Accelerating organic growth and margin expansion
driven by demand for digital
Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
www.cgi.com/newsroom
Q1-F2017 year-over-year highlights
- Revenue of $2.7 billion, up 3.7%
in constant currency;
- Adjusted EBIT of $396.7 million,
up 3.3%;
- Adjusted EBIT margin of 14.8%, up 50 basis points;
- Net earnings of $275.7 million,
up 16.0%;
- Net earnings margin of 10.3%, up 140 basis points;
- Diluted EPS of 89 cents, up
18.7%;
- Diluted EPS excluding specific items* of 90 cents, up 7.1%;
- Bookings of $3.0 billion, or
110.7% of revenue;
- Backlog of $21.0 billion;
- Cash provided by operating activities of $349.7 million or 13.1% of revenue;
- Return on equity of 17.7%.
*Specific items in
Q1-F2017:$1.9 million in integration-related costs net of tax.
Specific items in Q1-F2016: $21.2 million in restructuring costs
net of tax and a $5.9 million tax adjustment.
Note: All figures in Canadian dollars. Q1-F2017 MD&A, interim
condensed consolidated financial statements and accompanying notes
can be found at www.cgi.com/investors and have been filed with both
SEDAR in Canada and EDGAR in the U.S.
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To access the financial statements - click
here (PDF)
To access the MD&A - click here (PDF)
MONTRÉAL, Feb. 1, 2017 /CNW
Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB) reported fiscal 2017 first
quarter revenue of $2.7 billion,
stable compared with last year as foreign exchange fluctuations
negatively impacted revenue by $107.0
million. On a constant currency basis, revenue grew by
3.7%.
Adjusted EBIT increased to $396.7
million, representing a margin of 14.8%, compared with
$384.1 million, or 14.3% in
Q1-F2016.
Net earnings increased to $275.7
million in Q1-F2017, compared with $237.7 million in the year ago period. Earnings
per diluted share were 89 cents, an
increase of 18.7% compared with 75
cents last year.
Net earnings excluding specific items were $277.6 million or 10.4% of revenue, compared with
$264.9 million last year. When
excluding specific items, earnings per diluted share were
90 cents, an improvement from
84 cents last year.
Bookings amounted to $3.0 billion
in contract awards or 110.7% of revenue. On a trailing twelve month
basis, total awards were $11.5
billion, or 107.7% of revenue. At the end of December, the
Company's backlog stood at $21.0
billion.
Cash generated from operating activities was $349.7 million or 13.1% of revenue, compared with
$328.2 million in the year ago
period. Over the last twelve months, the Company has generated
$1.4 billion or $4.36 in cash per diluted share.
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In millions of
Canadian dollars except earnings per share and where
noted
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|
|
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Q1-F2017
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Q1-F2016
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Revenue
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2,675.7
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2,683.7
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Adjusted
EBIT
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396.7
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384.1
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Margin
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14.8%
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14.3%
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Net
earnings
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275.7
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237.7
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Margin
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10.3%
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8.9%
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Earnings per share
(diluted)
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0.89
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0.75
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Net earnings
excluding specific items*
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277.6
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264.9
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Margin
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10.4%
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9.9%
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Earnings per share
(diluted) excluding specific items*
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0.90
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0.84
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Weighted average
number of outstanding shares (diluted)
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309,283,481
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316,244,857
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Net finance
costs
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18.5
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20.1
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Net debt
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1,491.7
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1,573.7
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Net debt to
capitalization ratio
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18.2%
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18.3%
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Cash provided by
operating activities
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349.7
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328.2
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Days sales
outstanding (DSO)
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44
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44
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Return on invested
capital (ROIC)
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14.6%
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14.5%
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Return on equity
(ROE)
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17.7%
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16.9%
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Bookings
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2,962.0
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3,198.6
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Backlog
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20,974.8
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21,504.7
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*Specific items in
Q1-F2017: $1.9 million in integration-related costs net of tax.
Specific items in Q1-F2016: $21.2 million in restructuring costs
net of tax and a $5.9 million tax adjustment.
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"We are off to a great start in 2017, delivering strong Q1
results driven by the rapid shift to digital that is taking place,"
said George D. Schindler, President
and Chief Executive Officer. "Our full breadth of offerings and
end-to-end capabilities are bringing the innovation, expertise and
scale required to enable our clients to advance their
operations."
