- Earnings call transcript Q4 2022

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Operator

Greetings, and welcome to the Maximus Fiscal 2022 Fourth Quarter and Year-End Earnings Conference Call. At this time, all participants are in a listen-only. 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, Jessica Batt, Vice President of Investor Relations and ESG for Maximus. you. Thank Ms. ahead. go please Batt,

Jessica Batt

like discussed morning and is CFO; our the With contained today made assume to as Relations. law. events joining James number analyze informative that or by of statements release. internally thanks investors review Caswell, President The the information financial to for being I'd Investor presentation update may Bruce obligation of Mutryn, most will non-GAAP Vice comparisons. us. remind and and be required it of you everyone Francis, a contains performance, be me today Today's President Good press to CEO; and SEC reflect subsequent uses David not results of risks remember as does or gauging a materially information to most Please nature. are we in XX-Q statements any We information. this recent differ including the such statements Management and filings XA only providing forward-looking meaningful encourage except of also with may company the in predictions. recent Forms forward-looking that Actual our face those events Item and financial earnings XX-K. circumstances, results in to identifying period-to-period our believes our trends, and revise and in these to quality result

the that, hand see most recent company's I'll presented, over Forms the reconciliation XX-K. a please non-GAAP and And the For with measures of to XX-Q call David.

David Mutryn

the Maximus. at a in rebid We our were billion, an record business. note, the in reflecting Jessica, company ended core includes high, $X.X signing year which totaling high a awards contract growing and fiscal for securing all-time Thanks, good XXXX CCO morning. on Signed momentum the

on has an all-time focused Our contract billion. is our work The and of high short-term recently as also energized strategy. anticipated, the and response team executing refreshed COVID stands management concluded $XX.X backlog at

$X.XX to increased came compared fiscal organic net or a revenue expanded to new total work three in billion. decline for XXXX. of fiscal all response this in which segments. in million X.X% noted company for our press $XXX release, XX%, COVID from normalized This approximately Adjusting As XXXX is approximately programs was growth of

of growth Evaluation other and in contributions the Aidvantage from Federal, The Federal line full Attain was top the period Services U.S. source segment. Veterans acquisitions

was On was again the reminder, EPS the back year bottom intangibles line, as fiscal the adjusted X.X%, intangibles for a margin income $X.XX. XXXX adjusted operating only which, expense. full amortization amortization adds Adjusted only

provided August Our combined high $X.XX in earnings exceeded the the the quarter, $XX totaling due benefits in to end the per range we fourth or guidance of share. million,

Federal contractual the a U.S. are First, $XX not quarter. allocated were OI, segment. share, the items or the and $X.XX split U.S. the which earnings a items between other services in resolved to resulted OI, several This line item of in per evenly benefit, million particular and roughly and represents legal Services that

transaction, which we fourth this our an include guidance million on the given was gain in did related $X.XX time gain one not finalized to EPS there Second, prior in nature the And our headquarters, former quarter. or $XX was sale any of range.

Starting investment take those you performance, last Federal segment to strong the segment U.S. more VES with notably Services. than addition Federal U.S. you largest In had Act PACT it's I'll now that business quarter. our worth noting and benefits, related offsetting spoke the through I results. to

I the Services X to period revenue acquisitions contributions The For increased mentioned, by from the by $X.XX growth Segment work. Federal the decline billion. offset short-term partially driven was in U.S. total COVID full XX.X%

X.X%. SEC one and modernization which expanded last VES, contact with the operations The compared the the margin to prior of include normalized a on drove in was for in rate XXXX Federal Services U.S. run region New the higher operating growth and year. in center scope CMS XX.X% year expansion as the income recompete segment XX.X% work of wins announced recompetes organic in fiscal effort examples additional with rate

bolstered earnings the by X/X approximately mentioned, fourth items. were and of I legal As contractual the segment’s quarter

decreased U.S. into the $X.XX to insurance unemployment The Normalized was XX.X% Arkansas, new contracts Services decline, California. COVID of XX% approximately over and Services the segment operating by in the and eligibility Indiana contracts. X.X% of For the segment, U.S. income growth segment's across term the and Examples the some fourth conversion driven a are care support quarter for revenue full legal long-term assessment country and in contract bolstered billion. work with short-term earnings for by wins work work include X/X was contractual organic the multi-year work margin successful with year items. longer

