MAXIMUS, Inc. (NYSE:MMS) Q3 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:00 am ET


MAXIMUS, Inc. (NYSE:MMS) Q3 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Q3 FY '20 MAXIMUS Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker for this morning, Ms. Lisa Miles, Senior Vice President of Investor Relations. Thank you. You may go ahead, madam.

Lisa Miles

Good morning, and thanks for joining us. With me today is Bruce Caswell, President and CEO; and Rick Nadeau, Chief Financial Officer. 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 Exhibit 99.1 of our SEC filings. We encourage you to review the information contained in our earnings release today and our most recent forms 10-Q and 10-K filed with the SEC. 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 may contain non-GAAP financial information. Management uses this information in its internal analyses of results and believes this information may be informative to investors, engaging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of the non-GAAP measures presented in this document, please see the Company's most recent quarterly earnings press release.

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

Rick Nadeau

Thank you, Lisa. We continue to operate in a world affected by the COVID-19 pandemic. We are successfully working under a hybrid operational model, which maintains delivery of our services through a mix of safe, on-site working arrangements and work from home arrangements. The model enables continuity for our government customers and uninterrupted assistance for citizens at a time when their need for health care and safety net programs is crucial.

Not surprisingly, we have been subjected to both headwinds and tailwinds stemming from the pandemic. Our outside the US segment continues to experience the greatest headwinds resulting from a temporary halt on face-to-face assessments and a general pandemic-related slowdown in employment services. In our US operations, we are experiencing headwinds on various performance-based contracts as volumes and revenues are lower. This is resulting from COVID-19 response efforts by our government clients who have relaxed certain program requirements in order to ensure that the most vulnerable citizens continue to access the vital services they need. We also have a multitude of tailwinds that have provided a favorable uptick, most notably new COVID-19 response work and the extension of the Census contract in response to COVID-19.

We have made meaningful progress in securing more appropriate contract terms on some employment services contracts to support the goals of our customers as economies gradually reopen and program operations resume. The net result of these puts and takes is a positive update to our revenue and