(Exact name of registrant as specified in its charter) | ||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) | |||||||
( | ||||||||
(Registrant's telephone number, including the area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Accelerated filer ☐ | ||||||||||||||
Non-accelerated filer ☐ | Smaller reporting company | Emerging growth company |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general, and administrative expenses | |||||||||||||||||||||||
Amortization of intangible assets | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other expense/(income), net | ( | ||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Dividends declared per share | $ | $ | $ | $ |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income/(loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||
Net (losses)/gains on cash flow hedge, net of tax effect of $ | ( | ||||||||||||||||||||||
Other comprehensive income/(loss) | ( | ||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
June 30, 2023 | September 30, 2022 | ||||||||||
(unaudited) | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Income taxes receivable | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Capitalized software, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred contract costs, net | |||||||||||
Deferred compensation plan assets | |||||||||||
Deferred income taxes | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Shareholders' Equity: | |||||||||||
Liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Accrued compensation and benefits | |||||||||||
Deferred revenue, current portion | |||||||||||
Income taxes payable | |||||||||||
Long-term debt, current portion | |||||||||||
Operating lease liabilities, current portion | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Deferred revenue, non-current portion | |||||||||||
Deferred income taxes | |||||||||||
Long-term debt, non-current portion | |||||||||||
Deferred compensation plan liabilities, non-current portion | |||||||||||
Operating lease liabilities, non-current portion | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 11) | |||||||||||
Shareholders' equity: | |||||||||||
Common stock, no par value; | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total shareholders' equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
For the Nine Months Ended | |||||||||||
June 30, 2023 | June 30, 2022 | ||||||||||
(in thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash flows from operations: | |||||||||||
Depreciation and amortization of property, equipment, and capitalized software | |||||||||||
Amortization of intangible assets | |||||||||||
Amortization of debt issuance costs and debt discount | |||||||||||
Deferred income taxes | ( | ||||||||||
Stock compensation expense | |||||||||||
Loss on sale of businesses | |||||||||||
Change in assets and liabilities, net of effects of business combinations and disposals: | |||||||||||
Accounts receivable | ( | ||||||||||
Prepaid expenses and other current assets | |||||||||||
Deferred contract costs | ( | ||||||||||
Accounts payable and accrued liabilities | ( | ||||||||||
Accrued compensation and benefits | ( | ||||||||||
Deferred revenue | ( | ||||||||||
Income taxes | ( | ( | |||||||||
Operating lease right-of-use assets and liabilities | ( | ( | |||||||||
Other assets and liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment and capitalized software | ( | ( | |||||||||
Acquisitions of businesses, net of cash acquired | ( | ||||||||||
Proceeds from sale of businesses | |||||||||||
Proceeds from sale of land and building | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Cash dividends paid to Maximus shareholders | ( | ( | |||||||||
Purchases of Maximus common stock | ( | ||||||||||
Tax withholding related to RSU vesting | ( | ( | |||||||||
Payments for contingent consideration | ( | ||||||||||
Proceeds from borrowings | |||||||||||
Principal payments for debt | ( | ( | |||||||||
Restricted cash movements | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | ( | ||||||||||
Net change in cash, cash equivalents, and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total Equity | ||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation | — | — | — | ||||||||||||||||||||||||||
Cash flow hedge, net of tax | — | — | ( | — | ( | ||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
Dividends on RSUs | — | — | ( | ||||||||||||||||||||||||||
Stock compensation expense | — | — | — | ||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation | — | — | — | ||||||||||||||||||||||||||
Cash flow hedge, net of tax | — | — | ( | — | ( | ||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
Dividends on RSUs | — | — | ( | ||||||||||||||||||||||||||
Stock compensation expense | — | — | — | ||||||||||||||||||||||||||
RSUs vested | — | — | — | — | |||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation | — | — | — | ||||||||||||||||||||||||||
Cash flow hedge, net of tax | — | — | — | ||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
Dividends on RSUs | — | — | ( | ||||||||||||||||||||||||||
Stock compensation expense | — | — | — | ||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | ( | $ | $ |
Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total Equity | ||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation | — | — | — | ||||||||||||||||||||||||||
Cash flow hedge, net of tax | — | — | — | ||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
Dividends on RSUs | — | — | ( | ||||||||||||||||||||||||||
Purchases of Maximus common stock | ( | — | — | ( | ( | ||||||||||||||||||||||||
Stock compensation expense | — | — | — | ||||||||||||||||||||||||||
Tax withholding adjustment related to RSU vesting | — | — | — | ||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation | — | — | ( | — | ( | ||||||||||||||||||||||||
Cash flow hedge, net of tax | — | — | — | ||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
Dividends on RSUs | — | — | ( | ||||||||||||||||||||||||||
Purchases of Maximus common stock | ( | — | — | ( | ( | ||||||||||||||||||||||||
Stock compensation expense | — | — | — | ||||||||||||||||||||||||||
RSUs vested | — | — | — | — | |||||||||||||||||||||||||
Balance as of March 31, 2022 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation | — | — | ( | — | ( | ||||||||||||||||||||||||
Cash flow hedge, net of tax | — | — | — | ||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
Dividends on RSUs | — | — | ( | ||||||||||||||||||||||||||
Purchases of Maximus common stock | ( | — | — | ( | ( | ||||||||||||||||||||||||
Stock compensation expense | — | — | — | ||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | ( | $ | $ |
Table 3: Results of Operation by Business Segment | |||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Amount | % (1) | Amount | % (1) | Amount | % (1) | Amount | % (1) | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Federal Services | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
U.S. Services | |||||||||||||||||||||||||||||||||||||||||||||||
Outside the U.S. | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Federal Services | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
U.S. Services | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Outside the U.S. | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Gross profit | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Federal Services | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
U.S. Services | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Outside the U.S. | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Loss on sale of businesses (2) | NM | NM | NM | NM | |||||||||||||||||||||||||||||||||||||||||||
Other (3) | NM | ( | NM | NM | ( | NM | |||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative expenses | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Operating income/(loss): | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Federal Services | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
U.S. Services | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Outside the U.S. | ( | ( | % | ( | ( | % | ( | ( | % | ( | ( | % | |||||||||||||||||||||||||||||||||||
