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GIB.A (TSX)
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Bookings of $3.5 billion driven by
continued global demand for digital services
Q3-F2018 year-over-year highlights
- Revenue of $2.9 billion, up 3.8%
in constant currency;
- Adjusted EBIT of $435.3 million,
up 9.1%;
- Adjusted EBIT margin of 14.8%, up 70 bps;
- Net earnings of $288.3 million,
up 4.2%;
- Diluted EPS of $1.00, up
8.7%;
- Net earnings, excluding specific items*, of $309.7 million, up 11.2%;
- Diluted EPS, excluding specific items*, of $1.08, up 16.1%;
- Cash provided by operating activities of $317.3 million, up 9.2%;
- Bookings of $3.5 billion, or
118.0% of revenue; and,
- Backlog of $22.4 billion, up
$1.6 billion
*Specific items in
Q3-F2018 include: $6.7 million in acquisition-related and
integration costs and $14.7 million in restructuring costs both net
of tax; Specific items in Q3-F2017 include: $1.8 million in
integration-related costs net of tax.
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Note: All figures in
Canadian dollars. Q3-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, Aug. 1, 2018 /CNW
Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB) reported Fiscal 2018 third
quarter revenue growth of 3.7%, to $2.9
billion. Compared with the year ago period, revenue was up
3.8% in constant currency as foreign exchange fluctuations
negatively impacted revenue by $5.2
million.
Adjusted EBIT was $435.3 million,
an increase of $36.3 million from
Q3-F2017, representing a margin of 14.8%. This compares with
$399.1 million, or 14.1% of revenue
for the same period last year.
Net earnings were $288.3 million
in Q3-F2018, an increase of $11.6 million
dollars from the year ago period. Earnings per diluted share
were $1.00 compared with 92 cents in the year ago period.
Excluding specific items, net earnings in Q3-F2018 were
$309.7 million, representing a net
margin of 10.5%. This compares with $278.5
million and a net margin of 9.8% in Q3-F2017. EPS on the
same basis was $1.08 per diluted
share, an increase of 16.1% compared with 93
cents in the year ago period.
"Our strong performance in Q3 is in line with the ongoing
execution of our plan and reflects our investments in pursuit of
both the Build and Buy pillars of the growth strategy," said
George D. Schindler, President and
Chief Executive Officer. "I'm most encouraged by the momentum and
quality of our bookings over the last twelve months, which is
driven by the confidence clients are placing in CGI to implement
their digital strategies."
Bookings were $3.5 billion in
Q3-F2018 or 118% of revenue. For the trailing twelve-month period,
global bookings have risen by $1.6
billion to $12.9 billion or
114% of revenue. The company's backlog as a result expanded to
$22.4 billion, an increase of
$1.6 billion from the end of
June 2017.
Cash generated from operating activities increased to
$317.3 million in Q3-F2018 compared
with $290.6 million in the year ago
period. Over the last twelve months, the company generated
$1.5 billion, or 13.3% of
revenue.
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In millions of
Canadian dollars except earnings per share and where
noted
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Q3-F2018
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Q3-F2017
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Revenue
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2,940.7
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2,836.8
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Growth at constant
currency
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3.8%
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5.2%
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Adjusted
EBIT
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435.3
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399.1
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Margin
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14.8%
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14.1%
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Net
earnings
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288.3
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276.6
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Margin
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9.8%
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9.8%
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Earnings per share
(diluted)
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1.00
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0.92
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Net earnings
excluding specific items*
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309.7
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278.5
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Margin
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10.5%
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9.8%
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Earnings per share
(diluted) excluding specific items*
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1.08
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0.93
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Weighted average
number of outstanding shares (diluted)
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287,540,464
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300,832,642
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Net finance
costs
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18.7
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16.9
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Net debt
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1,685.2
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1,449.8
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Net debt to
capitalization ratio
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19.6%
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17.2%
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Cash provided by
operating activities
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317.3
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290.6
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Days sales
outstanding (DSO)
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50
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45
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Return on invested
capital (ROIC)
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13.5%
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14.6%
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Return on equity
(ROE)
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16.0%
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17.2%
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Bookings
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3,470.2
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2,674.9
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Backlog
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22,406.6
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20,799.5
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*Specific items in
Q3-F2018 include: $6.7 million in acquisition-related and
integration costs and $14.7 million in restructuring costs both net
of tax; Specific items in Q3-F2017 include: $1.8 million in
integration-related costs net of tax.
