Growth in revenue and margins drive double-digit
EPS expansion
Q4-F2018 year-over-year highlights
- Revenue of $2.8 billion, up 7.3%
or 5.0% in constant currency;
- Adjusted EBIT of $435.7 million,
or 15.6% of revenue;
- Net earnings of $293.5 million,
or 10.5% of revenue;
- Net earnings excluding specific items* of $309.8 million, or 11.1% of revenue;
- Diluted EPS of $1.03, up
47.1%;
- Diluted EPS excluding specific items* of $1.09, up 17.2%;
- Cash provided by operating activities of $340.4 million or 12.2% of revenue; and,
- Bookings of $3.5 billion, or
126.2% of revenue.
F2018 year-over-year highlights
- Revenue of $11.5 billion, up 6.1%
or 4.6% in constant currency;
- Adjusted EBIT of $1.7 billion, or
14.8% of revenue;
- Net earnings of $1.1 billion, or
9.9% of revenue;
- Net earnings excluding specific items* of $1.2 billion, or 10.5% of revenue;
- Diluted EPS of $3.95, up
15.8%;
- Diluted EPS excluding specific items* of $4.19, up 14.8%;
- Cash provided by operating activities of $1.5 billion or 13.0% of revenue;
- Bookings of $13.5 billion, or
117.3% of revenue; and,
- Backlog of $22.6 billion, up
$1.8 billion.
*Specific items are
detailed below the table hereunder.
|
|
Note: All figures in
Canadian dollars. Fiscal 2018 MD&A, audited 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.
|
To access the financial statements – click
here (PDF)
To access the MD&A - click here (PDF)
MONTRÉAL, Nov. 7, 2018 /CNW
Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB) reported fiscal 2018 fourth
quarter revenue of $2.8 billion, up
7.3% compared with last year. On a constant currency basis, revenue
grew by 5.0% as foreign exchange fluctuations positively impacted
revenue by $60.8 million.
Adjusted EBIT was $435.7 million
or 15.6% of revenue, up 40 basis points or $40.0 million from the year ago period.
Net earnings were $293.5 million,
up 40.8% and representing a margin of 10.5%, an increase of 250
basis points over same period last year. Earnings per diluted share
were $1.03, up 33 cents or 47.1% from 70
cents last year.
Net earnings excluding specific items, were $309.8 million, up 12.4% and representing a
margin of 11.1%, an increase of 50 basis points. Earnings per
diluted share were $1.09, up
16 cents or 17.2% from 93 cents last year.
The company booked $3.5 billion in
contract awards or 126.2% of revenue, up $621.0 million from Q4-F2017. At the end of
September, the company's backlog stood at $22.6 billion, up $1.8
billion compared to last year.
Cash generated from operating activities was $340.4 million or 12.2% of revenue, compared with
$352.1 million in the year ago
period.
"The fourth quarter results demonstrate our ongoing ability to
create value for all three stakeholders through the disciplined
implementation of our build and buy strategy," said George D. Schindler, President and Chief
Executive Officer. "Building on this momentum and as we look ahead
to fiscal 2019, we are well positioned – strategically,
operationally, and financially – to deliver EPS expansion, and
remain an active consolidator in markets around the world."
