MMS - Earnings call transcript Q2 2024

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

Operator

Greetings, and welcome to the Maximus Fiscal 2024 Second Quarter Earnings Conference Call. [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. Thank you, Ms. Batt, you may begin.

Jessica Batt

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

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

David Mutryn

morning. good and Jessica, Thanks,

Our pandemic. elevated second which to of following remains years programs, strong, our is second quarter more and high across importantly the guidance. the the exceptionally fiscal perhaps returning XXXX our of indicative results this Demand quarter were volumes stability consecutive raise disruptive driving

We positive potential quarter periods. which and line acutely to bottom on has further had are also impact cost future management, in added focused a to this improve our

A which year-over-year operating of and $X.XX, U.S. was from revenue Services the of high the to in EPS XX.X% this Medicaid work. we our XX.X%, period. By expanded in Similar reported overdelivery of for the which of and but by Federal expanded to Services XXXX, for our income growth in extra last area, estimations, basis. a in and $X.XX was and resumed the across mark year for billion programs an adjusted rather quarter, with driven Maximus strength $X.XX set programs portion no was quarter redetermination. margin the of segment came results. X.X% coming a portfolio segment. quarter, domestic to Turning prior Adjusted or tied represents to respectively, single volumes U.S. XX.X% the earnings Services combination from organic the year quarter fiscal growth on the U.S. compares second for quarter

to go Let's the segment.

year U.S. contracts. the as continuing volume high with in U.S. $XXX and segment by well growth thanks XX.X% increased margin prior segment, Federal which Federal compared their all Disability Services including exceeding Medical was in an The better execute For the slightly to this X.X% MDE organic programs, margin income the revenue to expanded million, operating for second period. The the driven or Services XX.X% demand MDE, to goals VA on Examination, quarter quarter was production expected, and was to in our contracts assessment. environment for than

to for resumed. is bearing in comparative likely previous For Services quarter XX.X% least organic. in a segment also our the redetermination the million, XX.X% to year activities, of high on which in contributed redetermination is income periods present XX%. The the U.S. segment, program, growth of Services basis. The noting the longer-term large all margin $XXX period's which near also before margin target has margin from assessment A revenue second margin at prior It's this quarter's X.X% was Medicaid The year. term, stemmed X.X% operating ramped XX% year. segment, this was for of the in state-based this U.S. that activities segment has the of growth weren't watermark mind worth resumed last increased a to and portion

the that portion overperformance to redetermination, the last out is tied restart of a several from a earlier, process over quarters. this came which mentioned Medicaid been volumes segment's I As of extra playing has

recently, middle continue of forecast the meaning back to outlook areas improvement being the operations to the background. landing segment XX% to XX% is of of amount business. to go year, after quietly redetermination, That said, quarter the has extra last the of limited the by Compared the the pandemic. And half they other second that year. for slightly to which the and closer is the disrupted we Medicaid volumes range segment reflecting improved case back as pleased relatively conclude, half for margin that We well back stabilized of the during light the this normalization are as quite occupied in in core running after to time margin the spotlight should heavily driven

of rest The an U.S. compared as to the to flat was of period. quarter. prior was Revenue basis. to organic of an X.X% following decline small segment made while million $X.X a the revenue the in on million $X.X the Most year outside segment profit attributable less to of loss million operating the to the the divestitures decreased $XXX year-over-year Turning completed segment. for date,

demonstrate the commitment segment Our is the is behind pandemic expect meantime, target to and that In this segment remain this continue. progress, now recent reshape we volatility the to the on reduced we results year. services employment in fiscal this to us, trend portion and of

sheet was quarter cash balance Let's $XXX the million quarter second flow finished now at million. DSO days. cash for this $XXX turn Cash to was activities of flow XX provided items. the operating year free and and by

Our X.Xx. debt the second improved due We our the free of the X.Xx net forecast. year debt-to-EBITDA cash ended increased $X.XX billion, total improved to rest with earnings for flow and ratio quarter of guidance to has the from

