CGI reports third quarter Fiscal 2024 results
CGI reported its Q3 Fiscal 2024 results, showing revenue growth of 1.3% year-over-year to $3.67 billion. Key highlights include:
- Earnings before income taxes of $594.0 million, up 6.3% year-over-year
- Net earnings of $440.1 million, up 6.1% year-over-year
- Diluted EPS of $1.91, up 9.1% year-over-year
- Cash from operating activities of $496.7 million, representing 13.5% of revenue
- Bookings of $4.28 billion, with a book-to-bill ratio of 116.6%
- Backlog of $27.56 billion or 1.9x annual revenue
CGI also announced plans to initiate a quarterly dividend of $0.15 per share starting in Q1 Fiscal 2025, subject to Board approval.
CGI ha riportato i risultati del terzo trimestre del fiscal 2024, evidenziando una crescita dei ricavi dell'1,3% rispetto all'anno precedente, raggiungendo 3,67 miliardi di dollari. I principali punti salienti includono:
- Utili prima delle imposte sul reddito pari a 594,0 milioni di dollari, in aumento del 6,3% rispetto all'anno precedente
- Utili netti di 440,1 milioni di dollari, in aumento del 6,1% rispetto all'anno precedente
- EPS diluiti di 1,91 dollari, in aumento del 9,1% rispetto all'anno precedente
- Flusso di cassa dalle attività operative di 496,7 milioni di dollari, pari al 13,5% dei ricavi
- Ordini di 4,28 miliardi di dollari, con un rapporto book-to-bill del 116,6%
- Portafoglio ordini di 27,56 miliardi di dollari, pari a 1,9 volte i ricavi annuali
CGI ha anche annunciato piani per avviare un dividendo trimestrale di 0,15 dollari per azione a partire dal primo trimestre del fiscal 2025, soggetto all'approvazione del consiglio.
CGI reportó sus resultados del tercer trimestre del año fiscal 2024, mostrando un crecimiento de ingresos del 1,3% en comparación con el año anterior, alcanzando los 3,67 mil millones de dólares. Los aspectos destacados incluyen:
- Ingresos antes de impuestos de 594,0 millones de dólares, un aumento del 6,3% en comparación con el año anterior
- Utilidad neta de 440,1 millones de dólares, un aumento del 6,1% en comparación con el año anterior
- EPS diluido de 1,91 dólares, un aumento del 9,1% en comparación con el año anterior
- Flujo de caja de las actividades operativas de 496,7 millones de dólares, representando el 13,5% de los ingresos
- Reservas de 4,28 mil millones de dólares, con una relación book-to-bill del 116,6%
- Cartera de pedidos de 27,56 mil millones de dólares, equivalente a 1,9 veces los ingresos anuales
CGI también anunció planes para iniciar un dividendo trimestral de 0,15 dólares por acción a partir del primer trimestre del año fiscal 2025, sujeto a la aprobación de la Junta.
CGI는 2024 회계연도 3분기 실적을 발표하며 전년 대비 1.3% 성장하여 36.7억 달러의 매출을 기록했다고 밝혔습니다. 주요 하이라이트는 다음과 같습니다:
- 세전 이익 5억 9,400만 달러, 전년 대비 6.3% 증가
- 순이익 4억 4,010만 달러, 전년 대비 6.1% 증가
- 희석 주당순이익 1.91달러, 전년 대비 9.1% 증가
- 운영 활동에서의 현금 흐름 4억 9,670만 달러, 매출의 13.5%에 해당
- 예약금 42억 8천만 달러, 수주율 116.6%
- 미수금 275억 6천만 달러, 연간 매출의 1.9배에 해당
CGI는 또한 2025 회계연도 1분기부터 주당 0.15달러의 분기 배당금을 지급할 계획을 발표했으며, 이는 이사회의 승인에 따릅니다.
