Net earnings of $1.1
billion and EPS expansion of 12.5% in F2016
Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
www.cgi.com/newsroom
Q4-F2016 year-over-year highlights
- Revenue of $2.6 billion, up 2.8%
in constant currency;
- Bookings of $2.9 billion, or 111%
of revenue;
- Backlog of $20.9 billion, up
$181.8 million;
- Adjusted EBIT of $395.1 million,
up 4.3%;
- Adjusted EBIT margin of 15.3%, up 60 basis points;
- Net earnings of $274.4 million,
up 17.8%;
- Net earnings margin of 10.6%, up 160 basis points;
- Diluted EPS of 89 cents, up
21.9%;
- Cash provided by operating activities of $401.8 million or 15.6% of revenue;
- Net debt of $1.3 billion, down
$446.3 million;
- Return on equity of 17.2%.
|
Note: All figures in
Canadian dollars. Fiscal 2016 MD&A, audited consolidated
financial statements and accompanying notes can be found at
www.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, Nov. 9, 2016
/PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB) reported fiscal 2016
fourth quarter revenue of $2.6
billion, stable compared with last year as foreign exchange
fluctuations negatively impacted revenue by $74.7 million. On a constant currency basis,
revenue grew by 2.8%.
The Company booked $2.9 billion in
contract awards or 111% of revenue. At the end of September, the
Company's backlog stood at $20.9
billion, an increase of $181.8
million from Q4-F2015.
Adjusted EBIT was $395.1 million,
compared with $379.0 million in the
year ago period. Adjusted EBIT margin was 15.3%, compared with
14.7% last year, representing an improvement of 60 basis
points.
Net earnings were $274.4 million
or 10.6% of revenue, compared with $232.9
million or 9.0% of revenue in Q4-F2015. Earnings per share,
as a result were 89 cents, an
improvement of 21.9% from 73 cents
last year. Excluding specific items in Q4-F2015, earnings per share
grew by 8.5%.
Cash generated from operating activities was $401.8 million or 15.6% of revenue, compared with
$451.3 million in the year ago
period.
During the quarter, net debt was reduced by $315.4 million to $1.3
billion dollars. At the end of Q4-F2016, the Company had
$596.5 million in cash and
$1.5 billion in unused credit
facilities.
"I am very pleased with the performance in the quarter as we
continue to deliver earnings expansion and increasing revenue
growth," said George D. Schindler,
President and Chief Executive Officer. "Entering fiscal 2017, we
are well positioned financially and operationally to capitalize on
both build and buy growth opportunities."
|
|
|
|
In millions of
Canadian dollars except earnings per share and where
noted
|
|
|
|
Q4-F2016
|
Q4-F2015
|
|
Revenue
|
2,582.4
|
2,585.3
|
|
Growth at constant
currency
|
2.8%
|
(3.1%)
|
|
Adjusted
EBIT
|
395.1
|
379.0
|
|
Margin
|
15.3%
|
14.7%
|
|
Net
earnings
|
274.4
|
232.9
|
|
Margin
|
10.6%
|
9.0%
|
|
Earnings per share
(diluted)
|
0.89
|
0.73
|
|
Net earnings
excluding specific items*
|
274.4
|
260.4
|
|
Margin
|
10.6%
|
10.1%
|
|
Earnings per share
(diluted) excluding specific items*
|
0.89
|
0.82
|
|
Weighted average
number of outstanding shares (diluted)
|
309,569,738
|
318,572,873
|
|
Net finance
costs
|
17.6
|
24.0
|
|
Net debt
|
1,333.3
|
1,779.6
|
|
Net debt to
capitalization ratio
|
15.8%
|
21.7%
|
|
Cash provided by
operating activities
|
401.8
|
451.3
|
|
Days sales
outstanding (DSO)
|
44
|
44
|
|
Return on invested
capital (ROIC)
|
14.5%
|
14.5%
|
|
Return on Equity
(ROE)
|
17.2%
|
17.7%
|
|
Bookings
|
2,858.3
|
2,856.1
|
|
Backlog
|
20,893.2
|
20,711.4
|
|
|
*Specific items in
Q4-F2015 include: $27.6 million in restructuring costs net of
tax.
|
Fiscal 2016 results
CGI reported revenue of $10.7
billion for the fiscal year ended September 30, 2016, up 3.9% compared with the
year ago period as foreign exchange fluctuations positively
impacted revenue by $379.4 million.
