Maximus, Inc. (NYSE:MMS) Q3 2024 Earnings Conference Call August 8, 2024 9:00 AM ET

Company Participants

Jessica Batt – Vice President, Investor Relations and ESG
David Mutryn – Chief Financial Officer
Bruce Caswell – President and Chief Executive Officer

Conference Call Participants

Charlie Strauzer – CJS Securities
Bert Subin – Stifel

Operator

Greetings, and welcome to the Maximus Fiscal 2024 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. 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 Jessica Batt, Vice President, Investor Relations and ESG. Thank you. You may begin.

Jessica Batt

Good morning, and thanks 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 as a result of risks we face 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 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 believe, it may be informative to investors engaging 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, Jessica, and good morning. Our exceptional third quarter results demonstrate our ability to capitalize on volume growth against the backdrop of strong demand in our programs across the Board. We are very pleased to raise guidance for the third consecutive quarter. I’ll walk you through our thinking for the last quarter of this year and then I’ll share some early color on next fiscal year.

Turning to quarterly results. Maximus reported revenue of $1.31 billion for the third quarter of fiscal year 2024, which represents 10.6% year-over-year growth, or 11.2% on an organic basis. All three segments posted organic growth with our largest U.S. Federal Services being the primary driver in the quarter. Adjusted operating income margin was 12.6% and adjusted EPS was $1.74 for the quarter, which compares to 6.9% and $0.78 respectively for the prior year period.