Amortization of intangible assets | ( | NM | ( | NM | ( | NM | ( | NM | |||||||||||||||||||||||||||||||||||||||
Loss on sale of businesses (2) | NM | NM | ( | NM | NM | ||||||||||||||||||||||||||||||||||||||||||
Other (3) | ( | NM | NM | ( | NM | NM | |||||||||||||||||||||||||||||||||||||||||
Operating income | $ | % | $ | % | $ | % | $ | % |
Table 4.1: Revenue by Contract Type | |||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Performance-based | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Cost-plus | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Fixed price | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Time and materials | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
Table 4.2: Revenue by Customer Type | |||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. federal government agencies | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
U.S. state government agencies | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
International government agencies | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Other, including local municipalities and commercial customers | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
Table 4.3: Effect of Changes in Contract Estimates | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
Benefit to/(reduction of) revenue recognized due to changes in contract estimates | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates | $ | ( | $ | ( | $ | ( | $ | ( |
Table 5: Weighted Average Number of Shares - Earnings Per Share | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Dilutive effect of unvested RSUs and PSUs | |||||||||||||||||||||||
Denominator for diluted earnings per share |
Table 6.1: Details of Debt | |||||||||||
June 30, 2023 | September 30, 2022 | ||||||||||
(in thousands) | |||||||||||
Term Loan A, due 2026 | $ | $ | |||||||||
Term Loan B, due 2028 | |||||||||||
Revolver | |||||||||||
Subsidiary loan agreements | |||||||||||
Funded Debt | |||||||||||
Less: Unamortized debt-issuance costs and discounts | ( | ( | |||||||||
Total debt | |||||||||||
Less: Current portion of long-term debt | ( | ( | |||||||||
Long-term debt | $ | $ |
Table 6.2: Details of Future Minimum Principal Payments Due | |||||
Amount Due | |||||
(in thousands) | |||||
July 1, 2023 through September 30, 2023 | $ | ||||
Year ended September 30, 2024 | |||||
Year ended September 30, 2025 | |||||
Year ended September 30, 2026 | |||||
Year ended September 30, 2027 | |||||
Thereafter | |||||
Total Payments | $ |
Table 8.1: Fair Value Measurements | |||||||||||||||||||||||
As of June 30, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Deferred compensation assets - Rabbi Trust | $ | $ | $ | $ | |||||||||||||||||||
Interest rate swaps - $ | |||||||||||||||||||||||
Notes receivable | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Contingent consideration | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Table 8.2: Details of Changes in Accumulated Other Comprehensive Loss by Category | |||||||||||||||||
Foreign currency translation adjustment | Net unrealized gain on derivatives, net of tax | Total | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance as of September 30, 2022 | $ | ( | $ | $ | ( | ||||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ( | |||||||||||||||
Net current period other comprehensive losses | ( | ||||||||||||||||
Balance as of June 30, 2023 | $ | ( | $ | $ | ( |
Table 8.3: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||
Contingent Consideration | |||||
(in thousands) | |||||
Opening contingent consideration as of September 30, 2022 | $ | ||||
Cash payments | ( | ||||
Closing contingent consideration as of June 30, 2023 | $ |
Table 10.1: Details of Cash and Cash Equivalents and Restricted Cash | |||||||||||
June 30, 2023 | September 30, 2022 | ||||||||||
(in thousands) | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash, cash equivalents, and restricted cash | $ | $ |
Table 10.2: Supplemental Disclosures of Cash Flow Information | |||||||||||
For the Nine Months Ended | |||||||||||
June 30, 2023 | June 30, 2022 | ||||||||||
(in thousands) | |||||||||||
Interest payments | $ | $ | |||||||||
Income tax payments | $ | $ |
Table 10.3: Details of Accounts Receivable, Net | |||||||||||
June 30, 2023 | September 30, 2022 | ||||||||||
(in thousands) | |||||||||||
Billed and billable receivables | $ | $ | |||||||||
Unbilled receivables | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
Table MD&A 1: Consolidated Results of Operations | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||
Revenue | $ | 1,188,677 | $ | 1,125,785 | $ | 3,644,775 | $ | 3,453,987 | |||||||||||||||
Cost of revenue | 924,313 | 915,564 | 2,907,061 | 2,787,160 | |||||||||||||||||||
Gross profit | 264,364 | 210,221 | 737,714 | 666,827 | |||||||||||||||||||
Gross profit percentage | 22.2 | % | 18.7 | % | 20.2 | % | 19.3 | % | |||||||||||||||
Selling, general, and administrative expenses | 182,545 | 132,974 | 471,445 | 387,502 | |||||||||||||||||||
Selling, general, and administrative expenses as a percentage of revenue | 15.4 | % | 11.8 | % | 12.9 | % | 11.2 | % | |||||||||||||||
Amortization of intangible assets | 23,431 | 22,690 | 70,599 | 67,951 | |||||||||||||||||||
Operating income | 58,388 | 54,557 | 195,670 | 211,374 | |||||||||||||||||||
Operating margin | 4.9 | % | 4.8 | % | 5.4 | % | 6.1 | % | |||||||||||||||
Interest expense | 21,026 | 10,791 | 63,631 | 29,867 | |||||||||||||||||||
Other expense/(income), net | 1,005 | 2,497 | (79) | 2,093 | |||||||||||||||||||
Income before income taxes | 36,357 | 41,269 | 132,118 | 179,414 | |||||||||||||||||||
Provision for income taxes | 5,494 | 9,934 | 29,472 | 44,653 | |||||||||||||||||||
Effective tax rate | 15.1 | % | 24.1 | % | 22.3 | % | 24.9 | % | |||||||||||||||
Net income | $ | 30,863 | $ | 31,335 | $ | 102,646 | $ | 134,761 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 0.50 | $ | 0.51 | $ | 1.68 | $ | 2.17 | |||||||||||||||
Diluted | $ | 0.50 | $ | 0.51 | $ | 1.67 | $ | 2.17 |
Table MD&A 2: Changes in Revenue, Cost of Revenue, and Gross Profit for the Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Revenue | Cost of Revenue | Gross Profit | |||||||||||||||||||||||||||||||||
Dollars | % Change | Dollars | % Change | Dollars | % Change | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | $ | 1,125,785 | $ | 915,564 | $ | 210,221 | |||||||||||||||||||||||||||||
Organic effect | 74,912 | 6.7 | % | 21,393 | 2.3 | % | 53,519 | 25.5 | % | ||||||||||||||||||||||||||
Disposal of businesses | (9,097) | (0.8) | % | (9,474) | (1.0) | % | 377 | 0.2 | % | ||||||||||||||||||||||||||
Acquired growth | 731 | 0.1 | % | 354 | — | % | 377 | 0.2 | % | ||||||||||||||||||||||||||
Currency effect compared to the prior period | (3,654) | (0.3) | % | (3,524) | (0.4) | % | (130) | (0.1) | % | ||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | $ | 1,188,677 | 5.6 | % | $ | 924,313 | 1.0 | % | $ | 264,364 | 25.8 | % |
Table MD&A 3: Changes in Revenue, Cost of Revenue, and Gross Profit for the Nine Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Revenue | Cost of Revenue | Gross Profit | |||||||||||||||||||||||||||||||||
Dollars | % Change | Dollars | % Change | Dollars | % Change | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Nine Months Ended June 30, 2022 | $ | 3,453,987 | $ | 2,787,160 | $ | 666,827 | |||||||||||||||||||||||||||||
Organic effect | 239,575 | 6.9 | % | 164,961 | 5.9 | % | 74,614 | 11.2 | % | ||||||||||||||||||||||||||
Disposal of businesses | (12,552) | (0.4) | % | (12,817) | (0.5) | % | 265 | — | % | ||||||||||||||||||||||||||
Acquired growth | 4,179 | 0.1 | % | 2,297 | 0.1 | % | 1,882 | 0.3 | % | ||||||||||||||||||||||||||
Currency effect compared to the prior period | (40,414) | (1.2) | % | (34,540) | (1.2) | % | (5,874) | (0.9) | % | ||||||||||||||||||||||||||
Nine Months Ended June 30, 2023 | $ | 3,644,775 | 5.5 | % | $ | 2,907,061 | 4.3 | % | $ | 737,714 | 10.6 | % |
