Stock Market Symbols
GIB.A
(TSX)
GIB (NYSE)
cgi.com/newsroom
Revenue up 13.9% in Q4 and 10.5% in Fiscal
2022, both in constant currency
Q4-F2022 performance highlights1
- Revenue of $3.25 billion, up 8.0%
year-over-year or 13.9% year-over-year in constant currency;
- Adjusted EBIT of $521.7 million,
up 5.7% year-over-year, for a margin of 16.1%;
- Net earnings of $362.4 million,
up 4.7% year-over-year, for a margin of 11.2%;
- Net earnings excluding specific items* of $373.1 million, up 7.6% year-over-year, for a
margin of 11.5%;
- Diluted EPS of $1.51, up 8.6%
year-over-year;
- Diluted EPS excluding specific items* of $1.56, up 11.4% year-over-year;
- Cash from operating activities of $488.9
million, representing 15.1% of revenue;
- Bookings of $3.64 billion, for a
book-to-bill ratio of 112.0%; and
- Backlog of $24.06 billion or 1.9x
annual revenue.
F2022 performance highlights1
- Revenue of $12.87 billion, up
6.1% year-over-year or 10.5% year-over-year in constant
currency;
- Adjusted EBIT of $2.09 billion,
up 6.9% year-over-year, for a margin of 16.2%;
- Net earnings of $1.47 billion, up
7.1% year-over-year, for a margin of 11.4%;
- Net earnings excluding specific items* of $1.49 billion, up 8.2% year-over-year, for a
margin of 11.6%;
- Diluted EPS of $6.04, up 11.6%
year-over-year;
- Diluted EPS excluding specific items* of $6.13, up 12.9% year-over-year;
- Cash from operating activities of $1.87
billion, representing 14.5% of revenue; and
- Bookings of $13.97 billion, for a
book-to-bill ratio of 108.5%.
* Specific items in
Q4-F2022 include: $10.7 million in acquisition-related and
integration costs, net of tax; Specific items in Q4-F2021 include:
$0.9 million in acquisition-related and integration costs, net of
tax; Specific items in F2022 include: $21.7 million in
acquisition-related and integration costs, net of tax; Specific
items in F2021 include: $5.8 million in acquisition-related and
integration costs, net of tax.
|
|
Note: All figures in
Canadian dollars. F2022 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.
|
|
MONTRÉAL, Nov. 9, 2022
/PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB)
Q4-F2022 results
"I am very pleased with our team's performance in the fourth
quarter, delivering double-digit increases in both constant
currency revenue and EPS through the successful execution of our
build and buy profitable growth strategy" said George D. Schindler, President and Chief
Executive Officer. "Notably, CGI's 90,000 talented consultants met
our stakeholders' expectations to deepen relationships, win new
engagements, and—also on a full fiscal year 2022 basis, deliver
year-over-year double digit increases in both constant currency
revenue and EPS. Looking ahead, the seemingly never-ending
digitization race continues to drive demand, particularly as
clients navigate an increasingly dynamic environment. CGI remains
well positioned to partner with clients on a wide range of business
and technology objectives through our suite of end-to-end digital
services and solutions, as well as participate in market
consolidation."
For the fourth quarter of fiscal 2022, the Company reported
revenue of $3.25 billion,
representing a year-over-year increase of 8.0%. Revenue grew by
13.9% year-over-year, when excluding $177.9
million of unfavorable foreign currency impact.
As at the end of the quarter, the number of CGI worldwide
consultants and professionals had increased to 90,000, representing
a year-over-year increase of 12.5%.
Adjusted EBIT was $521.7 million,
up 5.7% year-over-year, with an EBIT margin of 16.1% representing a
decrease of 30 basis points from 16.4% for the same period last
year, primarily due to the temporary dilutive impact of recent
larger acquisitions which are in the process of being fully
integrated.
For the three months ended September 30,
2022, our effective tax rate remained relatively stable,
reducing from 25.5% to 25.4% when compared to the same quarter last
year.
Net earnings were $362.4 million,
up 4.7% 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 $1.39 last year, representing an increase of
8.6%.
Net earnings were $373.1 million,
when excluding acquisition-related and integration costs, net
of tax. This represents an increase of 7.6% year-over-year and a
margin of 11.5%. On the same basis, diluted earnings per share
increased by 11.4% to $1.56, up from
$1.40 for the same period last
year.
Bookings were $3.64 billion, up
$715.7 million on a year-over-year
basis, representing a book-to-bill ratio of 112.0%. As of
September 30, 2022, the Company's
backlog stood at $24.06 billion or
1.9x annual revenue.
Cash provided by operating activities was $488.9 million, or 15.1% of
revenue, representing a decrease of $38.1 million on a year-over-year basis.
During the fourth quarter of fiscal 2022, the Company invested
$103.0 million back into its business
and $132.9 million (at a weighted average price of
$105.48) under its current
Normal Course Issuer Bid to purchase for cancellation 1,260,114 of
its Class A subordinate voting shares.