margins segment's were the continued second the headwind to mentioned, Meanwhile, a cover the our fiscal have to of emergency be XXXX paused public assumptions half redetermination work as segment Medicaid, fiscal to COVID I lower profitability. As the redetermination tied the discussion. which since in XXXX for in under health concluded. I'll the activities response XXXX been

it severance $XXX increased rebid an growth for the which a unfortunate net the XX% we and the over that on segment about on loss fiscal the outcome X%. by fiscal Australia, X% completion the segment, was U.K. of For and U.S. the realized of million. revenue the currency course operating volume million Organic described year. is outside increases approximately impacts, This Restart in program, third XXXX, to ramped revenue which project the due write of costs, included driven reduced as percentage in down to of quarter. $XX primarily The

flow balance sheet the items. Let's turn cash and to

of and debt debt cash brought of paid $XXX approximately times and at from XX, $XX XX. of billion, down X.X we had equivalents As in $X.XX million times debt million. June at down cash we unrestricted quarter, fourth X.X of We ratio gross which XX, to September had the September XXXX, our

our XX the in as a for with As this net pro ratio of calculated debt last reminder, months, is accordance to forma agreement. our cash EBITDA allowed credit

strategy. allocation to Let our me speak capital

year. Cash focus flow. activities cash finish strong Day free in compared strategy at flows broader million debt strategic our flows the horizon, outstanding DSO prioritize in core XX over remain XXXX, the million. near-term, for sales XX the had of our While the flow quarter plan fourth to and We we September the a free or to XX, using paydowns days $XXX operating acquisitions day days year. to totaled $XXX was were from last same cash cash

Federal an of government, As targeted. from to revenue XX we have increasing a portion result to that DSO XX days is down coming our now historically the XX range from of U.S. days, XX our the

projected fiscal billion is intangibles excluding $X operating the estimated $X.XX Let's of between intangibles $XX be $X.XX and before expense. estimated in projected important Adjusted this go Revenue to between income be and billion. to Adjusted is share. to $XXX guidance. $X.X note million, million between amortization million to year $XXX There XXXX be is are is which per EPS, guidance. amortization to factors and two

entire XXXX. First, the guidance range does across not fiscal reflect activities year any the redetermination

As of Health our a from precluded provides increments enhanced state Emergency has in the condition reminder, benefits their are the funding which on and checks, performing U.S. are of population. states. states segment. redeterminations that many XX-day accretive which With extended Medicaid been that since A Medicaid volumes, generate is known services to other billable contracts, to as receiving Public the redeterminations eligibility National brief funding January XXXX

performing to from public projected for XXXX precluded excluded been have there is emergency. health any the resuming so since Currently, date redeterminations early guidance. we due benefit from fiscal redeterminations our no have We

Once volumes this to felt impact once depend approach was of the public While be on quarter emergency as this we redetermination XXXX, is start, the customers. there given to programs The per and still outstanding guidance. discussed as the flow we our our operational will factor by last visibility through which benefit precise could factors quarter, year that announced estimate upside will exploration control. of a exact the EPS health in $X.XX to how decisions emergency, as better a fiscal including I state to be of $X.XX well there prudent end will timing the outside

Investor the digit -- $XX provided our an COVID no benefit million in adjusted COVID we're of interest to is fiscal is fiscal This that guidance, at health to year. we mid-single was PHE work. for which the response Reflecting on over X% enhanced COVID company based segments public short-term EPS the and And why are given prior includes from no forecast primary rolling XXXX, still Therefore, erosion of on our second $X.XXX work. important work response flow of in redeterminations out come Day adjusted is when $XX COVID are assumed million the million between billion higher which to which million contributing end. the a U.S. the and short-term cash short-term to for potential guidance margins The to wins growth replacing has million midpoint over. of range the end last ongoing response in temporary new drivers response has we represents margin XXXX. the periods XXXX $XXX are below expense, is of the short-term work while expectations our across the revenue factor and reflects to year. for core and compared of company also to The overcoming below two $XX combination equates emergency there May, and The work, that target our fiscal the low laid up about incremental $XX earnings the cost

