Q1-F2020 results and year-over-year highlights

  • Revenue of $3.05 billion, up 3.1% year-over-year or 4.8% in constant currency;
  • Adjusted EBIT of $474.1 million, up 8.0%;
  • Adjusted EBIT margin of 15.5%, up 70 basis points;
  • Net earnings of $290.2 million, for a margin of 9.5% and diluted EPS of $1.06;
  • Net earnings excluding specific items* of $334.9 million, for a margin of 11.0% and diluted EPS of $1.23;
  • Cash provided by operating activities of $465.3 million, up 18.8%;
  • Bookings of $2.75 billion for book-to-bill of 90.0% and 101.3% over the last twelve months; and,
  • Backlog of $22.29 billion or 1.8x annual revenue.

*Specific items in Q1-F2020 include: $16.5 million in acquisition-related and integration costs and $28.2 million in restructuring costs, both net of tax; Specific items in Q1-F2019 include: $3.2 million in acquisition-related and integration costs, net of tax.

Note: All figures in Canadian dollars. Q1-F2020 MD&A, interim condensed consolidated financial statements and accompanying notes can be found at  and have been filed with both SEDAR in Canada and EDGAR in the U.S.

To access the financial statements –  (PDF)
To access the MD&A – click here (PDF)

MONTRÉAL, Jan. 29, 2020 - CGI (TSX: GIB.A) (NYSE: GIB) reported Fiscal 2020 first quarter revenue $3.05 billion, representing growth of 3.1%, or $90.8 million year-over-year. On a constant currency basis, revenue was up 4.8% as foreign exchange fluctuations negatively impacted revenue by $52.6 million.

On October 1, 2019, the 中国福利彩票下载安全 adopted IFRS 16, which sets out the principles for the recognition, measurement, presentation and disclosure of leases. The change recognizes lease agreements on-balance sheet and, as a result, the Q1-F2020 consolidated statement of earnings now presents a decrease in the cost of services, selling and administrative expenses, partially offset by higher net finance costs with a non-material impact to the net earnings. These changes and their impact on capital structure ratios and cash from operations are noted below and detailed in the MD&A and financial statements.

Adjusted EBIT was $474.1 million, an increase of $34.9 million from Q1-F2019, of which $9.7 million relates to the adoption of IFRS 16. EBIT margin of 15.5% improved by 70 basis points compared to the same period last year.

Net earnings were $290.2 million in Q1-F2020, down $21.3 million compared with the year ago period, impacted by $44.7 million in one-time restructuring costs and integration expenses. Earnings per diluted share, as a result, were $1.06.

When excluding the specific items, net earnings in Q1-F2020 were $334.9 million, representing a margin of 11.0%. On the same basis, EPS expanded by 9.8% to $1.23 per diluted share, up from $1.12 from the year ago period.

"I am pleased with this quarter's results of continued profitable growth and strong cash generation as we successfully execute our build and buy strategy," said President and Chief Executive Officer, George Schindler. "We are experiencing strong demand for our end-to-end services and remain an active consolidator through mergers and acquisitions."

Bookings were $2.75 billion in Q1-F2020 and $12.36 billion over the last twelve months, representing 90.0% and 101.3% of revenue, respectively. At the end of December 2019, the 中国福利彩票下载安全's backlog stood at $22.29 billion.

Cash provided by operating activities was $465.3 million, or 15.2% of revenue, representing an improvement of $73.7 million compared with Q1-F2019. Of this amount, $39.2 million resulted from the adoption of IFRS 16.

 

 

In millions of Canadian dollars except earnings per share and where noted

Q1-F2020

Q1-F2019

Revenue

3,054.7

2,963.9

Growth

3.1%

5.2%

Growth at constant currency

4.8%

4.5%

Adjusted EBIT

474.1

439.2

Margin

15.5%

14.8%

Net earnings

290.2

311.5

Margin

9.5%

10.5%

Net earnings excluding specific items*

334.9

314.7

Margin

11.0%

10.6%

Diluted earnings per share

1.06

1.11

Diluted earnings per share, excluding specific items*

1.23

1.12

Weighted average number of outstanding shares (diluted)

273,121,586

281,568,097

Net finance costs

26.7

14.6

Net debt

2,810.6

1,738.7

Net debt to capitalization ratio

27.7%

19.1%

Cash provided by operating activities

465.3

391.5

Days sales outstanding (DSO)

49

54

Return on invested capital (ROIC)

14.4%

14.5%

Return on equity (ROE)

18.0%

17.3%

Bookings

2,749.3

3,030.8

Backlog

22,292.4

23,337.9

 

*Specific items in Q1-F2020 include: $16.5 million in acquisition-related and integration costs and $28.2 million in restructuring costs, both net of tax; Specific items in Q1-F2019 include: $3.2 million in acquisition-related and integration costs, net of tax.

 

At the end of December, net debt stood at $2.8 billion, representing a net debt-to-capitalization ratio of 27.7%, up from 19.1% last year. When excluding the impact of adopting IFRS 16, the net debt to capitalization ratio would have been 20.9%, slightly higher due to the investments made in metro market mergers.

Normal Course Issuer Bid
The 中国福利彩票下载安全's Board of Directors authorized earlier this morning 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 20.1 million Class A subordinate voting shares over the next 12 months, representing approximately 10% of the 中国福利彩票下载安全's public float as of the close of business on January 22, 2020. The current program will terminate on February 5, 2020 and purchases of Class A subordinate voting shares under the renewed program may commence on February 6, 2020. For further information, please refer to the 中国福利彩票下载安全's press release regarding the renewal of its Normal Course Issuer Bid.

Q1-F2020 results conference call
Management will host a conference call this morning at 9:00 a.m. Eastern time to discuss results. Participants may access the call by dialing 1-800-377-0758 or via . For those unable to participate on the live call, a podcast and copy of the slides will be archived for download at

Annual General Meeting of Shareholders
This morning at 11:00 a.m. Eastern time, the 中国福利彩票下载安全 will hold its Annual General Meeting of Shareholders at The Centre Sheraton Montréal. The meeting, as well as the question and answer session that follows will be broadcast live via .

About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With approximately 77,500 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. With Fiscal 2019 reported revenue of C$12.1 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at ) and the U.S. Securities and Exchange Commission (on EDGAR at ). 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.

SOURCE CGI Inc.

For more information:

Lorne Gorber, Executive Vice-President, Investor and Public Relations, lorne.gorber中国福利彩票下载安全@, +1 514-841-3355