CGI a annoncé ses résultats pour le troisième trimestre de l'exercice 2024, montrant une croissance des revenus de 1,3 % par rapport à l'année précédente, atteignant 3,67 milliards de dollars. Les points forts incluent :
- Bénéfice avant impôts de 594,0 millions de dollars, en hausse de 6,3 % par rapport à l'année précédente
- Bénéfice net de 440,1 millions de dollars, en hausse de 6,1 % par rapport à l'année précédente
- BPA dilué de 1,91 dollar, en hausse de 9,1 % par rapport à l'année précédente
- Flux de trésorerie des activités opérationnelles de 496,7 millions de dollars, représentant 13,5 % des revenus
- Commandes de 4,28 milliards de dollars, avec un ratio book-to-bill de 116,6 %
- Registre des commandes de 27,56 milliards de dollars, soit 1,9 fois les revenus annuels
CGI a également annoncé des plans pour initier un dividende trimestriel de 0,15 dollar par action à partir du premier trimestre de l'exercice 2025, sous réserve de l'approbation du conseil d'administration.
CGI hat seine Ergebnisse für das dritte Quartal des Geschäftsjahres 2024 veröffentlicht und zeigt eine Umsatzsteigerung von 1,3% im Jahresvergleich auf 3,67 Milliarden US-Dollar. Wichtige Höhepunkte sind:
- Gewinn vor Steuern von 594,0 Millionen US-Dollar, ein Anstieg von 6,3% im Jahresvergleich
- Nettoergebnis von 440,1 Millionen US-Dollar, ein Anstieg von 6,1% im Jahresvergleich
- Verdünntes EPS von 1,91 US-Dollar, ein Anstieg von 9,1% im Jahresvergleich
- Cashflow aus operativer Tätigkeit von 496,7 Millionen US-Dollar, was 13,5% des Umsatzes entspricht
- Buchungen von 4,28 Milliarden US-Dollar, mit einem Buch-zu-Rechnung-Verhältnis von 116,6%
- Auftragsbestand von 27,56 Milliarden US-Dollar, das 1,9 mal den Jahresumsatz entspricht
CGI kündigte auch Pläne an, eine vierteljährliche Dividende von 0,15 US-Dollar pro Aktie ab dem ersten Quartal des Geschäftsjahres 2025 einzuführen, vorausgesetzt, dass dies vom Vorstand genehmigt wird.
- Revenue growth of 1.3% year-over-year to $3.67 billion
- Earnings before income taxes increased 6.3% to $594.0 million
- Net earnings rose 6.1% to $440.1 million
- Diluted EPS grew 9.1% to $1.91
- Strong bookings of $4.28 billion with a book-to-bill ratio of 116.6%
- Backlog increased to $27.56 billion, representing 1.9x annual revenue
- Announcement of quarterly dividend program starting in Q1 Fiscal 2025
- Constant currency revenue growth slowed to 0.2% year-over-year
Insights
CGI's Q3 fiscal 2024 results demonstrate resilience in a challenging macro environment. The company reported revenue of
Key highlights include:
- Earnings before income taxes of
$594.0 million , up6.3% year-over-year, with a margin of16.2% , an 80 basis point improvement. - Adjusted EBIT of
$602.8 million , up3.1% , with a margin of16.4% , up 30 basis points. - Diluted EPS of
$1.91 , a robust9.1% increase from the previous year.
The company's focus on managed services is paying off, with a book-to-bill ratio of
The announcement of a dividend program, starting in Q1 fiscal 2025, is a significant shift in capital allocation strategy. While the proposed
Overall, CGI's performance reflects effective execution in a challenging environment, with a focus on margin expansion and cash flow generation. The company's strong backlog of
CGI's Q3 results offer interesting insights into the current IT services market dynamics. The
The robust bookings of
CGI's focus on cash generation, with cash from operations at
The introduction of a dividend program is a significant development. It suggests that CGI sees high-return investment opportunities in the current market and is opting to return more cash to shareholders. This move could attract a new class of income-focused investors to CGI's stock.