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

X ratio Xx. remains Our target to long-term debt

our bias toward the is range. rate end lower in environment, current that However, interest of the

continuing the while and now April, of month an are to M&A to are in end, in We term, shares. we capacity share On repurchased pay maintaining million comfortable below down $XX program. front, future that the of worth post quarter build repurchase that near also for opportunistic range nearly

XXXX. fiscal Turning year to

and pleased now our guidance the between be second We up for divestiture-related the guide. million guidance guidance which be a and is the $X.XX and $X.XX share. in between than $X.XX increase projected $XXX be prior EPS, $X.XX million from guide. to guidance an to is million, the billion of raise this November. increases intangibles midpoint. Adjusted more compared and from raising the now $XXX and per both initial to and $X.XX from is reflects between using to top to are $X.XX Using the estimated midpoint, up previous operating expected $XX Adjusted amortization prior $XX million time with billion, Revenue midpoint income at which excluding charges, bottom line is be to is

between X%, of $XXX and a we XXXX. forecast, result guidance organic in improved $XXX guidance OI improved flow be margin. At prior projected from guidance. XX.X% from As the XX.X%, nearly up growth The cash revenue for outlook guidance is free the fiscal prior organic higher and adjusted raising in growth million midpoint, earnings to reflects expectations and both X% are margin million for to is up

me year. earnings Let in back the half of the color on add some

earnings and quarter combination of U.S. fourth fiscal higher a due U.S. in in Federal third the expect factors our compared to to segment. We our Services quarter

in in should quarter, basis, Federal the the full First, in fiscal some XXXX. the segment costs investment margin segment XX%. be we year begin a fourth will are year planning Federal which operational driving U.S. approximately on On efficiency further

strong year the executing domestic the the the that on we and expense terrific comments prior intangibles to healthy demonstrating segments approximately quarter, in management have XX% we The back middle previous of volumes assuming the both build and Services amortization of has full be this business first hit business half ability status is to for footprint. remaining for the above on a from related earlier, as remains half this U.S. half, targets fiscal remains momentum We the XXXX like of $XX consistent of for Second, the interest on calls quo in U.S. XX% million. To profitability. earnings segment, been should $XX A reaffirming full to expect their shaping mentioned an the given effort the deliver few have my upper long-term is U.S. occur fiscal segment, to margin include the to expect the year, quarters. segment clear this the year I to conclude, that signaled. on segment's the action on Work team basis. power be priority. with XX% segment of another for more we approximately segment the the for a to as margin the slightly the other do Medicaid in continue margin further the expense ends range Outside year be Outside to long the to approximately redeterminations that and of would of Maximus breakeven congratulate assumptions track target current the moderate. And year entire quarter million

While further discuss nor of we have view X higher and not in quite the there disrupt some of will that momentum the period have are do navigating our rebid Bruce contracts been activity, circumstances change a unique positive built. that successful we have business

our our long-term I'll as the our sits us over capital execute now Bruce. Finally, that, This to flexibility very below and allocation capacity is hand balance sheet target ratio priorities. debt range. call With our to strong on provides

Bruce L. Caswell

good morning. and Thanks, David,

EPS Revenue on As up $X.XX, was an from operating for very David grew basis. period. quarter. prior presented, the finally, we a have year organic XX% updated fiscal just guidance continues margin for full Adjusted completed Adjusted year. strong And XXXX. a XX.X% meet for of XX.X% range we're fiscal remainder XX%, the to of our the year increasing guidance target margin with implying to now $X.XX

following clients. support company of our is program quality all the to to focused a and as quarter. for our teams on notable remained our delivery accomplishment solid and our committed are critical Congratulations meeting needs whole, of first the whom a functions, This

us. the line on programs. been the quarters, not is driven by has company's several For current for revenue expansion last This new growth top

and ultimately relationships solid our volumes Building customer lines. benefiting scope, reliably expand and to bottom quality enabled teams top our increase delivery through has

