Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
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Q4-F2019 year-over-year highlights
- Revenue of $2.96 billion, up 5.7%
or 7.7% in constant currency;
- Adjusted EBIT of $457.5 million,
or 15.5% of revenue;
- Net earnings of $324.1 million,
or 11.0% of revenue;
- Net earnings excluding specific items* of $329.5 million, or 11.1% of revenue;
- Diluted EPS of $1.19, up
15.5%;
- Diluted EPS excluding specific items* of $1.21, up 11.0%;
- Cash provided by operating activities of $405.2 million or 13.7% of revenue; and,
- Bookings of $3.4 billion, or 115%
of revenue.
F2019 year-over-year highlights
- Revenue of $12.1 billion, up 5.3%
or 5.9% in constant currency;
- Adjusted EBIT of $1.8 billion, or
15.1% of revenue;
- Net earnings of $1.3 billion, or
10.4% of revenue;
- Net earnings excluding specific items* of $1.3 billion, or 10.8% of revenue;
- Diluted EPS of $4.55, up
15.2%;
- Diluted EPS excluding specific items* of $4.70, up 12.2%;
- Cash provided by operating activities of $1.6 billion or 13.5% of revenue;
- Bookings of $12.6 billion, or
104% of revenue; and,
- Backlog of $22.6 billion or 1.9
times F2019 revenue.
*Specific items are detailed below the table hereunder.
Note: All figures in Canadian dollars. Fiscal
2019 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. 6, 2019 /CNW
Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB) reported fiscal 2019
fourth quarter revenue of $2.96
billion, an increase of $160.3
million or 5.7% compared with the same period last year. On
a constant currency basis, revenue grew by 7.7% as foreign exchange
fluctuations unfavourably impacted revenue by $56.3 million.
Adjusted EBIT was $457.5 million
or 15.5% of revenue, an increase of $21.7
million from the year ago period.
Net earnings were $324.1 million,
up 10.4% and representing a margin of 11.0%, an increase of 50
basis points over the same period last year. Earnings per diluted
share were $1.19, up 16 cents or 15.5% from 1.03 cents last year.
Net earnings excluding specific items, were $329.5 million, up 6.3% and representing a margin
of 11.1%. Earnings per diluted share were $1.21, up 12 cents
or 11.0% from $1.09 last year.
The company booked $3.4 billion in
contract awards or 115% of revenue, up $458.6 million from Q3-F2019. At the end of
September, the company's backlog stood at $22.6 billion.
Cash provided by operating activities was $405.2 million or 13.7% of revenue, compared with
$340.4 million or 12.2% of revenue in
the year ago period.
In millions of
Canadian dollars except earnings per share and where
noted
|
Q4-F2019
|
Q4-F2018
|
F2019
|
F2018
|
|
|
|
|
|
Revenue
|
2,959.2
|
2,799.0
|
12,111.2
|
11,506.8
|
Growth at constant
currency
|
7.7%
|
5.0%
|
5.9%
|
4.6%
|
Adjusted
EBIT
|
457.5
|
435.7
|
1,825.0
|
1,701.7
|
Margin
|
15.5%
|
15.6%
|
15.1%
|
14.8%
|
Net
earnings
|
324.1
|
293.5
|
1,263.2
|
1,141.4
|
Margin
|
11.0%
|
10.5%
|
10.4%
|
9.9%
|
Earnings per share
(diluted)
|
1.19
|
1.03
|
4.55
|
3.95
|
Net earnings
excluding specific items*
|
329.5
|
309.8
|
1,305.9
|
1,210.7
|
Margin
|
11.1%
|
11.1%
|
10.8%
|
10.5%
|
Earnings per share
(diluted) excluding specific items*
|
1.21
|
1.09
|
4.70
|
4.19
|
Weighted average
number of outstanding shares (diluted)
|
273.1
|
284.5
|
277.8
|
288.9
|
Net finance
costs
|
17.8
|
20.8
|
70.6
|
73.9
|
Net debt
|
2,117.2
|
1,640.8
|
2,117.2
|
1,640.8
|
Net debt to
capitalization ratio
|
22.9%
|
19.2 %
|
22.9%
|
19.2%
|
Cash provided by
operating activities
|
405.2
|
340.4
|
1,633.9
|
1,493.4
|
Days sales
outstanding (DSO)
|
50
|
52
|
50
|
52
|
Return on invested
capital (ROIC)
|
15.1%
|
14.5%
|
15.1%
|
14.5%
|
Return on equity
(ROE)
|
18.5%
|
17.3%
|
18.5
%
|
17.3%
|
Bookings
|
3,409.3
|
3,533.7
|
12,646.0
|
13,493.0
|
Backlog
|
22,611.2
|
22,576.9
|
22,611.2
|
22,576.9
|
|
* Specific
items: Q4-F2019: $23.8 million in acquisition-related and
integration costs net of tax and a favourable tax adjustment of
18.5 million.Q4-F2018: $14.7 million in restructuring costs and
$1.6 million in acquisition-related and integration costs net of
tax.
|
F2019: $61.1 million
in acquisition-related and integration costs net of tax, and tax
adjustment of $18.5 million.
|
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.
|
"I'm pleased with the growth in Q4, driven by IP and our managed
IT services offering," said George D.
Schindler, President and Chief Executive Officer. "The full
year results reflect our ongoing ability to deliver organic growth
and expanding margins."
Fiscal 2019 full-year results
The company generated revenue of $12.1
billion for the fiscal year ended September 30, 2019, up $604.4 million or 5.3% compared with the year ago
period. On a constant currency basis, revenue grew by 5.9% as
foreign exchange fluctuations unfavourably impacted revenue by
$69.7 million.
Adjusted EBIT was $1.8 billion for
a margin of 15.1%, up 30 basis points or $123.3 million from F2018.
Net earnings were $1.3 billion, up
10.7% representing a margin of 10.4%, an increase of 50 basis
points compared to last year. Earnings per share amounted to
$4.55 per diluted share, an increase
of 60 cents or 15.2% from
$3.95 last year.
Net earnings excluding specific items, were $1.3 billion, up 7.9% representing a margin of
10.8%, an increase of 30 basis points compared to last year.
Earnings per share amounted to $4.70
per diluted share, an increase of 51
cents or 12.2% from $4.19 last
year.
For the year, the company booked $12.6
billion in contract awards, representing a book-to-bill of
104% of revenue.
Cash provided by operating activities was $1.6 billion or 13.5% of revenue, an increase of
$140.5 million from the year ago
period.
At the end of F2019, the company had $213.8 million in cash and $1.2 billion in unused credit facilities. Net
debt was $2.1 billion, compared to
$1.6 billion in the year ago period
and net debt to capitalization increased to 22.9% from
19.2%.
The company invested a total of $1.1
billion throughout the year to purchase for cancellation
12.5 million Class A subordinate voting shares, at an average price
of $90.37. Under the current Normal
Course Issuer Bid, an additional 13.3 million Class A subordinate
voting shares can be purchased before February 5, 2020.
Conference call to discuss Q4 and Full-Year F2019
results
Management will host a conference call to discuss
the fourth quarter and full year 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. 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 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 2019 reported revenue of C$12.1
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.
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.