Maximus Inc (MMS) 2023 Q4 法說會逐字稿

Greetings. Welcome to Maximus Fiscal Year 2023 Fourth Quarter and year-end earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

問候。歡迎參加 Maximus 2023 財年第四季和年終收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Jessica Batt, Vice President of Investor Relations for Maximus. Thank you, Ms. Batt. You may begin.

現在我很高興向您介紹主持人，Maximus 投資者關係副總裁 Jessica Batt。謝謝你，巴特女士。你可以開始了。

Good morning, and thanks for joining us. With me today is Bruce Caswell, President and CEO; David Mutryn, CFO; and James Francis, Vice President of Investor Relations.

早安，感謝您加入我們。今天與我在一起的是總裁兼執行長布魯斯‧卡斯韋爾 (Bruce Caswell)；大衛‧穆特林，財務長；和投資者關係副總裁詹姆斯·弗朗西斯（James Francis）。

I'd like to remind everyone that a number of statements being made today will be forward-looking in nature. Please remember that such statements are only predictions. Actual events and results may differ materially as a result of risks we face, including those discussed in Item 1A of our most recent Forms 10-Q and 10-K. We encourage you to review the information contained in our recent filings with the SEC and our earnings press release. The company does not assume any obligation to revise or update these forward-looking statements to reflect subsequent events or circumstances, except as required by law.

我想提醒大家，今天發表的許多聲明本質上都是前瞻性的。請記住，此類陳述僅是預測。由於我們面臨的風險（包括我們最新的表格 10-Q 和 10-K 的第 1A 項中討論的風險），實際事件和結果可能會存在重大差異。我們鼓勵您查看我們最近向 SEC 提交的文件以及我們的收益新聞稿中包含的資訊。除非法律要求，否則本公司不承擔任何修改或更新這些前瞻性聲明以反映後續事件或情況的義務。

Today's presentation also contains non-GAAP financial information. Management uses this information internally to analyze results and believe it may be informative to investors, engaging the quality of our financial performance, identifying trends and providing meaningful period-to-period comparisons. For a reconciliation of the non-GAAP measures presented, please see the company's most recent Forms 10-Q and 10-K.

今天的演示還包含非 GAAP 財務資訊。管理層在內部使用這些信息來分析結果，並相信它可以為投資者提供信息，了解我們的財務業績質量，識別趨勢並提供有意義的期間比較。有關所提供的非 GAAP 指標的調整表，請參閱本公司最新的表格 10-Q 和 10-K。

And with that, I'll hand the call over to David.

接下來，我會將電話轉交給大衛。

Thanks, Jessica, and good morning. We are pleased to report a solid finish to fiscal year 2023 with 7.4% organic revenue growth and a 10% adjusted operating margin in the fourth quarter reflecting healthy earnings tailwinds that we expect to carry on through fiscal year 2024.

謝謝，傑西卡，早安。我們很高興地報告2023 財年取得了堅實的成果，第四季度的有機收入增長了7.4%，調整後的營業利潤率為10%，這反映出我們預計將在2024 財年繼續保持健康的盈利勢頭。

Last week, we announced that we divested several international employment services businesses in our ongoing effort to strategically shape the outside the U.S. segment and improve profitability and stability. We had robust signed contract awards in the fiscal year of $6.1 billion, which includes successfully defending key recompetes. Our contract backlog that we report annually stepped up again from last year to $20.7 billion, over 4x our trailing revenue. We are executing on our stated capital allocation priorities with debt paydown yielding 2.2x net debt-to-EBITDA at September 30, while also increasing our quarterly cash dividend to $0.30, in line with our commitment to grow the dividend with earnings over time.

上週，我們宣布剝離了幾家國際就業服務業務，以持續努力策略性地塑造美國以外的業務並提高盈利能力和穩定性。我們在本財年簽署了價值 61 億美元的合同，其中包括成功捍衛關鍵的重新競爭。我們每年報告的未完成合約數量比去年再次增加，達到 207 億美元，是往年收入的 4 倍多。我們正在執行我們既定的資本配置優先事項，到9 月30 日，債務償還將產生2.2 倍的淨債務與EBITDA 之比，同時還將我們的季度現金股息增加至0.30 美元，這符合我們隨著時間的推移而增加股息的承諾。

Our fiscal 2024 revenue guidance reflects mid-single-digit organic growth and our earnings guidance implies at or above 30% bottom line growth over fiscal 2023. Finally, the essential nature of our work means that we have excellent insulating properties during periods of uncertainty around government budget. Let me orient you to our revised definition of adjusted EPS.

我們的2024 財年收入指引反映了中等個位數的有機成長，而我們的獲利指引意味著2023 財年的底線成長達到或超過30%。最後，我們工作的本質意味著我們在不確定時期具有優異的絕緣性能。政府預算。讓我向您介紹我們修訂後的調整後每股盈餘的定義。

In addition to adding back intangible amortization expense, now and going forward, we are adjusting for gains, losses or other charges relating to divestitures. While these types of costs have not been large in fiscal year 2023, we are underway with reshaping the Outside the U.S. Segment and it's a process that could last for several more quarters. We have not added the costs related to the cybersecurity incident disclosed last quarter to our list of adjustments, but have provided a pro forma view excluding these costs for improved visibility. There is a slide in the presentation for today's call, which demonstrates the methodology change and identifies the cybersecurity incident cost in fiscal year 2023.

除了增加無形攤銷費用外，現在和未來，我們還在調整與資產剝離相關的收益、損失或其他費用。雖然這些類型的成本在 2023 財年並不大，但我們正在重塑美國以外的細分市場，這個過程可能會持續幾個季度。我們沒有將與上季揭露的網路安全事件相關的成本添加到我們的調整清單中，但提供了排除這些成本的預期視圖，以提高可見度。今天電話會議的簡報中有一張投影片，展示了方法的變化並確定了 2023 財年的網路安全事件成本。

For the full fiscal year, total company revenue increased 5.9% to $4.90 billion. On an organic basis, revenue growth was 7.1% over the prior year and consistent with the mid-single-digit rate that we expect for the business. The growth drivers were a combination of new work as well as growth on existing programs in the U.S. segment, which I'll add more color on in the segment discussion.

整個財年，公司總營收成長 5.9%，達到 49 億美元。在有機基礎上，營收比上年增長 7.1%，與我們對該業務的預期中個位數成長率一致。成長動力是新工作以及美國部分現有專案成長的結合，我將在部分討論中添加更多內容。

On the bottom line, the full fiscal year 2023 adjusted operating income margin was 8.0% and adjusted EPS was $3.83. Three things to note on our full year earnings, which are highlighted on a stand-alone slide in the presentation today.

整體而言，2023 財年調整後營業利益率為 8.0%，調整後每股收益為 3.83 美元。關於我們的全年收益，需要注意三件事，這在今天的簡報中的獨立幻燈片中得到了強調。

Number one, the total impact of the cybersecurity incident in fiscal 2023 was $29.3 million or $0.35. We believe our analysis of affected individuals is complete, and the largest component of costs we've incurred has been related to the required notification. This means adjusted EPS for the full year, excluding the incident was $4.18 and at the high end of our guidance range of $4 to $4.20, excluding the incident costs.

第一，2023 財年網路安全事件的總影響為 2,930 萬美元或 0.35 美元。我們相信我們對受影響個人的分析是完整的，我們所產生的最大成本部分與所需的通知有關。這意味著全年調整後每股收益（不包括事故成本）為 4.18 美元，處於我們指導範圍的上限 4 至 4.20 美元（不包括事故成本）。

Number two, the second half of the year looked quite different from the first half as there were several sizable step-ups in earnings power of the core business as Medicaid redeterminations commenced in the third quarter in U.S. services and volumes ramped on both the Veterans Affairs Medical Disability Exam contracts, which comprise the VES business and the student loan servicing contract in U.S. Federal services.

第二，今年下半年看起來與上半年有很大不同，因為隨著美國服務業第三季度開始重新確定醫療補助計劃，以及退伍軍人事務部的業務量大幅增加，核心業務的盈利能力出現了大幅提升。醫療殘疾考試合同，包括美國聯邦服務中的 VES 業務和學生貸款服務合同。

Number three, on a related note, it's worth highlighting the fourth quarter of this year in which we delivered strong sequential earnings growth as we had expected. U.S. Federal Services benefited from ongoing higher program volumes that I just highlighted and U.S. Services had a full period of Medicaid redetermination. Adjusted EPS for the fourth quarter was $1.29, and adjusted operating income margin was 10.0%. $0.05 were adjusted under our expanded definition and relate to a $2.9 million nontax-deductible asset impairment charge incurred in preparing the recently divested properties for sale. This charge was not contemplated in our fiscal 2023 guidance. Fourth quarter earnings also include a $0.09 detriment from incremental costs incurred related to the Q3 cybersecurity incident meaning, excluding the incident, adjusted EPS would be $1.38 in the quarter.