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At the end of June 2018, the
company had more than $1.5 billion in
available cash and unused credit facilities. Net debt to
capitalization stood at 19.6% compared to 17.2% at the end of same
quarter last year.
Q3-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 dialling 1-800-377-0758 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.
About CGI
Founded in 1976, CGI is among the largest
independent IT and business consulting services firm in the world.
With 74,000 professionals across the globe, CGI delivers
an end-to-end portfolio of capabilities, from IT and business
consulting to systems integration, outsourcing services
and intellectual property solutions. CGI works with clients
through a local relationship model complemented by a global
delivery network that helps clients digitally transform
their organizations and accelerate results. With annual
revenue of C$10.8 billion, CGI
shares are listed on the TSX (GIB.A) and the NYSE
(GIB). Learn more at cgi.com.
Non-GAAP financial metrics used in this press 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 3 and 4 of our
MD&A which is posted on CGI's website, and filed with SEDAR and
EDGAR.
Forward-Looking Information and Statements
This press release contains "forward-looking information" within
the meaning of Canadian securities laws and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and other applicable
United States safe harbours. All
such forward-looking information and statements are made and
disclosed in reliance upon the safe harbour provisions of
applicable Canadian and United
States securities laws. Forward-looking information and
statements include all information and statements regarding CGI's
intentions, plans, expectations, beliefs, objectives, future
performance, and strategy, as well as any other information or
statements that relate to future events or circumstances and which
do not directly and exclusively relate to historical facts.
Forward-looking information and statements often but not always use
words such as "believe", "estimate", "expect", "intend",
"anticipate", "foresee", "plan", "predict", "project", "aim",
"seek", "strive", "potential", "continue", "target", "may",
"might", "could", "should", and similar expressions and variations
thereof. These information and statements are based on our
perception of historic trends, current conditions and expected
future developments, as well as other assumptions, both general and
specific, that we believe are appropriate in the circumstances.
Such information and statements are, however, by their very nature,
subject to inherent risks and uncertainties, of which many are
beyond the control of the company, and which give rise to the
possibility that actual results could differ materially from our
expectations expressed in, or implied by, such forward-looking
information or forward-looking statements. These risks and
uncertainties include but are not restricted to: risks related to
the market such as the level of business activity of our clients,
which is affected by economic conditions, and our ability to
negotiate new contracts; risks related to our industry such as
competition and our ability to attract and retain qualified
employees, to develop and expand our services, to penetrate new
markets, and to protect our intellectual property rights; risks
related to our business such as risks associated with our growth
strategy, including the integration of new operations, financial
and operational risks inherent in worldwide operations, foreign
exchange risks, income tax laws, our ability to negotiate favorable
contractual terms, to deliver our services and to collect
receivables, and the reputational and financial risks attendant to
cybersecurity breaches and other incidents; as well as other risks
identified or incorporated by reference in this press release, in
CGI's annual and quarterly MD&A and in other documents that we
make public, including our filings with the Canadian Securities
Administrators (on SEDAR at www.sedar.com) and the U.S. Securities
and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise
stated, the forward-looking information and statements contained in
this press release are made as of the date hereof and CGI disclaims
any intention or obligation to publicly update or revise any
forward-looking information or forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by applicable law. While we believe that our
assumptions on which these forward-looking information and
forward-looking statements are based were reasonable as at the date
of this press release, readers are cautioned not to place undue
reliance on these forward-looking information or statements.
Furthermore, readers are reminded that forward-looking information
and statements are presented for the sole purpose of assisting
investors and others in understanding our objectives, strategic
priorities and business outlook as well as our anticipated
operating environment. Readers are cautioned that such information
may not be appropriate for other purposes. Further information on
the risks that could cause our actual results to differ
significantly from our current expectations may be found in the
section titled "Risk Environment" of CGI's annual and quarterly
MD&A, which is incorporated by reference in this cautionary
statement. We also caution readers that the above-mentioned risks
and the risks disclosed in CGI's annual and quarterly MD&A and
other documents and filings are not the only ones that could affect
us. Additional risks and uncertainties not currently known to us or
that we currently deem to be immaterial could also have a material
adverse effect on our financial position, financial performance,
cash flows, business or reputation.
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SOURCE CGI Group Inc.