Maximus (MMS) risk factors, FY2024 10-K

Other

1. 01Risks Pertaining to the Performance of Our Business
2. 02If we fail to accurately estimate the factors upon which we base our contract pricing, we may generate less profit than expected or incur losses on those contracts
3. 03Our growth initiatives could adversely affect our profitability
4. 04We may incur significant costs before receiving related contract payments, which could result in an increased use of cash and risk of impairment charges
5. 05We face competition from a number of different organizations depending upon the market and geographic location in which we are competing. Some of our most significant competitors are included in Item 1 of this Annual Report on Form 10-K
6. 06We use third parties to assist us in providing services to our customers, and these third parties may not perform as expected
7. 07Risks Pertaining to Data and Data Security
8. 08Our systems and networks are and have been subject to cybersecurity breaches
9. 09Many of our projects handle protected health information or other forms of confidential personal information, the loss or disclosure of which has adversely affected, and in the future, could further adversely affect, our business, results of operations, and reputation
10. 10We obtain most of our business through competitive bidding in response to government RFPs. We may not be awarded contracts through this process at the same level in the future as in the past, and contracts we are awarded may not be profitable
11. 11Our business could be adversely affected by future legislative or government budgetary and spending changes
12. 12Government entities have in the past terminated and may, in the future, terminate their contracts with us earlier than we expect, which may result in revenue shortfalls and unrecovered costs
13. 13If we fail to establish and maintain important relationships with government officials, entities and agencies, our ability to successfully bid under RFPs and retain existing work and secure new work on future procurements may be adversely affected
14. 14Our customers may limit or prohibit the outsourcing of certain programs or may refuse to grant consents and/or waivers necessary to permit contractors, such as us, to perform certain elements of government programs
15. 15We rely on key contracts with state, local, and federal governments for a significant portion of our revenue. A substantial reduction in those contracts would materially adversely affect our operating results

Risks Related to our Acquisitions

1. 16We may experience difficulties in integrating our operations with those of acquired businesses and realizing the expected benefits of these acquisitions
2. 17In connection with our acquisitions, we may be required to take write-downs, write-offs, restructuring, impairment, or other charges that could negatively affect our business, assets, liabilities, prospects, outlook, financial condition, and results of operations
3. 18We are subject to review and audit by governments at their sole discretion and, if any improprieties are found, we may be required to refund revenue we have received or forego anticipated revenue, which could have a material adverse impact on our revenue and our ability to bid in response to RFPs
4. 19We may be subject to fines, penalties, and other sanctions if we fail to comply with laws governing our business
5. 20Adverse judgments or settlements in legal disputes could harm our operating results, cash flows, and financial condition
6. 21We may be precluded from bidding and performing certain work due to other work we currently perform
7. 22We may face liabilities arising from divested or discontinued businesses
8. 23We may lose executive officers and senior managers on whom we rely to generate business and execute projects successfully
9. 24We may be unable to attract and retain sufficient qualified personnel to sustain our business
10. 25A number of factors may cause our cash flows and results of operations to vary from quarter to quarter
11. 26Our profitability may be constrained by the effects of inflation
12. 27Our indebtedness could adversely affect our business and our ability to meet our obligations
13. 28We may not be able to realize the full value of our backlog
14. 29We are subject to the risks of doing business internationally
15. 30Our business could be materially and adversely impacted by natural or man-made factors outside of our control
16. 31Inaccurate, misleading, or negative media coverage could adversely affect our reputation and our ability to bid for government contracts
17. 32Our Articles of Incorporation and bylaws include provisions that may have anti-takeover effects