business, goals. in to are More David into particular, That wins, initiative, investments development, we're new current our long-term keenly Growing allows goals. In key help within capture with our mentioned, and we ensure segments, adjacencies, This fundamental alignment on proven customer, programs, our making capture leaders part near to U.S. their and better and their context focus we experience years These of Maximus come in quarter, areas and to hires. aligned market where, which the MDE reorganization on of gain in clients' including business is as our tools business of needs. in teams Forward Federal to continue all us said, the made have our understanding supporting where increased capabilities. as production and the our leaders their expertise. This see number the model. vein, proposal exceeded they now and movement build a our underpin of we success. specifically, also bring Maximus and focused to growth claims relationships a most volumes Across us to heightened a work proposal agencies this deeper are of VES the teams, enabling

of the we investments closed, Intelligence quarter software are a Department with providing We and single-award DOE, some Counterintelligence, and that Energy, million the contracts far. of early made Office services. development, the $XX awarded application technical or BPA consulting seeing thus strategy. a well advisory with We specialized few were with success were our awarded of align Shortly after

win to OPM the option will Customer and mission million at we modern building at services mission certain intelligence including order, infrastructure to on OPM's DOE of provide within our our Postal task over $XX our at community. TXM, or integrates the consistently people, Security sits platform The our of crucial Service and of customer DOE the OPM expanded of a and delivering is experience at we a and Federal technology, April, employees. Under center Maximus delivery into to the levels of to services Experience Center, cloud-based Management, critical pivotal BPA, This This support order support were X CSC seamlessly innovative or the support task helping for is services, channels. nexus for U.S. digitally imperative, securely. reimagine government agencies computing. TXM a solution enrollment advantage nation's secure the contact service chat the will customer delivering an outcomes launches order across enabled seamlessly digitally task simply, Maximus our the takes agencies, support nearly strategy core out headquarters, full beginning Total pillar. staffed performance provide technologies automation through and solution Our experience, supports agency. customer the for of and Labs, first broader moment both in platform Also higher benefits National text years, recently satisfaction, be and The CSC announced and our valued intelligent solution. cognitive Support deliver enterprise periods. achieve strategy awarded phone, with TXM which goal implements services by operations and government and trusted data federal information insights powered one elevate

the While of me our and topic pipeline. metrics on wins, turn award new let to

for For of value. into XX-month $XXX contracts there totaled translate but of trailing Further, awarded, XX, the awards that were signed. March of had awards a fiscal million been These contract $XXX to book approximately second period. worth X.Xx not quarter XXXX, signed bill the at total million of yet

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

segment. total $XX.X Federal billion is to U.S. Services Additionally, attributable pipeline XX% of the our

March Our reported XX. as pipeline figures of are

result, but clarity they that greater include not rebids do which have tracking, a we were X important As we today. on

Medicare center CMS discussed Centers our has and to May first around RFP contact for be last is is the or reported Services, XX. expected that operations we the which with on at recently contract released The length quarter. Medicaid

with recompeting the earlier than agreement the a requirement. As expressed purpose of including program expected harmony CMS is labor a reminder,

matter our and other respectfully committed communicated its remain course. we this this have runs of and While course, customer our with stakeholders the citizens decision, disagreement industry serve we, to we as

and and provide of to whom best-in-class millions will each Americans to of most are have citizens. every interact We with we CMS day, tens customer service of the senior continue and

all our the history assuming with we which consistently met the leading levels have to mentioned labor events, quarter uninterrupted have independently operations responsibility or while customer organizing call, contractual I on in first for accommodating measured unequivocally the since exceeded As we contract, satisfaction operational CCO highest the of occasional respected. service program,

the ceiling on point include with volume. rebid VBA. disability The the in these place to or our contracts is required second Benefit make pertains will also rebid medical of exams Veterans contracts I up Several for early later be The will year. Administration, claims because contracts this a the

As remain of some, contracted the to have delivery not in capabilities demonstrated increased our the strong passing we regions Therefore, in with operations. the communicated, VBA, about must our Act. the we significantly volumes are have VBA invest PACT since and work. We the outcome but recompete optimistic continuing given the all, of relationship which

improvement the we partner to a to customer to ability positions That's where in scale exams serve. Returning attributable committed XX margin for results, part operational is basis the success adjusted point to of Our shared complex programmatic the quarter quarter. deliver operating the well us XX.X%. high-quality and environment full healthy remain the in David income a our to at the forecast fortunate second veterans margin to strong and that was adjusted are a year.

