Earnings per share expands by 15.4%
Stock Market Symbols
GIB.A
(TSX)
GIB (NYSE)
cgi.com/newsroom
Q2-F2016 year-over-year highlights
- Revenue of $2.8 billion, up
5.7%;
- Bookings of $2.7 billion, up
$480.9 million;
- Backlog of $20.7 billion, up
$705.0 million;
- Adjusted EBIT of $390.6 million,
up $27.5 million;
- Adjusted EBIT margin of 14.2%, up 20 basis points;
- Net earnings of $282.7 million,
up 12.6%;
- Diluted EPS of 90 cents, up
15.4%;
- Cash provided by operating activities of $251.4 million;
- Investment of $508.7 million for
the repurchase of 9.1 million shares;
- Return on equity of 16.9%.
Note: All figures in Canadian dollars. Q2-F2016 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.
To access the financial statements – click here
(PDF)
To access the MD&A - click here (PDF)
MONTRÉAL, April 27, 2016 /PRNewswire/ - CGI (TSX: GIB.A)
(NYSE: GIB) reported fiscal 2016 second quarter revenue of
$2.8 billion, up 5.7% compared with
$2.6 billion in the year ago period.
Foreign exchange fluctuations positively impacted revenue by
$173.7 million. Sequentially, revenue
improved by $66.3 million or
2.5%.
The Company booked $2.7 billion in
contract awards in Q2-F2016, bringing the total bookings over the
last twelve months to $11.0 billion
or 104.1% of revenue. At the end of March
2016, the Company's backlog of signed orders stood at
$20.7 billion, up $705.0 million compared with the same period last
year.
Adjusted EBIT increased to $390.6
million in the quarter, up 7.6% compared with Q2-F2015,
while EBIT margin improved to 14.2%.
Net earnings were $282.7 million,
up 12.6% compared with last year. Earnings per diluted share were
90 cents, an increase of 15.4%
compared with 78 cents in Q2-F2015.
When excluding a one-time favorable tax adjustment of $14.4 million, earnings per diluted share
increased by 10.3% to 86 cents.
|
In millions of
Canadian dollars except earnings per share and where
noted
|
|
Q2-F2016
|
Q2-F2015
|
Revenue
|
2,750.0
|
2,601.2
|
Adjusted
EBIT
|
390.6
|
363.1
|
Margin
|
14.2%
|
14.0%
|
Net
earnings
|
282.7
|
251.2
|
Margin
|
10.3%
|
9.7%
|
Earnings per share
(diluted)
|
0.90
|
0.78
|
Net earnings
excluding specific items*
|
268.3
|
251.2
|
Margin
|
9.8%
|
9.7%
|
Earnings per share
(diluted) excluding specific items*
|
0.86
|
0.78
|
Weighted average
number of outstanding shares (diluted)
|
313,610,579
|
322,915,371
|
Net finance
costs
|
22.6
|
24.5
|
Net debt
|
1,926.7
|
1,869.8
|
Net debt to
capitalization ratio
|
23.8%
|
24.4%
|
Cash provided by
operating activities
|
251.4
|
284.7
|
Days sales
outstanding (DSO)
|
41
|
41
|
Return on invested
capital (ROIC)
|
14.4%
|
14.6%
|
Return on equity
(ROE)
|
16.9%
|
18.4%
|
Bookings
|
2,733.9
|
2,253.0
|
Backlog
|
20,704.9
|
20,000.0
|
* Specific items in
Q2-F2016: $14.4 million tax adjustment.
|
"Our strong financial performance reflects the alignment of our
comprehensive portfolio of services and solutions with rising
client demand," said Michael E.
Roach, President and CEO. "We remain committed to the
successful execution of our Build and Buy strategy by investing in
areas clients value the most, such as digital and security-related
capabilities, through talent expansion and strategic
acquisitions."
Cash generated from operating activities was $251.4 million in the quarter. Over the last
twelve months, the Company has generated $1.2 billion, representing 11.8% of revenue or
$3.92 in cash per diluted share.
In the quarter, $508.7 million was
invested to repurchase and cancel 9.1 million shares, at an average
price of $55.73. Under the renewed
Normal Course Issuer Bid, an additional 14.3 million shares can be
acquired before February 2017.
At the end of March, the long-term debt stood at $2.1 billion dollars, a $111.2 million reduction from last quarter.
Net debt increased by $353.0
million to $1.9 billion,
reflecting share repurchase and an accretive acquisition. As a
result, the net debt to capitalization ratio was 23.8%. At the end
of the quarter, The Company had $1.5
billion in available cash and unused credit facilities.
Q2-F2016 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 866-225-2055
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.
About CGI
Founded in 1976, CGI Group Inc. is the fifth
largest independent information technology and business process
services firm in the world. Approximately 65,000 professionals
serve thousands of global clients from offices and delivery centers
across the Americas, Europe and
Asia Pacific, leveraging a
comprehensive portfolio of services, including high-end business
and IT consulting, systems integration, application development and
maintenance and infrastructure management, as well as 150 IP-based
services and solutions. With annual revenue in excess of
C$10 billion and an order backlog
exceeding C$20 billion, CGI shares
are listed on the TSX (GIB.A) and the NYSE (GIB).
Website: www.cgi.com.
Non-GAAP financial metrics used in this release: Adjusted
EBIT, net debt, net debt to capitalization ratio, bookings,
book-to-bill ratio, backlog, DSO, ROIC, ROE and 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 page 2 and 3 of our MD&A which is posted on CGI's
website, and filed with SEDAR and EDGAR.
Forward-Looking Statements
All statements in this
press release that do not directly and exclusively relate to
historical facts constitute "forward-looking statements" within the
meaning of that term in Section 27A of the United States Securities
Act of 1933, as amended, and Section 21E of the United States
Securities Exchange Act of 1934, as amended, and are
"forward-looking information" within the meaning of Canadian
securities laws. These statements and this information represent
CGI's intentions, plans, expectations and beliefs, and are subject
to risks, uncertainties and other factors, of which many are beyond
the control of the Company. These factors could cause actual
results to differ materially from such forward-looking statements
or forward-looking information. These factors include but are not
restricted to: the timing and size of new contracts; acquisitions
and other corporate developments; the ability to attract and retain
qualified members; market competition in the rapidly evolving IT
industry; general economic and business conditions; foreign
exchange and other risks identified in the press release, in CGI's
annual and quarterly Management's Discussion and Analysis
("MD&A") and in other public disclosure documents filed with
the Canadian securities authorities (filed on SEDAR at
www.sedar.com) and the U.S. Securities and Exchange Commission
(filed on EDGAR at www.sec.gov), as well as assumptions regarding
the foregoing. The words "believe", "estimate", "expect", "intend",
"anticipate", "foresee", "plan", and similar expressions and
variations thereof, identify certain of such forward-looking
statements or forward-looking information, which speak only as of
the date on which they are made. In particular, statements relating
to future performance are forward-looking statements and
forward-looking information. CGI disclaims any intention or
obligation to publicly update or revise any forward-looking
statements or forward-looking information, whether as a result of
new information, future events or otherwise, except as required by
applicable law. Readers are cautioned not to place undue reliance
on these forward-looking statements or on this forward-looking
information.
SOURCE CGI Group Inc.