UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2003

OR

o	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission file number 1-12997

MAXIMUS, INC.
(Exact Name of Registrant as Specified in Its Charter)

Virginia		54-1000588
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

11419 Sunset Hills Road Reston, Virginia		20190
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (703) 251-8500

Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes ý No o

Class		Outstanding at May 5, 2003
Common Shares, no par value		20,710,388

MAXIMUS, Inc.

Quarterly Report on Form 10-Q
For the Quarter Ended March 31, 2003

INDEX

PART I. FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements.

	Condensed Consolidated Balance Sheets as of September 30, 2002 and March 31, 2003 (unaudited)

	Condensed Consolidated Statements of Income for the three months and six months ended March 31, 2002 and 2003 (unaudited)

	Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2002 and 2003 (unaudited)

	Notes to Unaudited Condensed Consolidated Financial Statements

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.

Item 4.	Controls and Procedures.

PART II. OTHER INFORMATION

Item 4.	Submission of Matters to a Vote of Security Holders.

Item 6.	Exhibits and Reports on Form 8-K.

Signature

Certifications

Exhibit Index

Throughout this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our” and “MAXIMUS” refer to MAXIMUS, Inc. and its subsidiaries.

MAXIMUS, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	September 30, 2002			March 31, 2003
	(Note 1)			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	94,965		$	92,623
Marketable securities	160			140
Accounts receivable - billed	108,074			111,313
Accounts receivable - unbilled	25,102			29,839
Prepaid expenses and other current assets	7,123			7,518

Total current assets	235,424			241,433

Property and equipment, at cost	39,612			43,018
Less accumulated depreciation and amortization	(14,206		)	(16,814		)

Property and equipment, net	25,406			26,204

Software development costs	19,024			20,719
Less accumulated amortization	(4,908		)	(6,829		)

Software development, net	14,116			13,890

Goodwill, net	68,812			71,291
Intangible assets, net	6,540			6,647
Other assets	1,792			2,115

Total assets	$	352,090		$	361,580

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,867		$	13,459
Accrued compensation and benefits	19,726			18,361
Deferred revenue	12,939			16,080
Income taxes payable	2,325			3,163
Deferred income taxes	1,811			1,938
Other current liabilities	1,794			1,766

Total current liabilities	49,462			54,767
Other liabilities	499			414

Total liabilities	49,961			55,181

Shareholders’ equity:
Common stock, no par value; 60,000,000 shares authorized; 21,509,444 and 20,888,289 shares issued and outstanding at September 30, 2002 and March 31, 2003, at stated amount, respectively	144,156			131,109
Accumulated other comprehensive income	24			42
Retained earnings	157,949			175,248

Total shareholders’ equity	302,129			306,399

Total liabilities and shareholders’ equity	$	352,090		$	361,580

See notes to unaudited condensed consolidated financial statements.

MAXIMUS, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,				Six Months Ended March 31,
	2002		2003		2002		2003
Revenue	$	121,953	$	130,663	$	251,523	$	263,354
Cost of revenue	86,749		92,077		176,743		182,507

Gross profit	35,204		38,586		74,780		80,847
Selling, general and administrative expenses	23,589		27,059		44,909		52,676
Non-cash equity based compensation	—		256		—		512
Amortization of acquisition-related intangibles	250		273		513		553

Income from operations	11,365