Table MD&A 4: U.S. Federal Services Segment - Financial Results | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenue | $ | 583,960 | $ | 525,519 | $ | 1,786,202 | $ | 1,680,678 | |||||||||||||||
Cost of revenue | 427,015 | 401,316 | 1,383,689 | 1,314,746 | |||||||||||||||||||
Gross profit | 156,945 | 124,203 | 402,513 | 365,932 | |||||||||||||||||||
Selling, general, and administrative expenses | 82,892 | 69,466 | 229,591 | 203,340 | |||||||||||||||||||
Operating income | 74,053 | 54,737 | 172,922 | 162,592 | |||||||||||||||||||
Gross profit percentage | 26.9 % | 23.6 % | 22.5 % | 21.8 % | |||||||||||||||||||
Operating margin percentage | 12.7 % | 10.4 % | 9.7 % | 9.7 % |
Table MD&A 5: U.S. Services Segment - Financial Results | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenue | $ | 449,061 | $ | 399,320 | $ | 1,338,242 | $ | 1,183,814 | |||||||||||||||
Cost of revenue | 350,523 | 325,185 | 1,070,090 | 935,009 | |||||||||||||||||||
Gross profit | 98,538 | 74,135 | 268,152 | 248,805 | |||||||||||||||||||
Selling, general, and administrative expenses | 51,536 | 42,351 | 140,793 | 115,726 | |||||||||||||||||||
Operating income | 47,002 | 31,784 | 127,359 | 133,079 | |||||||||||||||||||
Gross profit percentage | 21.9 % | 18.6 % | 20.0 % | 21.0 % | |||||||||||||||||||
Operating margin percentage | 10.5 % | 8.0 % | 9.5 % | 11.2 % |
Table MD&A 6: Outside the U.S. Segment - Financial Results | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenue | $ | 155,656 | $ | 200,946 | $ | 520,331 | $ | 589,495 | |||||||||||||||
Cost of revenue | 146,775 | 189,063 | 453,282 | 537,405 | |||||||||||||||||||
Gross profit | 8,881 | 11,883 | 67,049 | 52,090 | |||||||||||||||||||
Selling, general, and administrative expenses | 24,122 | 23,101 | 75,936 | 68,452 | |||||||||||||||||||
Operating loss | (15,241) | (11,218) | (8,887) | (16,362) | |||||||||||||||||||
Gross profit percentage | 5.7 % | 5.9 % | 12.9 % | 8.8 % | |||||||||||||||||||
Operating margin percentage | (9.8) % | (5.6) % | (1.7) % | (2.8) % |
Table MD&A 7: Outside the U.S. Segment - Changes in Revenue, Cost of Revenue, and Gross Profit for the Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Revenue | Cost of Revenue | Gross Profit | |||||||||||||||||||||||||||||||||
Amount | % Change | Amount | % Change | Amount | % Change | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | $ | 200,946 | $ | 189,063 | $ | 11,883 | |||||||||||||||||||||||||||||
Organic effect | (33,270) | (16.6) | % | (29,644) | (15.7) | % | (3,626) | (30.5) | % | ||||||||||||||||||||||||||
Disposal of businesses | (9,097) | (4.5) | % | (9,474) | (5.0) | % | 377 | 3.2 | % | ||||||||||||||||||||||||||
Acquired growth | 731 | 0.4 | % | 354 | 0.2 | % | 377 | 3.2 | % | ||||||||||||||||||||||||||
Currency effect compared to the prior period | (3,654) | (1.8) | % | (3,524) | (1.9) | % | (130) | (1.1) | % | ||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | $ | 155,656 | (22.5) | % | $ | 146,775 | (22.4) | % | $ | 8,881 | (25.3) | % |
Table MD&A 8: Outside the U.S. Segment - Changes in Revenue, Cost of Revenue, and Gross Profit for the Nine Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Revenue | Cost of Revenue | Gross Profit | |||||||||||||||||||||||||||||||||
Amount | % Change | Amount | % Change | Amount | % Change | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Nine Months Ended June 30, 2022 | $ | 589,495 | $ | 537,405 | $ | 52,090 | |||||||||||||||||||||||||||||
Organic effect | (20,377) | (3.5) | % | (39,063) | (7.3) | % | 18,686 | 35.9 | % | ||||||||||||||||||||||||||
Disposal of businesses | (12,552) | (2.1) | % | (12,817) | (2.4) | % | 265 | 0.5 | % | ||||||||||||||||||||||||||
Acquired growth | 4,179 | 0.7 | % | 2,297 | 0.4 | % | 1,882 | 3.6 | % | ||||||||||||||||||||||||||
Currency effect compared to the prior period | (40,414) | (6.9) | % | (34,540) | (6.4) | % | (5,874) | (11.3) | % | ||||||||||||||||||||||||||
Nine Months Ended June 30, 2023 | $ | 520,331 | (11.7) | % | $ | 453,282 | (15.7) | % | $ | 67,049 | 28.7 | % |
Table MD&A 9: Balances and interest rates as of June 30, 2023 | |||||||||||||||||
June 30, 2023 | |||||||||||||||||
Carrying value | Effective cash interest rate | Interest rate basis | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Term Loan A - Unhedged | $ | 280,000 | 6.70% | Term SOFR reset monthly plus margin. (1) | |||||||||||||
Term Loan A - Hedged though May 2026 | 500,000 | 3.81% | Fixed rate of 2.31% plus margin. (1) | ||||||||||||||
Term Loan A - Hedged through September 2024 | 150,000 | 5.98% | Fixed rate of 4.48% plus margin. (1) | ||||||||||||||
Term Loan B | 345,850 | 7.20% | Term SOFR (variable reset) plus 2% margin. | ||||||||||||||
Revolver | 39,000 | 6.69% | Term SOFR reset monthly plus margin. (1) | ||||||||||||||
Debt held by international subsidiaries | 3,321 | 5.48% | Floating rate, reset quarterly. | ||||||||||||||
Debt Principal | $ | 1,318,171 |
Table MD&A 10: Net Change in Cash and Cash Equivalents and Restricted Cash | |||||||||||
For the Nine Months Ended | |||||||||||
June 30, 2023 | June 30, 2022 | ||||||||||
(in thousands) | |||||||||||
Operating activities: | |||||||||||
Net cash provided by operating activities | $ | 169,751 | $ | 169,776 | |||||||
Net cash used in investing activities | (49,739) | (48,080) | |||||||||
Net cash used in financing activities | (168,849) | (163,272) | |||||||||
Effect of foreign exchange rates on cash and cash equivalents and restricted cash | 3,735 | (4,369) | |||||||||
Net change in cash and cash equivalents and restricted cash | $ | (45,102) | $ | (45,945) |
Table MD&A 11: Reconciliation of Net Income to Consolidated EBITDA as defined by our Credit Agreement | |||||||||||
For the Three Months Ended | For the Trailing Twelve Months Ended | ||||||||||
June 30, 2023 | June 30, 2023 | ||||||||||
(in thousands) | |||||||||||
Net income | $ | 30,863 | $ | 171,713 | |||||||
Adjustments: | |||||||||||
Interest expense | 21,026 | 79,729 | |||||||||
Other expense, net | 1,005 | 663 | |||||||||
Provision for income taxes | 5,494 | 58,089 | |||||||||
Amortization of intangibles | 23,431 | 93,113 | |||||||||
Stock compensation expense | 8,296 | 30,635 | |||||||||
Acquisition-related expenses | 1,587 | 2,909 | |||||||||
Gain on sale of land and building | — | (11,046) | |||||||||
Loss on sale of businesses | — | 883 | |||||||||
Depreciation and amortization of property, equipment, and capitalized software | 10,771 | 49,547 | |||||||||
Pro forma and other adjustments permitted by our Credit Agreement | 35,970 | 47,437 | |||||||||
Consolidated EBITDA (as defined by our Credit Agreement) | $ | 138,443 | $ | 523,672 |
Table MD&A 12: Consolidated Net Total Leverage Ratio | |||||
For the Trailing Twelve Months Ended | |||||
June 30, 2023 | |||||
(in thousands, except ratio data) | |||||
Funded Debt (as defined by our Credit Agreement) | $ | 1,318,171 | |||
Cash and cash equivalents up to $75 million | 35,007 | ||||
Consolidated Net Total Leverage (as defined by our Credit Agreement) | $ | 1,283,164 | |||
Consolidated Net Total Leverage Ratio (as defined by our Credit Agreement) | 2.45 |
Table MD&A 13: Consolidated Net Interest Coverage Ratio | |||||
For the Trailing Twelve Months Ended | |||||
June 30, 2023 | |||||
(in thousands, except ratio data) | |||||
Consolidated EBITDA (as defined by our Credit Agreement) | $ | 523,672 | |||
Interest expense | 79,729 | ||||
Components of other income/expense, net allowed in ratio calculation | 2,208 | ||||
Consolidated Net Interest Expense (as defined by our Credit Agreement) | $ | 81,937 | |||
Consolidated Net Interest Coverage Ratio (as defined by our Credit Agreement) | 6.39 |
Table MD&A 14: Free Cash Flow | |||||||||||
For the Nine Months Ended | |||||||||||
June 30, 2023 | June 30, 2022 | ||||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 169,751 | $ | 169,776 | |||||||
Purchases of property and equipment and capitalized software | (58,863) | (35,936) | |||||||||
Free cash flow | $ | 110,888 | $ | 133,840 |
Table MD&A 15: Non-GAAP Adjusted Results Excluding Amortization of Intangible Assets | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||