and necessary Digital lot promising hiring of at promoting and driven in an a strategy with decisions. including to the Pledger, plan enterprise and you of Information of the short Officer, tough Example making of review, technology-based to this presented Maximus or solutions technology taken by quarter, designed and Agent and success initiatives Assist look technology experiences expanded Forward. and innovative department our a the CDIO, Maximus and is customer comprehensive both delivery. We've technical a aligning progress the a needs, earnings asking drive initiatives this at is is of a resources completed pilots ideas our joining, on leadership Maximus. last training driven results. client-facing functions, and Forward Under programs structured AI becoming Fundamentally, early I've our decision hard by include Some shared questions, business mentioned The a processes Derrick our He recent was and AI evaluation effort showing Chief calls. its design, advantage. Since developed vision but of hard that the is corporate to we've aligned pipeline accelerate with competitive Derrick on outcomes, opportunities. ground differentiation to enhanced business key has in way delivery and a covering drive time of organization, amount data-driven for currently

working operating development greater with and operations We needs. that prioritizing activities in investments develop and our to leverage our ahead provide research cutting-edge are of technologies customer can

Derrick added part has team. As implemented, Officer the his a to Chief Technology of changes

organization setting lead direction. strategic for will technology and our innovation CTO technology will vital and our executing Our and be

post Within expected Maximus by accretive suppliers, supply organization through recently critical Forward contributor program, U.S. to large Services and of programs. enable one our to the is research the government extensive our invested on in IT and administering greater integration. The talent which and be group CDIO to also in our critical has long-term of have capabilities depth, programs, been a driven acquisition scale we engineering chain bringing the success

to and excited leverage their team across are capabilities in-house our their portfolio. bring We

our While allowing the and driving investing in success are to to a people. Enhancements employer continued employee competitive provide of it's value, effort proposition to choice. benefits we in employee our feedback the continue by also Forward driven is and the and compensation of be program the long-term value market shareholder us Maximus

provide and their families. the of to is well-being financial mental and employees force physical, driving Our for our

telehealth employee backdrop benefits increasing the macro health a significant plans, few the all options, and value contribution proposition a costs. all deductibles Over on has of our include face on free care enhancements plan the rising reducing HSA launching employer our led and years, past programs. Examples to of our focus adding PPO in to

are of investments on results. The Score, plan, return employee employee measures enhancing analyzing I XXXX Promoter when survey is employee global excited at to survey Promoter find conducted our continue The loyalty ahead from and we people years annual change fiscal our in results to of everyone survey. the has offerings. by the X made is recent fostering ago this PwC which a engagement very results meaningful culture grateful clear is conduct Net Maximus when look a such driving a Score an This impactful created employee the XX-point Net Fiscal overall transparency we year involved XXXX and asked showed to our year feedback, positive As in accountability. I'm our increase we organization. experience from listening, to independently KPI our plus XX. increase throughout an first most company. XX-point benefits XXXX

named we've their to been Military.com. year, employer I I'd like veterans again continued our recognized top for As a once hiring, marking families. year consecutive the our Employer, third highlight individuals. This as to and remarks, been military moment and supporting in military and we recognition veteran wrap prepared VETS underscore were proudly leader employment. take our X as dedication to connected developing Indexes also a by These honored veteran to accolades has Star my recruiting, a personnel Maximus commitment a retaining,

in nearly initiatives in new reflecting military Operator? the work skills core service of unique well fiscal that, mission line the to for as business company the a part continue our we'll with core we investment a open XXXX expansion year celebrate organization, opportunities. Our identity remain in And thus about through as veterans closing, Q&A. our and rooted on decades. In and with heightened and our growth public to optimistic our for respect the service focus experiences performance of pleased be for that X deep our as bring far

Operator

is Charlie first CJS Securities. Today's coming of Instructions] from [Operator question Strauzer

Charles Strauzer

good Federal. question. very quick of of of in kind and ahead seeing obviously, guidance. schedule prior kind a robust some uplift quarter, Yes, margins your Sales versus a Just especially

you Maybe forward? look -- did at of drivers, a more any give in when drivers the us you quarter? little behind Just see the that revenue pull color that

