Maximus reported year-over-year revenue increases of more than 20 percent in its Health Services and Human Services segments for the third quarter of its fiscal year ended June 30, 2013.
The Reston-Va. contractor said its total quarterly revenue grew 26 percent to $334.3 million over the prior year period, helping drive earnings per share from continuing operations up 38 percent to 40 cents over that period.
“MAXIMUS continues to benefit from macro drivers and solid demand trends for our core health and human services, ” Richard Montoi, Maximus CEO, said in the earnings statement.
“Internationally, the acquisition of Health Management has provided MAXIMUS with a strengthened position for future opportunities in the United Kingdom health market, supporting our international growth objectives as we expand our service offerings and our geographic footprint.”
Maximus cited newly won work, the expansion of existing programs and “favorable” volumes in its health appeals business as drivers of its reported 28 percent increase in Health Services revenue over the prior-year period to $217.9 million.
The segment’s operating income grew 34 percent year-over-year to $34.4 million with a 15.8 percent operating margin.
Maximus said revenue growth in Federal appeals and transaction based-programs helped drive those figures up from $25.7 million and 15.1 percent, respectively, in the third quarter of its 2012 fiscal year.
The contractor said a $10.2 million charge in the same quarter of 2012 positively impacted revenue and profit in that period.
Maximus cited its “ongoing ramp-up” in the U.K. and growth in other international operations as the principal drivers of its 21 percent increase in Human Services revenue over the same period in 2012 to $116.4 million.
The company said its segment operating income increased 20 percent to $11 million.