第三，值得強調的是，今年第四季我們實現了強勁的連續獲利成長，正如我們預期的那樣。美國聯邦服務部受益於我剛才強調的持續增加的計劃量，並且美國服務部經歷了整個醫療補助重新確定期。第四季調整後每股收益為 1.29 美元，調整後營業利益率為 10.0%。 0.05 美元根據我們的擴展定義進行了調整，與準備出售最近剝離的房產時產生的 290 萬美元不可抵稅資產減值費用相關。我們的 2023 財政年度指導中沒有考慮這項費用。第四季收益還包括與第三季網路安全事件相關的增量成本損失 0.09 美元，這意味著，排除該事件，該季度調整後每股收益將為 1.38 美元。

Let's go to the segment results, starting with U.S. Federal Services. For the U.S. Federal Services segment, revenue increased 6.4% to $2.40 billion. All growth was organic and driven predominantly by continued ramp of volumes on the VA medical disability exam contracts as the overall program grows to meet client expectations. The operating income margin for U.S. Federal Services was 10.4% in fiscal 2023 as compared to 10.4% in the prior year. It's worth noting, the segment continued its solid execution by delivering a 12.4% margin in the fourth quarter, which remains slightly above our expected margin range for this segment.

讓我們看看分部結果，首先是美國聯邦服務部。美國聯邦服務部門的營收成長 6.4%，達到 24 億美元。所有增長都是有機增長，主要是由於 VA 醫療殘疾檢查合約量持續增加，因為整個計劃不斷增長以滿足客戶期望。 2023 財年美國聯邦服務業的營業利益率為 10.4%，而前一年為 10.4%。值得注意的是，該部門繼續保持穩健執行，第四季度利潤率為 12.4%，略高於我們對該部門的預期利潤範圍。

For the U.S. Services segment, revenue increased 12.7% to $1.81 billion. All growth was organic and driven by new work wins and our successful conversion of some short-term work into longer-term contracts. Examples include eligibility support contracts in Indiana and Arkansas, long-term care assessment work across the country and a multiyear unemployment insurance contract with California. The U.S. Services operating income margin was 10.1% as compared to 11.3% in the prior year.

美國服務部門的營收成長 12.7%，達到 18.1 億美元。所有成長都是有機的，並由新工作的勝利以及我們成功地將一些短期工作轉換為長期合約所推動。例如，印第安納州和阿肯色州的資格支持合約、全國範圍內的長期護理評估工作以及與加州的多年失業保險合約。美國服務業營業利益率為 10.1%，前一年為 11.3%。

Let me recap the margin trend of this segment. Last year, in fiscal 2022, the first half of the year was overweight from the last of the profitable short-term COVID response work, while the second half of the year was underweight. This year, the first half remained underweight until the paused Medicaid redetermination commenced in the third quarter, yielding margin improvement in the back half of the year as we expected. With the full period contribution of redeterminations U.S. services realized an 11.6% margin in the fourth quarter.

讓我回顧一下該細分市場的利潤率趨勢。去年，2022財年，上半年因新冠肺炎短期應對工作獲利而增持，下半年則減持。今年，上半年一直處於減持狀態，直到第三季開始暫停醫療補助重新確定，下半年利潤率如我們預期有所改善。考慮到重新確定的整個期間貢獻，美國服務業第四季度實現了 11.6% 的利潤率。

For the Outside the U.S. Segment, revenue decreased 9.8% to $689 million. This is net of currency impacts, which reduced revenue by 4.6%. The other 2 declines were roughly equal parts organic contraction from lower volumes on employment services programs across multiple geographies and divested businesses that we announced in the second quarter of fiscal 2023. The segment realized an operating loss of $9 million for fiscal 2023, compared to an operating loss of $15 million in the prior year. This year's loss was attributable to the $14.4 million revenue reduction in the third quarter of this year tied to lower estimates for future outcome-based payments.

美國以外地區的營收下降 9.8% 至 6.89 億美元。這已扣除貨幣影響，收入減少了 4.6%。另外兩次下降大致相當於我們在2023 財年第二季宣布的跨多個地區的就業服務計劃數量減少和剝離業務造成的有機收縮。該部門在2023 財年實現了900 萬美元的營運虧損，而上一年營業虧損 1,500 萬美元。今年的虧損是由於今年第三季營收減少了 1,440 萬美元，原因是對未來基於結果的付款預期較低。

Meanwhile, the segment broke even from a profit standpoint in the fourth quarter, a slightly better result than previously expected. We have acknowledged that this segment is not meeting our financial expectations and are executing focused efforts to reduce volatility. As announced last week and completed in the first quarter of fiscal 2024, we divested 3 more businesses. Specifically the Employment Services division in Canada, along with Singapore and Italy, which were exclusively employment services.

同時，從第四季度利潤的角度來看，該部門實現了盈虧平衡，略好於先前的預期。我們承認該部門未達到我們的財務預期，並正在集中努力減少波動性。正如上周宣布並於 2024 財年第一季完成的那樣，我們又剝離了 3 項業務。特別是加拿大的就業服務部門以及新加坡和義大利，這些部門專門提供就業服務。

Let's turn to the balance sheet and cash flow items. As of September 30, 2023, we had gross debt of $1.26 billion, and we had unrestricted cash and cash equivalents of $65 million. We paid down approximately $60 million of debt in the fourth quarter, which brought our debt ratio to 2.2x at September 30 and near the low end of our stated target range of 2 to 3x. This is down from 2.5x, 1 quarter ago at June 30. As a reminder, this ratio is our debt net of allowed cash to pro forma EBITDA for the last 12 months as calculated in accordance with our credit agreement.

讓我們轉向資產負債表和現金流量項目。截至 2023 年 9 月 30 日，我們的總債務為 12.6 億美元，無限現金和現金等價物為 6,500 萬美元。我們在第四季度償還了約 6000 萬美元的債務，這使我們的債務比率在 9 月 30 日達到 2.2 倍，接近我們既定目標範圍 2 至 3 倍的下限。該比率低於第一季前（6 月 30 日）的 2.5 倍。提醒一下，該比率是根據我們的信貸協議計算的過去 12 個月的債務淨額，扣除允許的現金與預計 EBITDA 的比率。

We had strong cash flows in the fourth quarter to finish the year. Cash flows from operating activities totaled $314 million and free cash flow was $224 million, near the high end of our previous guidance of $190 million to $230 million. Days sales outstanding, or DSO, were 60 days at September 30, 2023, compared to 62 days for the same day last year.

截至今年年底，我們在第四季擁有強勁的現金流。經營活動現金流量總計 3.14 億美元，自由現金流量為 2.24 億美元，接近我們先前指引的 1.9 億美元至 2.3 億美元的上限。截至 2023 年 9 月 30 日，應收帳款週轉天數 (DSO) 為 60 天，而去年同日為 62 天。

Looking forward, our capital allocation priorities are unchanged. First, we fund organic investments, which are typically a combination of capital expenditures and expenses. Second, we maintain a dividend that we intend to grow over time with earnings and as evidenced by the recent quarterly dividend increase announcement to $0.30 per quarter. And third, strategic acquisitions intended to accelerate organic growth. We will continue to evaluate acquisition opportunities with discipline and our strong and improving balance sheet provides capacity should good opportunities arise in fiscal year '24 and beyond.

展望未來，我們的資本配置重點不會改變。首先，我們為有機投資提供資金，這些投資通常是資本支出和費用的組合。其次，我們維持股息，並打算隨著收益的推移而成長，最近的季度股息增加至每季 0.30 美元就證明了這一點。第三，策略性收購旨在加速有機成長。我們將繼續嚴格評估收購機會，如果 24 財年及以後出現良好機會，我們強大且不斷改善的資產負債表將提供能力。

In the near term, we will continue to feather in debt paydown as part of capital deployment. While we still believe 2 to 3x is an appropriate target leverage range, supported by our long-term contracts and high cash conversion. In the current interest rate environment, we have a bias toward the low end of 2x. Looking forward, our guidance for a step up in earnings and free cash flow, absent M&A, would enable a debt ratio of 1.5x by the end of fiscal year 2024. About 50% of our debt is fixed through interest rate swaps, so further delevering efforts will reduce the higher-priced floating rate component.

短期內，我們將繼續減少債務償還，作為資本配置的一部分。儘管我們仍然認為 2 至 3 倍是合適的目標槓桿範圍，但受到我們的長期合約和高現金轉換率的支持。在當前的利率環境下，我們傾向於 2 倍的低端。展望未來，我們對在不進行併購的情況下提高盈利和自由現金流的指導將使債務比率在 2024 財年末達到 1.5 倍。我們約 50% 的債務是透過利率互換固定的，因此進一步去槓桿化努力將減少價格較高的浮動利率部分。

Let's go to fiscal year 2024 guidance. Revenue is projected to be between $5.05 billion and $5.2 billion. Adjusted operating income is estimated to be between $488 million and $513 million. The midpoints of those ranges imply an adjusted OI margin of 9.8% and within our target range of 9% to 12%. Adjusted EPS is projected to be between $5.05 and $5.35 per share. Based on the revenue guide, the $5.125 billion midpoint represents about 5% organic growth over fiscal 2023. The major drivers are first in U.S. federal, higher volumes in the VA medical disability exam contracts and, to a lesser extent, new work across multiple categories.

