Maximus Inc. (NYSE:MMS) Q2 2022 Results Conference Call May 5, 2022 9:00 AM ET

Company Participants

Madison West - VP, IR and ESG for MAXIMUS

Bruce Caswell - President & CEO

David Mutryn - CFO

James Francis - VP, IR

Conference Call Participants

Charles Strauzer - CJS Securities

Operator

Greetings and welcome to the MAXIMUS Fiscal 2022 Second Quarter 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, Madison West, Vice President of Investor Relations and ESG for MAXIMUS. Thank you. Ms. West, you may begin.

Madison West

Good morning and thank you for joining us. With me today is Bruce Caswell, President and CEO; David Mutryn, CFO; and James Francis, Vice President of Investor Relations.

I'd like to remind everyone that a number of statements being made today will be forward-looking in nature. Please remember that such statements are only predictions. Actual events and results may differ materially, including those discussed in Item 1A of our most recent Forms 10-Q and 10-K. We encourage you to review the information contained in our most recent filings with the SEC and our earnings press release.

The Company does not assume any obligation to revise or update these forward-looking statements to reflect subsequent events or circumstances except as required by law. Today's presentation also contains non-GAAP financial information. Management uses this information internally to analyze results and believes it may be informative to investors in gauging the quality of our financial performance, identifying trends, and providing meaningful period-to-period comparisons. For a reconciliation of the non-GAAP measures presented, please see the Company's most recent Forms 10-Q and 10-K.

And with that, I'll hand the call over to David.

David Mutryn

Thanks, Madison. This morning, MAXIMUS reported revenue for the second quarter of fiscal year 2022, which increased 22.7% year-over-year to $1.18 billion. Growth on the top line was driven primarily by the acquisitions in the U.S. Federal Services segment and the UK Restart program in the Outside the U.S. segment. Operating income margin for the quarter was 6.4% or 8.3% excluding the expense for intangibles amortization. Diluted earnings per share were $0.80 or $1.07 excluding the amortization expense.

Second quarter earnings reflected our expectation for lower earnings caused primarily by delays in our core programs returning to pre-pandemic levels as the COVID response work continues its predicted decline. We also experienced some variability between segments with U.S. Federal below expectations, while Outside the U.S. exceeded our expectations for the quarter. Organic revenue growth was relatively flat in the quarter but adjusting for the COVID response work, normalized organic growth would be approximately 20% year-over-year.