Company Quick10K Filing
Maximus
Price78.47 EPS4
Shares65 P/E21
MCap5,086 P/FCF14
Net Debt-116 EBIT338
TEV4,970 TEV/EBIT15
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-07
10-Q 2019-12-31 Filed 2020-02-06
10-K 2019-09-30 Filed 2019-11-26
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-09
10-Q 2018-12-31 Filed 2019-02-07
10-K 2018-09-30 Filed 2018-11-20
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-Q 2017-12-31 Filed 2018-02-08
10-K 2017-09-30 Filed 2017-11-20
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-04
10-Q 2016-12-31 Filed 2017-02-09
10-K 2016-09-30 Filed 2016-11-21
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-06
10-Q 2015-12-31 Filed 2016-02-05
10-K 2015-09-30 Filed 2015-11-16
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-Q 2014-12-31 Filed 2015-02-06
10-K 2014-09-30 Filed 2014-11-17
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-09
10-Q 2013-12-31 Filed 2014-02-07
10-K 2013-09-30 Filed 2013-11-19
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-10
10-Q 2012-12-31 Filed 2013-02-08
10-K 2012-09-30 Filed 2012-11-16
10-Q 2012-06-30 Filed 2012-08-08
10-Q 2012-03-31 Filed 2012-05-04
10-Q 2011-12-31 Filed 2012-02-03
10-K 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-10
10-Q 2010-12-31 Filed 2011-02-08
10-K 2010-09-30 Filed 2010-11-19
10-Q 2010-06-30 Filed 2010-08-05
10-Q 2010-03-31 Filed 2010-05-06
10-Q 2009-12-31 Filed 2010-02-04
8-K 2020-05-12 Earnings, Exhibits
8-K 2020-04-03 Officers, Exhibits
8-K 2020-03-23 Officers, Amend Bylaw, Shareholder Vote
8-K 2020-02-10 Earnings, Exhibits
8-K 2019-11-22 Earnings, Exhibits
8-K 2019-08-12 Earnings, Exhibits
8-K 2019-08-02 Officers
8-K 2019-05-13 Earnings, Exhibits
8-K 2019-03-29 Officers
8-K 2019-03-22 Shareholder Vote
8-K 2019-02-11 Earnings, Exhibits
8-K 2019-01-16 Exhibits
8-K 2019-01-10 Officers
8-K 2018-12-14 Other Events, Exhibits
8-K 2018-11-26 Earnings, Exhibits
8-K 2018-10-09 Enter Agreement, Regulation FD, Exhibits
8-K 2018-08-13 Earnings, Exhibits
8-K 2018-05-14 Earnings, Exhibits
8-K 2018-03-15 Shareholder Vote
8-K 2018-02-12 Earnings, Exhibits
8-K 2018-01-16 Enter Agreement, Officers, Exhibits

MMS 10Q Quarterly Report

Part I. Financial Information
Item 1. Consolidated Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits.
EX-3.1 exhibit31.htm
EX-31.1 a311-mmsx2020x03x31x10.htm
EX-31.2 a312-mmsx2020x03x31x10.htm
EX-32.1 a321-mmsx2020x03x31x10.htm
EX-32.2 a322-mmsx2020x03x31x10.htm

Maximus Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
1.81.41.10.70.40.02012201420172020
Assets, Equity
0.80.60.50.30.20.02012201420172020
Rev, G Profit, Net Income
0.20.1-0.1-0.2-0.4-0.52012201420172020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2020
OR
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from   to
 
Commission File Number: 1-12997
 
MAXIMUS, INC.
(Exact name of registrant as specified in its charter)
 
Virginia 54-1000588
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
   
1891 Metro Center Drive, Reston, Virginia
 20190
(Address of principal executive offices) (Zip Code)
 
(703) 251-8500
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueMMSNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  No 
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  No 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer 
 
Accelerated filer 
   
Non-accelerated filer 
 
Smaller reporting company 
  
Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  No 
 
As of May 4, 2020, there were 61,312,619 shares of the registrant’s common stock (no par value) outstanding.