讓我們來看看 2024 財年的指導。收入預計在 50.5 億美元至 52 億美元之間。調整後營業收入預計在 4.88 億美元至 5.13 億美元之間。這些範圍的中點意味著調整後的 OI 利潤率為 9.8%，在我們 9% 至 12% 的目標範圍內。調整後每股收益預計在 5.05 美元至 5.35 美元之間。根據收入指南，51.25 億美元的中點代表 2023 財年有機增長約 5%。主要驅動力首先來自美國聯邦政府、VA 醫療殘疾檢查合約數量的增加，以及較小程度上跨多個類別的新工作。

Second, in U.S. Services, there is a full period of redeterminations, which as we've reminded before, have a disproportionate benefit to the bottom line. There are also expanded clinical assessment programs contributing to organic growth in the segment. The adjusted EPS guidance includes approximately $70 million of interest expense which equates to about $14 million less than in fiscal year 2023.

其次，在美國服務業，有一個完整的重新決定期，正如我們之前提醒的那樣，這對底線有不成比例的好處。擴大的臨床評估計劃也有助於該領域的有機成長。調整後的每股盈餘指引包括約 7,000 萬美元的利息支出，相當於比 2023 財年減少約 1,400 萬美元。

I'll briefly share our forecast on segment margin. We expect the U.S. Federal Services margin to be in the 11% to 12% range, which represents moving up a notch from last year in the pre-existing target range of 10% to 12% for this segment. We expect our U.S. Services segment margin to be about 11%. Finally, we expect Outside the U.S. to be slightly above breakeven for the year. We expect a more straightforward quarterly profile in fiscal 2024 reflecting the improved stability of the business compared to prior years. Our current view is that operating margin should improve across the year and therefore be modestly higher in the second half than in the first half.

我將簡要分享我們對分部利潤率的預測。我們預計美國聯邦服務利潤率將在 11% 至 12% 範圍內，這意味著該細分市場的現有目標範圍（10% 至 12%）比去年上升了一個檔次。我們預計美國服務部門的利潤率約為 11%。最後，我們預期今年美國以外地區的業績將略高於損益平衡點。我們預期 2024 財年的季度概況將更加直接，反映出與前幾年相比業務穩定性有所提升。我們目前的觀點是，全年營業利潤率應該會有所改善，因此下半年的營業利潤率將略高於上半年。

While redeterminations in U.S. Services are helping more in the first half, we expect margin growth across the rest of the portfolio to contribute to the profile of more steady growth over the year.

雖然美國服務業的重新確定在上半年起到了更大的作用，但我們預計投資組合其餘部分的利潤率成長將有助於全年更穩定的成長。

Lastly, we expect a small loss on sale in the first quarter tied to the completed divestitures, which will be excluded from adjusted EPS. From a cash flow standpoint, we expect free cash flow between $290 million and $340 million for fiscal 2024. We currently expect a slightly negative free cash flow in Q1 and as a result of seasonality and timing of certain payments as has been the pattern in recent years. Some other assumptions around fiscal year 2024 include an estimated $88 million of intangibles amortization expense. The full year effective income tax rate should be between 24.5% and 25.5%, and weighted average shares should be between $62.2 million and $62.3 million.

最後，我們預計第一季將出現與已完成的資產剝離相關的小額銷售損失，該損失將不包括在調整後的每股收益中。從現金流的角度來看，我們預計2024 財年的自由現金流將在2.9 億至3.4 億美元之間。我們目前預計第一季的自由現金流將略有負值，這是由於某些付款的季節性和時間安排造成的，就像最近的模式一樣。年。 2024 財年的其他一些假設包括估計 8,800 萬美元的無形資產攤銷費用。全年有效所得稅率應在24.5%至25.5%之間，加權平均份額應在6,220萬美元至6,230萬美元之間。

Before handing off to Bruce, I want to highlight our resiliency during periods of budget uncertainty with our government customers, particularly those comprising the U.S. federal government. Anytime there is a focus on a potential shutdown it can be a difficult environment to navigate from an outside perspective. For Maximus, our primary focus is assessing any impact that might be expected in our U.S. Federal segment, which is about half the business. Having recently coordinated with our federal customers, we anticipate a significant majority of our contracts would be deemed essential. In fact, our current estimate is that less than 5% of our U.S. Federal segment revenue could be disrupted during a shutdown representing less than 3% of total company revenue. Therefore, we believe our guidance range can accommodate a temporary shutdown with remaining the positive scenario in fiscal year 2024. And though we are cautious about potential collection delays during such an event, we have significant liquidity, including our $600 million line of credit, which was undrawn at the end of fiscal year 2023.

在交給 Bruce 之前，我想向我們的政府客戶（尤其是美國聯邦政府的客戶）強調我們在預算不確定時期的彈性。每當人們關注潛在的關閉時，從外部角度來看，這都可能是一個難以應對的環境。對 Maximus 來說，我們的主要重點是評估美國聯邦部門（約占我們業務的一半）可能產生的影響。在最近與我們的聯邦客戶進行協調後，我們預計我們的大部分合約將被認為是必不可少的。事實上，我們目前的估計是，在停工期間，我們美國聯邦部門的收入中不到 5% 可能會受到干擾，占公司總收入的不到 3%。因此，我們相信我們的指導範圍可以適應暫時關閉，同時保持2024 財年的積極前景。儘管我們對此類事件期間潛在的收款延遲持謹慎態度，但我們擁有大量流動性，包括我們的6 億美元信貸額度，截至 2023 財政年度結束尚未提取。

With that, I will turn the call over to Bruce.

這樣，我會將電話轉給布魯斯。

Thanks, David, and good morning. Our FY '23 results demonstrate the resilience of our business through unstable times and solid progress delivering on our strategy. We entered FY '23 in an unprecedented environment. Both the ongoing public health emergency and the deferral of student loan payments impacted revenue. Inflation rates were growing and hiring of critical health care workers was challenging due to the recent COVID-19 pandemic. The stable core of our business driven by strong rebid year and our essential role in government program delivery enabled us to end the fiscal year with solid financial results and a clear line of sight for FY '24.

謝謝，大衛，早安。我們 23 財年的業績證明了我們的業務在不穩定時期的彈性以及在實現我們的策略方面取得的堅實進展。我們在前所未有的環境中進入了 23 財年。持續的公共衛生緊急情況和學生貸款付款的延遲都影響了收入。由於最近的 COVID-19 大流行，通貨膨脹率不斷上升，招募關鍵醫護人員面臨挑戰。在強勁的再投標年度的推動下，我們業務的穩定核心以及我們在政府計劃交付中的重要作用使我們能夠以穩健的財務業績和 24 財年的清晰願景結束本財年。

In May 2022, we presented our 3- to 5-year strategy with specific areas in which we would focus and grow and supported by an addressable market of $150 billion in annual government spending. Only 2 quarters into the post PHE period, we are pleased with the performance of our segments in meeting their strategic objectives. Full year results for the U.S. Federal Services segment are well within the target range of 10% to 12%, as are the fourth quarter results for U.S. Services, which has a target margin range post PHE of 11% to 14%. Together, these segments drove our ability to meet our total company margin target.

2022 年 5 月，我們提出了 3 至 5 年策略，其中包括我們將重點關注和發展的具體領域，並得到年度政府支出 1500 億美元的潛在市場的支持。後 PHE 時期僅兩個季度，我們對各部門在實現策略目標方面的表現感到滿意。美國聯邦服務部門的全年業績完全在 10% 至 12% 的目標範圍內，美國服務業第四季的業績也是如此，扣除PHE 後的目標利潤率範圍為 11% 至 14%。這些部門共同推動了我們實現公司總利潤率目標的能力。

As David shared, the fourth quarter resulted in an adjusted margin of 10%, successfully delivering on our target of 9% to 12%. Over the longer term, our expectation for further improvement to an adjusted operating income margin of 10% to 14% remains. At Investor Day, we also communicated a commitment to increased growth in our U.S. Federal Services Segment, success of which is evident in both our backlog and pipeline. Just 2 years ago, our U.S. Federal Services Segment accounted for less than half of our backlog. Today, the Segment makes up 2/3 of our backlog. Finally, we committed to mid-single-digit organic growth. As David shared, organic revenue growth for FY '23 was 7.1%, and guidance for FY '24 shows promise for a continuation of this progress.

正如 David 分享的那樣，第四季度的調整後利潤率為 10%，成功實現了我們 9% 至 12% 的目標。從長遠來看，我們仍然期望調整後營業利潤率進一步改善至 10% 至 14%。在投資者日，我們也表達了對美國聯邦服務部門成長的承諾，這項成功在我們的積壓訂單和管道中都是顯而易見的。就在兩年前，我們的美國聯邦服務部門占我們積壓訂單的一半還不到。如今，該部門占我們積壓訂單的 2/3。最後，我們致力於實現中個位數的有機成長。正如 David 分享的那樣，23 財年的有機收入增長率為 7.1%，24 財年的指引顯示了繼續保持這一進展的希望。

During the quarter, we announced a 7% increase in our quarterly dividend, raising it to $0.30 a share. As we stated in the press release, this dividend increase demonstrates our confidence in the earnings growth reflected in our guidance. We remain committed to periodically assessing our dividend and raising it further in line with earnings growth.

