Maximus (MMS) has reported a 7.65 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $52.52 million, or $0.80 a share in the quarter, compared with $48.78 million, or $0.74 a share for the same period last year. Revenue during the quarter went up marginally by 2.57 percent to $622.05 million from $606.45 million in the previous year period. Gross margin for the quarter expanded 14 basis points over the previous year period to 24.49 percent. Total expenses were 87.09 percent of quarterly revenues, down from 87.15 percent for the same period last year. This has led to an improvement of 7 basis points in operating margin to 12.91 percent.
Operating income for the quarter was $80.34 million, compared with $77.90 million in the previous year period.
"We are pleased to be raising the lower end of our earnings guidance for fiscal year 2017 as a result of good performance and some expected tax benefits," commented MAXIMUS chief executive officer Richard A. Montoni. "In addition, the extension of our contract with New York through 2020 is confirmation of our pledge to continue providing high-quality services to the state. During the quarter, we closed out contract year two of the U.K. Health Assessment Advisory Service. We successfully completed more than a million assessments in our second contract year, and we remain on track to achieve our financial and operational objectives for this program."
For financial year 2017, Maximus expects revenue to be in the range of $2,425 million to $2,475 million. The company projects diluted earnings per share to be in the range of $3 to $3.10.
Operating cash flow improves significantly
Maximus has generated cash of $136.85 million from operating activities during the first half, up 525.91 percent or $114.98 million, when compared with the last year period. The company has spent $12.37 million cash to meet investing activities during the first six months as against cash outgo of $61.44 million in the last year period.
The company has spent $94.94 million cash to carry out financing activities during the first six months as against cash inflow of $26.75 million in the last year period.
Cash and cash equivalents stood at $94.86 million as on Mar. 31, 2017, up 56.07 percent or $34.08 million from $60.78 million on Mar. 31, 2016.
Working capital increases
Maximus has recorded an increase in the working capital over the last year. It stood at $319.59 million as at Mar. 31, 2017, up 9.11 percent or $26.68 million from $292.91 million on Mar. 31, 2016. Current ratio was at 2.07 as on Mar. 31, 2017, up from 1.95 on Mar. 31, 2016.
Days sales outstanding went down to 65 days for the quarter compared with 69 days for the same period last year.
Debt comes down significantly
Maximus has recorded a decline in total debt over the last one year. It stood at $115.78 million as on Mar. 31, 2017, down 59.57 percent or $170.57 million from $286.35 million on Mar. 31, 2016. Total debt was 8.79 percent of total assets as on Mar. 31, 2017, compared with 21.32 percent on Mar. 31, 2016. Debt to equity ratio was at 0.14 as on Mar. 31, 2017, down from 0.43 as on Mar. 31, 2016. Interest coverage ratio improved to 107.98 for the quarter from 61.19 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