Operating income | $ | 58,388 | $ | 54,557 | $ | 195,670 | $ | 211,374 | |||||||||||||||
Add back: Amortization of intangible assets | 23,431 | 22,690 | 70,599 | 67,951 | |||||||||||||||||||
Adjusted operating income excluding amortization of intangible assets (Non-GAAP) | $ | 81,819 | $ | 77,247 | $ | 266,269 | $ | 279,325 | |||||||||||||||
Adjusted operating income margin excluding amortization of intangible assets (Non-GAAP) | 6.9 | % | 6.9 | % | 7.3 | % | 8.1 | % | |||||||||||||||
Net income | $ | 30,863 | $ | 31,335 | $ | 102,646 | $ | 134,761 | |||||||||||||||
Add back: Amortization of intangible assets, net of tax | 17,276 | 16,750 | 52,082 | 50,164 | |||||||||||||||||||
Adjusted net income excluding amortization of intangible assets (Non-GAAP) | $ | 48,139 | $ | 48,085 | $ | 154,728 | $ | 184,925 | |||||||||||||||
Diluted earnings per share | $ | 0.50 | $ | 0.51 | $ | 1.67 | $ | 2.17 | |||||||||||||||
Add back: Effect of amortization of intangible assets on diluted earnings per share | 0.28 | 0.27 | 0.85 | 0.80 | |||||||||||||||||||
Adjusted diluted earnings per share excluding amortization of intangible assets (Non-GAAP) | $ | 0.78 | $ | 0.78 | $ | 2.52 | $ | 2.97 |
Exhibit No. | Description of Exhibit | |||||||
v | ||||||||
v | ||||||||
Φ | ||||||||
Φ | ||||||||
101.INS | v | XBRL Instance Document. | ||||||
101.SCH | v | XBRL Taxonomy Extension Schema Document. | ||||||
101.CAL | v | XBRL Taxonomy Calculation Linkbase Document. | ||||||
101.DEF | v | XBRL Taxonomy Definition Linkbase Document. | ||||||
101.LAB | v | XBRL Taxonomy Label Linkbase Document. | ||||||
101.PRE | v | XBRL Taxonomy Presentation Linkbase Document. | ||||||
104 | v | Cover Page Interactive Data File (formatted as Inline XBRL tags and contained in Exhibit 101). |
v | Filed herewith. | ||||
Φ | Furnished herewith. |
Maximus, Inc. | |||||||||||
/s/ Bruce L. Caswell | August 3, 2023 | ||||||||||
By: | Bruce L. Caswell | ||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
/s/ David W. Mutryn | August 3, 2023 | ||||||||||
By: | David W. Mutryn | ||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
/s/ Bruce L. Caswell | August 3, 2023 | ||||||||||
By: | Bruce L. Caswell | ||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) |
/s/ David W. Mutryn | August 3, 2023 | ||||||||||
By: | David W. Mutryn | ||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
/s/ Bruce L. Caswell | August 3, 2023 | ||||||||||
By: | Bruce L. Caswell | ||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) |
/s/ David W. Mutryn | August 3, 2023 | ||||||||||
By: | David W. Mutryn | ||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
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Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Statement [Abstract] | ||||
Revenue | $ 1,188,677 | $ 1,125,785 | $ 3,644,775 | $ 3,453,987 |
Cost of revenue | 924,313 | 915,564 | 2,907,061 | 2,787,160 |
Gross profit | 264,364 | 210,221 | 737,714 | 666,827 |
Selling, general, and administrative expenses | 182,545 | 132,974 | 471,445 | 387,502 |
Amortization of intangible assets | 23,431 | 22,690 | 70,599 | 67,951 |
Operating income | 58,388 | 54,557 | 195,670 | 211,374 |
Interest expense | 21,026 | 10,791 | 63,631 | 29,867 |
Other expense/(income), net | 1,005 | 2,497 | (79) | 2,093 |
Income before income taxes | 36,357 | 41,269 | 132,118 | 179,414 |
Provision for income taxes | 5,494 | 9,934 | 29,472 | 44,653 |
Net income | $ 30,863 | $ 31,335 | $ 102,646 | $ 134,761 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.50 | $ 0.51 | $ 1.68 | $ 2.17 |
Diluted (in dollars per share) | $ 0.50 | $ 0.51 | $ 1.67 | $ 2.17 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 61,141 | 61,607 | 61,125 | 62,038 |
Diluted (in shares) | 61,544 | 61,756 | 61,368 | 62,190 |
Dividends declared per share (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.84 | $ 0.84 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 30,863 | $ 31,335 | $ 102,646 | $ 134,761 |
Other comprehensive income/(loss), net of tax: | ||||
Foreign currency translation adjustments | 1,946 | (8,935) | 10,947 | (8,499) |
Net (losses)/gains on cash flow hedge, net of tax effect of $2,513, $1,085, $(466), and $5,857, respectively | 7,046 | 3,042 | (1,297) | 16,416 |
Other comprehensive income/(loss) | 8,992 | (5,893) | 9,650 | 7,917 |
Comprehensive income | $ 39,855 | $ 25,442 | $ 112,296 | $ 142,678 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net gains/(losses) on cash flow hedge, tax | $ 2,513 | $ 1,085 | $ (466) | $ 5,857 |
Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands |
Jun. 30, 2023 |
Sep. 30, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 60,784 | 60,774 |
Common stock, shares outstanding (in shares) | 60,784 | 60,774 |
Organization |
9 Months Ended |
---|---|
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATIONMaximus, a Virginia corporation established in 1975, is a leading operator of government health and human services programs and provider of technology solutions to governments. Under our mission of Moving People Forward, we offer industry-leading expertise, including citizen engagement, eligibility and program integrity, independent clinical assessments, case management, and technology modernization services to enable citizens around the globe to successfully engage with their governments at all levels. We are a proud partner to government agencies in the United States, Australia, Canada, Italy, Saudi Arabia, Singapore, South Korea, United Arab Emirates, and the United Kingdom. |
Significant Accounting Policies |
9 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements, including the notes, include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation for Interim Periods Certain information and footnote disclosures normally included for the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted for the interim periods presented. We believe that the unaudited interim financial statements include all adjustments (which are normal and recurring in nature) necessary to present fairly our financial position and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for the year or future periods. The financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the year ended September 30, 2022 included in our Annual Report on Form 10-K for the fiscal year then ended (the "2022 10-K"). We have continued to follow the accounting policies set forth in those financial statements. Use of Estimates The preparation of these financial statements, in conformity with U.S. GAAP, requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenue and expenses. At each reporting period end, we make estimates, including those related to revenue recognition and cost estimation on certain contracts, the realizability of goodwill, and amounts related to income taxes, certain accrued liabilities, and contingencies and litigation. In May 2021, we acquired VES Group, Inc. As part of the acquisition, we allocated a valuation of $27 million to certain technology assets used by the business, which we elected to amortize over twelve years, which was our best estimate of asset life at that time. In fiscal year 2023, we have taken the opportunity to improve our technology portfolio, including the development of technology, which will eventually replace much of the acquired technology. Accordingly, we have revised the asset life on the existing technology assuming the assets will cease being used by September 2026. This change in estimated useful life will result in additional annual amortization expense of $3.8 million per year. In the three and nine months ended June 30, 2023, this change reduced our diluted earnings per share by approximately $0.01 and $0.03, respectively. In June 2023, we recorded an expense of $22.1 million for our best estimate of the investigation and remediation costs of a cybersecurity incident, reducing diluted earnings per share by approximately $0.26 for the three and nine months ended June 30, 2023, respectively. The estimated impact and expense is based on information currently available and the actual impact and expense may be greater than our estimates.
