FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: August 5, 2008

Date of Earliest Event Reported: August 5, 2008

MAXIMUS, INC.

(Exact name of registrant as specified in its charter)

Virginia	1-12997	54-1000588
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

11419 Sunset Hills Road,
Reston, Virginia		20190-5207
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (703) 251-8500

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

On April 30, 2008, the Company completed the divestiture of its Security Solutions division which was previously reported as part of its Systems Segment. On May 2, 2008, the Company completed the sale of its Unison MAXIMUS, Inc. subsidiary which was previously reported as part of its Consulting Segment. Beginning in the third quarter of fiscal 2008, the Company will classify the results of operations of these business units as discontinued operations.

We are filing this Current Report on Form 8-K on August 5, 2008, to reclassify prior periods’ financial information to conform to discontinued operations reporting. The reclassifications have no impact on the previously reported consolidated net income or cash flows of the Company. This information is being provided for informational purposes only.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MAXIMUS, Inc.


Date: August 5, 2008	By:	/s/ David R. Francis
		David R. Francis
		General Counsel and Secretary

MAXIMUS, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

	FISCAL YEAR 2007												FISCAL YEAR 2008
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Dec. 31,			Mar. 31,
	2006			2007			2007			2007			2007			2008
ASSETS
Current assets:
Cash and cash equivalents	$	21,964		$	42,871		$	91,105		$	70,472		$	62,279		$	63,420
Marketable securities	141,811			134,409			123,737			126,210			50			—
Restricted cash	312			324			323			325			325			327
Accounts receivable — billed	122,672			122,179			116,397			127,288			114,489			118,344
Accounts receivable — unbilled	38,583			37,999			38,967			40,912			48,729			51,126
Income taxes receivable	11,018			3,678			3,598			—			—			6,307
Deferred income taxes	10,690			13,704			13,932			17,409			11,267			9,490
Prepaid expenses and other current assets	8,415			8,512			6,827			9,067			7,600			9,328
Current assets of discontinued operations	5,689			5,669			5,465			7,054			5,908			5,620
Total current assets	361,154			369,345			400,351			398,737			250,647			263,962

Property and equipment, at cost	71,000			73,314			76,462			82,248			84,755			86,129
Less accumulated depreciation and amortization	(38,334		)	(40,792		)	(43,569		)	(46,592		)	(49,436		)	(52,068		)
Property and equipment, net	32,666			32,522			32,893			35,656			35,319			34,061
Capitalized software	57,083			58,265			59,728			61,191			62,741			64,399
Less accumulated amortization	(25,387		)	(27,441		)	(29,633		)	(31,651		)	(33,435		)	(35,216		)
Capitalized software, net	31,696			30,824			30,095			29,540			29,306			29,183
Deferred contract costs, net	9,758			8,482			8,368			8,116			7,712			6,273
Goodwill	83,509			83,509			83,576			83,576			83,576			83,576
Intangible assets, net	4,892			4,444			3,994			3,603			3,201			2,827
Other assets, net	3,304			3,037			2,628			2,418			3,483			3,540
Noncurrent assets of discontinued operations	2,434			2,636			2,741			2,818			2,834			2,847
Total assets	$	529,413		$	534,799		$	564,646		$	564,464		$	416,078		$	426,269

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	41,675		$	48,667		$	47,701		$	50,870		$	49,264		$	50,145
Accrued compensation and benefits	21,559			23,367			26,968			28,360			25,217			27,797
Current portion of deferred revenue	48,032			41,269			44,843			38,404			37,361			33,078
Current portion of income taxes payable	—			—			—			5,487			1,422			—
Current portion of capital lease obligations	1,707			1,594			1,742			1,627			1,643			1,238
Other accrued liabilities	1,071			796			31,786			1,387			983			996
Current liabilities of discontinued operations	3,571			4,434			4,020			5,457			4,101			3,914
Total current liabilities	117,615			120,127			157,060			131,592			119,991			117,168
Capital lease obligations, less current portion	1,643			1,239			698			417			—			—
Deferred revenue, less current portion	—			—			—			10,143			10,213			9,361
Income taxes payable, less current portion	—			—			—			—			2,106			2,109
Deferred income taxes	13,692			13,874			11,754			12,912			11,202			12,752
Total liabilities	132,950			135,240			169,512			155,064			143,512			141,390