本季度，我們宣布季度股息增加 7%，達到每股 0.30 美元。正如我們在新聞稿中所述，此次股息增加顯示了我們對指引中反映的獲利成長的信心。我們仍然致力於定期評估股息並根據獲利成長進一步提高股息。

Now let's turn to fiscal year 2024, which is already off to an impactful start with recent changes made to the Outside the U.S. portfolio. Earlier this month, we announced the divestiture of our employment services businesses in Italy, Singapore and Canada. Throughout fiscal year 2023, we shared our commitment to restructuring and optimizing this segment under appropriate terms and in a manner that aligns with our overall strategy. We have now reduced our OUS footprint by 3 countries in support of that goal.

現在讓我們轉向 2024 財年，隨著美國以外的投資組合最近變化，這一財年已經有了一個富有影響力的開局。本月早些時候，我們宣布剝離義大利、新加坡和加拿大的就業服務業務。在整個 2023 財年，我們承諾以適當的條款並以符合我們整體策略的方式重組和優化該部門。為了支持這一目標，我們現在已將 OUS 足跡減少了 3 個國家。

As I mentioned on our Q3 call, our portfolio shaping will focus on reducing volatility, consisting our footprint, adding diversity to the customers we serve in country and broadening the capabilities we deliver in line with our strategy. We will operate in markets with well-established contracting processes and significant and growing addressable spending. As an example, now a decade into our partnership with the government of the United Kingdom. We have a more diversified portfolio and are delivering broader capabilities than ever before.

正如我在第三季電話會議上提到的，我們的投資組合塑造將專注於減少波動性、擴大我們的足跡、增加我們在該國服務的客戶的多樣性，以及擴大我們根據我們的策略提供的能力。我們將在擁有完善的合約流程和大量且不斷增長的可尋址支出的市場中運作。舉個例子，我們與英國政府的合作已經十年了。我們擁有更多元化的產品組合，並提供比以往更廣泛的功能。

Let me take a step back and talk with you about our strategy as we head into the new fiscal year. The 3 pillars of our 3 to 5 year strategy are supported by significant and growing addressable markets. The capabilities we bring to our mission of moving people and technology forward and our ability to deliver on customer priority, with differentiation and sustainable competitive advantage. With the relentless pace of technology, what was considered cutting edge 2 years ago is becoming table stakes. As the market moves, we are investing in anticipation of evolving customer needs. While the obvious example is AI in its many forms. There are others such as provisioning and managing secure hybrid cloud environments. Cloud-native development and digital modernization, more generally leveraging DevSecOps capabilities. With this evolution in mind, our teams are operating with agility, mapping our capabilities to the priorities of our customers right now and with an eye toward what is to come.

讓我退後一步，與您談談我們進入新財年時的策略。我們 3 至 5 年策略的三大支柱得到了重要且不斷成長的潛在市場的支持。我們為實現推動人員和技術進步的使命而提供的能力，以及以差異化和可持續競爭優勢實現客戶優先的能力。隨著技術的不斷進步，兩年前被認為是尖端技術的技術正在成為一個賭注。隨著市場的變化，我們正在投資於預測不斷變化的客戶需求。最明顯的例子是多種形式的人工智慧。還有其他一些，例如配置和管理安全的混合雲環境。雲端原生開發和數位現代化，更普遍地利用 DevSecOps 功能。考慮到這種演變，我們的團隊正在靈活地運營，將我們的能力與客戶當前的優先事項結合起來，並著眼於未來。

Let me share a few examples. Within our technology modernization pillar, the strong pipeline of federal agency IT systems procurements like the IRS EDOS contract, reflects legacy environments requiring modernization, citizen demand for a more digital government and today's cybersecurity challenges. We've refined the priorities of our strategy to include greater emphasis on cybersecurity where we're focused on cyber automation, Zero Trust, engineering and operations and digital forensics. We have also deepened our capabilities in cloud-enabled services, data management and hyperautomation. As trusted advisers, we will empower our customers to make data-driven decisions that advance their mission and enhance their customers' experiences.

讓我分享幾個例子。在我們的技術現代化支柱中，聯邦機構 IT 系統採購（例如 IRS EDOS 合約）的強大管道反映了需要現代化的遺留環境、公民對數位政府的需求以及當今的網路安全挑戰。我們改善了策略的優先事項，更加重視網路安全，並專注於網路自動化、零信任、工程和營運以及數位取證。我們也深化了雲端服務、資料管理和超自動化方面的能力。作為值得信賴的顧問，我們將幫助客戶做出數據驅動的決策，以推進他們的使命並增強客戶體驗。

Within the future of Health pillar, we're supporting our government customers as they respond to trends such as an equitable access to care and increasing levels of chronic disease against the backdrop of rising costs. Within our suite of services, we have long helped governments ensure equitable access to our independent and conflict preassessments delivered at unmatched scale in our markets.

在未來的健康支柱中，我們將支持政府客戶應對各種趨勢，例如在成本上升的背景下公平獲得照護和慢性病水準上升等趨勢。在我們的服務套件中，我們長期以來一直幫助政府確保公平地獲得我們在市場上以無與倫比的規模提供的獨立和衝突預評估。

Looking forward, we're focused on a balanced approach to using technology to further improve access and the customer experience while supporting our thousands of clinical staff in their work with some of our most vulnerable citizens. Already, we are investing in solutions that improve areas such as care navigation, tele-assessments and independent quality assurance. I'm also encouraged by recent progress we've made in addressing population health challenges through our integrated lifestyle and well-being services in the United Kingdom.

展望未來，我們將專注於採取平衡的方法，利用技術進一步改善訪問和客戶體驗，同時支持我們數千名臨床工作人員與一些最脆弱的公民開展工作。我們已經在投資改善護理導航、遠端評估和獨立品質保證等領域的解決方案。我也對英國最近透過綜合生活方式和福祉服務應對人口健康挑戰所取得的進展感到鼓舞。

Finally, within our customer services digitally enabled pillar, our success developing and delivering award-winning mobile applications and program-specific portals has improved equitable access to critical benefits. This has been especially important for example, with the resumption of Medicaid eligibility determinations for tens of millions of Americans. Eliminating barriers like printed documents, faxing and wet signatures in partnership with our customers incrementally improves access and health equity. As we look forward, our values will continue to guide our balanced approach to using technology to improve, not only the citizen experience but to support our employees. To that end, our 2023 global employee engagement survey independently administered by PricewaterhouseCoopers, witnessed a robust 76% employee participation. Of those surveyed, 76% stated that they would recommend Maximus as a great place to work. While we're proud of that result, our culture is to focus on how we can do better. With the majority of our employees delivering essential services to Citizens, supporting them with competitive pay and benefits and providing opportunities for their continued development and satisfaction, doing meaningful work remain our focus.

最後，在我們的數位化客戶服務支柱中，我們成功開發和提供屢獲殊榮的行動應用程式和特定計劃的入口網站，改善了關鍵利益的公平獲取。例如，隨著數千萬美國人恢復醫療補助資格確定，這一點尤其重要。與我們的客戶合作，消除印刷文件、傳真和濕簽名等障礙，逐步改善取得和健康公平。展望未來，我們的價值觀將繼續指導我們使用科技的平衡方法，不僅改善公民體驗，也支持我們的員工。為此，我們由普華永道獨立管理的 2023 年全球員工敬業度調查顯示，員工參與度高達 76%。在受訪的人中，76% 表示他們會推薦 Maximus 作為一個理想的工作場所。雖然我們對此結果感到自豪，但我們的文化是專注於如何做得更好。我們的大多數員工為公民提供基本服務，為他們提供有競爭力的薪酬和福利，並為他們提供持續發展和滿意度的機會，做有意義的工作仍然是我們的重點。

Over the last few quarters, we've shared details about our journey with innovation. Across our organization, innovation creates differentiating capabilities and bolsters our efforts to be best-in-class while remaining cost competitive. In the past, we've shared innovative technologies we have patented as well as use cases in pilot phases.

在過去的幾個季度中，我們分享了有關我們創新之旅的詳細資訊。在我們的整個組織中，創新創造了差異化的能力，並支持我們在保持成本競爭力的同時成為一流的努力。過去，我們分享了我們已申請專利的創新技術以及試點階段的用例。

Today, I'd like to discuss 2 additional ways in which our teams are innovating. First, I'm excited to announce that we have established Maximus Ventures, our corporate venture capital function. Through this CVC, which will be spearheaded by our corporate development team, we will invest in innovative start-ups that share our forward-thinking vision for government. Our objective is to partner with innovative companies to learn about and gain unique access to disruptive capabilities while creating growth opportunities for Maximus.

今天，我想討論我們團隊創新的另外兩種方式。首先，我很高興地宣布，我們已經成立了 Maximus Ventures，這是我們的企業創投職能部門。透過這個由我們的企業發展團隊主導的 CVC，我們將投資於與我們有著共同的政府前瞻性願景的創新新創公司。我們的目標是與創新公司合作，了解並獲得獨特的顛覆性能力，同時為 Maximus 創造成長機會。

The Maximus Ventures team has developed a disciplined methodology that includes specific selection criteria based on identified innovation needs that are critical to our priority core markets and largest contracts and tested through pilot programs. While we're in the very early stages, we've started to develop several relationships with seed to Series C partners. Through thoughtful investments, we'll work with companies to challenge the status quo develop transformative solutions, solve complex problems and reimagine the future of health and human services programs. More information on Maximus Ventures will be available on our website in the coming weeks.