|
Business Segments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | BUSINESS SEGMENTS We conduct our operations through three business segments: U.S. Federal Services, U.S. Services, and Outside the U.S. U.S. Federal Services Our U.S. Federal Services Segment delivers end-to-end solutions that help various U.S. federal government agencies better deliver on their mission, including program operations and management, clinical services, and technology solutions. This also includes appeals and assessments services, system and application development, IT modernization, and maintenance services. The segment also contains certain state-based assessments and appeals work that is part of the segment's heritage which continues to be managed within this segment. Under Technology Consulting Services, the segment executes on its digital strategy to deliver technology solutions that advance agency missions, including the challenge to modernize, provide better customer experience, and drive process efficiencies. The segment continues to expand its clinical solutions through Veterans Evaluation Services (VES), a Maximus company, which manages the clinical evaluation process for U.S. veterans and service members on behalf of the U.S. Department of Veterans Affairs. U.S. Services Our U.S. Services Segment provides a variety of business process services ("BPS"), such as program administration, assessments, and related consulting work for U.S. state and local government programs. These services support a variety of programs, including the Affordable Care Act ("ACA"), Medicaid, the Children's Health Insurance Program ("CHIP"), Temporary Assistance to Needy Families ("TANF"), and child support programs. Over the last three years, many programs in this segment have been operating with depressed margins resulting from the pause in Medicaid redeterminations. The depressed margins have resulted from reduced operating leverage in the segment as costs cannot scale down at the same rate to meet lower demand due to requirement to fulfill other obligations on these contracts. With the resumption of redeterminations, we expect a full period of volumes coming back into these programs and which enables our operating leverage to recover. A temporary offset to the depressed margins from paused redeterminations was the government's COVID-19 response efforts in prior fiscal years. The segment supported contact tracing, disease investigation, and vaccine distribution support services which concluded in fiscal year 2022. The segment also successfully expanded into the unemployment insurance market where longer term opportunities have materialized. As part of the broader strategy to evolve clinically and address societal macro trends such as aging populations and rising costs, the segment continues to expand its offerings in public health with new work in in-person assessments. Outside the U.S. Our Outside the U.S. Segment provides BPS for international governments and commercial clients, transforming the lives of people around the world. Helping people find employment, access vital support, and remain healthy, these services include health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. We support programs and deliver services in the U.K., including the Health Assessment Advisory Service ("HAAS") and the recently awarded replacement contract to start in 2024, Functional Assessment Services (“FAS”), and Restart; Australia, including Workforce Australia and the Disability Employment Service; Canada, including the Employment Program of British Columbia; in addition to Italy, Saudi Arabia, Singapore, South Korea, and UAE where we predominantly provide employment support and job seeker services.
(1)Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM." (2)During the second quarter of fiscal year 2023, we sold a small commercial practice in the United Kingdom and our employment operations business in Sweden, both subsidiaries within our Outside the U.S. Segment, resulting in a loss. Refer to "Note 7. Divestitures" for more details. (3)Other includes credits and costs that are not allocated to a particular segment. In the three and nine months ended June 30, 2023, these charges include $22.1 million related to the costs of a previously disclosed cybersecurity incident. Other charges include those related to acquisitions.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | REVENUE RECOGNITION We recognize revenue as, or when, we satisfy performance obligations under a contract. The majority of our contracts have performance obligations that are satisfied over time. In most cases, we view our performance obligations as promises to transfer a series of distinct services to our customers that are substantially the same and which have the same pattern of service. We recognize revenue over the performance period as a customer receives the benefits of our services. Disaggregation of Revenue In addition to our segment reporting, we disaggregate our revenues by contract type and customer type. Our operating segments represent the manner in which our Chief Executive Officer reviews our financial results, which is further discussed in "Note 3. Business Segments."
Contract balances Differences in timing between revenue recognition and cash collection result in contract assets and contract liabilities. We classify these assets as accounts receivable — billed and billable and unbilled receivables; the liabilities are classified as deferred revenue. In many contracts, we bill our customers on a monthly basis shortly after the month end for work performed in that month and such balances are considered collectible and are included within accounts receivable, net. Exceptions to this pattern will arise for various reasons, including those listed below. •Under cost-plus contracts, we are typically required to estimate a contract's share of our general and administrative expenses. This share is based upon estimates of total costs, which may vary over time. We typically invoice our customers at an agreed provisional billing rate which may differ from actual rates incurred. If our actual rates are higher than the provisional billing rates, an asset is recorded for this variance; if the provisional billing rates are higher than our actual rates, we record a liability. •Certain contracts include retainage balances, whereby revenue is earned, but some portion of cash payments are held back by the customer for a period of time, typically to allow the customer to confirm the objective criteria laid out by the contract have been met. This balance is classified as accounts receivable - unbilled until restrictions on billing are lifted. As of June 30, 2023 and September 30, 2022, $13.7 million and $13.1 million, respectively, of our unbilled receivables related to amounts pursuant to contractual retainage provisions. •In certain contracts, we may receive funds from our customers prior to performing operations. These funds are typically referred to as "set-up costs" and reflect the need for us to make investments in infrastructure prior to providing a service. This investment in infrastructure is not a performance obligation that is distinct from the service that is subsequently provided and, as a result, revenue is not recognized based upon the establishment of this infrastructure, but rather over the course of the contractual relationship. The funds are initially recorded as deferred revenue and recognized over the term of the contract. Other contracts may not include set-up fees but will provide higher fees in earlier periods of the contract. The premium on these fees is deferred. •Some of our contracts, notably our employment services contracts in the Outside the U.S. Segment, include payments for desired outcomes, such as job placement and job retention, and these outcome payments occur over several months. We are required to estimate these outcome fees ahead of their realization and recognize this estimated fee over the period of delivery. During the three and nine months ended June 30, 2023, we recognized revenue of $13.9 million and $75.3 million, respectively, included in our deferred revenue balances at September 30, 2022. During the three and nine months ended June 30, 2022, we recognized revenue of $23.7 million and $85.5 million, respectively, included in our deferred revenue balances at September 30, 2021. Contract estimates We are required to use estimates in recognizing revenue from some of our contracts. Some of our performance-based contract revenue is recognized based upon future milestones defined in each contract. This is the case in many of our employment services contracts in the Outside the U.S. Segment, where we are paid as individuals attain employment milestones, which may take many months to achieve. We recognize revenue over the period of performance. Our estimates vary from contract to contract but may include the number of participants within a portfolio reaching employment milestones and the service delivery periods for participants reaching the employment milestone. We estimate the total variable fees we will receive using the expected value method. We recognize the fees over the expected period of performance. At each reporting period, we update our estimates of the variable fees to represent the circumstances present at the end of the reporting period. We are required to constrain our estimates to the extent that it is probable that there will not be a significant reversal of cumulative revenue when the uncertainty is resolved. We do not have a history of significant constraints on these contracts.