MAXIMUS, Inc.
Quarterly Report on Form 10-Q
For the Quarter Ended March 31, 2020
INDEX
PART I. FINANCIAL INFORMATION 
Item 1.
  
 
  
 
  
  
 
  
 
  
 
  
Item 2.
  
Item 3.
  
Item 4.
  
PART II. OTHER INFORMATION 
  
Item 1.
Item 1A.
Item 2.
Item 6.
  




Throughout this Quarterly Report on Form 10-Q, the terms “Company,” “we,” “us,” “our” and “MAXIMUS” refer to MAXIMUS, Inc. and its subsidiaries, unless the context requires otherwise.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Included in this Quarterly Report on Form 10-Q are forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “opportunity,” “could,” “potential,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods.
Forward-looking statements that are not historical facts, including statements about our confidence, strategies and initiatives and our expectations about revenues, results of operations, profitability, liquidity, market demand or the impact of the COVID-19 pandemic are forward-looking statements that involve risks and uncertainties. These risks could cause our actual results to differ materially from those indicated by such forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
the continued spread of the COVID-19 virus, including the speed, depth, geographic reach and duration of the spread, and the actions to be taken by us, our customers and the governments of jurisdictions in which we operate in response to COVID-19;
the demand for our services and products, including based on any downturns in the economy;
a failure to meet performance requirements in our contracts, which might lead to contract termination and actual or liquidated damages;
the effects of future legislative or government budgetary and spending changes;
our failure to successfully bid for and accurately price contracts to generate our desired profit;
our ability to maintain technology systems and otherwise protect confidential or protected information;
our ability to attract and retain executive officers, senior managers and other qualified personnel to execute our business;
our ability to manage capital investments and startup costs incurred before receiving related contract payments;
our ability to manage our growth, including acquired businesses;
the ability of government customers to terminate contracts on short notice, with or without cause;
our ability to maintain relationships with key government entities from whom a substantial portion of our revenue is derived;
the outcome of reviews or audits, which might result in financial penalties and impair our ability to respond to invitations for new work;
a failure to comply with laws governing our business, which might result in the Company being subject to fines, penalties, suspension, debarment and other sanctions;
the costs and outcome of litigation;
difficulties in integrating or achieving projected revenues, earnings and other benefits associated with acquired businesses;
the effects of changes in laws and regulations governing our business, including tax laws, and applicable interpretations and guidance thereunder, or changes in accounting policies, rules, methodologies and practices, and our ability to estimate the impact of such changes;
matters related to business we have disposed of or divested; and
other factors set forth in Item 1A of this Quarterly Report on Form 10-Q and in Exhibit 99.1, under the caption "Special Considerations and Risk Factors," in our Annual Report on Form 10-K for the year ended September 30, 2019, which was filed with the Securities and Exchange Commission on November 26, 2019.
Any forward-looking statement made by us in this report is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.



PART I.  FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
 Three Months Ended March 31,Six Months Ended March 31,
 2020201920202019
Revenue$818,135  $736,520  $1,636,364  $1,401,139  
Cost of revenue665,037  567,098  1,307,816  1,072,452  
Gross profit153,098  169,422  328,548  328,687  
Selling, general and administrative expenses106,853  78,102  194,080  157,773  
Amortization of intangible assets8,934  9,519  18,022  14,977  
Operating income37,311  81,801  116,446  155,937  
Interest expense465  1,569  949  2,194  
Other income, net573  447  1,292  2,492  
Income before income taxes37,419  80,679  116,789  156,235  
Provision for income taxes9,769  18,913  30,405  38,746  
Net income27,650  61,766  86,384  117,489  
Loss attributable to noncontrolling interests  (158)   (348) 
Net income attributable to MAXIMUS$27,650  $61,924  $86,384  $117,837  
Basic earnings per share$0.43  $0.96  $1.34  $1.82  
Diluted earnings per share$0.43  $0.96  $1.34  $1.82  
Dividends paid per share$0.28  $0.25  $0.56  $0.50  
Weighted average shares outstanding:  
Basic63,934  64,369  64,264  64,600  
Diluted64,125  64,643  64,446  64,817  