Maximus Ventures 團隊開發了一套嚴格的方法，其中包括基於已確定的創新需求的具體選擇標準，這些需求對我們的優先核心市場和最大的合約至關重要，並通過試點計劃進行了測試。雖然我們還處於早期階段，但我們已經開始與種子輪到 C 輪合作夥伴建立多種關係。透過深思熟慮的投資，我們將與公司合作，挑戰現狀，開發變革性解決方案，解決複雜的問題，並重新構想健康和人類服務計畫的未來。有關 Maximus Ventures 的更多資訊將在未來幾週內在我們的網站上提供。

Where the CVC demonstrates our efforts to generate new opportunities by way of external investments, our internally focused Maximus Spark tank elevates great teams and ideas. Our employees have the greatest awareness of our day-to-day operations and are well positioned to identify and successfully implement opportunities for innovation. The Spark tank provides a support structure throughout a gated process that starts with the business case and ends with investment and implementation. My personal favorite gate in the process is, of course, the Spark Tank session, during which selected teams are invited to pitch their business cases to a diverse panel of organizational leaders. I had the pleasure of attending the most recent session and witnessed the passion our teams bring for how their solutions will bring us closer to our customers and their missions. Maximus Ventures and the Spark Tank are just 2 examples of the many ways teams across the organization are being encouraged to collaborate and drive innovation.

CVC 展示了我們透過外部投資創造新機會的努力，而我們專注於內部的 Maximus Spark 坦克則提升了優秀的團隊和創意。我們的員工對我們的日常營運有著最深入的了解，並且能夠很好地識別並成功實施創新機會。 Spark Tank 在整個封閉流程中提供支援結構，從業務案例開始，到投資和實施結束。當然，在這個過程中我個人最喜歡的環節是 Spark Tank 會議，在此期間，選定的團隊會被邀請向不同的組織領導者小組推銷他們的業務案例。我很高興參加最近的會議，並見證了我們的團隊對他們的解決方案如何拉近我們與客戶及其使命的距離所帶來的熱情。 Maximus Ventures 和 Spark Tank 只是鼓勵整個組織團隊協作和推動創新的多種方式的兩個例子。

With respect to FY '24, I spent some time discussing the refinement of our strategy and our commitment to innovation. Now let me turn to our pipeline.

關於 24 財年，我花了一些時間討論我們策略的完善和我們對創新的承諾。現在讓我談談我們的管道。

For the fourth quarter of fiscal 2023, signed awards totaled $6.1 billion of total contract value, up from $4.3 billion last quarter. Further, at September 30, there were $878 million worth of contracts that have been awarded but not yet signed. These awards translate into a book-to-bill of approximately 1.2x for the trailing 12-month period.

2023 財年第四季度，已簽約合約總價值達 61 億美元，高於上季的 43 億美元。此外，截至 9 月 30 日，已有價值 8.78 億美元的合約已授予但尚未簽署。這些獎項意味著過去 12 個月內的訂單出貨比約為 1.2 倍。

Let's turn our attention to our pipeline of opportunities. Our pipeline at September 30 was $37.1 billion, compared to $32.1 billion reported in the third quarter of fiscal 2023. This September 30 pipeline is comprised of approximately $1.2 billion in proposals pending, $967 million in proposals in preparation and $34.9 billion in opportunities tracking. Of our total pipeline of sales opportunities, 76% represents new work. Additionally, 60% of the $37.1 billion total pipeline, is attributable to our U.S. Federal Services segment.

讓我們把注意力轉向我們的機會管道。截至9 月30 日，我們的籌措資金為371 億美元，而2023 財年第三季報告的籌措資金為321 億美元。截至9 月30 日的籌措資金包括約12 億美元的待決提案、9.67億美元的準備中提案和349 億美元的機會追蹤。在我們所有的銷售機會中，76% 是新作品。此外，371 億美元總管道中的 60% 來自我們的美國聯邦服務部門。

With fiscal year 2024 largely ahead of us. Many companies are commenting on global conditions creating an unprecedented environment of VUCA, or volatility, uncertainty, complexity and ambiguity. In our view, however, we see a return to a more stable macro. For the first time in many quarters our core business-long an engine of growth itself- is delivering its full scope of services to our federal and state customers. Our reshaping of the Outside of the U.S. portfolio has progressed and while not complete, means we're on a path to reducing volatility in performance. The essential nature of the services we provide governments provides welcome insulation from the uncertainty of a budget showdown or even government shutdown. The complexity of challenges facing government such as modernizing legacy systems environments, benefits companies like ours that have proven capacity to deliver technology and services at scale.

2024 財年即將到來。許多公司都在評論全球條件創造了前所未有的 VUCA 環境，即波動性、不確定性、複雜性和模糊性。然而，我們認為，我們看到宏觀經濟正在回歸更穩定的狀態。許多季度以來，我們的核心業務（長期以來一直是成長的引擎）首次為我們的聯邦和州客戶提供全方位的服務。我們對美國以外投資組合的重塑已經取得進展，雖然尚未完成，但這意味著我們正在減少業績波動。我們為政府提供的服務的基本性質使我們免受預算攤牌甚至政府關閉的不確定性的影響。政府面臨的複雜挑戰（例如對遺留系統環境進行現代化改造）使像我們這樣的公司受益，這些公司已經證明有能力大規模提供技術和服務。

And finally, we are unambiguous in our focused execution of our 3 to 5 strategy and continued progressive achievement of the 10% to 14% total company adjusted operating income margin and mid-single-digit organic growth targets we have established.

最後，我們明確地專注於執行 3 至 5 策略，並繼續逐步實現公司調整後營業利潤率 10% 至 14% 以及我們制定的中個位數有機成長目標。

In closing, as I've mentioned on prior calls, we recognize the importance of optimizing our organization for the future. To that end, through an effort we call Maximus Forward, we continue to evaluate, benchmark and in some cases, clean sheet the design, processes and resources that drive our delivery. With a balanced approach to improving efficiency and investment in the future, our Maximus Forward initiative is central as well to keeping us an employer of choice and creating greater opportunities through growth for our thousands of valued employees.

最後，正如我在先前的電話會議中提到的，我們認識到優化未來組織的重要性。為此，透過我們稱之為「Maximus Forward」的努力，我們繼續評估、基準測試，並在某些情況下清理推動我們交付的設計、流程和資源。我們的 Maximus Forward 計劃採用平衡的方法來提高效率和未來投資，這對於保持我們成為首選雇主並透過為我們數千名有價值的員工的成長創造更多機會至關重要。

And with that, we'll open the line for Q&A. Operator?

接下來，我們將開通問答熱線。操作員？

(Operator Instructions) Our first question is from Charlie Strauzer with CJS Securities.

（操作員說明）我們的第一個問題來自 CJS 證券的 Charlie Strauzer。

Could we talk a little bit about the guidance and looking back at the August call, you mentioned kind of using Q4 as a good run rate proxy for next year. And I just want to just -- the ranges feel a little conservative and hoping to get a little bit more color and commentary behind that, if you don't mind.

我們能否談談指導並回顧 8 月的電話會議，您提到使用第四季度作為明年的良好運行率代理。我只是想——這些範圍感覺有點保守，希望能得到更多的色彩和評論，如果你不介意的話。

Sure. I'll take it, Charlie. I'll start by saying we believe our official guidance here looks very much like our early view of the year that we did share in August. So that was based on our Q4 adjusted EPS forecast of $1.22 to $1.42, to $1.32 being the midpoint, and that would be $5.28 on an annualized basis. So that would fall between our guided midpoint and high end, which is $5.35. So we do feel good. We also said on the last call that we saw a good line of sight to mid-single-digit organic revenue growth and 10% adjusted OI margin, which is right on the mark of our official guidance here of about 5% organic growth and 9.8% adjusted OI margin at the midpoint.

當然。我會接受的，查理。首先我要說的是，我們相信我們的官方指導看起來非常像我們在八月分享的對今年的早期看法。這是基於我們第四季度調整後每股收益預測為 1.22 美元至 1.42 美元，中間值為 1.32 美元，按年化計算為 5.28 美元。因此，該價格將介於我們指導的中點和高端之間，即 5.35 美元。所以我們確實感覺很好。我們也在上次電話會議中表示，我們看到了中位數有機收入成長和 10% 調整後 OI 利潤率的良好前景，這正好符合我們官方指導的約 5% 有機增長和 9.8% 的目標%調整後的OI 裕度中點。

Great. And then looking at U.S. Services, obviously, you're starting to see some good top line growth there. Obviously, it looks like there's some room to improve the margins there, and ultimately, the bottom line, when might you have some room to improve that?