Looking ahead, CGI's substantial backlog of
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Updates use of cash strategy to include dividend program
Q3-F2024 performance highlights
- Revenue of
$3.67 billion 1.3% year-over-year or0.2% year-over-year in constant currency1; - Earnings before income taxes of
$594.0 million 6.3% year-over-year, for a margin1 of16.2% ; - Adjusted EBIT1 of
$602 3.1% year-over-year, for a margin1 of16.4% ; - Net earnings of
$440.1 million 6.1% year-over-year, for a margin1 of12.0% ; - Net earnings excluding specific items1,2 of
$440 3.4% year-over-year, for a margin1 of12.0% ; - Diluted EPS of
$1.91 9.1% year-over-year; - Diluted EPS excluding specific items1,2 of
$1.91 6.1% year-over-year; - Cash from operating activities of
$496.7 million 13.5% of revenue1; - Bookings1 of
$4 116.6% or111.7% on a trailing twelve month basis; and - Backlog1 of
$27
Note: All figures in Canadian dollars. Q3-F2024 MD&A, interim condensed consolidated financial statements and accompanying notes can be found at cgi.com/investors and have been filed with the Canadian Securities Administrators on SEDAR+ at www.sedarplus.ca and the
Q3-F2024 results
"CGI's Q3 results reflect the disciplined execution of our plan in this dynamic macro business environment to deliver shareholder value with sustained margin expansion and increased cash from operations," said George D. Schindler, President and Chief Executive Officer. "Robust quarterly bookings of nearly
__________________________________ |
1 Constant currency revenue growth, adjusted EBIT, adjusted EBIT margin, net earnings excluding specific items, net earnings margin excluding specific items and diluted EPS excluding specific items are non-GAAP financial measures or ratios. Earnings before income taxes margin, net earnings margin, cash from operating activities as a percentage of revenue, bookings, book-to-bill ratio, and backlog are key performance measures. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest International Financial Reporting Standards (IFRS) measure, as applicable. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies. |
2 Specific items in Q3-F2024 include: |
For the third quarter of Fiscal 2024, the Company reported revenue of
Earnings before income taxes were
Net earnings were
Net earnings excluding specific items1 were
Cash provided by operating activities was
Bookings were
As of June 30, 2024, the number of CGI consultants and professionals worldwide stood at approximately 90,000.
During the third quarter of Fiscal 2024, the Company invested
Return on invested capital was
As at June 30, 2024, long-term debt and lease liabilities, including both their current and long-term portions, were
At the end of June 2024, with cash and cash equivalents of
_________________________________ |
1 Specific items in Q3-F2024 include: |
Financial highlights | Q3-F2024 | Q3-F2023 | Change |
In millions of Canadian dollars except earnings per share and where noted | |||
Revenue | 3,672.0 | 3,623.4 | 48.6 |
Year-over-year revenue growth | 1.3 % | 11.2 % | (990 bps) |
Constant currency revenue growth | 0.2 % | 6.3 % | (610 bps) |
Earnings before income taxes | 594.0 | 559.0 | 35.0 |
Margin % | 16.2 % | 15.4 % | 80 bps |
Adjusted EBIT | 602.8 | 584.8 | 18.0 |
Margin % | 16.4 % | 16.1 % | 30 bps |
Net earnings | 440.1 | 415.0 | 25.1 |
Margin % | 12.0 % | 11.5 % | 50 bps |
Net earnings excluding specific items1 | 440.2 | 425.7 | 14.5 |
Margin % | 12.0 % | 11.7 % | 30 bps |
Diluted EPS | 1.91 | 1.75 | 0.16 |
Diluted EPS excluding specific items1 | 1.91 | 1.80 | 0.11 |
Weighted average number of outstanding shares (diluted) In millions of shares | 230.5 | 236.9 | (6.4) |
Net finance costs | 8.8 | 12.8 | (4.0) |
Long-term debt and lease liabilities2 | 3,045.6 | 3,765.9 | (720.3) |
Net debt3 | 1,854.0 | 2,279.6 | (425.6) |
Net debt to capitalization ratio3 | 17.2 % | 21.7 % | (450 bps) |
Cash provided by operating activities | 496.7 | 409.1 | 87.6 |
As a percentage of revenue | 13.5 % | 11.3 % | 220 bps |
Days sales outstanding (DSO)3 | 42 | 44 | (2) |
Purchase for cancellation of Class A subordinate voting shares | (499.3) | (53.1) | (446.2) |
Return on invested capital (ROIC)3 | 16.1 % | 15.7 % | 40 bps |
Bookings | 4,280 | 4,388 | (108) |
Backlog | 27,563 | 25,633 | 1,930 |