Shareholders’ equity:
Common stock	283,887			286,566			298,122			299,846			305,398			309,450
Treasury stock	(124,637		)	(124,637		)	(124,637		)	(124,637		)	(275,025		)	(275,025		)
Accumulated other comprehensive income	300			528			1,138			1,730			1,603			2,089
Retained earnings	236,913			237,102			220,511			232,461			240,590			248,365
Total shareholders’ equity	396,463			399,559			395,134			409,400			272,566			284,879
Total liabilities and shareholders’ equity	$	529,413		$	534,799		$	564,646		$	564,464		$	416,078		$	426,269

MAXIMUS, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

(Unaudited)

											Year							Six Months
	Quarter Ended										Ended			Quarter Ended				Ended
	Dec. 31,			Mar. 31,		Jun. 30,			Sept. 30,		Sept. 30,			Dec. 31,		Mar. 31,		Mar. 31,
	2006			2007		2007			2007		2007			2007		2008		2008

Revenue	$	154,585		$	172,600	$	189,673		$	194,805	$	711,663		$	196,586	$	204,410	$	400,996
Cost of revenue	136,862			131,789		133,190			141,764		543,605			145,541		152,224		297,765
Gross profit	17,723			40,811		56,483			53,041		168,058			51,045		52,186		103,231
Selling, general and administrative expenses	33,199			33,072		34,127			30,008		130,406			35,141		36,001		71,142
Gain on sale of building	—			—		—			—		—			—		—		—
Gain (gain adjustment) on sale of Corrections Services business	684			—		(233		)	—		451			—		—		—
Legal and settlement expense	3,000			6,104		33,010			2,524		44,638			—		931		931
Income (loss) from operations	(17,792		)	1,635		(10,887		)	20,509		(6,535		)	15,904		15,254		31,158
Interest and other income, net	477			1,615		1,131			2,581		5,804			1,501		107		1,608
Income (loss) before income taxes	(17,315		)	3,250		(9,756		)	23,090		(731		)	17,405		15,361		32,766
Provision (benefit) for income taxes	(6,254		)	1,302		5,074			9,731		9,853			7,159		6,056		13,215
Income (loss) from continuing operations	(11,061		)	1,948		(14,830		)	13,359		(10,584		)	10,246		9,305		19,551

Discontinued operations, net of income taxes:
Income from discontinued operations	666			414		439			810		2,329			359		322		681
Gain on disposal	—			—		—			—		—			—		—		—
Income from discontinued operations	666			414		439			810		2,329			359		322		681

Net income (loss)	$	(10,395	)	$	2,362	$	(14,391	)	$	14,169	$	(8,255	)	$	10,605	$	9,627	$	20,232

Basic earnings (loss) per share:
Income (loss) from continuing operations	$	(0.51	)	$	0.09	$	(0.67	)	$	0.60	$	(0.48	)	$	0.50	$	0.50	$	1.00
Income from discontinued operations	0.03			0.02		0.02			0.04		0.10			0.02		0.02		0.04
Basic earnings (loss) per share	$	(0.48	)	$	0.11	$	(0.65	)	$	0.64	$	(0.38	)	$	0.52	$	0.52	$	1.04

Diluted earnings (loss) per share:
Income (loss) from continuing operations	$	(0.51	)	$	0.09	$	(0.67	)	$	0.59	$	(0.48	)	$	0.49	$	0.50	$	0.99
Income from discontinued operations	0.03			0.02		0.02			0.04		0.10			0.02		0.01		0.03
Diluted earnings (loss) per share	$	(0.48	)	$	0.11	$	(0.65	)	$	0.63	$	(0.38	)	$	0.51	$	0.51	$	1.02