On a constant currency basis, revenue was up by $16.7 million year-over-year.
For the year, the Company booked $11.7
billion in contract awards, bringing the book-to-bill for
the full fiscal year to 110% of revenue.
Adjusted EBIT was $1.6 billion for
a margin of 14.6%, compared with $1.5
billion and a margin of 14.2% in F2015.
"Increasing customer demand for digital services offers an
extraordinary opportunity," said George D.
Schindler, President and Chief Executive Officer. "The goal
of digital transformation is to become more agile, responding
quickly and creatively to customer preferences and, in doing so,
deliver meaningful business value. Our end-to-end global
capabilities, deep local relationships and expansive IP portfolio,
position CGI as the partner of choice to address the complexity of
helping our clients transform to digital organizations."
Net earnings grew to $1.1 billion,
an increase of 9.3% from $977.6
million in F2015.
Earnings per share expanded by 12.5% to $3.42 per diluted share compared with
$3.04 per diluted share in the year
ago period. Earnings per share, excluding specific items, were
$3.46 per diluted share, compared
with $3.13 per diluted share in
F2015.
The Company generated $1.3 billion
in cash from operations in F2016, or $4.26 per diluted share, an increase of
$43.8 million from the year ago
period.
Throughout the fiscal year, the Company invested a total
$517.8 million to repurchase 9.3
million shares, at an average price of $55.56. Under the current Normal Course Issuer
Bid, an additional 14.3 million shares can be acquired before
February 2017.
Net debt was reduced to $1.3
billion, representing a net debt to capitalization ratio of
15.8%, compared to 21.7% at the end of fiscal 2015.
|
|
|
|
In millions of
Canadian dollars except earnings per share and where
noted
|
|
|
|
F2016
|
F2015
|
|
Revenue
|
10,683.3
|
10,287.1
|
|
Growth at constant
currency
|
0.2%
|
(4.0%)
|
|
Adjusted
EBIT
|
1,560.3
|
1,457.3
|
|
Margin
|
14.6%
|
14.2%
|
|
Net
earnings
|
1,068.7
|
977.6
|
|
Margin
|
10.0%
|
9.5%
|
|
Earnings per share
(diluted)
|
3.42
|
3.04
|
|
Net earnings
excluding specific items*
|
1,081.5
|
1,005.1
|
|
Margin
|
10.1%
|
9.8%
|
|
Earnings per share
(diluted) excluding specific items*
|
3.46
|
3.13
|
|
Weighted average
number of outstanding shares (diluted)
|
312,773,156
|
321,422,444
|
|
Net finance
costs
|
78.4
|
92.9
|
|
Net debt
|
1,333.3
|
1,779.6
|
|
Net debt to
capitalization ratio
|
15.8%
|
21.7%
|
|
Cash provided by
operating activities
|
1,333.1
|
1,289.3
|
|
Days sales
outstanding (DSO)
|
44
|
44
|
|
Return on invested
capital (ROIC)
|
14.5%
|
14.5%
|
|
Return on equity
(ROE)
|
17.2%
|
17.7%
|
|
Bookings
|
11,730.7
|
11,640.3
|
|
Backlog
|
20,893.2
|
20,711.4
|
|
|
*Specific items in
F2016 include: $21.2 million in restructuring costs net of tax and
tax adjustments of $8.5 million. Specific items in F2015 include:
$27.6 million in restructuring costs net of tax.
|
Q4 and Full-Year F2016 Results Conference
Call
Management will host a conference call to discuss
results at 9 a.m. EST this morning.
Participants may access the call by dialing (866)-223-7781 or via
cgi.com/investors. Supporting slides for the call will also be
available. For those unable to participate on the live call, a
replay and downloadable podcast will remain available on
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 68,000
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, growth at constant
currency and net earnings and diluted EPS prior to 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.