Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
www.cgi.com/newsroom
Q4-F2020 performance highlights
- Revenue of $2.93 billion, down
1.1% year-over-year or 4.5% in constant currency;
- Adjusted EBIT of $457.6 million,
flat year-over-year;
- Adjusted EBIT margin improved by 10 basis points to 15.6%;
- Net earnings of $251.9 million,
for a margin of 8.6% and diluted EPS of $0.96;
- Net earnings excluding specific items* of $318.4 million and diluted EPS of $1.22;
- Cash from operating activities of $492.0
million;
- Bookings of $3.47 billion, for a
book-to-bill of 118.8%;
- Backlog of $22.67 billion or 1.9x
of annual revenue.
F2020 performance highlights
- Revenue of $12.16 billion, up
0.4% year-over-year and essentially stable in constant
currency;
- Adjusted EBIT of $1,862.9
million, up 2.1% year-over-year;
- Adjusted EBIT margin improved by 20 basis points to 15.3%;
- Net earnings of $1.12 billion,
for a margin of 9.2% and diluted EPS of $4.20;
- Net earnings excluding specific items ** of $1.30 billion and diluted EPS of $4.89 up from $4.70
last year;
- Cash from operating activities of $1.94
billion representing 15.9% of revenue;
- Bookings of $11.85 billion, for a
book-to-bill of 97.4%;
* Specific items in
Q4-F2020 include: $4.1 million in acquisition-related and
integration costs and $62.4 million in restructuring costs, both
net of tax; Specific items in Q4-F2019 include: $23.8 million in
acquisition-related and integration costs net of tax and tax
adjustment of $18.5 million.
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** Specific items in
F2020 include: $62.1 million in acquisition-related and integration
costs and $120.1 million in restructuring costs, both net of tax;
Specific items in F2019 include: $61.1 million in
acquisition-related and integration costs net of tax and tax
adjustment of $18.5 million.
|
|
Note: All
figures in Canadian dollars. Q4-F2020 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 Q4-F2020 MD&A – click here (PDF)
MONTRÉAL, Nov. 11, 2020 /PRNewswire/ - CGI (TSX: GIB.A)
(NYSE: GIB) reported Fiscal 2020 fourth quarter results this
morning.
"CGI ended the fourth quarter and fiscal year 2020 with strong
results when considering the circumstances our team had to adapt to
in order to deliver on our commitments to each of our three
stakeholders. Our performance reflected the talent and dedication
of our consultants, the relevance of our end to end services and
the resilience of our business model," said President and Chief
Executive Officer, George Schindler.
"In the quarter, our trusted client relationships led to rising
bookings and superior cash generation. We see a healthy pipeline of
opportunities for profitable growth through both build and buy and
we are well positioned to continue creating value for our clients
as they increasingly rely on technology to navigate these dynamic
times."
Q4-F20 results
For the fourth quarter of F2020, the Company reported revenue of
$2.93 billion representing a
year-over-year decrease of 1.1% from $2.96
billion. On a constant currency basis, revenue was lower by
4.5%.
Adjusted EBIT was $457.6 million,
flat year-over-year with EBIT margin of 15.6% representing an
improvement of 10 basis points from 15.5% in the same period last
year.
On a GAAP basis, net earnings were $251.9
million in Q4-F2020, down 22.3% compared with the same
period last year, primarily due to a one time restructuring cost of
$84.3 million in the quarter. Diluted
earnings per share, as a result, were $0.96 compared to $1.19 last year.
Excluding acquisition-related, integration and restructuring
costs, net earnings were $318.4
million in Q4-F2020, representing a decrease of 3.4% or
$11.1 million year-over-year and
margin of 10.9%. On the same basis, diluted earnings per share
expanded by 0.8% to $1.22, up from
$1.21 from the same period last
year.
Bookings were $3.47 billion in
Q4-F2020, the highest in the last eight quarters, representing a
book-to-bill of 118.8%.
Cash provided by operating activities was $492.0 million, or 16.8% of revenue, representing
an increase of 21.4% or $86.8 million
compared with Q4-F2019, including an impact of $36.4 million coming from the change in
presentation of the payment of leases resulting from the adoption
of IFRS 16.