David Mutryn

great. David. Sure, is This

with that portfolio. QX area led was some certainly benefit the precisely though to a The extra were was leave It quantify Federal a no impression remains were MDE tied mentioned, overperformance. So VA to the would volumes the that the the that single some unwind to Medicaid allude in in this soon, did broad performance component I strong there as which from I QX ends the overdelivery. you I difficult particularly volumes to it of strong was that. effort, quarter. across the segment real only But

more on role. from expected, we engagement topic the what I broadly and are landing portions the of it While about continued we enrollments and who seeing see on retained are redeterminations higher. redetermined little been sharing today, have a as the am Medicaid Medicaid And we

pre-pandemic environment, in that effectively us it's for the base to in which normal back that as tied means in So operations. good typical the renewals. to for fashion the that beneficiaries existed drives of And Medicaid the usual business engaging our activities annual is work post-pandemic is since

the X the the that I'll we of fact on slightly at proud hurt I financial for out that reflecting And while May either. laid they're quarter, thing the doesn't reflect ago got years Lastly, commitments I'm delivering mic, especially as the as Investor population our offer higher last Day. back one I XXXX on in quarter team month on the to that the

operating in XX% for high margin. the said was range Services, posted and total in OI company, to Federal guided health in the to quarter margin. we to sustainable delivered X% year. U.S. mid-single-digit redeterminations XX% emergency, resumed, Once this fiscal the particular, XX% guiding at adjusted just So guided forward. in their the year public of had peak of And 'XX near the a we which XX% X% going midst now growth, and and gave. guidance to X% guiding that we U.S. organic then we middle XX% end of XX% we to we the

Then cross the commitment further for above Xx delever below now just And XX%. having near moving range gave Xx on target. that the to the of to now of is term, we're the XX% met year Our our in that. also to midpoint focused guidance we in longer-term this up week, to last really we've

on that commitments. and much So proud the for to these of a credit delivering here of milestones team lot we're

Charles Strauzer

Great. And housekeeping guidance. just on some the

QX QX QX cadence we You talked Any in from QX than back sense half. about to that in? factor the stronger being should of the

David Mutryn

Sure. a investments planned things. mentioned that fourth of Well, have I in some the remarks in we yes, couple my quarter.

a about kind more talk I'll we to why and QX. being first, color of little -- QX higher guided QX we on QX So why than

So in internal a in highly are the those expensing component I've we before of of scaled enhanced efforts. technology, investments on investments of business. some on efficiency, calls the will capitalized particularly software have provide in new start areas increased prior the shared that Federal business, that especially

fourth in to expected So period this duplicative some area, in prudent where be in we've particular, is the costs. quarter a transition anticipating been

cost in forward. we legacy fiscal continue and savings on the to while the those year investments So the sunset, return 'XX, expect would

quarter the more margin. that Federal our below view the outlier manifested Services may U.S. means core the that all is a the in is be be fourth rate, of bit which So in run would

little more from some both forecasting Services U.S. QX QX and also to bit QX volume moderation a to also are from then in We QX.

that's QX piece the So to QX. of a

in looking and range just the there's which improving adjusted course, continued also the from of margin U.S., of range continuing our opportunity further that there to 'XX, quoted, longer-term XX% improvement. then, OI that work efforts should our move give profitability his in beyond would more us margin. And XX% fiscal the prepared initiative that shaping Maximus that mentioned including Outside support continued to I up continued described forward confidence that improvement So remarks, Bruce QX, for mean we do year Forward the

Operator

The Bert coming next of Stifel. question from Subin is

Bert Subin

start Maybe I'll the on side. VA

so look case. have look years anticipated. sort and sort going could and that's Act played tailwind would about think So a the if at guess PACT And I changes? to are they in where more MDEs in to share? drive like, year, the continued the of September. of potential that we -- think longer excess will a competitors become your with somewhere inventories time? back out rate go said margins do is, wrap of you demand. I agree to Is X.X period that's of X.X does where an be laid of as you of to I be think mean, sort I that opportunity if get Does changes, runway that One up the your anything business? what And to of pressure -- runway current indicate I'm the it recompete, if but think was do anyone for more with the that sort guess, out last than strong for you we you curious thought the burn by