偉大的。然後看看美國服務業，顯然，你開始看到一些好的收入成長。顯然，看起來利潤率還有提高的空間，最終的底線，你什麼時候才有提高的空間？

Yes. Great question. So stepping back, we guided them at 11% adjusted OI margin, which is at the lower end of the 11% to 14% range that we've set out for them. First, maybe I'll cover just kind of the redetermination impact there. While, again, I always say it's difficult to precisely estimate. We do continue to see that contribution in line with the $0.15 to $0.30 range that we've given before. And I think you can see that just by looking at the total U.S. services OI, which in Q1 and Q2 of fiscal year '23 was more in the $40 million range per quarter. And then in Q4, it was at $55 million. So kind of a $15 million OI increase really driven by the redeterminations.

是的。很好的問題。因此，退一步來說，我們指導他們調整後的持股利潤率為 11%，這是我們為他們設定的 11% 至 14% 範圍的下限。首先，也許我會討論重新決定的影響。不過，我總是說很難精確估計。我們確實繼續看到這一貢獻與我們之前給出的 0.15 美元至 0.30 美元的範圍一致。我認為，只要看看美國服務業的 OI 總額就可以看出這一點，在 23 財年的第一季和第二季度，每季的 OI 都在 4000 萬美元左右。然後在第四季度，這一數字達到了 5500 萬美元。因此，OI 增加了 1500 萬美元，這實際上是由重新決定推動的。

To your point, that we have seen a lot of growth in that segment. Revenue grew 12.7% in fiscal year '23. And some of that growth has come in at a lower than average margin and it's putting some pressure on the overall segment margin. And this, combined with our normal course business erosion has had a slight shift in the mix of contract profitability in the segment. But I would agree with you, and we're optimistic that there's room for improvement here. The segment is well suited for margin improvement with further adoption of technology, in many cases, which we control and also in natively higher mix of performance-based work. So we do see a good opportunity for improvement from here.

就您而言，我們已經看到該領域的巨大成長。 '23 財年營收成長 12.7%。其中一些成長的利潤率低於平均水平，這給整個細分市場的利潤率帶來了一些壓力。再加上我們正常業務的侵蝕，該領域的合約獲利能力發生了輕微的變化。但我同意你的觀點，我們樂觀地認為這裡還有改進的空間。該細分市場非常適合透過進一步採用技術來提高利潤率，在許多情況下，我們控制這些技術，並且在基於績效的工作中本身​​也有更高的組合。所以我們確實從這裡看到了一個很好的改進機會。

Our next question is from Bert Subin with Stifel.

我們的下一個問題來自 Bert Subin 和 Stifel。

David, I think this is really just sort of a follow-up question for you on the margin front. Can you maybe give some color on how to think about that $0.15 to $0.30 range on redeterminations? Is that just sort of operating closer to $0.30 in the first half of the year baked into guidance? Or is that an opportunity? And then just sort of longer term on the margin front, you had given the near-term range of 9% to 12% longer term, 11% to 14% sort of sitting here at [9.8%] for this year despite what would seem like very accretive tailwinds from redeterminations in the VA business. So can you just maybe give us a walk on how to think through the margins getting up to at some point, a 12.5% number from where we are today?

大衛，我認為這實際上只是你在保證金方面的一個後續問題。您能否就如何考慮重新確定的 0.15 美元到 0.30 美元範圍提供一些說明？今年上半年的股價是否接近 0.30 美元，是否已納入指引？或者說這是一個機會？然後，就利潤率而言，從長期來看，您給出的短期範圍為 9% 至 12%，長期來看，今年的利潤率為 9.8%，為 11% 至 14%，儘管看起來似乎如此就像退伍軍人事務部業務重新決定帶來的非常有利的推動力。那麼，您能否向我們介紹如何思考在某個時刻將利潤率提高到目前水準的 12.5%？

Yes. Great. I'll start and hand it to Bruce for comments as well. On the redeterminations, as I said, we are in that range, and I'm hesitant to give you a precise number because it's impossible to get too precise on it. But I think I would point out that as a result of the volume -- the higher volumes during this unwind period, we do expect a slightly higher margin in the U.S. Services segment in the first half of our fiscal year '24. Than in the second half as those volumes will moderate down somewhat. So as we previously said, the peak of those redeterminations would occur in the first half, that remains our assumption, and we're seeing it that way. Maybe I'll pass to Bruce for the longer-term margin.

是的。偉大的。我將開始並將其交給 Bruce 以徵求意見。關於重新確定，正如我所說，我們處於這個範圍內，我猶豫是否要給你一個精確的數字，因為不可能得到太精確的數字。但我想我要指出的是，由於在這個放鬆期間銷量較高，我們確實預計 24 財年上半年美國服務業的利潤率會略高。與下半年相比，這些交易量將會放緩。正如我們之前所說，這些重新決定的高峰將出現在上半年，這仍然是我們的假設，我們也是這樣看待的。也許我會把長期利潤交給藍調。

Sure. As we've been saying, the midpoint of our FY '24 guidance implies a 9.8% margin, but we do have confidence in our ability to get to the 10% to 14% over time. So our 3 to 5 year strategy laid out the achievement of that with attention and focus in some very specific areas. So I want to highlight 3 of those areas, if I can.

當然。正如我們所說，我們 24 財年指導的中點意味著利潤率為 9.8%，但我們確實對隨著時間的推移達到 10% 至 14% 的能力充滿信心。因此，我們的 3 到 5 年策略制定了這一目標，並專注於一些非常具體的領域。因此，如果可以的話，我想強調其中 3 個領域。

Two of the pillars of our strategy are technology modernization and future of health and the work associated with those tend to have higher margins generally. So as we get more of that work in the pipeline and convert that to backlog, that will naturally help us achieve our targets. And I would just say our pipeline -- I feel that our pipeline is well weighted in those areas.

我們策略的兩個支柱是技術現代化和健康的未來，與這些相關的工作通常具有更高的利潤。因此，當我們在管道中獲得更多工作並將其轉化為積壓工作時，這自然會幫助我們實現目標。我只想說我們的管道 - 我覺得我們的管道在這些領域佔據了很好的權重。

The second point would be that we've had some internal programs that we're focusing on that are really focused on ensuring that the company is set up for success over the longer term in the execution of the strategy, and that includes improving efficiencies. I mentioned -- I mentioned during my prepared remarks, the program Maximus Forward and how that's a balance of really rethinking and driving greater efficiencies in the business, but also making investments in our future. And those are important initiatives that we'll continue to execute on and that we would expect to see the benefit from as we roll through FY '24, but really more in FY '25.

第二點是，我們已經制定了一些我們關注的內部計劃，這些計劃真正專注於確保公司在策略執行方面取得長期成功，其中包括提高效率。我在準備好的演講中提到了 Maximus Forward 計劃，以及如何在真正重新思考和提高業務效率以及對我們的未來進行投資之間取得平衡。這些都是我們將繼續執行的重要舉措，我們希望在 24 財年（尤其是 25 財年）中看到更多好處。

Then finally, we're continuing our efforts to properly shape and size it Outside the U.S. portfolio in that segment's business. And we would expect that through our further actions there, we'd see an improvement in total company margins. So number of those things really taken together provide us the confidence that we can move into that range as we mentioned.

最後，我們將繼續努力在美國以外的該細分市場業務中適當調整和調整其投資組合。我們預計，透過我們在那裡採取的進一步行動，我們將看到公司總利潤率的改善。因此，將這些事情綜合起來，讓我們有信心進入我們所提到的範圍。

Okay. Got it. That helps. And maybe just a clarification before I -- before my follow-up. David, on the prepared remarks, you said you expect margins to build sequentially through the year. So I guess you're highlighting the fact that there are, I guess, better tailwinds in the second half even relative to that peak performance on redeterminations in the first half?

好的。知道了。這有幫助。也許只是在我進行後續行動之前先澄清。大衛，在準備好的發言中，您表示預計今年的利潤率將逐年增加。所以我想你是在強調這樣一個事實，即相對於上半年重新決定的最佳表現，我認為下半年會有更好的順風？

Yes. And I'm glad you asked because that's a good thing to highlight that despite the fact that redeterminations are expected to contribute a little more in the first half than the second half, we see the rest of the portfolio more than overcoming that. And therefore, we do see sequential margin improvement in total over the course of the year.

是的。我很高興你問這個問題，因為這是一件好事，要強調的是，儘管重新確定預計上半年的貢獻會比下半年多一些，但我們看到投資組合的其餘部分不僅僅克服了這一點。因此，我們確實看到今年整體利潤率有所改善。

Okay. Got it. And just for my follow-up, maybe, I guess, focusing on the other side on sales, your recompete profile is pretty low this year, and you have those -- several of those notable tailwinds that you highlighted between the VA, Medicaid and other new work. As you think about the potential to get from mid- to high single digits this year, what would have to happen for that to play out? Is that just a function of new awards materializing faster EDOS task orders coming out? Are there specific items that you'd be watching that gets you to maybe above or below the 5% range when it's all said and done?

好的。知道了。我想，就我的後續行動而言，也許，我想，重點關注另一邊的銷售，今年你們的重新競爭形象相當低，而你們有這些——你們強調的退伍軍人管理局、醫療補助和其他新作品。當您考慮今年實現中位數到高個位數的潛力時，需要發生什麼才能實現這一目標？這是否只是新獎項實現了更快的 EDOS 任務訂單的結果？當一切都說完了之後，您是否會關註一些特定的項目，讓您的評分可能高於或低於 5% 的範圍？

Sure. Bert, it's Bruce. I'll take that. You're headed in the right direction with your assumptions, your intuition on that. I mean as you said, what's really underpinning the growth as it presently stands is really strong performance in the VA Medical Disability Exam area as well as redeterminations. And certainly, further surges in volume and activity in those areas could contribute meaningfully to a growth rate higher than the current mid-single digits that we're seeing.