In millions of
Canadian dollars except earnings per share and where
noted
|
Q4-F2020
|
Q4-F2019
|
F2020
|
F2019
|
Revenue
|
2,925.6
|
2,959.2
|
12,164.1
|
12,111.2
|
Growth
|
(1.1)%
|
5.7%
|
0.4%
|
5.3%
|
Constant currency
growth
|
(4.5)%
|
7.7%
|
(0.1)%
|
5.9%
|
Adjusted
EBIT
|
457.6
|
457.5
|
1,862.9
|
1,825.0
|
Margin
|
15.6%
|
15.5%
|
15.3%
|
15.1%
|
Net
earnings
|
251.9
|
324.1
|
1,117.9
|
1,263.2
|
Margin
|
8.6%
|
11.0%
|
9.2%
|
10.4%
|
Net earnings
excluding specific items*
|
318.4
|
329.5
|
1,300.1
|
1,305.9
|
Margin
|
10.9%
|
11.1%
|
10.7%
|
10.8%
|
Diluted earnings per
share (diluted EPS)
|
0.96
|
1.19
|
4.20
|
4.55
|
Diluted earnings per
share, excluding specific items*
|
1.22
|
1.21
|
4.89
|
4.70
|
Weighted average
number of outstanding shares (diluted)
|
261.8
|
273.1
|
266.1
|
277.8
|
Net finance
costs
|
30.4
|
17.8
|
114.5
|
70.6
|
Net debt
|
2,777.9
|
2,117.2
|
2,777.9
|
2,117.2
|
Net debt to
capitalization ratio
|
23.6%
|
22.9%
|
23.6%
|
22.9%
|
Cash provided by
operating activities
|
492.0
|
405.2
|
1,938.6
|
1,633.9
|
Days sales
outstanding (DSO)
|
47
|
50
|
47
|
50
|
Return on invested
capital (ROIC)
|
12.1%
|
15.1%
|
12.1%
|
15.1%
|
Return on equity
(ROE)
|
16.0%
|
18.5%
|
16.0%
|
18.5%
|
Bookings
|
3,474.1
|
3,409.3
|
11,847.7
|
12,646.0
|
Backlog
|
22,672.9
|
22,611.2
|
22,672.9
|
22,611.2
|
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* Specific items in
Q4-F2020 include: $4.1 million in acquisition-related and
integration costs and $62.4 million in restructuring costs, both
net of tax; Specific items in Q4-F2019 include: $23.8 million in
acquisition-related and integration costs net of tax and tax
adjustment of $18.5 million.
|
* Specific items in
F2020 include: $62.1 million in acquisition-related and integration
costs and $120.1 million in restructuring costs, both net of tax;
Specific items in F2019 include: $61.1 million in
acquisition-related and integration costs net of tax and tax
adjustment of $18.5 million.
|
Fiscal 2020 full-year results
Revenue of $12.16 billion
in F2020 represents an increase of 0.4% year-over-year. On a
constant currency basis, revenue was flat year-over-year.
Adjusted EBIT was $1.86 billion,
an increase of $37.9 million vs.
F2019. EBIT margin of 15.3% improved by 20 basis points from 15.1%
in the same period last year.
Net earnings were $1.12 billion in
F2020, down 11.5% or $145.3 million
compared with the same period last year, affected largely by
$155.4 million in one-time
restructuring costs. Diluted earnings per share, as a result, were
$4.20.
Excluding acquisition-related, integration and restructuring
costs, net earnings were $1.30
billion in F2020, representing a margin of 10.7%. On the
same basis, diluted earnings per share expanded by 4.0% to
$4.89, up from $4.70 from the same period last year.
Bookings were $11.85 billion in
F2020 representing book-to-bill of 97.4%. At the end of
September 2020, the Company's backlog
stood at $22.67 billion or 1.9x
annual revenue.
Cash provided by operating activities was $1.94 billion, or 15.9% of revenue, representing
an increase of $304.7 million
compared to F2019. This included an impact of $165.3 million coming from the change in
presentation of the payment of leases resulting from the adoption
of IFRS 16.
At the end of September 2020, net
debt stood at 2.78 billion dollars,
representing a net debt-to-capitalization ratio of 23.6%, higher
from 22.9% last year. When excluding the impact of adopting IFRS
16, the net debt to capitalization ratio would have been 17.6%.
With $1.49 billion in unsecured
committed revolving credit facility and $1.71 billion of cash on the balance sheet, the
Company now has access to $3.22
billion in readily available liquidity.
Q4-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 dialling 1-877-879-0631 Conference ID: 5631496 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 is among the largest
independent IT and business consulting services firms in the world.
With 76,000 consultants and other 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 2020 reported revenue is C$12.16
billion and CGI shares are listed on the TSX (GIB.A) and the
NYSE (GIB). Learn more at cgi.com.
Non-GAAP financial metrics used in this press release:
Constant currency growth, adjusted EBIT, adjusted EBIT margin, net
debt, net debt to capitalization ratio, bookings, book-to-bill
ratio, backlog, DSO, ROIC, ROE, net earnings margin, 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. Additional details for these non-GAAP measures can be
found on pages 3 and 4 of our Q4-F2020 MD&A which is posted on
CGI's website, and filed with SEDAR and EDGAR.
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, external risks (such as
pandemics) and our ability to negotiate new contracts; risks
related to our industry such as competition and our ability to
attract and retain qualified employees, 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, our
ability to negotiate favorable contractual terms, to deliver our
services and to collect receivables, and the reputational and
financial risks attendant to cybersecurity breaches and other
incidents; 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). For a discussion of risks in response to the
coronavirus (COVID-19) pandemic, see Pandemic Risks in section
10.1.1. of our annual and quarterly MD&A. 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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SOURCE CGI Inc.