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1 Specific items in Q3-F2024 include: |
2 Long-term debt and lease liabilities include both the current and long-term portions of the long-term debt and lease liabilities. |
3 Net debt, net debt to capitalization ratio and ROIC are non-GAAP financial measures or ratios. DSO is a key performance measure. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest International Financial Reporting Standards (IFRS) measure, as applicable. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies. |
To access the financial statements – click here
To access the MD&A – click here
Update on use of cash strategy to include dividend program
As part of its profitable growth strategy, CGI's capital allocation priorities are primarily focused on investing back in the business and pursuing accretive acquisitions. The Company also has the flexibility to use a portion of its free cash for the repurchase of its Class A subordinate voting shares. Additionally, the Company is announcing that its Board of Directors has approved a dividend program under which the Company intends to pay a quarterly cash dividend to holders of its Class A subordinate voting shares and Class B shares (multiple voting) starting in its first quarter of fiscal 2025. Subject to the declaration by the Board of Directors, the Company intends to pay a quarterly cash dividend of
"The initiation of our dividend program represents an additional mechanism to deliver value to our shareholders," said George D. Schindler. "With a strong balance sheet and liquidity, CGI will continue to prioritize capital allocation strategies that drive profitable growth through investing in our business, pursuing accretive acquisitions, repurchasing our shares and distributing a dividend to further enhance value for shareholders."
Future dividends and the amounts will be at the discretion of the Board of Directors after taking into account the Company's free cash flow, earnings, financial position, market conditions and other factors the Board of Directors deems relevant, and will be communicated on a quarterly basis.
Retirement of André Imbeau from CGI's Board of Directors
After serving on CGI's Board of Directors since its inception in 1976, André Imbeau has retired effective May 28, 2024. He co-founded CGI with Serge Godin and served in several executive positions culminating in his tenure as Founder and Advisor to the Executive Chairman of the Board. "On behalf of the Board of Directors and all our professionals, I would like to thank André for his valuable wisdom, commitment and leadership to the success of CGI." said Serge Godin, Founder and Executive Chairman of the Board.
Q3-F2024 results conference call
Management will host a conference call this morning at 9:00 a.m. (EDT) to discuss results. Participants may access the call by dialing +1-888-396-8049 Conference ID: 56875394 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. Interested parties may also access a replay of the call by dialing +1-877-674-7070 Passcode: 875394, until August 30, 2024.
About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 90,000 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. CGI Fiscal 2023 reported revenue is
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
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.
Non-GAAP and other key performance measures
Non-GAAP financial measures and ratios used in this press release: Constant currency revenue growth, adjusted EBIT, adjusted EBIT margin, net earnings excluding specific items, net earnings margin excluding specific items, diluted EPS excluding specific items, net debt, net debt to capitalization ratio, and return on invested capital (ROIC). 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. These measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers and should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with IFRS. Key performance measures used in this press release: cash from operating activities as a percentage of revenue, bookings, book-to-bill ratio, backlog, days sales outstanding (DSO), earnings before income taxes margin, and net earnings margin.
Below are reconciliations to the most comparable IFRS financial measures and ratios, as applicable.