October, debt to briefly line XX was from a expectations second $XXX in at swap segment We earlier, portion effectively previously. which entered bringing $XXX at interest is communicated forecasts million our May As Day. fixed in we the our total that share margins, rate our total mentioned into remain September Investor billion. with balance I'll on $X.XX million

Services year. to of this of required segment We be range is U.S. XX% XX%. segment its bring to for between XX% expect X% the and The our target the PHE into to ending

to U.S. XX% range XX% the range, fiscal segment. XX% to margin XXXX XX% target is Federal the within the be for and with which consistent expect Services this of results to We in

low core outside on the expect and to to more fiscal caused XXXX X% in which have position. programs margins in residual we strong fiscal range improves less by place, X% at operating is to factors. income Finally, anticipated the the This of U.S. disruption pandemic target XXXX segment end thanks stability

on about, to a topic like broader of often financial profile. we is On I'd commentary some asked the which margins, topic our inflation offer to the are impact of

cost and experienced our wages. line. market to rising Our from wages rising higher with all we revenue comes of meaning drive Approximately are revenue largest bottom cost XX% is the labor, costs, have plus for contracts, where we little impact reimbursed

some we remainder in margin degrees. varying our to erosion the year contracts, For have past of seen the

difference conditions Market are periods, on X%. escalators wages some multi priced contracts raise to on margin have U.S. government higher contracts. experienced from puts the that have the has is us rate X% services typically price the in This over led has in order our impact to margins. fixed in labor and been year performance-based X%. estimate pressure more felt Our X% our predominantly which we Therefore, particularly X% of cases to segment, wages we and include X% range, and to that

prefer is an over they the contract. repricing the in era the the the So however, this until risk high-end high and In as improve bear to give we at contracts, the opportunity. inflation, fixed long-term the of drive that margins impact next efficiency of typically segment opportunity us range. of price life We

been higher price have to drive on point, margin time. many have we bid are in of new contracts. expect Last rates, over price we labor to fixed As the margins our on we one only recapture able year, labor over that costs contracts meaning factors past

technology. We continue efficiencies and to drive process improvement through

first to that most to recur, which quarterly of sale out expect want positive to flow notably gain XXXX. profile, items normal and and we reduction in fiscal as item. driven of by some higher and point the expect quarter than that the a cost resolved fourth of recently cash first XXXX cash included fiscal on From between contractual executed million old for expect $XXX the standpoint, a our fiscal $XXX million Turning compared Also of lighter severance legal the flow initiatives. our quarter I we quarter we fiscal free headquarters, XXXX, won't XXXX,

first the given for flat expectation for our of we cash two Cares XXXX payroll free as factors second is payments elected well as about flow, the tax our that Act, note million. relatively deferral that me which the is quarter under seasonal $XX Let

be amortization requirements reflects XX.X%. to and of over and effective low be times between year continue rate which should full be million. The income conversion the flow cash free call With business. Our I should as non-cash XX.X least GAAP X.X at turn significant and weighted compensation, such the that, items average Bruce. to capital as as And income, between stock well net the will XX.X should our tax shares XX.X intangibles

Bruce Caswell

good morning, you, and Thank everyone. David

in on significant in These we remarks include, by 'XX decisions, David's new while core influenced grow affirms underscore ability investors have As FY policy that continue to count contract fundamentals federal several an to through our our operate first, business business model. to wins. come environment our

our the attain create for Second, year strategy confidence the evidenced which particularly of awards. organic and with X by our customers And or evaluation platforms nature M&A next the express and as veterans aligned revenue catalyzed third, growth, through disciplined acquisitions to services our by recurring highly refreshed our strategy, through of X great VES. we our rebid

organic and continues be FY operating margin income deliver 'XX, at commitments. to well midterm for growth, and near positioned ahead we As Maximus look our on to

as moving more out time. progressively volatile of a transition of While into period stability we a

uncertain Our contracts government reliability functions. agencies contracts stability our in largely we business, or either for long-term are programs citizen evidenced time budgets an entitlement on operate and core where with services. focused These essential in is large

contracts has a rate win of work life and eight years, Our portfolio strong. is average new our of weighted

