Maximus, Inc. (MMS)

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MAXIMUS, Inc. (MMS)

Barclays Global Healthcare Conference

March 12, 2013; 04:45 p.m. ET

Executives

Rich Montoni - President & CEO

Bruce Caswell - President and General Manager of Health Services Segment

Analysts

Joshua Raskin - Barclays Capital

Presentation

Joshua Raskin

So up next MAXIMUS, who has been at our conference now I think three years. When we started it was sort of a small cap name that [might be] [ph] interesting way to play Medicaid and now it’s outperformed pretty much everything I cover.

So we are fortunate enough to have Rich Montoni, who is the President and CEO, as well as Bruce Caswell, who runs the Health Services Segment for the company. They are going to split up the presentation.

I think we are going to do question’s here after, maybe we’ll get the mics off, but I know there’s a breakout room. So - I take it back. Is it in here? It is. [Lisa] [ph] knows more than I already, yeah, whose conference.. So we are going to stay here for the questions.

I’m going to turn it over to Rich to do the first part of the presentation and like I said, we’ll do Q&A as well. Thanks gentlemen for coming once again.

Rich Montoni

Thank you very much Josh. Great to be here; I think our third year and this is by far one of our most favorite conferences. Not only the location Josh, but we took a vote today and the food is by far the best of all the conferences where we attend, so thank you very much. Keep up the good work.

I appreciate the opportunity to share with you today a bit about MAXIMUS. I know we have folks in the audience who know us in detail and I think some of you are new to the story. So we’ll give you an overview.

I will tag team with Bruce Caswell. Bruce is on my left here. Bruce runs our Health Services Segment. He’s the President and General Manager of our Health Services Segment and I hope you find the words of Bruce, and insights that Bruce can share with you, as it relates to healthcare reform here in the U.S., to be insightful. I think he does a great job to keep us as a leading player, advancing healthcare reform in the many, many states and hopefully the federal government as we move forward.

I didn’t get the instructions on the machine here, so bear with me. There we go; thank you very much. I appreciate it.

MAXIMUS is a provider of business administration services, business process outsourcing services to governments. We do this worldwide and we focus on health and human services.

We think long-term growth drivers really come from the economic and demographic factors that are driving social reform across not only the United States, but many, many countries on this globe. We think we are very well positioned to grow from those drivers. Again, we focus on healthcare and welfare reform. We think we are very well positioned for several reasons.

A healthy balance sheet; we have $167.1 million in cash at December 31. We have a quarterly cash dividend program, an opportunistic share buyback program; we have no long-term debt.

Fiscal ‘13, we are looking for fiscal ’13 to be a great year. We are expecting our top line will grow in the vicinity of 19% to 24%, and we think that our earnings per share will grow 27% to 33%, and I’m delighted to share with you some special news that’s in this lower right hand box.

This is late breaking news that we have executed a five-year $265 million contract extension to our health insurance program up in British Columbia that will take us through March 31, 2020. So Bruce is going to share with you some more of those details as he gets up here, but that’s really a very exciting and very sizable opportunity for us. Stay tuned; Bruce will have more details.

From a growth perspective, top line and bottom line, when you look at the last five years and our expectations for fiscal ’13, our compound annual growth rate is 12.8% and you can see on that right hand tan bar, we are expecting our revenues for fiscal ’13 to be in the range of $1.25 billion to $1.3 billion; from an adjusted earnings per share perspective, we are also looking for healthy growth; we are looking for a CAGR of approximately 18.8%, which would take us to $3 to $3.15 per share in our fiscal ’13.

We have two segments for external reporting purposes; our Health Services Segment and our Human Services Segment. Bruce, you have actually you ran the Human Services Segment before the Health Services Segment, so you’re pretty knowledgeable about both of these right?

Alright, we’re going to pick on Bruce to see if he can give us some insights about these. He’s going to cover the next several slides and then I’ll pick up the closing slides.

Bruce Caswell

Thank you Rich and good afternoon everyone. It’s great to see some familiar faces and as Rich mentioned, we have some new news to share today about our British Columbia contract, which is great. We’ve received an extension through 2020, to continue providing services to the province and I’ll tell you a little bit more about the services that we provide in British Columbia, because it actually pertains to the health work that you see on the left side of this panel.

Read the rest of this transcript for free on seekingalpha.com