See notes to unaudited consolidated financial statements.
1


MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
(Unaudited)
 Three Months Ended March 31,Six Months Ended March 31,
 2020201920202019
Net income$27,650  $61,766  $86,384  $117,489  
Foreign currency translation adjustments(11,629) 3,537  (4,736) (2,183) 
Comprehensive income16,021  65,303  81,648  115,306  
Comprehensive loss attributable to noncontrolling interests  (158)   (348) 
Comprehensive income attributable to MAXIMUS$16,021  $65,461  $81,648  $115,654  

See notes to unaudited consolidated financial statements.
2


MAXIMUS, Inc.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
 
 March 31,
2020
September 30,
2019
 (unaudited) 
ASSETS  
Current assets:  
Cash and cash equivalents$126,257  $105,565  
Accounts receivable — billed and billable, net of reserves of $12,054 and $5,382
529,928  476,690  
Accounts receivable — unbilled120,159  123,884  
Income taxes receivable33,852  20,805  
Prepaid expenses and other current assets53,257  62,481  
Total current assets863,453  789,425  
Property and equipment, net80,843  99,589  
Capitalized software, net33,746  32,369  
Operating lease right-of-use assets179,701  —  
Goodwill585,772  584,469  
Intangible assets, net161,091  179,250  
Deferred contract costs, net19,278  18,921  
Deferred compensation plan assets28,016  32,908  
Deferred income taxes186  186  
Other assets8,320  8,615  
Total assets$1,960,406  $1,745,732  
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable and accrued liabilities$191,505  $177,786  
Accrued compensation and benefits98,882  106,789  
Deferred revenue46,206  43,344  
Income taxes payable758  13,952  
Current portion of long-term debt and other borrowings9,352  9,658  
Operating lease liabilities78,656  —  
Other liabilities12,973  12,709  
Total current liabilities438,332  364,238  
Deferred revenue, less current portion34,142  32,341  
Deferred income taxes49,421  46,560  
Long-term debt, less current portion150,155  231  
Deferred compensation plan liabilities, less current portion30,431  34,079  
Operating lease liabilities, less current portion109,339  —  
Other liabilities10,118  20,082  
Total liabilities821,938  497,531  
Shareholders’ equity:  
Common stock, no par value; 100,000 shares authorized; 61,313 and 63,979 shares issued and outstanding at March 31, 2020, and September 30, 2019, at stated amount, respectively
511,023  498,433  
Accumulated other comprehensive loss(50,116) (45,380) 
Retained earnings677,561  794,739  
Total MAXIMUS shareholders' equity1,138,468  1,247,792  
Noncontrolling interests  409  
Total equity1,138,468  1,248,201  
Total liabilities and equity$1,960,406  $1,745,732  
 
See notes to unaudited consolidated financial statements.
3


MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
 Six Months Ended March 31,
 20202019
Cash flows from operations:  
Net income$86,384  $117,489  
Adjustments to reconcile net income to cash flows from operations:  
Depreciation and amortization of property and equipment and
capitalized software
31,218  22,407  
Amortization of intangible assets18,022  14,977  
Deferred income taxes3,038  17,764  
Stock compensation expense11,800  9,904  
Change in assets and liabilities net of effects of business combinations  
Accounts receivable — billed and billable(52,870) (72,720) 
Accounts receivable — unbilled2,289  9,189  
Prepaid expenses and other current assets4,262  (5,118) 
Deferred contract costs(497) (5,415) 
Accounts payable and accrued liabilities22,322  42,080  
Accrued compensation and benefits3,839  (7,443) 
Deferred revenue5,300  4,435  
Income taxes(27,706) (16,496) 
Operating lease right-of-use assets and liabilities166  —  
Other assets and liabilities1,705  (3,842) 
Cash flows from operations109,272  127,211  
Cash flows from investing activities:  
Purchases of property and equipment and capitalized software costs(19,122) (18,541) 
Acquisitions of businesses, net of cash acquired(2,551) (421,809) 
Maturities of short-term investments  19,996  
Other98  284  
Cash used in investing activities(21,575) (420,070) 
Cash flows from financing activities:  
Cash dividends paid to MAXIMUS shareholders(35,813) (31,983) 
Purchases of MAXIMUS common stock(166,959) (46,068) 
Tax withholding related to RSU vesting(10,614) (8,915) 
Borrowings under credit facility and other loan agreements341,715  320,048  
Repayment of credit facility and other long-term debt(191,256) (241,539) 
Other(652) (133) 
Cash used in financing activities(63,579) (8,590) 
Effect of exchange rate changes on cash and cash equivalents(1,868) (632) 
Net increase/(decrease) in cash, cash equivalents and restricted cash22,250  (302,081) 
Cash, cash equivalents and restricted cash, beginning of period116,492  356,559  
Cash, cash equivalents and restricted cash, end of period$138,742  $54,478  