當然。伯特，我是布魯斯。我會接受的。你的假設和直覺正朝著正確的方向前進。我的意思是，正如您所說，目前真正支撐成長的是 VA 醫療殘疾考試領域的強勁表現以及重新確定。當然，這些領域的交易量和活動的進一步激增可能會顯著促進成長率高於我們目前看到的中個位數。

At the same time, we're now kind of in the back half of the redetermination window, and that activity will come to an end in kind of the, I'd say, the May, maybe June time frame of 2024. So the likelihood that significant states would at this point, say, well, we need additional health and so forth is diminishing. That said, since the last time we were together on a call, I'm pleased that work in that area has picked up, and in fact, one of our state clients, our current state clients really asked for a great deal of more assistance, and that's reflected in the numbers that we've talked about today. So the underpinning, as you said, is exactly those in kind of those 2 areas.

同時，我們現在正處於重新確定窗口的後半段，該活動將在 2024 年 5 月、也許 6 月的時間框架內結束。重要國家此時說，好吧，我們需要額外的健康等等的可能性正在減少。也就是說，自從我們上次一起通話以來，我很高興該領域的工作有所改善，事實上，我們的一個國家客戶，我們當前的國家客戶確實需要更多的幫助，這反映在我們今天討論的數字中。因此，正如您所說，基礎正是這兩個領域的基礎。

But I would highlight 2 others. You talked about pipeline. We're seeing a nice growth in clinical work in our U.S. services business as well as a solid pipeline of states that are progressing towards, what are called Modular Medicaid Management Information Systems, or MMIS systems. And that movement towards modularity continues, and in particular, one of the solution areas that we're focused on is Medicaid provider credentialing and enrollment. We provide those services to a number of states presently. There's a healthy pipeline for that type of work. And so we're going to continue to prosecute that, and we would think that further awards and conversion to backlog there could be beneficial to the growth of the company this year and certainly into next year.

但我要強調另外兩個。您談到了管道。我們看到美國服務業務的臨床工作取得了良好的成長，並且各州正在向所謂的模組化醫療補助管理資訊系統（MMIS）系統邁進。模組化的趨勢仍在繼續，特別是，我們關注的解決方案領域之一是醫療補助提供者的認證和註冊。我們目前向許多州提供這些服務。此類工作有一個健康的管道。因此，我們將繼續這樣做，我們認為進一步的獎勵和積壓訂單的轉換可能有利於公司今年的成長，當然還有明年的成長。

And then secondly is really -- you touched on the federal IT modernization area and more specifically, pipeline opportunities related to cloud enablement, cybersecurity systems management needs and so forth across federal agencies. EDOS is a good example. We're pleased to see initial task order flow coming through EDOS and we feel like we're very well positioned for that work. I should note that we don't contemplate significant contribution presently from EDOS task orders in this fiscal year. So any further task orders or significant wins in that through that vehicle would be meaningful. But also, there are a number of procurements in that technology modernization space that have been held up with the protests that if they were to be resolved in the early quarters of this year and fall in our favor, we could see them contribute more meaningfully as well in FY '24. So it's really -- it's a mix of things. But David, is there anything further that you would add?

其次，您確實談到了聯邦 IT 現代化領域，更具體地說，涉及聯邦機構之間與雲端支援、網路安全系統管理需求等相關的管道機會。 EDOS 就是一個很好的例子。我們很高興看到最初的任務訂單流程透過 EDOS 完成，我們覺得我們已經做好了這項工作的準備。我應該指出，我們目前不認為 EDOS 任務訂單對本財年有重大貢獻。因此，透過該車輛獲得的任何進一步的任務訂單或重大勝利都將是有意義的。而且，科技現代化領域的許多採購都因抗議而被擱置，如果這些採購能夠在今年稍早解決並對我們有利，我們可以看到它們做出更有意義的貢獻，因為24 財年表現良好。所以這確實是多種因素的混合體。但大衛，你還有什麼要補充的嗎？

Yes. Just to pull the string on one thing you mentioned, entering any year, we tend to have strong visibility into our revenue guidance, meaning more than 90% of our guided revenue is typically already in backlog. This year is no exception there. In fact, as you mentioned, we've really had 2 really strong years of rebid success. And we do see FY '24 having lower rebid volume, which provides an even higher degree of visibility than we may normally have coming into the year. So while there's a component of new business as always, that we assume there is potential for additional success there to drive further top line growth.

是的。只是為了控制你提到的一件事，進入任何一年，我們往往對我們的收入指導有很強的可見性，這意味著我們指導收入的 90% 以上通常已經積壓。今年也不例外。事實上，正如您所提到的，我們已經在兩年內取得了非常強勁的再投標成功。我們確實看到 24 財年的再投標量較低，這提供了比我們今年通常更高的可見度。因此，儘管一如既往地有新業務的組成部分，但我們認為那裡有可能取得額外的成功，以推動收入進一步成長。

We now have a follow-up from Charlie Strauzer with CJS Securities.

我們現在有來自 CJS 證券的 Charlie Strauzer 的後續報導。

Just a couple of quick follow-ups. First of all, on the cybersecurity breach, are you anticipating any more potential expense leakage into next year in your guidance?

只需幾個快速跟進。首先，關於網路安全漏洞，您是否預計明年會有更多潛在的費用洩漏？

Yes, I'll take that. As I said in my prepared remarks, we're substantially complete with the analysis of impacted individuals and the largest component of the costs we've incurred to date have been related to those required notifications that came out of that. So right now, based on our best forecast of current proceedings and the associated costs, our guidance for fiscal year '24 does not contemplate material costs for further notifications or legal and consulting fees, which has been most of what we've incurred to date. However, we should point out that as detailed in our forthcoming 10-K, there are a number of class action suits that have been filed related to the incidence and we're not now able to determine or predict the ultimate outcome of any of those proceedings or provide an estimate or range of the possible outcome of those.

是的，我會接受的。正如我在準備好的發言中所說，我們基本上完成了對受影響個人的分析，迄今為止我們所產生的成本的最大組成部分與由此產生的所需通知有關。因此，目前，根據我們對目前訴訟程序和相關成本的最佳預測，我們對24 財年的指導並未考慮進一步通知或法律和諮詢費用的重大成本，而這些費用是我們迄今為止所產生的大部分費用。然而，我們應該指出，正如我們即將發布的 10-K 中所詳述的，已經提起了許多與該事件相關的集體訴訟，我們現在無法確定或預測其中任何一個的最終結果程序或提供這些程序可能結果的估計或範圍。

Got it. And then just shifting gears to the international businesses, obviously, the divestitures. Divested a few of them already. Could we expect to see some more news on that front in terms of portfolio optimization, if you will?

知道了。然後將注意力轉向國際業務，顯然是資產剝離。已經剝離了其中一些。如果願意的話，我們是否可以期待在投資組合優化方面看到更多這方面的新聞？

Yes, Charlie, it's Bruce. I'll take that. I mentioned in my prepared remarks that we really -- we feel that, that our work there is not done and it will continue into the coming quarters of this year. And at the same time, as I did on the last call, I wanted to kind of lay out what the characteristics are of the business that we see in the future outside the U.S. And the example I used in my prepared remarks was really with the United Kingdom and the work that we do there. It's a customer that we probably enter that market easily a decade ago, maybe a little bit more and have over time built a broad and increasingly diversified business in terms of the services that we provide. And while the Department for Work and Pensions remains our single largest customer, I've been pleased with our ability to move work into other departments and agencies. And U.K. has long been a government that has a very, I think, fair model and for contracting with the private sector. And we have found it to be a good customer to work with.

是的，查理，是布魯斯。我會接受的。我在準備好的發言中提到，我們確實認為我們在那裡的工作尚未完成，並將持續到今年的未來幾季。同時，正如我在上次電話中所做的那樣，我想闡述我們未來在美國以外地區看到的業務的特徵。我在準備好的發言中使用的例子實際上是英國以及我們在那裡所做的工作。我們可能在十年前就很容易進入這個客戶市場，也許更多一點，隨著時間的推移，我們在提供的服務方面建立了廣泛且日益多元化的業務。雖然工作和退休金部仍然是我們最大的客戶，但我對我們將工作轉移到其他部門和機構的能力感到滿意。我認為，英國長期以來一直是一個擁有非常公平的模式並與私營部門簽訂合約的政府。我們發現它是一個很好的合作客戶。

And in fact, over time, have become really known as a strategic supplier in that market. So I think the net-net is that we're comfortable with a smaller footprint, concentrating our efforts in areas like that where we can offer the full range of services and capabilities that we have as a company. And most importantly, quite substantial markets. My latest recollection was that the U.K. represents a $6 billion addressable market, and it has meaningful growth characteristics that align with the strategic capabilities that we've outlined over our 3- to 5-year plan. So hopefully, that gives you a bit more color in terms of our direction of travel.