Remaining performance obligations As of June 30, 2023, we had approximately $350 million of remaining performance obligations. We anticipate that we will recognize revenue on approximately 65% of this balance within the next 12 months. This balance excludes contracts with an original duration of twelve months or less, including contracts with a penalty-free termination for convenience clause, and any variable consideration which is allocated entirely to future performance obligations, including variable transaction fees or fees tied directly to costs incurred.
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Earnings Per Share |
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Earnings Per Share | EARNINGS PER SHARE
The diluted earnings per share calculation for the three and nine months ended June 30, 2023 excludes approximately 98,000 and 105,000 unvested anti-dilutive restricted stock units, respectively. For the three and nine months ended June 30, 2022, approximately 418,000 and 178,000 unvested anti-dilutive restricted stock units were excluded from the diluted earnings per share calculation, respectively.
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Debt And Derivatives |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt And Derivatives | DEBT AND DERIVATIVES
We entered into a credit agreement with JPMorgan Chase Bank, N.A. in May 2021 comprised of Term Loan A, Term Loan B, and a $600.0 million revolving credit facility ("Revolver"). During the first quarter of fiscal year 2023, we converted our interest rate index from the London Interbank Overnight Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"). The Credit Agreement requires us to comply with a number of covenants, including leverage and interest coverage ratios. At June 30, 2023, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends. In addition to the corporate Credit Agreement, we hold smaller credit facilities in Australia, Canada, and the United Kingdom. These allow our businesses to borrow funds to meet any short-term working capital needs. The following table sets forth future minimum principal payments due under our debt obligations as of June 30, 2023 for the remainder of fiscal year 2023 through fiscal year 2027 and thereafter:
Interest Rate Derivative Instruments To reduce our interest rate risk, we entered into interest-rate swap agreements covering our Term Loan A, effectively setting a fixed rate for a portion of our debt. At June 30, 2023, we have arrangements in place that fix our interest rate of $500 million through May 2026 and a further arrangement to fix $150 million through September 2024. The balance of the debt pays interest based upon an index. The floating interest rate on these instruments was converted from LIBOR to SOFR in December 2022, concurrent with our debt agreements. In converting our debt and interest-rate swaps, we utilized the practical expedients allowed under ASU No. 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which allowed us to treat these amendments as though the modification was not substantial. At June 30, 2023, our effective interest rate, including the original issuance costs and discount rate, was 5.9%. Our interest-rate swap agreements are valued quarterly and recorded on our balance sheet. As of June 30, 2023, we had assets of $29.7 million, compared to an asset of $31.4 million as of September 30, 2022. These balances were recorded in "other assets" on our consolidated balance sheet. As these hedges are considered effective, all gains and losses are reported within other comprehensive income on our consolidated statement of comprehensive income.
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Debt And Derivatives | DEBT AND DERIVATIVES
We entered into a credit agreement with JPMorgan Chase Bank, N.A. in May 2021 comprised of Term Loan A, Term Loan B, and a $600.0 million revolving credit facility ("Revolver"). During the first quarter of fiscal year 2023, we converted our interest rate index from the London Interbank Overnight Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"). The Credit Agreement requires us to comply with a number of covenants, including leverage and interest coverage ratios. At June 30, 2023, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends. In addition to the corporate Credit Agreement, we hold smaller credit facilities in Australia, Canada, and the United Kingdom. These allow our businesses to borrow funds to meet any short-term working capital needs. The following table sets forth future minimum principal payments due under our debt obligations as of June 30, 2023 for the remainder of fiscal year 2023 through fiscal year 2027 and thereafter:
Interest Rate Derivative Instruments To reduce our interest rate risk, we entered into interest-rate swap agreements covering our Term Loan A, effectively setting a fixed rate for a portion of our debt. At June 30, 2023, we have arrangements in place that fix our interest rate of $500 million through May 2026 and a further arrangement to fix $150 million through September 2024. The balance of the debt pays interest based upon an index. The floating interest rate on these instruments was converted from LIBOR to SOFR in December 2022, concurrent with our debt agreements. In converting our debt and interest-rate swaps, we utilized the practical expedients allowed under ASU No. 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which allowed us to treat these amendments as though the modification was not substantial. At June 30, 2023, our effective interest rate, including the original issuance costs and discount rate, was 5.9%. Our interest-rate swap agreements are valued quarterly and recorded on our balance sheet. As of June 30, 2023, we had assets of $29.7 million, compared to an asset of $31.4 million as of September 30, 2022. These balances were recorded in "other assets" on our consolidated balance sheet. As these hedges are considered effective, all gains and losses are reported within other comprehensive income on our consolidated statement of comprehensive income.
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Divestitures |
9 Months Ended |
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Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Divestitures | DIVESTITURES On March 6, 2023, we sold a small commercial practice in the United Kingdom, part of our Outside the U.S. Segment, resulting in a pre-tax loss of $0.6 million. The cash consideration will be received in installments, with a fair value of $16.0 million. The installment payments are unconditional. On March 30, 2023, we sold our Swedish subsidiary for cash consideration of $0.4 million, resulting in a small loss.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following assets and liabilities are recorded at fair value on a recurring basis. •We hold mutual fund assets within a Rabbi Trust to cover liabilities in our deferred compensation plan. These assets have prices quoted within active markets and, accordingly, are classified as level 1 within the fair value hierarchy. •We have three interest rate swap agreements, serving to reduce our interest rate risk on our debt. These assets and liabilities can be valued using observable data and, accordingly, are classified as level 2 within the fair value hierarchy. •We anticipate paying additional consideration for certain acquisitions based upon the subsequent performance of the businesses acquired. This liability is based upon our internal assumptions over revenues, margins, volumes, and contract terms. Accordingly, these inputs are not observable and are classified as level 3 within the fair value hierarchy. •We will receive payments from the sale of a small commercial practice in the United Kingdom over the next three years. We have discounted the asset based upon our cost of capital, which is not an observable input. The balance at the sale of the business was $6.8 million. These assets are held in "Prepaid expenses and other current assets" and "Other assets" on our consolidated balance sheet. The tables below present assets and liabilities measured and recorded at fair value in our consolidated balance sheets on a recurring basis and their corresponding level within the fair value hierarchy. No transfers between Level 1, Level 2, and Level 3 fair value measurements occurred for the nine months ended June 30, 2023.
The fair values of receivables, prepaids, other assets, accounts payable, accrued costs, and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. The carrying value of our debt is consistent with the fair value as the stated interest rates in the agreements are consistent with the current market rates used in notes with similar terms in the markets (Level 2 inputs). Accumulated Other Comprehensive Loss All amounts recorded in accumulated other comprehensive loss are related to our foreign currency translations and interest rate swap, net of tax. The following table shows changes in accumulated other comprehensive loss:
Contingent Consideration The fair value of our contingent considerations are based upon estimates of the likely payments, which are based upon assumptions over future performance. The liabilities are reviewed on a quarterly basis and, where changes in estimates arise, these are recorded to selling and general administrative expenses. Our contingent consideration relates to the businesses below: •In October 2021, we acquired the student loan servicing business from Navient, rebranded as Aidvantage. Future payments are based upon volumes, up to a maximum payment of $65.0 million. At June 30, 2023 and September 30, 2022, the Aidvantage contingent consideration was $10.2 million and $13.8 million, respectively. •In January 2022, we acquired BZ Bodies Limited. Future payments are based upon the performance of the business through December 2023, up to a maximum payment of $2.5 million (£2.0 million British Pounds). At June 30, 2023 and September 30, 2022, we recorded a contingent consideration liability for the maximum payment, which we anticipate making in fiscal year 2024. •In December 2015, we acquired companies doing business as Assessments Australia. Future payments were based upon future revenue earnings. The deadline for the payment expired on December 31, 2022, with no payment being required. Movement in our contingent consideration balance is as follows:
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Equity |
9 Months Ended |
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Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity | EQUITY Stock Compensation We grant restricted stock units ("RSUs") and performance stock units ("PSUs") to eligible participants under our 2021 Omnibus Incentive Plan, which was approved by the Board of Directors and stockholders. The RSUs granted to employees vest ratably over service periods of to five years and one year for members of the board of directors, in each case from the grant date. PSU vesting is subject to the achievement of certain performance and market conditions and the number of PSUs earned could vary from 0% to 200% of the number of PSUs awarded. The PSUs will vest at the end of a three year-performance period. We issue new shares to satisfy our obligations under these plans. The fair value of each RSU and PSU is calculated at the date of the grant. During the nine months ended June 30, 2023, we issued approximately 337,000 RSUs, which will vest ratably over to four years, and approximately 137,000 PSUs, which will vest after three years.
