Richard Montoni: Health Services Work Drives ‘Better Than Expected’ 1Q for MAXIMUS

Richard Montoni
Richard Montoni

Reston, Va.-based government services contractor MAXIMUS (NYSE: MMS) has announced financial results for the first quarter of its 2014 fiscal year, ended Dec. 31, 2013.

The company reported 42-percent higher revenue from the prior year period, or 44 percent on a constant currency basis, going from $286.3 million to $406.6 million.

MAXIMUS also raised its fiscal 2014 projections to between $1.6 and $1.68 billion from the former range of between $1.55 billion and $1.65 billion.

“Financial results in the quarter were better-than-expected, principally driven by increased activities in our health insurance exchange customer contact centers and higher-than-forecasted caseloads in our health appeals business, ” said Richard Montoni, MAXIMUS CEO.

“We helped clients manage the significant change associated with the ACA (Affordable Care Act) rollout and deal with technological challenges in order to facilitate consumer enrollment into health plans.”

Revenue in the health services segment jumped 70 percent from the prior year period to $299.2 million due to new work for ACA rollout efforts and its July 2013 acquisition of U.K.-based firm Health Management, the company said.

The company also reported $347 million in year-to-date signed contract awards as of Dec. 31, 2013.

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