MAXIMUS Establishes Preliminary Fiscal 2014 Guidance

  MAXIMUS Establishes Preliminary Fiscal 2014 Guidance

Business Wire

RESTON, Va. -- July 1, 2013

MAXIMUS (NYSE:MMS), a leading provider of government services issued
preliminary fiscal year 2014 guidance today.

With several new awards to operate the customer contact operations of health
insurance exchanges at the state and federal level, MAXIMUS has achieved its
goal of winning its fair share of the health insurance exchange market. The
Company estimates that it has added more than $125 million in new annual
contract value related to the health insurance marketplaces under the
Affordable Care Act (ACA).

As a result, MAXIMUS is establishing preliminary fiscal year 2014 revenue and
earnings guidance, which includes the contributions from the acquisition of
Health Management. Based on the midpoint of $1.285 billion of the Company’s
revenue guidance for fiscal year 2013, MAXIMUS expects that revenue for fiscal
year 2014 will increase between 21% and 28% and will range between $1.555
billion and $1.650 billion. Based upon the midpoint of $1.54 of the Company’s
adjusted diluted earnings per share guidance for fiscal year 2013, MAXIMUS
expects that its adjusted diluted earnings per share for fiscal year 2014 will
increase between 14% and 20% and will range between $1.75 and $1.85. Earnings
estimates reflect the split of the Company’s common stock, which occurred at
the close of the market on June 28, 2013.

The Company’s fiscal year 2014 guidance reflects a number of dynamics,
including:

  *A margin mix shift due to an increase in new work performed for the United
    States Federal Government that is cost reimbursable and lower-margin, with
    typical operating margins between 4% and 6%
  *Revenue that occurred in fiscal 2013 that is not expected to repeat in
    fiscal 2014, from certain contracts, primarily in the Health Segment
  *A tax rate of 37% with the expectation that there will be an increased
    contribution of operating income from operations outside the United States

Richard Montoni, Chief Executive Officer of MAXIMUS, commented, “MAXIMUS has
successfully established a leading position in the health insurance exchange
market and we are pleased with the many new ACA-related contracts that we have
won thus far. Our long-term growth is not dependent on a single award, but
rather upon macro trends and long-term growth drivers. We believe that there
will be additional ACA-related opportunities over the next several years as
states consider transitioning to their own state-based exchanges and expanding
companion programs.”

Montoni continued, “Further, we believe that demand for our services will
continue to present significant short- and long-term business opportunities
across both segments. We see many new emerging opportunities for our core
health and human services capabilities in all of our geographies, but most
notably outside the United States, where we are well-positioned to receive new
work. We are also equally excited to further enhance our offerings in existing
markets, such as the United Kingdom where we recently acquired Health
Management, and set the platform for new growth engines for fiscal 2014 and
beyond.”

About MAXIMUS

MAXIMUS is a leading operator of government health and human services programs
in the United States, United Kingdom, Canada, Australia and Saudi Arabia. The
Company delivers business process services to improve the cost effectiveness,
efficiency and quality of government-sponsored benefit programs, such as
Medicaid, Medicare, Children's Health Insurance Program (CHIP), Health
Insurance BC (British Columbia), as well as welfare-to-work and child support
programs around the globe. The Company's primary customer base includes
federal, provincial, state, county and municipal governments. Operating under
its founding mission of Helping Government Serve the People^®, MAXIMUS has
approximately 8,800 employees worldwide. For more information, visit
www.maximus.com.

Contact:

MAXIMUS
Lisa Miles, 703-251-8637
lisamiles@maximus.com
 
Press spacebar to pause and continue. Press esc to stop.