事實上，隨著時間的推移，我們已經成為該市場真正知名的策略供應商。因此，我認為網路是我們對較小的足跡感到滿意，將我們的努力集中在我們可以提供我們作為一家公司所擁有的全方位服務和能力的領域。最重要的是，相當大的市場。我最近的記憶是，英國代表著一個價值 60 億美元的潛在市場，它具有有意義的成長特徵，與我們在 3 到 5 年計畫中概述的戰略能力相一致。希望這能讓您對我們的前進方向有更多的了解。

That's great. And then just a quick housekeeping for David. Interest rate assumption -- interest expense assumption for the coming year?

那太棒了。然後為大衛做一次快速的家事工作。利率假設－來年利息支出假設？

Yes, sure. So as always, our -- all of our guidance is organic and that it doesn't include any M&A activity that hasn't been complete. So that means our interest forecast is consistent with that and therefore, reflects our excess cash flow paying down debt further over the year.

是的，當然。像往常一樣，我們的所有指導都是有機的，並且不包括任何尚未完成的併購活動。因此，這意味著我們的利息預測與此一致，因此反映了我們在今年進一步償還債務的超額現金流。

As far as the rate goes, as a reminder, we're about half fixed rate through interest rate swaps. So for the half that is floating, we do use the SOFR forward curve to forecast what the rate will do over the year. And as we do pay down, we intend to pay down the floating rate, which is currently at a higher rate than what we think.

就利率而言，提醒一下，我們透過利率掉期獲得大約一半的固定利率。因此，對於浮動的一半，我們確實使用 SOFR 遠期曲線來預測利率在一年內的走勢。當我們確實還款時，我們打算償還浮動利率，目前的利率比我們想像的還要高。

Got it. And just a sense of the average rate currently?

知道了。只是了解目前的平均利率？

Currently, it's about 6%.

目前約為6%。

Our next question is a follow-up from Bert Subin with Stifel.

我們的下一個問題是 Bert Subin 和 Stifel 的後續問題。

Just to piggyback on that question on the interest expense side. I guess where do you want that to go? $70 million, that's quite a decline this year. But if I look back a few years, your interest expense was obviously much lower. But at what point do you stop paying down debt? And is something like share repurchases become more interesting?

只是藉用利息支出方面的問題。我猜你想把它放到哪裡去？ 7000萬美元，今年下降幅度相當大。但如果我回顧幾年，你的利息支出顯然要低得多。但什麼時候你停止償還債務呢？股票回購之類的事情是否變得更有趣了？

Yes, it's a good question. I mean, I think in my prepared remarks, I mentioned our current bias towards the low end of that 2 to 3x debt ratio range. We'll continue to use that range as the guidepost for what we want to be in the long term.

是的，這是一個好問題。我的意思是，我認為在我準備好的發言中，我提到了我們目前對 2 至 3 倍債務比率範圍低端的偏見。我們將繼續使用該範圍作為我們長期目標的指南。

While acquisitions continue to be our priority for capital deployment beyond dividends, they can be -- they're opportunistic in nature, right? So it's hard to predict when they come, so we will be evaluating over time kind of the benefit of having that dry powder available for acquisitions should they come as well as the interest rate environment and where we are relative to that 2 to 3x debt ratio. So those are kind of what we consider in that formula.

雖然收購仍然是我們除股息之外的資本部署的優先事項，但它們本質上是機會主義的，對嗎？因此很難預測它們何時到來，因此我們將隨著時間的推移評估如果它們到來的話，擁有可用於收購的乾粉的好處，以及利率環境以及我們相對於 2 至 3 倍債務比率的情況。這些就是我們在該公式中考慮的內容。

And Bert, I might also note that -- if I might, the corporate venture capital capability that I talked about in my prepared remarks, we envision those being relatively small bets that we have placed. So they wouldn't rise to the level that it would move that ratio meaningfully. But at the same time, it's an important other, I'd say, smaller element of our capital deployment strategy to increase our innovation and competitive advantage over time.

伯特，我還可能指出，如果可以的話，我在準備好的發言中談到的企業風險投資能力，我們預計這些是我們所下的相對較小的賭注。因此，他們不會上升到有意義地改變該比率的水平。但同時，我想說，這是我們資本部署策略中另一個重要的較小要素，旨在隨著時間的推移增加我們的創新和競爭優勢。

Got it. Okay. That helps. And then just my final question. Could you give us some, I guess, an update on where things stand on the VA exam business. We've heard from some of your competitors there. We've been really, really strong of late. And it sounds like the incentive fees have been pretty additive and should remain additive into next year. How should we think about VA exam business from here? Is there still a lot more growth in the pipeline? Or do you start to get concerned that maybe that turns the other way in late '24 or '25?

知道了。好的。這有幫助。然後是我的最後一個問題。我想您能給我們一些關於 VA 考試業務的最新情況嗎？我們收到了你們那裡的一些競爭對手的來信。我們最近真的非常非常強大。聽起來獎勵費用已經相當可觀，並且應該在明年繼續保持附加狀態。我們該如何看待 VA 考試業務？是否還有更多的成長正在醞釀中？或者您是否開始擔心情況可能會在 24 世紀末或 25 世紀轉向另一個方向？

Well, I guess I'll start where you ended, which is I don't have that concern, but let me come to that through a bit more logic. So to back that, as you know, started in Q2 of FY '23, and then across Q3 and Q4, we saw a pretty meaningful step up in volumes. So today, we're operating at significantly increased capacity, and that's necessitated by the customer, and it's across the system. If you talk to our competitors or listen to them, you'd hear the same thing.

好吧，我想我會從你結束的地方開始，我沒有那種擔心，但讓我透過更多的邏輯來解決這個問題。因此，正如您所知，從 23 財年第二季度開始，然後在第三季度和第四季度，我們看到銷量出現了相當有意義的增長。因此，今天，我們的營運能力顯著提高，這是客戶所需要的，而且是整個系統的。如果您與我們的競爭對手交談或傾聽他們的意見，您會聽到同樣的事情。

The application rate is significant. The inventory levels are significant. In fact, there's publicly available data on the VA website that shows the current cases in inventory, and I think I'm correct in saying that that's a record high, north of $1 million. You can also follow backlog and backlog would be cases in inventory for more than 125 days. I have found it interesting, and I think reflective of the capacity that's been building into the system among the vendors, that backlog obviously is not increasing at the same rate as inventory, but inventory levels remain very high. So that means there's a lot of work that's waiting attention by the VA and then the examination vendors like us that are downstream.

應用率顯著。庫存水準很高。事實上，VA 網站上的公開數據顯示了當前庫存案例，我認為我的說法是正確的，這是創紀錄的高位，超過 100 萬美元。您也可以追蹤積壓訂單，積壓訂單是指庫存時間超過 125 天的案例。我發現這很有趣，而且我認為這反映了供應商系統中構建的能力，積壓顯然沒有以與庫存相同的速度增加，但庫存水平仍然很高。因此，這意味著有很多工作正在等待 VA 以及像我們這樣的下游考試供應商的關注。

So we see -- as we look at FY '24, the revenue for the contracts that comprise our work in this area, increasing but increasing at a gradual rate over through the course of the year, not a significant spike, if you will, kind of a gradual increase. I want to note that the bulk of the hiring that we feel that we need to do to support that requested capacity has been completed. And other indicators that we look to really say what's beyond FY '24. A good indicator is what's the VA doing themselves. And they've hired a great number of employees, and there's public information out there about their intentions to further grow their headcount.

因此，我們看到，當我們回顧24 財年時，構成我們在這一領域工作的合約收入在增加，但在這一年中以逐漸的速度增加，如果你願意的話，不會出現顯著的飆升，一種逐漸增加的方式。我想指出的是，我們認為需要進行的大部分招募工作已經完成，以支持所需的能力。我們希望透過其他指標真正說明 24 財年之後的情況。一個很好的指標是 VA 自己在做什麼。他們僱用了大量員工，並且有公開資訊表明他們打算進一步增加員工人數。

In FY '23, they grew their overall head count by 20%, and they intend to hire an additional 4,000 employees in FY '24. So our view would be that they see the work here and the volumes that are required to get through that work continuing well into the next fiscal year as well. So we're confident in that.

在 23 財年，他們的總員工人數增加了 20%，並計劃在 24 財年再僱用 4,000 名員工。因此，我們的觀點是，他們認為這裡的工作以及完成這項工作所需的數量也將持續到下一個財政年度。所以我們對此充滿信心。

I was just commenting on the incentives and disincentives. I would just say that, that's a program is that the VA obviously had implemented, but has made adjustments to over time. And we feel that, that's an area that they'll continue to fine-tune with the vendor community as they go forward. And so we don't have a significant reliance in our estimates for FY '24 on those types of payments.

我只是評論激勵和抑制因素。我只想說，VA 顯然已經實施了該計劃，但隨著時間的推移進行了調整。我們認為，他們將在前進的過程中繼續與供應商社群進行微調。因此，我們對 24 財年的預測並沒有嚴重依賴這些類型的付款。

This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

今天的會議到此結束。此時您可以斷開線路，感謝您的參與。