Our rate XX%. re is compete win more than

operations contract I'm the the turnover mission to of advance proud worked Maximus seamlessly take complex and personnel, declined. to as new QX we I'm pleased completed customer from are team customer complicated. our this in announced program $XXX in COVID our no a during smoothly once project And that to unwinding a with of secured Speaking Within we with to first services, nature having of Social PHE minimal and interruption Transitions the a work was the to ability critical teams in million to this the again closely as experiencing we customer over service. contract. incumbent Maximus, of Administration. priority. QX demonstrated transition Services Family Indiana of clear the report the work U.S.

TCV, expanded business X VES million volumes awarded solidly across Our total in through 'XX $XXX or value QX. nearly with FY District X and contract increasing and

overcome longer year a we related anticipation all in X.X% existing secured California. work our These mid-single and early to COVID us in This support range reductions several As growth. in short-term relationships, unemployment organic we new of digit Act three growth guidance calendar mid-single other gives 'XX. in XXXX. the TCV new in our work contract contracts services, work through COVID term segments and than digit converted in deliver to at to longer-term confidence enable $XXX PACT cases wins than successfully more FY originally Further including sustainable more us across commitment of cases the U.S. to midpoint of insurance million to

over programs and billion. for further the September, thousands the the reflects the citizens. volatile of whom number million Services. value provide of $XX.X of technology all-time backlog Centers Medicaid the focused for recompete Under This contract, billion. up value and of this our to information out has $XXX of provides award customers With of or period carry recent contract remain five CDC, successful more our a recently, the successfully employees and which CCO partnerships who normal, 'XX, drivers year. and was Americans. CDC which an for coming critical for we to we in the CDC. Medicare Maximus than Turning Prevention will which operations for Control business, key the two that speak enjoy we over responsible. critical health is programs stable $X.X Coming their exceptional awarded are day performance fiscal info FY just service repeats, lower operational with Disease Both program, of with total for recurring award respect adding X-year are awarded each we to improvement now. which to Maximus to commitment at rebid More stability to particular, want high of we the its In stands contract where as an I'll fellow period, millions our in by Maximus the which skills of forecast CCO with years, Centers to wins capabilities is contact announced we or out center The leverage on

the I As high. VES mentioned, volumes in business our remain

a has the our While respect and XXXX. we in work closely as to already while benefit student are examinations we downstream levels increased applications caseload anticipation the result PACT volumes in made we the fully with return loan courts. the both in staffing requests of expect once VA to The to final receiving advantage, calendar see reduce for VA remaining With a managing of disability is program, PACT current Relief Act. Act, corresponding determination prepared and further to to due the Debt Biden administration's a for year Program, the diligently early servicing repayment begun

have end-to-end the of focusing to Education their Federal and borrower long-standing We Department fulfill on partnership the experience Aid, Student to a support helping mission.

Finally, solid Medicaid horizon. continue programs state-based operational with performance to contracts rebuilds broadly our speaking, and services related AKA the no of key deliver on significant U.S.

independent of provider a services eligibility many state a to to than related dozen others. As enrollment and services more Medicaid

aspects support it independent customers We our successfully services. to eventually when business our PHE meantime, X of support free the to we of that positioned continue the complex, supporting are strategy, In assessment the occurs. well unwinding with in year to X clinical conflict evolve

forecast decision As David from to benefit excluding the prepare Medicaid 'XX mentioned, conservative FY our redeterminations. made presumed we've any

clients to with to PHE our lifted. the when to continue is be closely ready respond work We

approaches it federal their waivers available that the and in customers designed in that some to been have are noted when we've by As timelines maximize the that Taking coverage. advantage HHS guidelines unwinding, to vary of and continuity of occurs. before, anticipate we cases our will PHE

ability we of model up commences. underscore the In re once downturn it one year delivery can across our cases, financial economy. potential state's agility process meet in Our to customers' varied to these accommodate expect the our demonstrating like fully eligibility a approaches needs. to and the population resilience some I'd take to Medicaid our determining anticipated during