See notes to unaudited consolidated financial statements.
4


MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Amounts in thousands)
(Unaudited)
 
 Common
Shares
Outstanding
Common
Stock
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Noncontrolling
Interest
Total
Balance at December 31, 201963,953  $504,184  $(38,487) $833,308  $—  $1,299,005  
Net income—  —  —  27,650  —  27,650  
Foreign currency translation—  —  (11,629) —  —  (11,629) 
Cash dividends—  —  —  (17,900) —  (17,900) 
Dividends on RSUs—  436  —  (436) —  —  
Purchases of MAXIMUS common stock(2,741) —  —  (165,061) —  (165,061) 
Stock compensation expense—  6,403  —  —  —  6,403  
RSUs vested101  —  —  —  —  —  
Balance at March 31, 202061,313  $511,023  $(50,116) $677,561  $—  $1,138,468  

 
Common
Shares
Outstanding
Common
Stock
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Noncontrolling interestTotal
Balance at September 30, 201963,979  $498,433  $(45,380) $794,739  $409  $1,248,201  
Net income—  —  —  86,384  —  86,384  
Foreign currency translation—  —  (4,736) —  —  (4,736) 
Cash dividends—  —  —  (35,813) (409) (36,222) 
Dividends on RSUs—  790  —  (790) —  —  
Purchases of MAXIMUS common stock(2,767) —  —  (166,959) —  (166,959) 
Stock compensation expense—  11,800  —  —  —  11,800  
RSUs vested101  —  —  —  —  
Balance at March 31, 202061,313  $511,023  $(50,116) $677,561  $  $1,138,468  









5




MAXIMUS, Inc.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Amounts in thousands)
(Unaudited)
Common
Shares
Outstanding
Common
Stock
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Noncontrolling
Interest
Total
Balance at December 31, 201863,717  492,938  (42,673) 664,332  2,782  1,117,379  
Net income—  —  —  61,924  (158) 61,766  
Foreign currency translation—  —  3,537  —  —  3,537  
Cash dividends—  —  —  (15,950) —  (15,950) 
Dividends on RSUs—  398  —  (398) —  —  
Purchases of MAXIMUS common stock(62) —  —  (4,084) —  (4,084) 
Stock compensation expense—  4,933  —  —  —  4,933  
RSUs vested156  —  —  —  —  —  
Balance at March 31, 201963,811  498,269  (39,136) 705,824  2,624  1,167,581  


Common
Shares
Outstanding
Common
Stock
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Noncontrolling
Interest
Total
Balance at September 30, 201864,371  487,539  (36,953) 633,281  2,552  1,086,419  
Cumulative impact from adopting ASC Topic 606 on October 1, 2018—  —  —  32,929  553  33,482  
Net income—  —  —  117,837  (348) 117,489  
Foreign currency translation—  —  (2,183) —  —  (2,183) 
Cash dividends—  —  —  (31,983) (133) (32,116) 
Dividends on RSUs—  826  —  (826) —  —  
Purchases of MAXIMUS common stock(716) —  —  (45,414) —  (45,414) 
Stock compensation expense—  9,904  —  —  —  9,904  
RSUs vested156  —  —  —  —  —  
Balance at March 31, 2019$63,811  $498,269  $(39,136) $705,824  $2,624  $1,167,581  








See notes to unaudited consolidated financial statements.
6



MAXIMUS, Inc.
Notes to Unaudited Consolidated Financial Statements
For the Three and Six Months Ended March 31, 2020 and 2019

1. Organization and Basis of Presentation