Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
www.cgi.com/newsroom
Q1-F2022 performance highlights1
- Revenue of $3.09 billion, up 2.4%
year-over-year or 6.8% year-over-year in constant currency;
- Adjusted EBIT of $521.5 million,
up 5.2% year-over-year;
- Adjusted EBIT margin improved by 50 basis points year-over-year
to 16.9%;
- Net earnings of $367.4 million,
for a margin of 11.9%;
- Diluted EPS of $1.49, up 12.9%
year-over-year;
- Net earnings excluding specific items* of $369.4 million and diluted EPS of $1.50;
- Cash from operating activities of $484.3
million, representing 15.7% of revenue;
- Bookings of $3.60 billion, for a
book-to-bill ratio of 116.5%;
- Backlog of $23.58 billion or 1.9x
annual revenue.
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*Specific items in
Q1-F2022 include: $2.0 million in acquisition-related and
integration costs, net of tax; Specific items in Q1-F2021 include:
$3.7 million in acquisition-related and integration costs, net of
tax.
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Note: All figures in
Canadian dollars. Q1-F2022 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 Q1-F2022 MD&A – click here (PDF)
MONTRÉAL, Feb. 2, 2022
/PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB) reported Fiscal 2022
first quarter results this morning.
"CGI is off to a strong start in fiscal 2022 with accelerating
revenue growth, strong bookings, and double digit EPS accretion"
said President and Chief Executive Officer, George D. Schindler. "With a net increase of
6,000 employees year-over-year, our plan remains to deliver revenue
growth and double digit EPS accretion for the year."
Q1-F2022 results
For the first quarter of F2022,
the Company reported revenue of $3.09
billion, representing a year-over-year increase of 2.4% when
incorporating unfavorable impacts from foreign currency
fluctuations. On a constant currency basis, revenue grew by 6.8%
year-over-year.
Adjusted EBIT was $521.5 million,
up 5.2% year-over-year, with an EBIT margin of 16.9% representing
an improvement of 50 basis points from 16.4% in the same period
last year.
On a GAAP basis, net earnings were $367.4
million, up 7.0% compared with the same period last year.
Diluted earnings per share, as a result, were $1.49 compared to $1.32 last year, representing an increase of
12.9%.
Excluding acquisition-related and integration costs, net of tax,
net earnings were $369.4 million,
representing an increase of 6.4% or $22.2
million year-over-year and a margin of 11.9%. On the same
basis, diluted earnings per share expanded by 12.8% to $1.50, up from $1.33 from the same period last year.
Bookings were $3.60 billion,
representing a book-to-bill ratio of 116.5%. As of December 31, 2021, the Company's backlog stood at
$23.58 billion or 1.9x annual
revenue.
Cash provided by operating activities was $484.3 million, or 15.7% of revenue. Over the
last twelve months ending December 31,
2021, cash provided by operating activities was 2,002.8
million, or 16.4% of revenue.
In millions of Canadian
dollars except earnings per share and where noted
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Q1-F2022
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Q1-F2021
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Revenue
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3,092.4
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3,019.4
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Growth
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2.4%
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(1.2%)
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Constant currency
growth
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6.8%
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(3.6%)
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Adjusted
EBIT
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521.5
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495.7
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Margin
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16.9%
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16.4%
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Net earnings
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367.4
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343.5
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Margin
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11.9%
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11.4%
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Net earnings excluding
specific items*
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369.4
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347.2
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Margin
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11.9%
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11.5%
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Diluted earnings per
share (diluted EPS)
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1.49
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1.32
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Diluted earnings per
share excluding specific items*
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1.50
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1.33
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Weighted average number
of outstanding shares (diluted)
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246.8
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260.4
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Net finance
costs
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25.6
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27.2
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Net debt
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2,687.9
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2,672.5
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Net debt to
capitalization ratio
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27.8%
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27.1%
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Cash provided by
operating activities
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484.3
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597.5
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Days sales outstanding
(DSO)
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45
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44
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Return on invested
capital (ROIC)
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15.3%
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12.4%
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Return on equity
(ROE)
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20.3%
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16.6%
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Bookings
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3,603.6
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3,396.6
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Backlog
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23,577.2
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22,768.6
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*
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Specific items in
Q1-F2022 include: $2.0 million in acquisition-related and
integration costs, net of tax; Specific items in Q1-F2021 include:
$3.7 million in acquisition-related and integration costs, net of
tax.
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As at December 31, 2021, net debt
stood at $2.69 billion, up from
$2.67 billion at the same time last
year. The net debt-to-capitalization ratio stood at 27.8% at the
end of December 2021.
With cash of $1.2 billion on hand
at the end of December 2021, and a
fully available revolving credit facility, the Company has
$2.7 billion in readily available
liquidity to pursue its Build and Buy profitable growth
strategy.
Normal Course Issuer Bid
On February 1,
2022, the Company's Board of Directors authorized 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 18.8 million 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 24, 2022. The
current program will terminate on February 5, 2022 and
repurchases of Class A subordinate voting shares under the renewed
program may commence on February 6, 2022. For further
information, please refer to the Company's press release regarding
the renewal of its Normal Course Issuer Bid.
Q1-F2022 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 1-800-590-6590 or 1-438-802-6860 Conference ID:
7425436 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 Meeting of Shareholders
This morning the company will hold its Annual General Meeting of
Shareholders. The meeting will be held at 11:00 a.m.
(EST) via live webcast at www.icastpro.ca/xp8zto
(Password: CGI2021).
About CGI
Founded in 1976, CGI is among the largest
independent IT and business consulting services firms in the world.
With 82,000 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. CGI Fiscal 2021
reported revenue is $12.13 billion
and CGI shares are listed on the TSX (GIB.A) and the NYSE
(GIB). Learn more at cgi.com.
1Non-GAAP and other key performance
measures
Non-GAAP financial metrics used in this press release: Constant
currency growth, adjusted EBIT, adjusted EBIT margin, net debt, net
debt to capitalization ratio, ROIC, net earnings excluding specific
items, net earnings margin excluding specific items, 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. These measures do not have any
standardized meaning prescribed by IFRS and are therefore unlikely
to be comparable to similar measures presented by other issuers and
should be considered as supplemental in nature and not as a
substitute for the related financial information prepared in
accordance with IFRS. Additional details for these non-GAAP
measures can be found on pages 3, 4 and 5 of our Q1-F2022 MD&A
which is posted on CGI's website, and filed with SEDAR at
www.sedar.com and EDGAR at www.sec.gov.
Key performance measures used in this press release: bookings,
book-to-bill ratio, backlog, DSO, net earnings margin, and ROE. The
composition of these measures can also be found on pages 3, 4 and 5
of our Q1-F2022 MD&A
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, other external risks (such as
pandemics) 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 and
other tax programs, our ability to negotiate favourable contractual
terms, to deliver our services and to collect receivables, the
reputational and financial risks attendant to cybersecurity
breaches and other incidents, and financial risks such as liquidity
needs and requirements, maintenance of financial ratios, and
changes in creditworthiness and credit ratings; 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). For a discussion of risks in response to the
coronavirus (COVID-19) pandemic, see Pandemic risks in
section 10.1.1. of our annual MD&A and section 8.1.1. of our
quarterly MD&A. 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:https://www.prnewswire.com/news-releases/cgi-reports-strong-first-quarter-fiscal-2022-results-accelerating-revenue-growth-driving-12-9-eps-accretion-year-over-year-301473653.html
SOURCE CGI Inc.