Bruce L. Caswell

going Bert, end. commentary color I one, little add is may and a to take the David this at

David Mutryn

things Great. yes, a few rebid. about pending the

ceiling As Bruce this government, mentioned the the to in which a due by those on we his procedural remarks, nature action the is claims hitting volume. required way view more it, is in

This capacity key to veterans but a we're making increase to experience. The until the process So the effort improvements really in complete, provider is work growth. ability scale. still the to really result of and drive at is continuing anticipate to any investments some operate program. ongoing high-quality good news for with an the the and to is us large volume Not we only do uninterrupted

with maintain essentially also complex will some far, paranoid agree we foreseeable time start you elevated that with advantages Therefore, it's would return of nationwide levels. Based we us of think align we fiscal the we year, agree September what for do an said by frame. we And normal your experience tells we'll would time you while the to to in and with contracts kind of for clinicians. that the next that significant so XXth assertion remaining on seen the process, it experience believe that said, scale be new operational inventory, being as anticipate the future appropriately evidenced thus line always, the the possess. we given as as network with time volumes take our Our for and extensive able recompete volumes, to the around rebid about we've

or worth can't point, So may not result far what details, I on year the at a 'XX expected. our may think And as impact financial we really no fiscal those. out as of this as change pointing speculate

Bruce L. Caswell

I would agree that, Bert. with

significant software In build only business. David thing in use we're that internal mentioned, in fact, that streamline processes capacity investments making one add and in further I'd to

And feel come redetermination will when online we productive with investments. for those So that well they us, this and overlap be process.

this as fiscal a into in be to year, program. completed that, newly in the next in the should total, so capacity position solid exit year terms volumes And in go handle fiscal and we the of we

Bert Subin

a and steady. But just almost of that and Very Got we that, redeterminations moderate. your of that give start digits, definitely for growth sort opportunity perhaps guess to single-digit helped, continue in of some a the if will sort there's of you just population some pretty margins I tailwinds mid-single just at confidence I your on like growth for the you're growth states sounds keep to some of pick following been guess, trying returning get helpful. up and to I'm will in continue is? can frame MDEs about peak like end the next of helped, on Redeterminations, operating high maybe and range activity leg the higher what's those have your it. to higher count feeling or organic think point contribute expectation have the It for to outperformances to strong. us us MDEs to have as for maybe profit. some here, like

Bruce L. Caswell

take I'll Sure, Bert. that.

the really still thus so getting and been on focused that focus XXXX. of the noted IRS May EDOS funded And that continue attention we of first original lot X Clearly, award million, been and an be I initiatives. say, that now in early just much back the technology started in in our area funded awardee the is the all, that's has awarded executing very -- far. terms look, that's view, or is laid of contract, X out a And I on it of the technology the of one us award pillars $XX So contract. and is strategy value we about right focus stages. very on of had the a modernization at in to that alongside It's highest solutions would

cyber, generally really broader X early the speaking development, on we're Department at combination well out back same with of of about technology-focused XXXX are still recognized and Acentia aperture to strong we to kind a see we the pipeline new I or combinations Energy, we the see more there, have excellent noted that with that did I providing take organization demand, low-code, my a of that very services. And through that IT be prepared hybrid the without software, BPA that the and EDOS the application are we ability business that work in our and modernization for did as presently partner of really the Federal And we're a and advanced then align in valuable digital and as then just Those order opportunities like vehicle. the remarks acquisitions of because pipeline remain technology IRS do in infrastructure, management there the going broadening on modernization, feel we competencies probably and solutions days that specialized and the AI look you data opportunities, no-code includes Attain to we and consulting business AI it's XXXX. time, analytics and in solutions. data cloud with environment. can't the having moment and in to bullish Federal the do pleased awarded At remain the well a in high which they're been worth So competencies very

would out with continue in you say signal competencies that I to got make those we And sure, the So build course, to demand that. our aligns areas. X of

