Maximus / MMS

About Maximus

11419 Sunset Hills Rd., Reston, Va. 20190
www.maximus.com | 703-251-8500 | Founded: 1975

Industry: Government And Professional Services | Category: Public Companies

Maximus was being run by several new senior managers with a goal of developing new business. They were being led by Lynn P. Davenport, who took over for company founder David V. Mastran after he retired in 2004.
But on April 24 of this year, the company announced that Davenport had been fired because of conduct toward a female employee under what a spokeswoman called a "zero tolerance policy" for misconduct. The woman, who has since left the company, received a settlement that, along with legal costs, cost Maximus 2 to 3 cents a share of its second-quarter results, a company statement said. According to the number of shares outstanding at the end of the year, that would amount to between about $438,000 and $657,000.
To replace Davenport as chief executive, the company brought back its former chief financial officer, Richard A. Montoni, who had recently resigned to take a job in his native New England.
One of the company's largest revenue drivers is a 10-year, $268 million contract from the British Columbia Ministry of Health Services that Maximus won in 2004 to provide administrative services for its benefits operations. Also in the health sector, the company partnered with Accenture to win a five-year contract from the Texas Health and Human Services Commission to operate its enrollment program. Maximus's portion of the contract is worth about $370 million.
Maximus settled a lawsuit in Pennsylvania last year over fraudulent lease guarantees signed by two former employees. The company paid $5.5 million for the settlement and associated legal expenses. The company faces another lawsuit over the same matter in Georgia.

CEO and President: Richard A. Montoni

2005 Financial Data

Revenues: $647,538,000 | Net Income: $36,069,000
Asssets: $534,562,000 | Earnings Per Share: $1.67
Stockholder Equity: $405,954,000 | Annual Dividend: $0.30
Total employees: 5,200 | Local employees: 650