Home / Financial Report / Maximus Starts FY2013 With 19% 1Q Revenue Jump; Richard Montoni Comments

Maximus Starts FY2013 With 19% 1Q Revenue Jump; Richard Montoni Comments

Richard Montoni
Richard Montoni

Maximus (NYSE: MMS) has announced financial results for the first quarter of its 2013 fiscal year, ended Dec. 31,  2012.

Total revenue for the quarter increased 19 percent to $286.3 million over the $239.6 million in thee prior year period.

Growth on existing contracts, new work and the company’s April 2012 acquisition of PSI helped drive the increase, Maximus said.

Revenue in the health services segment grew 11 percent to $176 million over the $158 million for the prior period because of expansion in existing contracts and increased volumes in the Medicare appeals business line, the company said.

“We experienced strong volumes from our federal Medicare appeals business and we also made steady progress in winning new work in the emerging health insurance exchange market, ” said Richard Montoni, president and CEO.

“The company is starting to see revenue materialize from health insurance exchange support operations sooner than expected, ” he added.

The human services segment saw a 35-percent increase in revenue for the quarter, reporting $110.3 million over the $81.6 million in the prior year period.

New work in Canada and Saudi Arabia helped drive the increase as well as payments in a domestic welfare-to-work program that the company does not expect to have higher payments for going forward.

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