CGI(GIB)

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CGI(GIB) - 2023 Q3 - Quarterly Report
2023-07-25 16:00
Exhibit 99.1 Management's Discussion and Analysis For the three and nine months ended June 30, 2023 and 2022 Management's Discussion and Analysis For the three and nine months ended June 30, 2023 and 2022 July 26, 2023 BASIS OF PRESENTATION This Management's Discussion and Analysis of the Financial Position and Results of Operations (MD&A) is a responsibility of management and has been reviewed and approved by the Board of Directors. This MD&A has been prepared in accordance with the rules and regulations o ...
CGI(GIB) - 2023 Q2 - Earnings Call Transcript
2023-04-26 18:31
CGI, Inc. (NYSE:GIB) Q2 2023 Earnings Conference Call April 26, 2023 9:00 AM ET Company Participants Kevin Linder - Senior Vice President, Investor Relations Steve Perron - Executive Vice President and Chief Financial Officer George Schindler - President and Chief Executive Officer Conference Call Participants Thanos Moschopoulos - BMO Capital Markets Paul Treiber - RBC Capital Markets Richard Tse - National Bank Financial Daniel Chan - TD Securities Jerome Dubreuil - Desjardins Securities Divya Goyal - Sco ...
CGI(GIB) - 2023 Q2 - Earnings Call Presentation
2023-04-26 14:57
Second Quarter Fiscal 2023 Forward-Looking Information and Statements Non-GAAP and Other Key Performance Measures Definitions Note: All figures in Canadian dollars © 2023 CGI Inc. April 26, 2023 All amounts are in Canadian dollars unless otherwise indicated. The descriptions of these non-GAAP measures (and reconciliations to their closest IFRS measures) and ratios and other key performance measures can be found on pages 3, 4 and 5 of our Q2 F2023 MD&A which is posted on CGI's website, and filed with SEDAR a ...
CGI(GIB) - 2023 Q1 - Earnings Call Transcript
2023-02-01 19:25
Financial Data and Key Metrics Changes - The company reported revenue of CAD 3.45 billion, an increase of 11.6% year-over-year, or 12.3% when excluding foreign exchange impacts [21][22] - Net earnings improved to CAD 382.4 million compared to CAD 367.4 million in the first quarter last year, with diluted EPS increasing by 7.4% to CAD 1.60 [10][25] - Adjusted EBIT was CAD 554.1 million, up 6.3% year-over-year, representing an EBIT margin of 16.1% [24] - Cash provided by operating activities was CAD 605 million, an increase from CAD 484 million in the prior year [52] Business Line Data and Key Metrics Changes - Managed services bookings increased by CAD 465 million or 26% year-over-year, representing 56% of total bookings with a book-to-bill ratio of 123% [17] - Intellectual Property (IP) bookings were up by more than CAD 330 million or 55%, with a book-to-bill ratio of 128% [62] - Systems Integration and Consulting (SI&C) bookings maintained a robust 110% book-to-bill ratio, particularly strong in government and financial services [60] Market Data and Key Metrics Changes - Book-to-bill ratios were above 100% across all client proximity segments, with Europe leading at 159% [8] - The global backlog reached CAD 25 billion, representing 1.9 times revenue, marking an all-time high [9] Company Strategy and Development Direction - The company continues to focus on maximizing shareholder returns through capital allocation, including investments in business, acquisitions, and stock repurchases [12] - CGI is investing in end-to-end services and talent to meet evolving client demands for enterprise digitization [16] - The company plans to allocate CAD 1 billion in 2023 for its M&A strategy, capitalizing on the fragmented IT services market [66] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing client confidence in CGI as a trusted partner for modernization and digitization priorities [29] - There is a focus on tactical initiatives for cost savings and transformational initiatives for new digital business models [65] - The company anticipates continued profitable growth and double-digit EPS accretion in 2023 [40] Other Important Information - The effective tax rate for Q1 was 26%, with expectations for future quarters to remain between 24.5% and 26.5% [11] - The company received all-time high satisfaction ratings from clients, indicating strong relationships and future engagement potential [31] Q&A Session Summary Question: Organic growth estimates - Management confirmed strong constant currency organic growth, attributing it to investments in managed services and consulting expertise [42][44] Question: M&A outlook and integration expenses - Management highlighted the importance of operational discipline in M&A, with a strong pipeline of opportunities [47][49] Question: Impact of Microsoft Azure's growth slowdown - Management indicated no direct correlation but noted that enterprises are focusing on connecting backend and frontend work [78] Question: Hiring strategies and capacity - Management discussed the impact of lower turnover on hiring and the need to manage hiring for hot skills [110][112] Question: Cost structure visibility - Management acknowledged ongoing dynamics in pricing and cost structure, with some normalization expected [137][138]
CGI(GIB) - 2023 Q2 - Quarterly Report
2023-04-26 11:30
Exhibit 99.1 Management's Discussion and Analysis For the three months ended December 31, 2022 and 2021 Management's Discussion and Analysis | For the three months ended December 31, 2022 and 2021 February 1, 2023 BASIS OF PRESENTATION This Management's Discussion and Analysis of the Financial Position and Results of Operations (MD&A) is a responsibility of management and has been reviewed and approved by the Board of Directors. This MD&A has been prepared in accordance with the requirements under the rules ...