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Other Balance Sheet Items |
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Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Balance Sheet Items | OTHER BALANCE SHEET ITEMS Cash, Cash Equivalents, and Restricted Cash
Restricted cash is recorded within "Prepaid expenses and other current assets" on the Consolidated Balance Sheets. At September 30, 2022, this balance included $60.7 million of funds received from a customer which had previously been sold under our Receivables Purchase Agreement; this is offset by a corresponding liability in "Other current liabilities". No similar arrangements existed at June 30, 2023. The remaining balance includes funds held in trust on behalf of certain clients, offset with a corresponding liability in "Other current liabilities", and certain collateral obligations on contracts.
Accounts Receivable, Net
In September 2022, we entered into a Receivables Purchase Agreement with Wells Fargo Bank N.A., under which we may sell certain U.S.-originated accounts receivable balances up to a maximum amount of $200.0 million at any given time. In return for these sales, we receive a cash payment equal to the face value of the receivables less a financing charge. We account for these transfers as sales. We have no retained interest in the transferred receivables other than administrative responsibilities, and Wells Fargo has no recourse for any credit risk. We estimate that the implicit servicing fees for an arrangement of this size and type would be immaterial. For the nine months ended June 30, 2023, the gross fair value of accounts receivable transferred to Wells Fargo and derecognized from our balance sheet was $378.4 million. In exchange for these sales, we received $376.3 million in cash. The balance, representing a loss on sale from these transfers, is included within our selling, general and administrative expenses. We have recorded these transactions within our operating cash flows. The effective annual interest rate under this program was 5.2%.
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Commitments And Contingencies |
9 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Litigation We are subject to audits, investigations, and reviews relating to compliance with the laws and regulations that govern our role as a contractor to agencies and departments of federal, state, local, and foreign governments, and otherwise in connection with performing services in countries outside of the U.S. Adverse findings could lead to criminal, civil, or administrative proceedings, and we could be faced with penalties, fines, suspension, or debarment. Adverse findings could also have a material adverse effect on us because of our reliance on government contracts. We are subject to periodic audits by federal, state, local, and foreign governments for taxes. We are also involved in various claims, arbitrations, and lawsuits arising in the normal conduct of our business. These include but are not limited to bid protests, employment matters, contractual disputes, and charges before administrative agencies. Although we can give no assurance, based upon our evaluation and taking into account the advice of legal counsel, we do not believe that the outcome of any existing matter would likely have a material adverse effect on our consolidated financial position, results of operations, or cash flows. We evaluate, on a regular basis, developments in our litigation matters and establish or make adjustments to our accruals as appropriate. A liability is accrued if a loss is probable and the amount of such loss can be reasonably estimated. If the risk of loss is probable, but the amount cannot be reasonably estimated, or the risk of loss is only reasonably possible, a liability is not accrued. Due to the inherent uncertainty in the outcome of litigation, our estimates and assessments may prove to be incomplete or inaccurate and could be impacted by unanticipated events and circumstances, adverse outcomes or other future determinations. MOVEit Cybersecurity Incident Litigation As the Company has previously disclosed, on May 31, 2023 Progress Software Corporation, the developer of MOVEit (“MOVEit”), a file transfer application used by many organizations to transfer data, announced a critical zero-day vulnerability in the application that allowed unauthorized third parties to access its customers’ MOVEit environments. It appears that a significant number of commercial and government customers worldwide were affected by this vulnerability. Maximus uses MOVEit for internal and external file sharing purposes, including to share data with government customers pertaining to individuals who participate in various government programs. The Company believes that the personal information of a significant number of individuals was accessed by an unauthorized third party by exploiting this MOVEit vulnerability. On August 1, 2023, a purported class action was filed against Maximus Federal Services, Inc. (a wholly-owned subsidiary of Maximus, Inc.) in the U.S. District Court for the Eastern District of Virginia arising out of the MOVEit cybersecurity incident – Bishop v. Maximus Federal Services, Case No. 1:23-cv-01019 (U.S. Dist. Ct. E. D. VA). The plaintiff, who purports to represent a nationwide class of individuals, alleges, among other things, that the Company’s negligence resulted in the compromise of the plaintiff’s personally identifiable Information and protected health information. The plaintiff seeks damages to be proved at trial. The Company is not able to determine or predict the ultimate outcome of this proceeding or reasonably provide an estimate or range of the possible outcome or loss if any. On August 2, 2023, a purported class action was filed against Maximus, Inc. and Maximus Federal Services, Inc. in the U.S. District Court for the Eastern District of Virginia arising out of the MOVEit cybersecurity incident – Buzzell v. Maximus, Case No. 1:23-cv-01028 (U.S. Dist. Ct. E. D. VA). The plaintiff, who purports to represent a nationwide class of individuals, alleges, among other things, that the Company’s negligence resulted in the compromise of the plaintiff’s personally identifiable Information and protected health information. The plaintiff seeks damages to be proved at trial. The Company is not able to determine or predict the ultimate outcome of this proceeding or reasonably provide an estimate or range of the possible outcome or loss if any.
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Subsequent Event |
9 Months Ended |
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Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTOn July 7, 2023, our Board of Directors declared a quarterly cash dividend of $0.28 for each share of our common stock outstanding. The dividend is payable on August 31, 2023, to shareholders of record on August 15, 2023. Based on the number of shares outstanding, we anticipate a cash payment of approximately $17.0 million. |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
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Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Pay vs Performance Disclosure | ||||||||
Net income | $ 30,863 | $ 31,788 | $ 39,995 | $ 31,335 | $ 50,096 | $ 53,330 | $ 102,646 | $ 134,761 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Policies (Policies) |
9 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements, including the notes, include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions have been eliminated in consolidation.
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Use of Estimates | Use of Estimates The preparation of these financial statements, in conformity with U.S. GAAP, requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenue and expenses. At each reporting period end, we make estimates, including those related to revenue recognition and cost estimation on certain contracts, the realizability of goodwill, and amounts related to income taxes, certain accrued liabilities, and contingencies and litigation. In May 2021, we acquired VES Group, Inc. As part of the acquisition, we allocated a valuation of $27 million to certain technology assets used by the business, which we elected to amortize over twelve years, which was our best estimate of asset life at that time. In fiscal year 2023, we have taken the opportunity to improve our technology portfolio, including the development of technology, which will eventually replace much of the acquired technology. Accordingly, we have revised the asset life on the existing technology assuming the assets will cease being used by September 2026. This change in estimated useful life will result in additional annual amortization expense of $3.8 million per year. In the three and nine months ended June 30, 2023, this change reduced our diluted earnings per share by approximately $0.01 and $0.03, respectively.
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Business Segments (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Information for each of the Company's Business Segments |
(1)Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM." (2)During the second quarter of fiscal year 2023, we sold a small commercial practice in the United Kingdom and our employment operations business in Sweden, both subsidiaries within our Outside the U.S. Segment, resulting in a loss. Refer to "Note 7. Divestitures" for more details. (3)Other includes credits and costs that are not allocated to a particular segment. In the three and nine months ended June 30, 2023, these charges include $22.1 million related to the costs of a previously disclosed cybersecurity incident. Other charges include those related to acquisitions.