Dividends per share	$	0.10		$	0.10	$	0.10		$	0.10	$	0.40		$	0.10	$	0.10	$	0.20

Weighted average shares outstanding:
Basic	21,590			21,714		21,998			22,177		21,870			20,506		18,537		19,527
Diluted	21,590			21,972		21,998			22,554		21,870			20,854		18,763		19,803

MAXIMUS, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

													Year									Six Months
	Quarter Ended												Ended			Quarter Ended						Ended
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Mar. 31,
	2006			2007			2007			2007			2007			2007			2008			2008
Cash flows from operating activities:
Net income (loss)	$	(10,395	)	$	2,362		$	(14,391	)	$	14,169		$	(8,255	)	$	10,605		$	9,627		$	20,232
Adjust to reconcile net income to net cash provided by operating activities:
Income from discontinued operations	(666		)	(414		)	(439		)	(810		)	(2,329		)	(359		)	(322		)	(681		)
Depreciation	2,272			2,458			2,778			3,095			10,603			2,844			2,633			5,477
Amortization	2,769			2,502			2,641			2,410			10,322			2,185			2,156			4,341
Deferred income taxes	(5,098		)	(2,832		)	(2,347		)	(2,321		)	(12,598		)	4,195			3,327			7,522
Gain on sale of Corrections Services business	(684		)	—			233			—			(451		)	—			—			—
Non-cash equity based compensation	1,020			381			807			1,621			3,829			3,600			2,154			5,754

Change in assets and liabilities, net of effects from divestitures:
Accounts receivable – billed	23,686			(13		)	5,783			(10,891		)	18,565			12,799			(3,855		)	8,944
Accounts receivable – unbilled	5,884			585			(968		)	(1,944		)	3,557			(7,817		)	(2,398		)	(10,215		)
Prepaid expenses and other current assets	(155		)	(97		)	1,685			(2,240		)	(807		)	1,467			(1,728		)	(261		)
Deferred contract costs	1,407			1,276			114			252			3,049			404			1,439			1,843
Other assets	1,892			496			1,020			960			4,368			104			178			282
Accounts payable	(8,378		)	6,992			(966		)	3,169			817			(1,606		)	882			(724		)
Accrued compensation and benefits	(1,839		)	1,808			3,601			1,392			4,962			(3,144		)	2,580			(564		)
Deferred revenue	(5,524		)	(6,763		)	3,574			3,703			(5,010		)	(972		)	(5,136		)	(6,108		)
Income taxes	(2,015		)	7,340			80			9,085			14,490			(3,141		)	(7,966		)	(11,107		)
Other liabilities	867			(289		)	30,991			(30,402		)	1,167			(530		)	498			(32		)
Cash provided by (used in) operating activities – continuing operations	5,043			15,792			34,196			(8,752		)	46,279			20,634			4,069			24,703
Cash provided by operating activities – discontinued operations	2,583			1,610			123			595			4,911			155			435			590

Cash provided by (used in) operating activities	7,626			17,402			34,319			(8,157		)	51,190			20,789			4,504			25,293

Cash flows from investing activities:
Proceeds from sale of Corrections Services business, net of transaction costs	2,171			—			(300		)	—			1,871			—			—			—
Purchases of property and equipment	(1,914		)	(2,315		)	(3,148		)	(6,020		)	(13,397		)	(2,509		)	(1,373		)	(3,882		)
Capitalized software costs	(304		)	(1,181		)	(1,464		)	(1,463		)	(4,412		)	(1,550		)	(1,659		)	(3,209		)
(Increase) decrease in marketable securities	(24,496		)	7,402			10,672			(2,473		)	(8,895		)	126,160			50			126,210
Cash provided by (used in) investing activities – continuing operations	(24,543		)	3,906			5,760			(9,956		)	(24,833		)	122,101			(2,982		)	119,119
Cash (used in) investing activities – discontinued operations	(4		)	(9		)	—			(8		)	(21		)	(24		)	(23		)	(47		)

Cash provided by (used in) investing activities	(24,547		)	3,897			5,760			(9,964		)	(24,854		)	122,077			(3,005		)	119,072

