Maximus moves to a profit in fiscal 4th-quarter, plans sale of ERP unit to focus on health

Thursday, November 12, 2009

Maximus posts profit in fiscal 4Q, plans unit sale

RESTON, Va. — Maximus Inc. said Thursday it moved to a profit in its fiscal fourth quarter, as the consulting, systems and program management services company announced the sale of one of its units.

The company said its net income rose to $8.6 million, or 48 cents per share, for the three months ended Sept. 30 from a loss of $25 million, or $1.35 per share, during the same period a year earlier.

The results exclude the company’s Enterprise Resource Planning division, which the company is selling to strengthen its focus on health and human services. Maximus reported the unit as a discontinued operation.

Reston, Va.-based Maximus said its income from continuing operations rose to $14.4 million, or 80 cents per share, from a loss of $9.9 million, or 53 cents per share, a year earlier.

Revenue climbed 9.3 percent to $194.0 million from $177.5 million.

Analysts surveyed by Thomson Reuters, who generally exclude one-time items from their results, expected a profit of 79 cents per share on revenue of $200.5 million.

For the full fiscal year, Maximus said its profit jumped to $46.5 million, or $2.60 per share, from $6.7 million, or 35 cents per share. Annual revenue rose to $717.3 million from $693.7 million.

Looking ahead, Maximus said it expects fiscal 2010 adjusted earnings from continuing operations of $3.05 to $3.15 per share, compared with $2.91 per share in fiscal 2009. It projects revenue of $790 million to $810 million.

Analysts predict earnings of $3.09 per share on revenue of $801 million.

“Demand for our services remains strong as governments seek to manage costs while meeting the needs of constituents, particularly in light of growing and increasingly complex caseloads,” CEO Richard A. Montoni said in a statement.

“We expect stable demand in our domestic markets to be complemented by accelerated growth internationally; recent wins in Australia and the United Kingdom will contribute to top-line performance in 2010 and beyond,” he said.

Shares of Maximus slid 66 cents to $46.25 in morning trading.

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