Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
cgi.com/en/investors
Revenue growth of 5.2% and 13.3% EPS
expansion
Q1-F2019 year-over-year highlights
- Revenue of $2.96 billion, up
5.2%;
- Adjusted EBIT of $439.2 million,
or 14.8% of revenue, up 40 basis points;
- Net earnings of $311.5 million,
or 10.5% of revenue, up 40 basis points;
- Net earnings excluding specific items* of $314.7 million, or 10.6% of revenue, up 40 basis
points;
- Diluted EPS of $1.11, or
$1.12 excluding specific items*, up
13.3% and 13.1% respectively;
- Cash provided by operating activities of $391.5 million or 13.2% of revenue, compared to
$410.1 million;
- Bookings of $3.03 billion, up
$54.7 million for a book-to-bill of
102.3%;
- Bookings of $13.55 billion over
the last twelve months, up $2.25
billion for a book-to-bill of 116.3%;
- Backlog of $23.34 billion, up
$2.23 billion.
*Specific items in
Q1-F2019 include $3.2 million in acquisition-related and
integration costs net of tax. 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;
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Note: All figures in
Canadian dollars. Q1-F2019 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. 30, 2019 /CNW
Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB) reported fiscal 2019 first
quarter revenue of $2.96 billion,
representing growth of 5.2% compared with Q1-F2018. In constant
currency, revenue grew 4.5% as foreign exchange fluctuations
positively impacted revenue by $21.4
million.
Adjusted EBIT increased to $439.2
million, representing a margin of 14.8%, up 40 basis points,
compared with $406.3 million, or
14.4% in Q1-F2018.
Net earnings increased to $311.5 million in Q1-F2019, compared with
$285.3 million in the year ago
period. Earnings per diluted share were $1.11 cents, an increase of 13.3% compared with
98 cents last year.
Net earnings excluding specific items were $314.7 million or 10.6% of revenue, compared with
$288.0 million last year. On the same
basis, earnings per diluted share were $1.12, an improvement of 13.1% from
99 cents in Q1-F2018.
"We are off to a good start in fiscal 2019, as our profitable
growth strategy delivered strong first quarter results," said
George D. Schindler, President and
Chief Executive Officer. "I am encouraged by the broad-based growth
we are experiencing across all regions, accelerated by our recent
metro market mergers."
Bookings for the first three months of fiscal 2019 were
$3.03 billion or 102.3% of revenue.
On a trailing twelve-month basis, total awards were $13.55 billion, or 116.3% of revenue. At the end
of Q1-F2019, the company's backlog was $23.34 billion, up $2.23 billion from the year ago period.
Cash generated from operating activities was $391.5 million or 13.2% of revenue, compared with
$410.1 million in the year ago
period. Over the last twelve months, the company has generated
$1.47 billion or $5.15 in cash per diluted share.
At the end of December 2018, the
company had more than $1.93 billion
in available cash and unused credit facilities, while net debt was
$1.74 billion, representing a net
debt to capitalization ratio of 19.1%.
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In millions of
Canadian dollars except earnings per share
and where noted
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Q1-F2019
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Q1-F2018
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Revenue
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2,963.9
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2,816.9
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Growth
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5.2%
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5.3%
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Growth at constant
currency
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4.5%
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4.9%
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Adjusted
EBIT
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439.2
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406.3
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Margin
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14.8%
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14.4%
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Net
earnings
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311.5
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285.3
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Margin
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10.5%
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10.1%
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Net earnings
excluding specific items*
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314.7
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288.0
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Margin
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10.6%
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10.2%
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Earnings per share
(diluted)
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1.11
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0.98
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Earnings per share
(diluted) excluding specific items*
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1.12
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0.99
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Weighted average
number of outstanding shares (diluted)
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281.6
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291.6
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Net finance
costs
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14.6
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17.1
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Net debt
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1,738.7
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1,635.0
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Net debt to
capitalization ratio
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19.1%
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19.3%
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Cash provided by
operating activities
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391.5
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410.1
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Days sales
outstanding (DSO)
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54
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47
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Return on invested
capital (ROIC)
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14.5%
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13.7%
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Return on equity
(ROE)
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17.3%
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16.2%
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Bookings
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3,030.8
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2,976.1
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Backlog
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23,337.9
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21,110.1
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*Specific items in
Q1-F2019 are comprised of: $3.2 million in acquisition-related and
integration costs net of tax. 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.
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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
20,100,499 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
23, 2019. Purchases of Class A subordinate voting shares may
commence on February 6, 2019. For
further information, please refer to the company's press release
regarding the renewal of its Normal Course Issuer Bid.
Q1-F2019 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 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.
Annual General and Special Meeting of
Shareholders
This morning at 11:00 a.m. Eastern time, the company will hold
its Annual General and Special 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 among the largest
independent IT and business consulting services firms in the world.
With approximately 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$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 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 pages 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 and political 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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content:http://www.prnewswire.com/news-releases/cgi-reports-strong-q1-fiscal-2019-results-300786625.html
SOURCE CGI Group Inc.