At the end of December 2016, the
Company had approximately $1.8
billion in available cash and unused credit facilities. Net
debt was $1.5 billion, representing a
year-over-year reduction of $82
million. As a result, the net debt to capitalization ratio
was stable at 18.2%.
Normal Course Issuer Bid
On February 1, 2017 the Company's Board of Directors
authorized the renewal of the Normal Course Issuer Bid and the
purchase of up to an additional 10% of the Company's public float
of shares, or approximately 21.19 million shares during the
next year, subject to acceptance by the Toronto Stock Exchange.
Q1-F2017 results conference call
Management
will host a conference call this morning at 9:00 a.m. Eastern time to discuss results.
Participants may access the call by dialing 866-223-7781 or via
cgi.com/investors. For those unable to participate on the live
call, a podcast and copy of the slides will be archived for
download at cgi.com/investors.
Fiscal 2016 Annual General Meeting of
Shareholders
This morning at 11:00 a.m. Eastern time, the Company will hold
its Annual General Meeting of Shareholders at the Ritz Carlton
Hotel in Montreal. The meeting, as
well as the question and answer session that follows will be
broadcast live via cgi.com/investors.
About CGI
Founded in 1976, CGI Group Inc. is the
fifth largest independent information technology and business
process services firm in the world. Approximately 68,000
professionals serve thousands of global clients from offices and
delivery centers across the Americas, Europe and Asia
Pacific, leveraging a comprehensive portfolio of services,
including high-end business and IT consulting, systems integration,
application development and maintenance and infrastructure
management, as well as 150 IP-based services and solutions. With
annual revenue in excess of C$10
billion and an order backlog exceeding C$20 billion, CGI shares are listed on the TSX
(GIB.A) and the NYSE (GIB). Website: cgi.com.
Non-GAAP financial metrics used in this release: Constant
currency growth, adjusted EBIT, net debt, net debt to
capitalization ratio, bookings, book-to-bill ratio, backlog, DSO,
ROIC, ROE and net earnings and diluted EPS excluding specific
items.
CGI reports its financial results in accordance with
IFRS. However, management believes that these non-GAAP measures
provide useful information to investors regarding the Company's
financial condition and results of operations as they provide
additional measures of its performance. Additional details for
these non-GAAP measures can be found on page 2 and 3 of our
MD&A which is posted on CGI's website, and filed with SEDAR and
EDGAR.
Forward-Looking Statements
All statements in this
press release that do not directly and exclusively relate to
historical facts constitute "forward-looking statements" within the
meaning of Section 27A of the United States Securities Act of 1933
and Section 21E of the United States Securities Exchange Act of
1934, as amended, and are "forward-looking information" within the
meaning of Canadian securities laws. These statements and this
information represent CGI's intentions, plans, expectations and
beliefs, and are subject to risks, uncertainties and other factors,
of which many are beyond the control of the Company. These factors
could cause actual results to differ materially from such
forward-looking statements or forward-looking information. These
factors include but are not restricted to: the timing and size of
new contracts; acquisitions and other corporate developments; the
ability to attract and retain qualified employees; market
competition in the rapidly evolving information technology
industry; general economic and business conditions; foreign
exchange and other risks identified or incorporated by reference in
this press release, in CGI's annual and/or quarterly Management's
Discussion and Analysis and in other public disclosure documents
filed with the Canadian securities authorities (on SEDAR at
www.sedar.com) and the U.S. Securities and Exchange Commission (on
EDGAR at www.sec.gov), as well as assumptions regarding the
foregoing. The words "believe", "estimate", "expect", "intend",
"anticipate", "foresee", "plan", and similar expressions and
variations thereof, identify certain of such forward-looking
statements or forward-looking information, which speak only as of
the date on which they are made. In particular, statements relating
to future performance are forward-looking statements and
forward-looking information. CGI disclaims any intention or
obligation to publicly update or revise any forward-looking
statements or forward-looking information, whether as a result of
new information, future events or otherwise, except as required by
applicable law. Readers are cautioned not to place undue reliance
on these forward-looking statements or on this forward-looking
information.
SOURCE CGI Group Inc.