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GIB.A (TSX)
GIB (NYSE)
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Revenue up 11.5% in constant currency and EPS
excluding specific items* up 13.2%
Q3-F2022 performance highlights1
- Revenue of $3.26 billion, up 7.9%
year-over-year or 11.5% year-over-year in constant currency;
- Adjusted EBIT of $519.9 million, up 9.0% year-over-year;
- Adjusted EBIT margin improved by 20 basis points
year-over-year to 16.0%;
- Net earnings of $364.3 million,
for a margin of 11.2%, consistent year-over-year;
- Diluted EPS of $1.51, up 11.0%
year-over-year;
- Net earnings excluding specific items* of $371.2 million, for a margin of 11.4%, up 20
basis points year-over-year;
- Diluted EPS excluding specific items* of $1.54, up 13.2% year-over-year;
- Cash from operating activities of $419.2
million, representing 12.9% of revenue;
- Bookings of $3.41 billion, for a
book-to-bill ratio of 104.7%; and
- Backlog of $23.24 billion or 1.8x
annual revenue.
*Specific items in
Q3-F2022 include: $6.9 million in acquisition-related and
integration costs, net of tax; Specific items in Q3-F2021 include:
$0.5 million in acquisition-related and integration costs, net of
tax.
|
Note: All figures in
Canadian dollars. Q3-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.
|
MONTRÉAL, July 27,
2022 /CNW Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB)
Q3-F2022 results
"In the third quarter of fiscal 2022, we continued delivering on
our build & buy profitable growth strategy with double digit
increases year-over-year in both revenue and EPS," said
George D. Schindler, President and
Chief Executive Officer. "We are well structured through our
portfolio of services and strong balance sheet to help our clients
navigate the current economic environment while continuing to drive
the growth and profitability of our business."
For the third quarter of fiscal 2022, the Company reported
revenue of $3.26 billion,
representing a year-over-year increase of 7.9%. Revenue grew by
11.5% year-over-year, when excluding $109.5
million of unfavorable foreign currency impact.
As at the end of the quarter, the number of consultants and
professionals increased year-over-year by more than 10,500, for a
total of approximately 88,500 worldwide.
Adjusted EBIT was $519.9 million,
up 9.0% year-over-year, with an EBIT margin of 16.0% representing
an improvement of 20 basis points from 15.8% in the same period
last year.
For the three months ended June 30,
2022, our effective tax rate increased to 25.5% from 24.9%
for the same period last year.
Net earnings were $364.3 million,
up 7.6% compared with the same period last year, for a margin of
11.2%. Diluted earnings per share, as a result, were $1.51 compared to $1.36 last year, representing an increase of
11.0%.
Net earnings were $371.2 million,
when excluding acquisition-related and integration costs, net
of tax. This represents an increase of 9.5% year-over-year and a
margin of 11.4%. On the same basis, diluted earnings per share
increased by 13.2% to $1.54, up from
$1.36 from the same period last
year.
Bookings were $3.41 billion,
representing a book-to-bill ratio of 104.7%, or 104.9% on a
trailing twelve-month basis. As of June
30, 2022, the Company's backlog stood at $23.24 billion or 1.8x annual revenue.
Cash provided by operating activities was $419.2 million, stable on a year-over-year basis.
Over the last twelve-months ending June 30,
2022, cash provided by operating activities was $1,903.1 million, or 15.1% of revenue.
Financial
highlights
|
Q3-F2022
|
Q3-F2021
|
Change
|
In millions of
Canadian dollars except earnings per share and where
noted
|
|
|
|
Revenue
|
3,258.6
|
3,021.4
|
237.2
|
Growth
|
7.9 %
|
(1.0 %)
|
890 bps
|
Constant currency
growth
|
11.5 %
|
3.5 %
|
800 bps
|
Adjusted
EBIT
|
519.9
|
476.8
|
43.1
|
Margin
|
16.0 %
|
15.8 %
|
20 bps
|
Net earnings
|
364.3
|
338.5
|
25.8
|
Margin
|
11.2 %
|
11.2 %
|
-
|
Net earnings excluding
specific items*
|
371.2
|
339.0
|
32.2
|
Margin
|
11.4 %
|
11.2 %
|
20 bps
|
Diluted earnings per
share (diluted EPS)
|
1.51
|
1.36
|
0.15
|
Diluted earnings per
share excluding specific items*
|
1.54
|
1.36
|
0.18
|
Weighted average number
of outstanding shares (diluted)
|
240.8
|
249.5
|
(8.7)
|
Net finance
costs
|
22.9
|
25.7
|
(2.8)
|
Net debt
|
3,073.0
|
2,956.6
|
116.4
|
Net debt to
capitalization ratio
|
30.6 %
|
30.9 %
|
(30 bps)
|
Cash provided by
operating activities
|
419.2
|
418.9
|
0.3
|
Days sales outstanding
(DSO)
|
48
|
44
|
4
|
Return on invested
capital (ROIC)
|
15.8 %
|
13.8 %
|
200 bps
|
Return on equity
(ROE)
|
21.1 %
|
18.4 %
|
270 bps
|
Bookings
|
3,410
|
3,634
|
(224)
|
Backlog
|
23,238
|
23,345
|
(107)
|
* Specific items in
Q3-F2022 include: $6.9 million in acquisition-related and
integration costs, net of tax; Specific items in Q3-F2021 include:
$0.5 million in acquisition-related and integration costs, net of
tax.
|
During the quarter, the Company invested $113.6 million (at
a weighted average price of $101.31) under its current Normal Course
Issuer Bid to purchase for cancellation 1,120,800 of its Class A
shares and $414.4 million for the
recent acquisitions of Umanis SA and Harwell Management.
Return on invested capital for the quarter was 15.8%, an
improvement of 200 basis points when compared to the prior
year.
As at June 30, 2022, net debt
stood at $3.07 billion, up from
$2.96 billion at the same time last
year. The net debt-to-capitalization ratio stood at 30.6% at the
end of June 2022, down 30 basis
points when compared to the prior year.
With cash of $0.8 billion on hand
at the end of June 2022, and a fully
available revolving credit facility, the Company has $2.3 billion in readily available liquidity to
pursue its Build and Buy profitable growth strategy.
To access the financial statements – click here (PDF)
To access the Q3-F2022 MD&A – click here (PDF)
Q3-F2022 results conference
call
Management will host a conference call this morning at
9:00 a.m. Eastern Daylight time to
discuss results. Participants may access the call by dialing
1-888-396-8049 or 1-416-764-8646 Conference ID: 07482468 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. Participants may also access a
replay of the call by dialing 1-877-674-7070 Passcode: 482468,
until August 26, 2022.
About CGI
Founded in 1976, CGI is among the largest independent IT and
business consulting services firms in the world. With 88,500
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. 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 Q3-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 Q3-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, additional external risks (such
as pandemics, armed conflict and inflation) 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 8.1.1. of our Q3 2022 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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SOURCE CGI Inc.