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MAXIMUS (NYSE: MMS), a leading provider of government services worldwide, today reported financial results for its first quarter ended December 31, 2013.
Highlights for the first quarter of fiscal 2014 include:
Revenue grew 42% to $406.6 million, driven principally by organic growth in the Health Services Segment.
Diluted earnings per share from continuing operations increased 55% to $0.48.
Cash and cash equivalents totaled $120.6 million at December 31, 2013 and DSOs improved to 67 days.
Signed contract awards totaled $347 million and the sales pipeline remained strong at $2.4 billion at December 31, 2013.
For the first quarter of fiscal 2014, revenue increased 42% (44% on a constant currency basis) to $406.6 million, compared to revenue of $286.3 million reported for the same period last year. The increase in revenue was driven by organic growth in the Health Services Segment from new work and expansion on existing contracts, much of which was tied to work under the Affordable Care Act (ACA). Organic revenue growth was 37% in the first quarter.
Fiscal 2014 first quarter income from continuing operations, net of taxes, totaled $33.8 million, or $0.48 per diluted share. This represents a 55% increase compared to $0.31 reported for the same period last year. The year-over-year increase to earnings was primarily attributed to growth in the Health Services Segment.
“Financial results in the quarter were better-than-expected, principally driven by increased activities in our health insurance exchange customer contact centers and higher-than-forecasted caseloads in our health appeals business. Our financial results are confirmation of the value we bring to our clients. We provide governments with meaningful solutions, including business process diagnostics and re-engineering, to specific program challenges. In this case, we helped clients manage the significant change associated with the ACA rollout and deal with technological challenges in order to facilitate consumer enrollment into health plans,” commented Richard A. Montoni, Chief Executive Officer of MAXIMUS.