Maximus, Inc. (NYSE:MMS) Q4 2022 Earnings Call Transcript

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Similarly, we’re also seeing cross-selling opportunities. Here and there, in our federal segment, to incorporate business process services or BPS into complex solutions that might begin as a technology consulting services or TCS opportunities. So those teams are working well together, and we’re bringing the full capabilities of the company to bear for our customers. The net, net of all this, in my mind is that 18 months ago, we really wouldn’t have been eligible to bid on much of the type of work that we’re now seeing. And seeing what we’re now seeing, it gives me confidence that will generate the revenue synergies that we anticipated through the acquisitions that we accomplished. Hope that helps.

David Mutryn: Let me jump in quickly, if you don’t mind to clarify 50% of the total 30.7 billion pipeline is in U.S. federal services. Yes, thank you, Charlie, back to you.

Charlie Strauzer: And just kind of like a couple of last minute, last smaller philosophical questions, in terms of the midterm elections now being over and the results being out there. What are your thoughts, Bruce on potential impact of benefit from that?

Bruce Caswell: Well, it’s interesting, Charlie. I’ll say the first thing that I point out is we look at this in the context of well, does it mean anything to the PHE redeterminations, if PHE unwinding and the impact on redeterminations. And one of the things that I found quite interesting is, there’s of course a lot of speculation. Will the PHE remain in place post January. We know, of course, that the federal government didn’t provide 60 days notice of an ending but they’ve said it’ll be in place at least through April. On the one hand, there’s this kind of triple threat that folks are talking about with COVID and RSV, and seasonal influenza, which certainly creates arguments for keeping the PHE in place, at least through the winter months.

But I’m speaking to the kind of the outcome of elections and kind of where, what’s the sentiment of the legislative branch. We found it very interesting that the other day on Tuesday of last week, the Senate voted to end the public health emergency declaration $62.36. So certainly, bipartisan support, they’re much more bipartisan than when the measure was last voted upon for it, and it was $48.47 along party lines. So while there’s no indication that the measure is going to be brought up in the house, and the White House is promised a veto of it. I think gives you a sense of kind of the sentiment in at least in that part of the legislative branch. What it might mean, more broadly, at this point, we think it’s going to be business as usual, as it relates to the major IT modernization initiatives that are underway?

They will progress, as we’ve anticipated, they’ve generally enjoyed bipartisan support. And I think there is a recognition that there are antiquated and aging legacy systems out there that need to be brought up to speed. And it’s less controversial, quite frankly, to talk about modernizing IT environments, and is necessarily to talk about hiring more agents to handle enforcement. The other thought I would have is just that, of course, the major programs that we operated you well know our entitlement programs and mission critical programs for government that generally have done well, even in environments where there may be gridlock legislatively between Capitol Hill and the White House. So presently, we’re not forecasting any significant impacts from the Veterans.

James Francis: At this time, no further questions, let me turn it back over to the operator.

Operator: Thank you, ladies and gentlemen, this concludes today’s event. We thank you for your participation and interest in Maximus. You may disconnect your lines at this time and enjoy the rest of your day.

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