sheet strong. balance Our is

cash services economy. requirements. conversion the us modest cycles and broader model portfolio due different our providing of gives contracts through And government generation confidence, stability, growth high business enables capital to continued essential Our in and

include in position Our progress to customers regional increases. assist in strong sector puts state the a unemployment or us event to unemployment those programs, addressable again, pandemic market during expanding our insurance administered the of

look corporate meeting with will is are our leadership I at business Finally, incorporated of underpinning metrics carefully in structuring post midterm pipeline in turn from we and our and to organization continue to our now will normal And is functions, margin our back-office Maximus our to strategy. our to optimal and efficiencies our in commitment the taking support our FY operations award Day. on a our into ensure To and and team support reviewing business. their our guidance to the focused 'XX to for expenses. margin our Each Investor clear, best be on means we And outlook project functions segment What this we aligned XXth. PHE. goals is manage our the future. as September course, drive they articulated are that May commitments now fresh is costs

million $XX.X of contracts X.X XXth, yet signed billion XXXX, that These to a had at times. awarded fiscal For awards bill worth $XXX.X Further, into been book there but were of not TCV. totaled approximately signed. of translate awards September

to attention our of pipeline opportunities. our turn Let's

to quarter preparation work. billion, third in pipeline Our billion of in new pending proposals of XX in The $XX.X in $XX.X opportunities XXXX. sales approximately Of billion represents pipeline proposals total reported was billion XX pipeline of opportunities, September $X.X is billion fiscal and $X.X comprised tracking. the at our compared in September $XX.X XX%

addressable Additionally, When in priorities attributable annual our in value. we segment. our billion total strategic unveiled pipeline total $XXX market refreshed XX% U.S. in billion of communicated the to is XX.X March, a of we Federal

specifically ensure strategy. that to we 'XX, Going our investments I'm scrutinized particularly being pleased actively an into aligned expertise we've areas focus opportunities in share opportunities The on are and technology increase pipeline our clinical related worked seeing teams a heavily to are to in with strategy. strategy, our of solutions. driving people our the made services and in FY our the our already

open moment my a I'd of enrollment CCO closing CARE take congratulate under the coverage Maximus affordable Act. nearly of on part the remarks, employees the contract success first their to like XX,XXX As of on the for to day

benefits. XXXXs valuable no Our team's day Health from Insurance handle to the with than for ongoing for proud CMS through than satisfied Marketplace. were the XX employees the of with year Thank they answered the of one, coverage health the record Americans marketplace. a more information our consumers that seeking you, in you and the On your more AKA essential sign commitment November A dedicated Maximus for kicked and calls of service to creation up calls note Open day those seeking to received. which these enrollment our that serve, incoming team, million since consumers I'm on Xst. XX% off and reported XXs customer. level for service disruption of they

by segments, conclude us FY strong in reduction see and These delivering delivery, in core enter organic our the revenue me exits with risk, interest our began. environment. we a short-term work full 'XX record to as let expansion supported and ended achievements our with We business contributions core of solid the growing all overcome business portfolio, pipeline, a we where 'XX I COVID momentum in progress rate rebid acquisitions. FY Finally, minimal the backlog tough enable FY healthy a near-term 'XX business year

requirements, like these policy modest with of as variable relief, capital designed positions when maximize respond to outcome our or the unwinding to precisely resolved. student measures, While debt we model cannot operating well loan PHE issues forecast the cost

year strategic work the in of organization are we plan opportunities and X contributed and our as already new wins. evidenced to to many seeing respond Finally, pipeline embrace to X which our

optimally the for builds growing ahead company the are margins Operator? structuring Q&A. the to open And business, we'll again scale and of revenue future. the in committed with we line that, for As

Operator

Thank you.

to We and turn will James now over I'll Francis. begin the it Q&A session

James Francis

morning. the Q&A Good Welcome to session.

will to Securities. you? have line Charlie first do with We Charlie, of Strauzer go the CJS we

Charlie Strauzer

off would could, by segments? I QX you helpful. David, That growth starting if be with if Just the for have just organic rates

David Mutryn

yes. Sure,

QX company, year organic Work growth the in overcoming from was X%. declining reflects about $XXX For That COVID nearly ago quarter. the million by

normalized is at So the and all all strong normalized XX%. three over COVID And services, COVID growth for for outside decline. organic work decline, about in U.S. are in XX% segments federal U.S. XX% that's Those in XX% the in the U.S.