Financial
highlights
|
Q4-F2022
|
Q4-F2021
|
F2022
|
F2021
|
In millions of
Canadian dollars except earnings per share and where
noted
|
|
|
|
|
Revenue
|
3,247.2
|
3,007.5
|
12,867.2
|
12,126.8
|
Growth
|
8.0 %
|
2.8 %
|
6.1 %
|
(0.3 %)
|
Constant currency
growth
|
13.9 %
|
6.4 %
|
10.5 %
|
1.1 %
|
Adjusted
EBIT
|
521.7
|
493.3
|
2,086.6
|
1,952.2
|
Margin
%
|
16.1 %
|
16.4 %
|
16.2 %
|
16.1 %
|
Net earnings
|
362.4
|
345.9
|
1,466.1
|
1,369.1
|
Margin
%
|
11.2 %
|
11.5 %
|
11.4 %
|
11.3 %
|
Net earnings excluding
specific items*
|
373.1
|
346.9
|
1,487.9
|
1,374.9
|
Margin
%
|
11.5 %
|
11.5 %
|
11.6 %
|
11.3 %
|
Diluted earnings per
share (diluted EPS)
|
1.51
|
1.39
|
6.04
|
5.41
|
Diluted earnings per
share excluding specific items*
|
1.56
|
1.40
|
6.13
|
5.43
|
Weighted average number
of outstanding shares (diluted)
|
239.9
|
248.2
|
242.9
|
253.1
|
Net finance
costs
|
21.0
|
27.7
|
92.0
|
106.8
|
Net debt
|
2,946.9
|
2,535.9
|
2,946.9
|
2,535.9
|
Net debt to
capitalization ratio
|
28.8 %
|
26.6 %
|
28.8 %
|
26.6 %
|
Cash provided by
operating activities
|
488.9
|
526.9
|
1,865.0
|
2,115.9
|
As a
percentage of revenue
|
15.1 %
|
17.5 %
|
14.5 %
|
17.4 %
|
Days sales outstanding
(DSO)
|
49
|
45
|
49
|
45
|
Return on invested
capital (ROIC)
|
15.7 %
|
14.9 %
|
15.7 %
|
14.9 %
|
Return on equity
(ROE)
|
20.9 %
|
19.8 %
|
20.9 %
|
19.8 %
|
Bookings
|
3,636
|
2,921
|
13,966
|
13,843
|
Backlog
|
24,055
|
23,059
|
24,055
|
23,059
|
* Specific items in
Q4-F2022 include: $10.7 million in acquisition-related and
integration costs, net of tax; Specific items in Q4-F2021 include:
$0.9 million in acquisition-related and integration costs, net of
tax; Specific items in F2022 include: $21.7 million in
acquisition-related and integration costs, net of tax; Specific
items in F2021 include: $5.8 million in acquisition-related and
integration costs, net of tax.
|
F2022 results
The Company reported revenue of $12.87
billion, representing a year-over-year increase of 6.1%.
Revenue grew by 10.5% year-over-year, when excluding $536.3 million of unfavorable foreign currency
impact.
Adjusted EBIT was $2.09 billion,
up 6.9% year-over-year, with an EBIT margin of 16.2%, representing
an improvement of 10 basis points from 16.1% for the same period
last year.
For the year ended September 30,
2022, our effective tax rate was 25.5%, stable
year-over-year.
Net earnings were $1.47 billion,
up 7.1% compared with the same period last year, for a margin of
11.4%. Diluted earnings per share, as a result, were $6.04 compared to $5.41 last year, representing an increase of
11.6%.
Net earnings were $1.49 billion,
when excluding acquisition-related and integration costs, net
of tax. This represents an increase of 8.2% year-over-year and a
margin of 11.6%. On the same basis, diluted earnings per share
increased by 12.9% to $6.13, up from
$5.43 for the same period last
year.
Bookings were $13.97 billion,
up $123.1 million on a year-over-year
basis, representing a book-to-bill ratio of 108.5%.
Cash provided by operating activities was $1.86 billion, or 14.5% of revenue, compared to
17.4% in the prior year.
Throughout the fiscal year, the Company acquired businesses
for $658.6 million, for an investment of $571.9 million, net of cash acquired. In
addition, the Company invested $374.3
million back into its business and $913.4 million (at a
weighted average price of $103.68) under its previous and current
Normal Course Issuer Bid to purchase for cancellation 8,809,839 of
its Class A subordinate voting shares.
Return on invested capital was 15.7%, an improvement of 80 basis
points when compared to the prior year.
As at September 30, 2022, net debt
stood at $2.95 billion, up from
$2.54 billion at the same time last
year. The net debt-to-capitalization ratio stood at 28.8% at the
end of September 2022, up 220 basis
points when compared to the prior year.
With cash of $0.97 billion on hand
at the end of September 2022, and a
fully available revolving credit facility, the Company has
$2.49 billion, excluding funds held
for clients, in readily available liquidity to pursue its Build and
Buy profitable growth strategy.
To access the financial statements – click here (PDF)
To access the F2022 MD&A – click here (PDF)
Q4-F2022 results conference call
Management will host
a conference call this morning at 9:00 a.m.
Eastern Standard time to discuss results. Participants may
access the call by dialing +1-888-396-8049 or +1-416-764-8646
Conference ID: 41333313 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: 333313, until December 11,
2022.
About CGI
Founded in 1976, CGI is among the largest
independent IT and business consulting services firms in the world.
With 90,000 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 2022
reported revenue is $12.87 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 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 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, climate-related issues and inflation)
and our ability to negotiate new contracts; risks related to our
industry such as competition and our ability 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 attract and retain
qualified employees, to negotiate favourable contractual terms, to
deliver our services and to collect receivables, to disclose,
manage and implement environmental, social and governance (ESG)
initiatives and standards, as well as 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, interest rate
fluctuations and the discontinuation of major interest rate
benchmarks 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 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
section titled Pandemic risks of our annual 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
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 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.
View original
content:https://www.prnewswire.com/news-releases/cgi-reports-strong-fourth-quarter-and-fiscal-2022-results-301672415.html
SOURCE CGI Inc.