Maximus This!

TheRichGetRicher
PrivatizationVille

Just in case you've had any problems processing your MSP forms or getting Maximus on the phone to help you out, thought you might like to know this about one of GordCo Inc's favorite Privatization partners:

RESTON, Va.--(BUSINESS WIRE)--Nov. 21, 2005--MAXIMUS (NYSE:MMS), a leading provider of government services, today reported results for its fourth quarter and fiscal year ended September 30, 2005.

Highlights include:

-- Fourth quarter revenue increased 8.6% over last year to $167.3 million, and net income was $7.4 million, or $0.34 per diluted share, including the previously disclosed legal settlement expense of $5.5 million or $0.15 per diluted share. Excluding the fourth quarter legal expense, diluted earnings per share would have been $0.49,

-- Full-year revenue increased 7.2% over last year to $647.5 million, and net income was $36.1 million, or $1.67 per diluted share, including full year legal settlement expense of $7.0 million. Excluding the full year legal settlement expense, net income and diluted earnings per share would have been $40.3 million and $1.86, respectively,

-- Days sales outstanding remained consistent at 94 days,

-- Fiscal 2005 record signed contracts and ending backlog of $1.4 billion and $1.7 billion, at September 30, 2005, respectively.

You got that?

Spin emanating from their stove piped flack-hacks to the contrary, Maximus is doing just fine.

What's more, they are actually very happy to be taking our money because, despite being fined seven straight months for not meeting expectations, they are actually making out like bandits on their 'Health Services' revenue.

For the full year, Health Services revenue increased 21.2% to $251.6 million versus $207.5 million reported in fiscal 2004. Revenue growth was driven by several factors including the start of the British Columbia contract, a full-year's contribution from the California Healthy Families project, and new federal work which resulted from the Company's increased emphasis on this market segment. Health Services revenue in the fourth quarter was $65.3 million compared to $58.0 million in the same period last year. Health Services operating margin, which absorbed a $3.8 million loss on the British Columbia contract, was 11.6% and 11.4% for the full year and fourth quarter, respectively.

So, given that, can anyone explain what possible impetus Maximus has to improve services and meet expectations?

Looks like fines are nothing but a cost of doing business.

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This just in: Of course Maximus is focussed on that $3.8million not the $251.6 million and are thus announcing, according to CKNW (8:00pm Nov 23rd Newscast), that they are going to make service cuts (ie. start laying people off). So, not only did the people actually doing the work lose good paying jobs to line a multinational's pockets, they are now about to start losing those jobs entirely because the same multinational can't do it's job properly. See. Privatization works!

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