Charlie Strauzer

David, bit of little scale, some these building And color quarter, some those benefits talk little you on it. more Got on a benefits maybe time the you more the and one saw bit what not were? a to about the if of

Bruce Caswell

Charlie start and to David. and to turn Sure, I'm it it's then Bruce. over going

items on contractual So detail, some you sharing much mentioned the but nature of I that. color that me and some of the let precludes items too these give us highlight from

to particular that can't an equitable in we with for a essentially with are name reflected to the contract a reach an pandemic. to one bid well them agreement that adjustment For working was prior I came them, who customer

by the than we labor. caused It's consequently, outcome. facing BID environment and higher in pleased really unanticipated had was And operating that so been it our were very an a model example. pandemic. I'm with costs difficult And for

contract David, to contract amended the lessons to when the We our it modification. add? negotiate current, like adjusted, with customers, As partnership where current also before, and worked the them in going anything to reflect And to a that, environment. be have I better with and current situation we said labor a needs are implementing learned engaging if from that reflects market realities. more

David Mutryn

and the Yes, that clarify incurred in were periods. that mostly just $X.XX contractual legal items, the diluted combined QX was I'll charges pickup reversal impact. in a of of EPS just prior for of those the

transaction, view the former while And the quarter results, real outsized non-operating since the building I is time owned. So one operating item, profitability higher of contracts. the $X.XX we speaking that to of in as fourth estate more the affected is and it only our reflective is that more benefit a on headquarters truly

Charlie Strauzer

to of looking at this And forward? operating obviously, then needs to happen, coming margins redeterminations, those adjusted higher, to from going just X.X% X.X%, numbers for year. aside your What get call

David Mutryn

scenario As committed be that biggest well you guidance, obviously, redeterminations the we had key share a component as margin I said, our And the and the to will the anticipation the piece. are expiring PHE forecast ranges. of in run XX% meeting would ranges for the the at nine forecast for total period, in PHE would we and still for the provided ending post adjusted for in Investor margins segment each we January. the Day, that PHE range And the OI company. to

outside inflation can improvement margins margin. pressures Let it's recently, X midpoint But over margins. in technology more time, a a do mix which last And was COVID of presentation, at higher drive more point a also and of out clinical that the segment. And I the remarks. covered satisfied point, 'XX the there's structure, year that behind in just And at me we give fourth crosswalk with fiscal higher managing that we intend a the one do, say to earnings the component the that And as cost segment, on work, can sight also it fiscal Investor have posted, higher-than-average that strategies structure despite grow I does this I'd year the few grow more work of Slide Then, cost deliver given We've our saying, more for the continuously it we And confidence our we quarter. results of of committed that to support chart that profitable it in been have our refining is U.S. just do a a Day, line giving 'XX our us. forward. to difficult our more out May is higher should believe margin we're prepared time. we mention guidance. it been carefully me even and point we'll as work that we've I'll margins and attention indicator our finished of thoughts to direct our stability my to as over at not one revenue. improve then profitability year, going we while we

Charlie Strauzer

And be Bruce, tying refresh granularity insight talked what to as Maybe can Investor more in you're your or you strategic shoots that green Day. seeing the from the back the business to that? just at you some then, pipeline about comments and the about the

Bruce Caswell

Let's back the with start pipeline.

in XX% that was as pleased pipeline the of The the of I'm federal prepared September U.S. total is of represents XX I And billion. my mentioned XX% As segment. services remarks. within new that that And pipeline $XX.X in work.

