Q3-F2019 results and year-over-year highlights
- Revenue of $3.12 billion, up 6.1%
year-over-year or 6.6% in constant currency;
- Adjusted EBIT of $474.2 million,
up 8.9%;
- Adjusted EBIT margin of 15.2% of revenue, up 40 basis
points;
- Net earnings of $309.4 million,
up 7.3%;
- Net earnings margin of 9.9%, up 10 basis points;
- Diluted EPS of $1.12, up
12.0%;
- Net earnings excluding specific items* of $337.2 million, up 8.9%;
- Net earnings margin, excluding specific items* of 10.8% of
revenue, up 30 basis points;
- Diluted EPS of $1.22 excluding
specific items*, up 13.0%;
- Cash provided by operating activities of $375.2 million, up 18.2%;
- Bookings of $2.95 billion for a
book-to-bill of 95% and 107% over the last twelve months; and,
- Backlog of $22.42 billion,
representing 1.9 times last twelve months revenue.
*Specific items in
Q3-F2019 include: $27.9 million in acquisition-related and
integration costs net of tax; 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
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Note: All figures in
Canadian dollars. Q3-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, July 31, 2019 /CNW
Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB) reported Fiscal 2019
third quarter revenue growth of 6.1%, an increase of $179.1 million, to $3.12
billion. On a constant currency basis, revenue was up 6.6%
as foreign exchange fluctuations negatively impacted revenue by
$14.0 million.
Adjusted EBIT was $474.2 million,
an increase of $38.9 million from
Q3-F2018, representing a margin of 15.2%, an improvement of 40
basis points compared to the same period last year.
Net earnings were $309.4
million in Q3-F2019, up $21.1
million from the year ago period. Earnings per diluted share
were $1.12, up 12.0% from
$1.00 last year.
Net earnings excluding specific items were $337.2 million, an increase of $27.5 million from Q3-F2018, representing a
margin of 10.8%. EPS on the same basis expanded by 13.0% to
$1.22 per diluted share, up from
$1.08 from the year ago
period.
"I am pleased with this quarter's results of continued revenue
growth and profitability expansion as we execute our build and buy
strategy in every operating segment," said George D. Schindler, President and Chief
Executive Officer. "We continue to see strong client demand for our
end-to-end services worldwide."
Bookings were $2.95 billion in
Q3-F2019 and $12.77 billion over the
last twelve months, representing 94.6% and 106.9% of revenue,
respectively. At the end of June
2019, the Company's backlog stood at $22.42 billion, representing 1.9 times last
twelve months revenue.
Cash provided by operating activities was $375.2 million, an improvement of $57.9 million compared with the same period last
year. Over the last twelve months, the Company generated
$1.57 billion, or $5.60 in cash provided by operating activities
per diluted share1, up from $5.16 in the year ago period.
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In millions of
Canadian dollars except earnings per share and where
noted
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Q3-F2019
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Q3-F2018
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Revenue
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3,119.8
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2,940.7
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Growth
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6.1%
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3.7%
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Growth at constant
currency
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6.6%
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3.8%
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Adjusted
EBIT
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474.2
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435.3
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Margin
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15.2%
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14.8%
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Net
earnings
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309.4
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288.3
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Margin
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9.9%
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9.8%
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Net earnings
excluding specific items*
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337.2
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309.7
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Margin
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10.8%
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10.5%
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Diluted earnings per
share
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1.12
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1.00
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Diluted earnings per
share, excluding specific items*
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1.22
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1.08
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Weighted average
number of outstanding shares (diluted)
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277,341,191
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287,540,464
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Net finance
costs
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19.4
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18.7
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Net debt
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2,336.1
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1,685.2
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Net debt to
capitalization ratio
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25.2%
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19.6%
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Cash provided by
operating activities
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375.2
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317.3
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Days sales
outstanding (DSO)
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52
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50
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Return on invested
capital (ROIC)
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15.0%
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13.5%
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Return on equity
(ROE)
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18.1%
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16.0%
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Bookings
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2,950.7
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3,470.2
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Backlog
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22,418.4
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22,406.6
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*Specific items in
Q3-F2019 include: $27.9 million in acquisition-related and
integration costs net of tax; 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
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During the quarter, the company invested $516.5 million to buyback 5.3 million shares and
$519.2 million to acquire control of
Acando through the acquisition of an additional 73.5% of the
outstanding shares, for a total purchase price of $623.8 million. At the end of June, net debt to
capitalization stood at 25.2%, compared with 19.6% last year. At
the end of Q3, the Company had approximately $1.32 billion in available cash and unused credit
facilities.
Q3-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 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 firms in the world.
With approximately 77,500 consultants and professionals across the
globe, CGI delivers an end-to-end portfolio of capabilities, from
strategic IT and business consulting to systems integration,
managed IT and business process 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 Fiscal 2018 reported 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, 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.
1Cash
provided by operating activities per diluted share (non-GAAP) is a
measure of our cash provided by operating activities on a per share
basis, assuming all dilutive elements are exercised.
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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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SOURCE CGI Inc.