|
|
|
|
|
|
|
|
|
|
In millions of
Canadian dollars except earnings per share and where
noted
|
Q4-F2018
|
Q4-F2017
|
F2018
|
F2017
|
Revenue
|
2,799.0
|
2,608.1
|
11,506.8
|
10,845.1
|
Growth at constant
currency
|
5.0%
|
2.5%
|
4.6%
|
4.3%
|
Adjusted
EBIT
|
435.7
|
395.8
|
1,701.7
|
1,586.6
|
Margin
|
15.6%
|
15.2%
|
14.8%
|
14.6%
|
Net
earnings
|
293.5
|
208.5
|
1,141.4
|
1,035.2
|
Margin
|
10.5%
|
8.0%
|
9.9%
|
9.5%
|
Earnings per share
(diluted)
|
1.03
|
0.70
|
3.95
|
3.41
|
Net earnings
excluding specific items*
|
309.8
|
275.7
|
1,210.7
|
1,107.0
|
Margin
|
11.1%
|
10.6%
|
10.5%
|
10.2%
|
Earnings per share
(diluted) excluding specific items*
|
1.09
|
0.93
|
4.19
|
3.65
|
Weighted average
number of outstanding shares (diluted)
|
284.5
|
297.6
|
288.9
|
303.3
|
Net finance
costs
|
20.8
|
16.6
|
73.9
|
69.8
|
Net debt
|
1,640.8
|
1,749.4
|
1,640.8
|
1,749.4
|
Net debt to
capitalization ratio
|
19.2
%
|
21.5%
|
19.2%
|
21.5%
|
Cash provided by
operating activities
|
340.4
|
352.1
|
1,493.4
|
1,358.6
|
Days sales
outstanding (DSO)
|
52
|
47
|
52
|
47
|
Return on invested
capital (ROIC)
|
14.5%
|
13.7%
|
14.5%
|
13.7%
|
Return on equity
(ROE)
|
17.3%
|
16.1%
|
17.3%
|
16.1%
|
Bookings
|
3,533.7
|
2,912.9
|
13,493.0
|
11,284.4
|
Backlog
|
22,576.9
|
20,812.7
|
22,576.9
|
20,812.7
|
|
|
|
|
|
* Specific
items
|
|
|
|
|
Q4-F2018: $14.7
million in restructuring costs and $1.6 million in
acquisition-related and integration costs net of tax.
|
Q4-F2017: $65.3
million in restructuring costs and $1.9 million in
acquisition-related and integration costs net of
tax.
|
F2018: $73.9 million
in restructuring costs, $29.6 million in acquisition-related and
integration costs net of tax, and net-tax adjustments of $34.1
million.
|
F2017: $65.3 million
in restructuring costs and $6.5 million in acquisition-related and
integration costs net of tax.
|
Fiscal 2018 full-year results
CGI reported revenue of $11.5
billion for the fiscal year ended September 30, 2018, up 6.1% compared with the
year ago period. On a constant currency basis, revenue grew by 4.6%
as foreign exchange fluctuations positively impacted revenue by
$159.5 million.
Adjusted EBIT was $1.7 billion for
a margin of 14.8%, up 20 basis points or $115.1 million from F2017.
Net earnings were $1.1 billion, up
10.3% representing a margin of 9.9%, an increase of 40 basis points
compared to last year. Earnings per share amounted to $3.95 per diluted share, an increase of
54 cents or 15.8% from $3.41 last year.
Net earnings excluding specific items, were $1.2 billion representing, up 9.4% representing a
margin of 10.5%, an increase of 30 basis points compared to last
year. Earnings per share amounted to $4.19 per diluted share, also an increase of
54 cents or 14.8% from $3.65 last year.
For the year, the company booked $13.5
billion in contract awards, bringing the book-to-bill for
the fiscal year to 117.3% of revenue.
The company generated $1.5 billion
in cash from operations in F2018, or $5.17 per diluted share, an increase of
$134.9 million from the year ago
period.
At the end of F2018, the company had $184.1 million in cash and $1.3 billion in unused credit facilities. Net
debt was $1.6 billion dollars,
compared to $1.7 billion in the year
ago period. As a result, the net debt to capitalization ratio
decreased to 19.2% from 21.5%.
The company invested a total of $797.9
million throughout the year to purchase for cancellation
10.4 million Class A subordinate voting shares, at an average price
of $76.90. Under the current Normal
Course Issuer Bid, an additional 10.2 million Class A subordinate
voting shares can be purchased for cancellation until no later than
February 5, 2019.
Conference call to discuss Q4 and Full-Year F2018
results
Management will host a conference call to discuss
results at 9 a.m. EST this morning.
Participants may access the call by dialing 1-800-377-0758 or via
cgi.com/investors. Supporting slides for the call will also be
available. For those unable to participate on the live call, a
replay and downloadable podcast will remain available on
cgi.com/investors.
About CGI
Founded in 1976, CGI is among the largest
independent IT and business consulting services firms 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 results. With annual revenue of
C$11.5 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 CGI, 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.
View original
content:http://www.prnewswire.com/news-releases/cgi-reports-q4-and-fiscal-2018-results-300745287.html
SOURCE CGI Group Inc.