MAXIMUS (NYSE: MMS), a leading provider of government services worldwide, today reported financial results for the three and six months ended March 31, 2014. All amounts reflect the stock split on June 28, 2013.
Highlights for the second quarter of fiscal 2014 include:
- Second quarter revenue increased to $439.0 million compared to the same period last year, driven principally by organic growth in the Health Services Segment.
- Second quarter diluted earnings per share from continuing operations increased to $0.59 compared to the same period in 2013.
- Cash and cash equivalents totaled $131.3 million at March 31, 2014.
- Year-to-date signed contract awards totaled $969 million and the sales pipeline remained strong at $2.2 billion at March 31, 2014.
- In addition to the strong delivery in the second quarter, the Company received notification of additional supplemental work in the Health Services Segment, resulting in an increase to fiscal 2014 guidance estimates.
For the second quarter of fiscal 2014, revenue increased 35% to $439.0 million, compared to revenue reported for the same period last year of $326.4 million, which benefitted from $16.0 million of non-recurring revenue from a terminated contract. Revenue grew 37% on a constant currency basis. Excluding the $16.0 million benefit in the prior year, second quarter revenue grew 41% over the same period last year. The year-over-year increase in revenue was driven principally by organic growth in the Health Services Segment from new work and expansion on existing contracts, much of which was related to the Affordable Care Act (ACA). Nearly all growth in the quarter was organic.
For the second quarter of fiscal 2014, income from continuing operations, net of taxes, totaled $41.2 million, or $0.59 per diluted share and included $0.01 of tax benefit offset by $0.01 of legal and settlement expense. As a result, adjusted diluted earnings per share also totaled $0.59. This compares to income from continuing operations of $31.7 million, or $0.45 per diluted share, for the same period last year. The prior-year period included a benefit of $10.9 million in pre-tax income ($6.5 million, net of taxes, or $0.09 per diluted share) related to the contract termination. Excluding this benefit, adjusted diluted earnings per share grew 64% to $0.59 compared to $0.36 in the prior year. As expected, the year-over-year increase in earnings was primarily attributed to accretive growth in the Health Services Segment.