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GIB.A (TSX)
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Revenue up 12.3% in constant currency and EPS
excluding specific items* up 10.7%
Q1-F2023 performance highlights1
- Revenue of $3.45 billion, up
11.6% year-over-year or 12.3% year-over-year in constant
currency;
- Adjusted EBIT of $554.1 million,
up 6.3% year-over-year, for a margin of 16.1%;
- Net earnings of $382.4 million,
up 4.1% year-over-year, for a margin of 11.1%;
- Net earnings excluding specific items* of $398.2 million, up 7.8% year-over-year, for a
margin of 11.5%;
- Diluted EPS of $1.60, up 7.4%
year-over-year;
- Diluted EPS excluding specific items* of $1.66, up 10.7% year-over-year;
- Cash from operating activities of $605.3
million, representing 17.5% of revenue;
- Bookings of $4.04 billion, for a
book-to-bill ratio of 117.0%; and
- Backlog of $25.01 billion or 1.9x
annual revenue.
* Specific items in
Q1-F2023 include: $15.8 million in acquisition-related and
integration costs, net of tax; Specific items in Q1-F2022 include:
$2.0 million in acquisition-related and integration costs, net of
tax.
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Note: All figures in
Canadian dollars. Q1-F2023 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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MONTRÉAL, Feb. 1, 2023
/CNW Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB)
Q1-F2023 results
"CGI began fiscal year 2023 with positive momentum, delivering
sustained double-digit increases in both constant currency revenue
growth and EPS accretion," said George D.
Schindler, President and Chief Executive Officer. "Our
ongoing investments continued to deliver value for all of our
stakeholders, notably in our strong positioning as a trusted
partner for clients' digitization priorities, which contributed to
generating over $4 billion in
bookings during the quarter, of which one-third were new business.
CGI's operational and delivery discipline also contributed to
strengthening our robust balance sheet, enabling us to continue
driving our build and buy profitable growth strategy."
For the first quarter of fiscal 2023, the Company reported
revenue of $3.45 billion,
representing a year-over-year increase of 11.6%. Revenue grew by
12.3% year-over-year, when excluding unfavorable foreign currency
impacts.
The number of CGI consultants and professionals worldwide has
increased to approximately 90,250, representing a year-over-year
increase of 10.1%.
Adjusted EBIT was $554.1 million,
up 6.3% year-over-year, with an EBIT margin of 16.1% compared to
16.9% for the same period last year, and stable sequentially, as we
continue integrating recent acquisitions and return to expected
levels of business travel.
Net earnings were $382.4 million,
up 4.1% compared with the same period last year, for a margin of
11.1%. Diluted earnings per share, as a result, were $1.60 compared to $1.49 last year, representing an increase of
7.4%.
Net earnings were $398.2 million,
when excluding acquisition-related and integration costs, net
of tax. This represents an increase of 7.8% year-over-year, and a
margin of 11.5%. On the same basis, diluted earnings per share
increased by 10.7% to $1.66, up from
$1.50 for the same period last
year.
Bookings were $4.04 billion, up
$0.43 billion on a year-over-year
basis, representing a book-to-bill ratio of 117.0%. As of
December 31, 2022, the Company's
backlog stood at $25.01 billion or
1.9x annual revenue.
Cash provided by operating activities was $605.3 million, or 17.5% of revenue, representing
an increase of $121.0 million on a
year-over-year basis, mainly due to the 5-day sequential decrease
in our DSO.
Financial
highlights
|
Q1-F2023
|
Q1-F2022
|
Change
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In millions of
Canadian dollars except earnings per share and where
noted
|
|
|
|
Revenue
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3,450.3
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3,092.4
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357.9
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Growth
|
11.6 %
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2.4 %
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920 bps
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Constant currency
growth
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12.3 %
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6.8 %
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550 bps
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Adjusted
EBIT
|
554.1
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521.5
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32.6
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Margin
%
|
16.1 %
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16.9 %
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(80 bps)
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Net earnings
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382.4
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367.4
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15.0
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Margin
%
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11.1 %
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11.9 %
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(80 bps)
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Net earnings excluding
specific items*
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398.2
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369.4
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28.8
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Margin
%
|
11.5 %
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11.9 %
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(40 bps)
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Diluted earnings per
share (diluted EPS)
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1.60
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1.49
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0.11
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Diluted earnings per
share excluding specific items*
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1.66
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1.50
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0.16
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Weighted average number
of outstanding shares (diluted)
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239.4
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246.8
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(7.4)
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Net finance
costs
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18.1
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25.6
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(7.5)
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Net debt
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2,503.8
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2,687.9
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(184.1)
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Net debt to
capitalization ratio
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24.1 %
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27.8 %
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(370 bps)
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Cash provided by
operating activities
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605.3
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484.3
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121.0
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As a
percentage of revenue
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17.5 %
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15.7 %
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180 bps
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Days sales outstanding
(DSO)
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44
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45
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(1)
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Return on invested
capital (ROIC)
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15.5 %
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15.3 %
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20 bps
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Return on equity
(ROE)
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20.6 %
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20.3 %
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30 bps
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Bookings
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4,035
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3,604
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431
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Backlog
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25,011
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23,577
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1,434
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* Specific items in
Q1-F2023 include: $15.8 million in acquisition-related and
integration costs, net of tax; Specific items in Q1-F2022 include:
$2.0 million in acquisition-related and integration costs, net of
tax.
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During the first quarter of fiscal 2023, the Company invested
$93.3 million back into its business
and $10.3 million (at a weighted average price of $102.81) under its current Normal Course
Issuer Bid to pay for and cancel 100,100 of its Class A subordinate
voting shares, which were purchased, or committed to be purchased,
but not cancelled as at September 30,
2022.
Return on invested capital (ROIC) was 15.5%, an improvement of
20 basis points when compared to the prior year.
As at December 31, 2022, net debt
stood at $2.50 billion, down from
$2.69 billion at the same time last
year. The net debt-to-capitalization ratio stood at 24.1% at the
end of December 2022, down 370 basis
points when compared to the prior year.
With cash of $1.3 billion on hand
at the end of December 2022, and a
fully available revolving credit facility, the Company has
$2.8 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 Q1-F2023 MD&A – click here (PDF)
Normal Course Issuer Bid
On January 31, 2023, 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
18,769,394 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, 2023. The current program will terminate on February 5, 2023 and repurchases of Class A
subordinate voting shares under the renewed program may commence on
February 6, 2023. For further
information, please refer to the Company's press release regarding
the renewal of its Normal Course Issuer Bid.
Q1-F2023 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: 63308479 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: 308479,
until March 2, 2023.
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/if5mwv (Password: CGI2022).
About CGI
Founded in 1976, CGI is among the largest independent IT and
business consulting services firms in the world. With 90,250
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 Q1-F2023
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-F2023 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 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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content:https://www.prnewswire.com/news-releases/cgi-reports-strong-first-quarter-fiscal-2023-results-301735656.html
SOURCE CGI Inc.