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Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue |
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares used to Compute Earnings Per Share |
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Debt And Derivatives (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt |
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Schedule of Maturities of Long-term Debt | The following table sets forth future minimum principal payments due under our debt obligations as of June 30, 2023 for the remainder of fiscal year 2023 through fiscal year 2027 and thereafter:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets and Liabilities | The tables below present assets and liabilities measured and recorded at fair value in our consolidated balance sheets on a recurring basis and their corresponding level within the fair value hierarchy. No transfers between Level 1, Level 2, and Level 3 fair value measurements occurred for the nine months ended June 30, 2023.
Movement in our contingent consideration balance is as follows:
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Other Balance Sheet Items (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents |
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Schedule of Restrictions on Cash and Cash Equivalents |
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Schedule of Supplementary Cash Flow Information |
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Schedule of Details of Accounts Receivable |
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Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|---|
May 31, 2021 |
Jun. 30, 2023 |
Jun. 30, 2023 |
Sep. 30, 2023 |
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Property, Plant and Equipment [Line Items] | ||||
Change in estimated useful life, increase (decrease) in diluted earnings per share (in dollars per share) | $ (0.01) | $ (0.03) | ||
Segment Reconciling Items | ||||
Property, Plant and Equipment [Line Items] | ||||
Other expense | $ 22.1 | $ 22.1 | ||
Increase (decrease) in earnings per share, diluted (in dollars per share) | $ 0.26 | $ 0.26 | ||
Technology Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Technology assets | $ 27.0 | |||
Intangible assets, estimated useful life | 12 years | |||
Technology Equipment | Forecast | ||||
Property, Plant and Equipment [Line Items] | ||||
Additional annual amortization expense following change in estimated useful life | $ 3.8 |
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Sep. 30, 2022 |
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Disaggregation of Revenue [Line Items] | |||||
Deferred revenue, revenue recognized | $ 13.9 | $ 23.7 | $ 75.3 | $ 85.5 | |
Unbilled receivables | |||||
Disaggregation of Revenue [Line Items] | |||||
Unbilled contracts receivable | $ 13.7 | $ 13.7 | $ 13.1 |
Revenue Recognition - Effect of Changes in Contract Estimates (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Disaggregation of Revenue [Line Items] | ||||
Benefit to/(reduction of) revenue recognized due to changes in contract estimates | $ 1,188,677 | $ 1,125,785 | $ 3,644,775 | $ 3,453,987 |
Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates (in dollars per share) | $ 0.50 | $ 0.51 | $ 1.67 | $ 2.17 |
Change in contract estimates | ||||
Disaggregation of Revenue [Line Items] | ||||
Benefit to/(reduction of) revenue recognized due to changes in contract estimates | $ (2,134) | $ (959) | $ (8,272) | $ (5,174) |
Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates (in dollars per share) | $ (0.03) | $ (0.01) | $ (0.09) | $ (0.06) |
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions |
Jun. 30, 2023
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 350 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 65.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Earnings Per Share (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 61,141,000 | 61,607,000 | 61,125,000 | 62,038,000 |
Dilutive effect of unvested RSUs and PSUs (in shares) | 403,000 | 149,000 | 243,000 | 152,000 |
Denominator for diluted earnings per share (in shares) | 61,544,000 | 61,756,000 | 61,368,000 | 62,190,000 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 98,000 | 418,000 | 105,000 | 178,000 |
Debt And Derivatives - Schedule of Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Sep. 30, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Term loans | $ 1,318,171 | $ 1,366,314 |
Less: Unamortized debt-issuance costs and discounts | (8,137) | (10,373) |
Total debt | 1,310,034 | 1,355,941 |
Less: Current portion of long-term debt | (86,901) | (63,458) |
Long-term debt | 1,223,133 | 1,292,483 |
Secured Debt | Term Loan A, due 2026 | ||
Debt Instrument [Line Items] | ||
Term loans | 930,000 | 971,250 |
Secured Debt | Term Loan B, due 2028 | ||
Debt Instrument [Line Items] | ||
Term loans | 345,850 | 395,000 |
Revolver | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Term loans | 39,000 | 0 |
Subsidiary loan agreements | ||
Debt Instrument [Line Items] | ||
Term loans | $ 3,321 | $ 64 |
Debt And Derivatives - Narrative (Details) - USD ($) |
Jun. 30, 2023 |
Sep. 30, 2022 |
May 31, 2021 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Annual effective interest rate | 5.90% | ||
Other Assets | |||
Debt Instrument [Line Items] | |||
Fair value of derivative asset | $ 29,700,000 | $ 31,400,000 | |
Revolver | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 600,000,000 | ||
Secured Debt | Interest Rate Swap 1 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 500,000,000 | ||
Secured Debt | Interest Rate Swap 2 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 150,000,000 |
Debt And Derivatives - Schedule of Repayments (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Sep. 30, 2022 |
---|---|---|
Debt Disclosure [Abstract] | ||
July 1, 2023 through September 30, 2023 | $ 24,817 | |
Year ended September 30, 2024 | 85,985 | |
Year ended September 30, 2025 | 92,860 | |
Year ended September 30, 2026 | 779,984 | |
Year ended September 30, 2027 | 3,485 | |
Thereafter | 331,040 | |
Total Payments | $ 1,318,171 | $ 1,366,314 |
Divestitures (Details) - USD ($) $ in Millions |
Mar. 06, 2023 |
Mar. 30, 2023 |
---|---|---|
United Kingdom | ||
Business Combination Segment Allocation [Line Items] | ||
Pre-tax loss on sale of practice | $ 0.6 | |
Total fair value of consideration | $ 16.0 | |
Sweden | ||
Business Combination Segment Allocation [Line Items] | ||
Total fair value of consideration | $ 0.4 |
Fair Value Measurements - Unobservable Inputs (Details) $ in Thousands |
9 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Contingent Consideration | |
Beginning balance | $ 16,236 |
Adjustments to fair value recorded in the period | $ 2,810 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) |
Cash payments | $ (6,662) |
Foreign currency translations | $ 316 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Foreign currency translation adjustments |
Ending balance | $ 12,700 |
Other Balance Sheet Items - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Sep. 30, 2021 |
---|---|---|---|---|
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 35,007 | $ 40,658 | ||
Restricted cash | 56,686 | 96,137 | ||
Cash, cash equivalents, and restricted cash | $ 91,693 | $ 136,795 | $ 110,625 | $ 156,570 |
Other Balance Sheet Items - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Sep. 30, 2022 |
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Obligation payable under receivables purchase agreement | $ 60.7 | |
Receivables purchase agreement, maximum sales amount | $ 200.0 | |
Transfer of financial assets, accounted for as sales | $ 378.4 | |
Cash received from transfer of financial assets | $ 376.3 | |
Receivables purchase program, effective interest rate | 5.20% |
Other Balance Sheet Items - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
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Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Interest payments | $ 59,580 | $ 28,251 |
Income tax payments | $ 60,460 | $ 64,057 |
Other Balance Sheet Items - Details of Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Sep. 30, 2022 |
---|---|---|
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Billed and billable receivables | $ 683,180 | $ 723,979 |
Unbilled receivables | 120,097 | 91,404 |
Allowance for credit losses | (4,768) | (8,273) |
Accounts receivable, net | $ 798,509 | $ 807,110 |
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions |
Aug. 31, 2023 |
Jul. 07, 2023 |
---|---|---|
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Cash dividend declared (in dollars per share) | $ 0.28 | |
Common Stock | Forecast | ||
Subsequent Event [Line Items] | ||
Payments of dividends | $ 17.0 |
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