The descriptions of these non-GAAP measures and ratios and other key performance measures can be found on pages 3, 4 and 5 of our Q3-F2024 MD&A which is posted on CGI's website, and filed with the Canadian Securities Administrators on SEDAR+ at www.sedarplus.ca and the
Reconciliation between constant currency revenue growth and growth
For the three months ended June 30, | For the nine months ended June 30, | |||||
2024 | 2023 | % | 2024 | 2023 | % | |
In thousands of CAD except for percentages | ||||||
Total CGI revenue | 3,671,977 | 3,623,428 | 1.3 % | 11,015,761 | 10,789,024 | 2.1 % |
Constant currency revenue growth | 0.2 % | 0.5 % | ||||
Foreign currency impact | 1.1 % | 1.6 % | ||||
Variation over previous period | 1.3 % | 2.1 % | ||||
Reconciliation between earnings before income taxes and adjusted EBIT
For the three months ended June 30, | For the nine months ended June 30, | |||||||
2024 | % of | 2023 | % of | 2024 | % of | 2023 | % of | |
In thousands of CAD except for | ||||||||
Earnings before income taxes | 593,967 | 16.2 % | 558,981 | 15.4 % | 1,698,539 | 15.4 % | 1,639,986 | 15.2 % |
Plus the following items: | ||||||||
Acquisition-related and | 100 | — % | 13,032 | 0.4 % | 2,423 | — % | 53,401 | 0.5 % |
Cost optimization program | — | — % | — | — % | 91,063 | 0.8 % | — | — % |
Net finance costs | 8,765 | 0.2 % | 12,808 | 0.4 % | 23,495 | 0.2 % | 46,315 | 0.4 % |
Adjusted EBIT | 602,832 | 16.4 % | 584,821 | 16.1 % | 1,815,520 | 16.5 % | 1,739,702 | 16.1 % |
Net earnings and Diluted EPS, excluding specific items
For the three months ended June 30, | For the nine months ended June 30, | |||||
2024 | 2023 | Change | 2024 | 2023 | Change | |
In thousands of CAD except for percentages and | ||||||
Earnings before income taxes | 593,967 | 558,981 | 6.3 % | 1,698,539 | 1,639,986 | 3.6 % |
Add back: | ||||||
Acquisition-related and integration costs | 100 | 13,032 | (99.2 %) | 2,423 | 53,401 | (95.5 %) |
Cost optimization program | — | — | — % | 91,063 | — | — % |
Earnings before income taxes excluding | 594,067 | 572,013 | 3.9 % | 1,792,025 | 1,693,387 | 5.8 % |
Income tax expense | 153,843 | 144,002 | 6.8 % | 441,747 | 423,213 | 4.4 % |
Effective tax rate | 25.9 % | 25.8 % | 26.0 % | 25.8 % | ||
Add back: | ||||||
Tax deduction on acquisition-related and | 22 | 2,352 | (99.1 %) | 484 | 11,338 | (95.7 %) |
Impact on effective tax rate | — % | (0.2 %) | — % | (0.1 %) | ||
Tax deduction on cost optimization | — | — | — % | 22,956 | — | — % |
Impact on effective tax rate | — % | — % | — % | — % | ||
Income tax expense excluding specific | 153,865 | 146,354 | 5.1 % | 465,187 | 434,551 | 7.1 % |
Effective tax rate excluding specific | 25.9 % | 25.6 % | 26.0 % | 25.7 % | ||
Net earnings excluding specific items | 440,202 | 425,659 | 3.4 % | 1,326,838 | 1,258,836 | 5.4 % |
Net earnings margin excluding | 12.0 % | 11.7 % | 12.0 % | 11.7 % | ||
Weighted average number of shares | ||||||
Class A subordinate voting shares and | 227,154,246 | 233,075,350 | (2.5 %) | 229,023,242 | 234,752,090 | (2.4 %) |
Class A subordinate voting shares and | 230,540,966 | 236,883,434 | (2.7 %) | 232,607,988 | 238,343,519 | (2.4 %) |
Earnings per share excluding specific | ||||||
Basic | 1.94 | 1.83 | 6.0 % | 5.79 | 5.36 | 8.0 % |
Diluted | 1.91 | 1.80 | 6.1 % | 5.70 | 5.28 | 8.0 % |
Reconciliation between long-term debt and lease liabilities and net debt
As at June 30, | 2024 | 2023 |
In thousands of CAD except for percentages | ||
Reconciliation between long-term debt and lease liabilities1 and net debt: | ||
Long-term debt and lease liabilities1 | 3,045,603 | 3,765,876 |
Minus the following items: | ||
Cash and cash equivalents | 1,155,400 | 1,468,832 |
Short-term investments | 3,277 | 3,060 |
Long-term investments | 23,840 | 19,507 |
Fair value of foreign currency derivative financial instruments related to debt | 9,125 | (5,165) |
Net debt | 1,853,961 | 2,279,642 |
Net debt to capitalization ratio | 17.2 % | 21.7 % |
Return on invested capital | 16.1 % | 15.7 % |
Days sales outstanding | 42 | 44 |
1 | As at June 30, 2024, long-term debt and lease liabilities were |
View original content:https://www.prnewswire.com/news-releases/cgi-reports-third-quarter-fiscal-2024-results-302210734.html
SOURCE CGI Inc.
FAQ
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