Revenue during the quarter grew 9.13 percent to $607.56 million from $556.72 million in the previous year period. Gross margin for the quarter expanded 404 basis points over the previous year period to 23.84 percent. Total expenses were 87.86 percent of quarterly revenues, down from 92.31 percent for the same period last year. This has led to an improvement of 446 basis points in operating margin to 12.14 percent.

Operating income for the quarter was $73.78 million, compared with $42.79 million in the previous year period.

"We are pleased with the solid results in the first quarter of fiscal 2017 and the increased contributions and steady progress toward target operating margins from certain key contracts that were ramping up last fiscal year. The reduction in fiscal 2017 revenue guidance is principally due to a contract cancellation in the U.S. Federal Services Segment. However, the long-term, macro-economic drivers of rising caseloads and increasing demand for effective government programs remain unchanged. With $4.0 billion of opportunities in our reported pipeline, demand for our services remains strong and we are keenly focused on capturing new organic growth," commented MAXIMUS CEO Richard A. Montoni.

For financial year 2017, MAXIMUS INC projects revenue to be in the range of $2,425 million to $2,475 million. The company forecasts diluted earnings per share to be in the range of $2.90 to $3.10.

The company has spent $7.34 million cash to meet investing activities during the quarter as against cash outgo of $13.21 million in the last year period.

The company has spent $57.15 million cash to carry out financing activities during the quarter as against cash outgo of $11.28 million in the last year period.

Cash and cash equivalents stood at $69.77 million as on Dec. 31, 2016, up 36.91 percent or $18.81 million from $50.96 million on Dec. 31, 2015.

Working capital increases
MAXIMUS INC has recorded an increase in the working capital over the last year. It stood at $298.34 million as at Dec. 31, 2016, up 24.91 percent or $59.50 million from $238.84 million on Dec. 31, 2015. Current ratio was at 2.03 as on Dec. 31, 2016, up from 1.75 on Dec. 31, 2015.

Days sales outstanding went down to 65 days for the quarter compared with 68 days for the same period last year.

Debt comes down significantly 
MAXIMUS INC has recorded a decline in total debt over the last one year. It stood at $150.53 million as on Dec. 31, 2016, down 38.63 percent or $94.76 million from $245.30 million on Dec. 31, 2015. Total debt was 11.61 percent of total assets as on Dec. 31, 2016, compared with 19.23 percent on Dec. 31, 2015. Debt to equity ratio was at 0.20 as on Dec. 31, 2016, down from 0.40 as on Dec. 31, 2015. Interest coverage ratio improved to 86.90 for the quarter from 43.26 for the same period last year.