Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
www.cgi.com/newsroom
Announces strategic initiative to accelerate
profitable growth
Q3-F2017 year-over-year highlights
- Revenue of $2.8 billion, up 6.4%
and 5.2% in constant currency;
- Adjusted EBIT of $399.1 million,
up $8.6 million;
- Adjusted EBIT margin of 14.1%;
- Net earnings of $276.6 million,
up $2.8 million;
- Net earnings excluding specific items* of $278.5 million, up $4.6
million;
- Net earnings margin of 9.8%;
- Diluted EPS of $0.92, up
3.4%;
- Diluted EPS excluding specific items* of $0.93, up 4.5%;
- Bookings of $2.7 billion;
- Backlog of $20.8 billion;
- Cash provided by operating activities of $290.6 million; and,
- Return on equity of 17.2%, up 30 basis points.
*Specific items in Q3-F2017: $1.8
million in integration-related costs net of tax.
Note: All figures in Canadian dollars. Q3-F2017 MD&A,
interim condensed 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, Aug. 2, 2017 /CNW
Telbec/ - CGI (TSX: GIB.A) (NYSE: GIB) reported fiscal 2017 third
quarter revenue of $2.8 billion, up
6.4% compared with last year as foreign exchange fluctuations
favourably impacted revenue by $31.3
million. On a constant currency basis, revenue grew by 5.2%
or $138.4 million.
Adjusted EBIT was $399.1 million,
up 2.2% compared with $390.5 million
in Q3-F2016. Adjusted EBIT margin was 14.1%.
Net earnings were $276.6 million
in Q3-F2017 and earnings per diluted share were 92 cents. Net earnings excluding specific items,
were $278.5 million representing
93 cents per diluted share, which
compares to $273.8 million or
89 cents last year.
Bookings amounted to $2.7 billion.
On a trailing twelve month basis, total awards were $11.2 billion, or 103.8 % of revenue. At the
end of June, the Company's backlog stood at $20.8 billion.
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In millions of
Canadian dollars except earnings per share
and where noted
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Q3-F2017
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Q3-F2016
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Revenue
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2,836.8
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2,667.1
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Adjusted
EBIT
Margin
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399.1
14.1%
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390.5
14.6%
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Net
earnings
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276.6
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273.8
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Margin
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9.8%
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10.3%
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Earnings per share
(diluted)
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0.92
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0.89
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Net earnings
excluding specific items*
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278.5
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273.8
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Margin
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9.8%
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10.3%
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Earnings per share
(diluted) excluding specific items*
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0.93
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0.89
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Weighted average
number of outstanding shares (diluted)
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300,832,642
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308,985,991
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Net finance
costs
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16.9
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18.1
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Net debt
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1,449.8
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1,648.7
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Net debt to
capitalization ratio
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17.2%
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20.5%
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Cash provided by
operating activities
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290.6
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351.7
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Days sales
outstanding (DSO)
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45
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45
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Return on invested
capital (ROIC)
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14.7%
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14.4%
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Return on equity
(ROE)
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17.2%
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16.9%
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Bookings
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2,674.9
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2,939.9
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Backlog
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20,799.5
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20,613.6
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*Specific items in
Q3-F2017: $1.8 million in integration-related costs net of
tax.
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"I am pleased with our team's performance in Q3 as we continue
to capitalize on the rising global demand for our services and
solutions," said George D.
Schindler, President and Chief Executive Officer.
Cash generated from operating activities was $290.6 million or 10.2% of revenue, compared with
$351.7 million in the year ago
period. Over the last twelve months, $1.4
billion or $4.60 in cash per
diluted share was generated compared with $4.40 for the same period last year.
At the end of June, the Company had over $1.8 billion in available cash and unused credit
facilities. Net debt was $1.4
billion, representing a year-over-year reduction of
$198.9 million. As a result, the net
debt to capitalization ratio improved to 17.2% from 20.5%.
Strategic initiative to accelerate profitable growth
"For CGI to continue benefitting from the growth opportunities
related to the permanent shift to digital across all industries, we
are advancing strategic investments in proximity based talent
alignment, automation, and cloud-based delivery models," commented
George D. Schindler, President and
Chief Executive Officer. "We expect these investments to yield
benefits throughout fiscal 2018."
The Company will incur a $165.0
million pre-tax expense over the next year to compress the
timeline of implementing certain elements of its profitable growth
strategy.
Q3-F2017 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 1-800-377-0758
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 70,000
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: Constant
currency growth, 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 Section 27A of the United States Securities Act of 1933
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 employees; market
competition in the rapidly evolving information technology
industry; general economic and business conditions; foreign
exchange and other risks identified or incorporated by reference in
this press release, in CGI's annual and/or quarterly Management's
Discussion and Analysis and in other public disclosure documents
filed with the Canadian securities regulatory authorities (on SEDAR
at www.sedar.com) and the U.S. Securities and Exchange Commission
(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.