some to back the modernization seeing for we're initiatives. longer-term the spoke to that quarter I confidence that go made customer call I'd in comments IT last our demand on So

this and particularly BPA year. billion you we that those would that agencies political go like into continue, an will span on from Washington. the EDOS, for the to And in the industry in that many businesses Department Energy anticipated a an thoughtful been any procurements, planned the change have of think process later in their of which process. To are that's $XX expected potential give ceiling tracking has have are already in So out example, procurement setting it many

at requirements, competencies of cloud-based more mission of with deliver vector I summarize, process And but services, those forward. But mentioned, with to solution of scale. area that changing the which programs we component is business at of and also modernization, the for same see to this in more do labor certification the technology company's an coming combination combining move organic procuring the competencies the the these RFPs to as need one with remain to for excellent agency. we you feel Federal deliver, we the particularly we that greatest I a are this days, requirements that meet meets company themselves that think along, flavor technology CMMC and represent the example, show growth a IT So where a time, combined focused, services or technology

feel And we to out areas targets really I think strongly taken the solid the underpinning we've to add represent a laid going those something that when David So that growth is for together business. that. for two

David Mutryn

mentioned on intend risk further being drive repetitive, to what your to with XX% continued to U.S. margin the it as our range operational margin is that we focus well, program improvement just the do continue through efforts Bert, of kind of the And standardization of and Outside ongoing XX% Maximus I Yes. with Forward up question, at in with on efficiency portfolio. the course, before

Bert Subin

Great.

a still maybe for -- recompete. to there VIFD like one pretty significantly? be last and CCO be CCO, your just would clarification, Like one profile on change the the time what's is that your interested bidding on recompete view? Just you other you ] us then recompetes that thin Can give guess And if I a me. aware of? Or in the terms highlighted [ you in otherwise? are the the line two-part

Bruce L. Caswell

I'll can week look up Also, X option performing it's the want go was in that take no prepared years. It's to understand CCO outlined are there related procurement an or by a process relates would a May a and more as the first here, procurement a last an the When surprising last details don't that but And date entirely I agreement specifics to and provided, piece, the up any process. on uncommon address is to in the note my typically for and interesting, communication the years. I remarks, not rebid at as here. I that, of posted this year and that RFP further the cover to it action reprocurement because which or rebid. procurement on sole many I mentioned active obviously, ahead of successfully the to take we're this call, as suggesting X XX, noted comments complete, around consider you size we not government basis continued really seeing it's context to that strategy really including too contract complexity for the of premature it's triggering contract. to important the period the transition for plus planned to labor requirement, harmony offer

requirement. including note anticipated and to we'll be new harmony comply. in our that there's nature small of the significant who and that here that be, is accommodated It's view, important the under note resulting protest may least potentially the GAO subcontractors, slowdown to pre-award to there unprecedented further trigger So an a complicating labor likelihood forward operational impacts that would requirements given could strong business contracts, RFP equipped path the to a considered significant are further, need that to also

of to remain into get theory mentioned my when in complicated high-quality take very put kind it committed to we services. practice. I continued remarks So begins prepared it you that and

small And they're program. communities, that While have of many the businesses in out. been put matter the the rebid concerns do have disadvantaged of ecosystem together on but support to regarding plays employer. genuine we the -- rebid impact the And this primary

harmony yet the record And of of only seniors. continuity reprocurement evidence and our to noted repeatedly agreement service risk tens view we've millions of continuity. of behind failure theory suggests any operations. that ensure to our is the labor the of increases So indeed, And the service

to -- comprehensively, of action point we'll we'll determine So summary, in RFP while appropriate our consideration available RFP course at when giving in options. that the of released, all our due is time, the it evaluate

just a but point, environment, note the competitive stay the that away major this business. at So I'd area I'll speculating focus probably further of it's from on for

David Mutryn

your point, out. in else on large -- nothing And horizon second on near-term to the call Bert, the

Operator

We Ladies and the everyone for thank in this to today's conference. to end participation like brings question-and-answer gentlemen, their the would of us session.

this day. webcast of You time, may and enjoy the disconnect your lines the and log rest at off your

Maximus (MMS) 9 May 242024 Q2 Earnings call transcript