Maximus (MMS) has reported 43.19 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $50.74 million, or $0.77 a share in the quarter, compared with $35.44 million, or $0.53 a share for the same period last year. Revenue during the quarter grew 7.67 percent to $623.09 million from $578.68 million in the previous year period. Gross margin for the quarter expanded 289 basis points over the previous year period to 24.54 percent. Total expenses were 86.95 percent of quarterly revenues, down from 89.37 percent for the same period last year. This has led to an improvement of 242 basis points in operating margin to 13.05 percent.
Operating income for the quarter was $81.31 million, compared with $61.53 million in the previous year period.
Richard Montoni, Chief Executive Officer of MAXIMUS, commented, "We are pleased to deliver double-digit revenue and earnings growth for fiscal 2016, and we look for fiscal 2017 to be another year of growth, top and bottom line. With a robust pipeline of $4.3 billion, of which approximately 60% is new work, our business development teams are keenly focused on winning new business and cultivating new longer-term opportunities. With aging populations, rising caseloads and the need for governments to do more with less, we firmly believe that macro demand trends will remain in our favor for years to come."
Maximus expects revenue to be in the range of $2,475 million to $2,550 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $2.90 to $3.10.
Operating cash flow declines
Maximus has generated cash of $180.03 million from operating activities during the year, down 12.70 percent or $26.19 million, when compared with the last year. The company has spent $87.10 million cash to meet investing activities during the year as against cash outgo of $393.87 million in the last year.
The company has spent $96.84 million cash to carry out financing activities during the year as against cash inflow of $111.12 million in the last year period.
Cash and cash equivalents stood at $66.20 million as on Sep. 30, 2016, down 11.35 percent or $8.47 million from $74.67 million on Sep. 30, 2015.
Working capital increases
Maximus has recorded an increase in the working capital over the last year. It stood at $280.22 million as at Sep. 30, 2016, up 24.81 percent or $55.71 million from $224.52 million on Sep. 30, 2015. Current ratio was at 1.82 as on Sep. 30, 2016, up from 1.63 on Sep. 30, 2015.
Days sales outstanding went up to 37 days for the quarter compared with 35 days for the same period last year.
Debt comes down
Maximus has recorded a decline in total debt over the last one year. It stood at $165.62 million as on Sep. 30, 2016, down 21.50 percent or $45.36 million from $210.97 million on Sep. 30, 2015. Total debt was 12.28 percent of total assets as on Sep. 30, 2016, compared with 16.48 percent on Sep. 30, 2015. Debt to equity ratio was at 0.22 as on Sep. 30, 2016, down from 0.34 as on Sep. 30, 2015. Interest coverage ratio improved to 96.45 for the quarter from 86.78 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
