Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
www.cgi.com/newsroom
Revenue growth of 5.3% and 10% EPS expansion
Q1-F2018 highlights
- Revenue of $2.8 billion, up 5.3%
year-over-year or 4.9% in constant currency;
- Adjusted EBIT of $406.3 million,
or 14.4% of revenue;
- Net earnings of $285.3 million,
or 10.1% of revenue;
- Net earnings excluding specific items* of $288.0 million, or 10.2% of revenue;
- Diluted EPS of 98 cents or
99 cents excluding specific
items*;
- Bookings of $3.0 billion, or
105.7% of revenue; and,
- Cash provided by operating activities of $410.1 million or 14.6% of revenue.
*Specific items in
Q1-F2018 are comprised of: a favorable tax adjustment of $34.1
million, $24.3 million in restructuring costs and
$12.5 million in acquisition-related and integration costs,
both net of tax; Specific items in Q1-F2017 are comprised of: $1.9
million in acquisition-related and integration costs net of
tax.
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Note: All figures in
Canadian dollars. Q1-F2018 MD&A, interim condensed consolidated
financial statements and accompanying notes can be found at
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, Jan. 31, 2018 /CNW
Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB) reported fiscal 2018 first
quarter revenue of $2.8 billion,
representing growth of 5.3%. Compared with last year, revenue
was up 4.9% in constant currency as foreign exchange fluctuations
positively impacted revenue by $10.1
million.
Adjusted EBIT increased to $406.3
million, representing a margin of 14.4%, compared with
$396.7 million, or 14.8% in
Q1-F2017.
Net earnings increased to $285.3
million in Q1-F2018, compared with $275.7 million in the year ago period. Earnings
per diluted share were 98 cents, an
increase of 10.1% compared with 89
cents last year.
Net earnings excluding specific items were $288.0 million or 10.2% of revenue, compared with
$277.6 million last year. When
excluding specific items, earnings per diluted share were
99 cents, an improvement of 10.0%
from 90 cents last year.
"The execution of our strategy is producing results that are in
line with our 2018 operational plan to increase shareholder
returns," said George D. Schindler,
President and Chief Executive Officer. "I'm particularly pleased by
our team's performance to meet client demand for digital, a trend
we expect to continue for years to come and one that is clearly
generating opportunities to both build and buy."
Bookings in Q1-F2018 were $3.0
billion or 105.7% of revenue. On a trailing twelve month
basis, total awards were $11.3
billion, or 102.8% of revenue. At the end of December, the
Company's backlog stood at $21.1 billion.
Cash generated from operating activities increased to
$410.1 million or 14.6% of revenue,
compared with $349.7 million in the
year ago period. Over the last twelve months, the Company has
generated $1.4 billion or
$4.76 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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Q1-F2018
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Q1-F2017
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Revenue
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2,816.9
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2,675.7
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Growth at constant
currency
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4.9%
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3.7%
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Adjusted
EBIT
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406.3
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396.7
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Margin
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14.4%
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14.8%
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Net
earnings
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285.3
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275.7
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Margin
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10.1%
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10.3%
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Earnings per share
(diluted)
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0.98
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0.89
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Net earnings
excluding specific items*
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288.0
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277.6
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Margin
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10.2%
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10.4%
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Earnings per share
(diluted) excluding specific items*
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0.99
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0.90
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Weighted average
number of outstanding shares (diluted)
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291.6
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309.3
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Net finance
costs
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17.1
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18.5
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Net debt
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1,635.0
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1,491.7
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Net debt to
capitalization ratio
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19.3%
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18.2%
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Cash provided by
operating activities
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410.1
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349.7
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Days sales
outstanding (DSO)
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47
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44
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Return on invested
capital (ROIC)
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13.7%
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14.6%
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Return on equity
(ROE)
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16.2%
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17.7%
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Bookings
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2,976.1
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2,962.0
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Backlog
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21,110.1
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20,974.8
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*Specific items in
Q1-F2018 are comprised of: a favorable tax adjustment of $34.1
million, $24.3 million in restructuring costs and
$12.5 million in acquisition-related and integration costs,
both net of tax; Specific items in Q1-F2017 are comprised of: $1.9
million in acquisition-related and integration costs net of
tax.
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At the end of December 2017, the
Company had approximately $1.6
billion in available cash and unused credit facilities. In
the quarter, net debt was reduced by $114
million to $1.6 billion,
representing a net debt to capitalization ratio of 19.3%.
Normal Course Issuer Bid
The Company's Board of
Directors authorized earlier this morning the renewal of its Normal
Course Issuer Bid, which, subject to approval by the Toronto Stock
Exchange, allows for the purchase for cancellation of up to
20,595,539 Class A subordinate voting shares over the next 12
months, representing approximately 10% of the Company's public
float as of the close of business on January
24, 2018. Purchases of Class A subordinate voting shares may
commence on February 6, 2018. For
further information, please refer to the Company's press release
regarding the renewal of its Normal Course Issuer Bid.
Q1-F2018 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 800-377-0758 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.
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 Montréal. 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 is the fifth largest
independent IT and business consulting services firm in the world.
With approximately 72,500 professionals worldwide, CGI delivers an
end-to-end portfolio of high-end IT and business consulting
services, systems integration and IT and business process
outsourcing services. CGI's client proximity model, best-fit global
delivery network, and intellectual property solutions help clients
accelerate results and digitally transform their organizations.
With annual revenue of C$10.8
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 regulators (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.