods for average is see you? margin work. XX% put an together, XX% of having income work, that

Donald Hooker

of of little but about entirety about on breakeven understand not a then a in XX% XX% bit for was in of you margin to this. the trying guys the I the talk the terms that’s guess spot U.S. you margin I talking outside segment outside the you put of U.S. Yes, the are you guys, a to segment, and I

is put fiscal you can time the XXXX on big which clarity that that the of segment, is of could – it operating a be get would know of Even I get not any it’s quick seeing years would scope if XXXX? don’t the which on around of jump are big have take that contracts, to the or outside like out, a is all there You U.S. segment. how margin. part mean would and if can what in And material I – I of if I sort a couple certainly impact ramp. fiscal

Rick Nadeau

the of unemployment We’ve Sure. over detrimental had work during very the Well, pretty us that is that’s closed to economies most and it’s yes, in U.S. and pandemic. outside damaged I do Australia is the been obvious United U.S. Segment XX% regard. have we in the services the that Outside Kingdom think that that segment been

do dependent So look those come I assessments. we and we face and Kingdom looking assessments program where have but that somewhat doing period that big this obviously projected That have further we pandemic, to contract a the doing to think were scheduled be and not the we’ll would at profitable, none. of in XXX,XXX forward are last in a to contract FYXXXX, level to FYXXXX United if when is face on we we’re cost face face out we

that’s to think reviving working with that services, to are to United that talked to United geographies normality the the profile contracts will a to tailwinds to employment time. return margin that new improve And you the align we’re return to in be that of in margin open FYXXXX, and face on be U.S. us about over I the approving time. what today in new operating Kingdom assessments. us be the an going Australia we those able Kingdom economies here can’t those do So all sit some to face and ought allow over outside promise it but I

Donald Hooker

sure Okay. not, follow-up but get I’ll… maybe to I or the if I’m not

Rick Nadeau

follow-up… with ahead go Yes,

Donald Hooker

quarter. you and would guys it. remind December that the you really detailed What June fiscal March, first What quarters? – Yes, quick than quick to quarter one, I I that in census missed ramp apologize in revenues And can one, down the the us? September

Rick Nadeau

of sort expectations. you So set

Bruce Caswell

to is program being close down wind period. very heavy That Yes. over in it’s a

I forward going XXXX think January you’re of X, going to forward. see less revenue than $XX million from

Donald Hooker

thanks. Thank it. Good your you. That’s [indiscernible] with luck

Bruce Caswell

you. Thank

Lisa Miles

Next please. question, Donald. Thanks, And

Operator

question-and-answer and your reached you for session MAXIMUS call. We for end [Operator the are of our thanks and time participation. of Instructions] today’s out time have

You your lines at may disconnect time. this

Maximus (MMS) 4 Feb 212021 Q1 Earnings call transcript