Cash flows from financing activities:
Employee stock transactions	1,526			1,892			8,389			1,146			12,953			1,655			1,619			3,274
Repurchases of common stock	—			—			—			—			—			(150,388		)	—			(150,388		)
Payments on capital lease obligations	(384		)	(517		)	(393		)	(396		)	(1,690		)	(401		)	(404		)	(805		)
Tax benefit due to option exercises and restricted stock units vesting	357			405			2,359			(1,043		)	2,078			297			279			576
Cash dividends paid	(2,159		)	(2,172		)	(2,200		)	(2,219		)	(8,750		)	(2,222		)	(1,852		)	(4,074		)
Cash provided by (used in) financing activities – continuing operations	(660		)	(392		)	8,155			(2,512		)	4,591			(151,059		)	(358		)	(151,417		)
Cash provided by (used in) financing activities – discontinued operations	—			—			—			—			—			—			—			—

Cash provided by (used in) financing activities	(660		)	(392		)	8,155			(2,512		)	4,591			(151,059		)	(358		)	(151,417		)

Net increase (decrease) in cash and cash equivalents	(17,581		)	20,907			48,234			(20,633		)	30,927			(8,193		)	1,141			(7,052		)
Cash and cash equivalents, beginning of period	39,545			21,964			42,871			91,105			39,545			70,472			62,279			70,472
Cash and cash equivalents, end of period	$	21,964		$	42,871		$	91,105		$	70,472		$	70,472		$	62,279		$	63,420		$	63,420

MAXIMUS, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

													Year									Six Months
	Quarter Ended												Ended			Quarter Ended						Ended
	Dec. 31,			Mar. 31,			Jun. 30,			Sept. 30,			Sept. 30,			Dec. 31,			Mar. 31,			Mar. 31,
	2006			2007			2007			2007			2007			2007			2008			2008
Revenue:
Consulting	$	20,800		$	19,606		$	19,218		$	18,678		$	78,302		$	18,628		$	16,882		$	35,510
Systems	30,955			31,603			30,178			33,139			125,875			31,151			26,546			57,697
Operations	102,830			121,391			140,277			142,988			507,486			146,807			160,982			307,789
Total	154,585			172,600			189,673			194,805			711,663			196,586			204,410			400,996

Gross Profit:
Consulting	9,305			8,194			8,916			6,030			32,445			7,295			6,001			13,296
Systems	7,373			8,716			7,207			9,431			32,727			8,193			4,019			12,212
Operations	1,045			23,901			40,360			37,580			102,886			35,557			42,166			77,723
Total	17,723			40,811			56,483			53,041			168,058			51,045			52,186			103,231

Selling, General, and Administrative expense:
Consulting	7,367			7,486			7,324			6,137			28,314			6,849			7,036			13,885
Systems	9,242			9,046			11,117			9,721			39,126			11,298			10,407			21,705
Operations	17,041			16,781			15,794			13,954			63,570			16,764			18,465			35,229
Corporate/Other	(451		)	(241		)	(108		)	196			(604		)	230			93			323
Total	33,199			33,072			34,127			30,008			130,406			35,141			36,001			71,142

Income (loss) from Operations:
Consulting	1,938			708			1,592			(107		)	4,131			446			(1,035		)	(589		)
Systems	(1,869		)	(330		)	(3,910		)	(290		)	(6,399		)	(3,105		)	(6,388		)	(9,493		)
Operations	(15,996		)	7,120			24,566			23,626			39,316			18,793			23,701			42,494
Consolidating adjustments	451			241			108			(196		)	604			(230		)	(93		)	(323		)
Gain (gain adjustment) on sale of Corrections Services business	684			—			(233		)	—			451			—			—			—
Legal and settlement expense	(3,000		)	(6,104		)	(33,010		)	(2,524		)	(44,638		)	—			(931		)	(931		)
Total	$	(17,792	)	$	1,635		$	(10,887	)	$	20,509		$	(6,535	)	$	15,904		$	15,254		$	31,158