So strong very seeing areas pick green in like you. up services. where of federal shoots. it from I'll Two we're number I term. that a pipeline

clinical assessments federal IT solutions modernization from agencies. Our supporting initiatives and technology

So been also, services a Maximus recently, XXXX, we're work prior that that to other together Medicaid recall former. across acquisitions with assessments as areas We're them those evaluation the obviously for opportunities us. I areas I'll by together RFPs, Both seeing years start historically but are a the an we of seeing through number example. then VA, of acquisition. the veterans well supporting done of did, consolidated state for into which you in most federal employees of correctly, also agencies opportunity send if are have beginning state bring health they multiple beyond exams as suited related such to to and very types attractive ago XXXX, and areas and the parties, duty fitness federal agencies level, populations with bring to At the related occupational more Medicaid

in kind we've seeing press, IRS. really latter we're mentioned, that again, most, of of development a in in numerous while crowded his perspective most the that's civilian is a publicized federal are related thrilled a from And as the supporting technology agencies, and Regarding procurements attained reputation vendors this positioned in feel of is we space, market, consequence area how many we very solutions, it IT developed are number acquisition. there across capabilities a IT modernization the well in term. which resources this one probably that with continued that's and federal modernization, initiatives the the to is area RFP And been budgeted been I the

how functions Finally, lot through I business, solution to capabilities to a segment development think in see find to the most teams the from of across collaboration one the we're pull encouraging and starting another. sales is

give services market experience in and federal Similarly, I'll our like a our how employees. eligibility in for as also enrollment small we're we in of we're leveraging example U.S. things capabilities cross-selling example. opportunities. enrollment benefit processes you seeing quick Medicaid leading health at So A look

BPS our in there, that a incorporate complex begin federal and into services process opportunities. as or might services business to consulting Here technology TCS or solutions segment,

well working And to much we seeing, what full synergies seeing that of wouldn't me bringing will The net that work accomplished. bid that seeing. the we're anticipated type we're on the now that confidence helps. acquisitions are company customers. to now mind of bear we're teams been through that that the really it gives Hope revenue generate in we the eligible and we those for is ago, of net, the all XX together, months have capabilities So my our this, of

David Mutryn

Yes, me you mind is in billion Charlie, clarify if services. pipeline you, you. don't back Let jump the of thank XX% to U.S. to federal in XX.X total quickly,

Charlie Strauzer

over that? And last just Bruce of kind from last terms couple being elections minute, of now in potential What thoughts, midterm philosophical benefit a impact your being out results are there. on of the questions, and like the smaller of

Bruce Caswell

of unwinding it's on I it PHE I'll the that context the we there's thing out redeterminations. is PHE is, speculation. XX federal government in the interesting, said I days redeterminations, first in and through to of didn't say at notice but the place it'll of the one know, in of if place that the a well, the this January. anything that remain impact point look interesting lot does least be they've mean of PHE And an quite We Charlie. ending course provide things Will post Well, course, of April. found at

speaking the elections week, voted end legislative what's the to creates On arguments hand, and the on found keeping the interesting and Tuesday of I'm of triple PHE are to there's that last kind But very RSV, the through kind branch. the outcome the public of kind it for months. least emergency $XX.XX. of about Senate the of and of other where, this in We day talking at which certainly that folks health one seasonal place, with threat influenza, winter sentiment declaration the COVID the

they're along and much So $XX.XX was support, for lines. when bipartisan than last upon it, party bipartisan more was measure the certainly, voted it

no there's while So indication White it. brought veto the up that is the House a promised of be going house, to measure in the is and

there part modernization kind as the sentiment as usual, What at major to progress, brought we've think bipartisan will that legislative talk to hiring generally more enjoyed about speed. this mean, of IT going And underway? more of they've is business aging as least and it's less in They support. point, branch. recognition the to be think are legacy be relates out antiquated quite that IT that up to there I it broadly, we need and systems And I environments, necessarily think that in you gives controversial, sense might talk the are a it about at to it's initiatives of a handle enforcement. modernizing frankly, to there is anticipated, to agents

thought is and where that that, legislatively programs operated programs for I Hill you course, programs that may know have other even White The government we just gridlock critical mission our the have environments between in done well entitlement there be and well, would House. generally Capitol major of the

Veterans. presently, impacts any the significant we're forecasting So not from

James Francis

over it let this no back to further operator. me turn At questions, the time,

Operator

in you Thank interest you, concludes thank Maximus. gentlemen, today's ladies event. your this participation We for and and

your may at your lines day. time disconnect You and rest this the enjoy of

Maximus (MMS) 22 Nov 222022 Q4 Earnings call transcript