CGI(GIB) - 2023 Q1 - Quarterly Report
2022-12-15 16:00
Exhibit 99.1 Management's Discussion and Analysis November 9, 2022 BASIS OF PRESENTATION This Management's Discussion and Analysis of the Financial Position and Results of Operations (MD&A) is a responsibility of management and has been reviewed and approved by the Board of Directors. This MD&A has been prepared in accordance with the requirements of the Canadian Securities Administrators. The Board of Directors is ultimately responsible for reviewing and approving the MD&A. The Board of Directors carries o ...
CGI(GIB) - 2022 Q4 - Earnings Call Presentation
2022-11-09 19:50
Fourth Quarter & Fiscal 2022 Financial results and highlights For the three and twelve months ended September 30, 2022 and 2021 November 9, 2022 Forward-Looking Information and Statements Our presentations contain "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 statemen ...
CGI(GIB) - 2022 Q4 - Earnings Call Transcript
2022-11-09 19:49
Financial Data and Key Metrics - Revenue in Q4 2022 was $3.25 billion, up 8% YoY or 13.9% excluding unfavorable foreign exchange and tax impacts [8] - Adjusted EBIT in Q4 was $522 million, up 5.7% YoY, with EBIT margins at 16.1%, up 10 basis points sequentially [15] - Net earnings were $362 million, with diluted EPS at $1.51, representing an 8.6% YoY expansion [16] - Cash provided by operating activities was $489 million, representing 15.1% of revenue, a decrease of $38 million YoY due to COVID-related tax refunds and higher DSO [17] - Global backlog reached an all-time high of $24.1 billion, representing 1.9 times revenue [13] Business Line Performance - All segments delivered positive constant currency growth, with double-digit growth in Western and Southern Europe (35%), Asia-Pacific (22.7%), Canada (13.2%), and U.S. commercial and state government (10.9%) [9] - Financial services grew 21%, manufacturing, retail, and distribution grew 14%, government grew 13%, and communication and utilities grew 10% [10] - IP services and solutions saw a significant increase in bookings, with an IP book-to-bill ratio of 146% in the quarter [13] Market Performance - Book-to-bill ratio was 112% in Q4, with new business accounting for 37% of bookings [11] - Strong book-to-bill ratios were observed in the U.K. and Australia (139%), U.S. commercial and state government (125%), U.S. Federal (121%), and Finland, Poland, and Baltics (117%) [11] - European operations had a book-to-bill ratio of 107% for the quarter and 114% for the full year, while North America was robust at 117% [12] Company Strategy and Industry Competition - The company's strategy focuses on a "build and buy" approach, with recent acquisitions contributing to growth and margin targets [16][19] - CGI is positioned to help clients drive digital transformations, with a focus on operational efficiencies and cost savings to fund digitization investments [35] - The company sees a positive M&A environment due to favorable valuations, currency strength, and a strong balance sheet [39] Management Commentary on Operating Environment and Future Outlook - Management highlighted the resilience of CGI's business model and the value provided to clients, with strong demand for digital transformation services [7][35] - The company expects continued demand for managed services and IP, with a strong pipeline of opportunities [37] - CGI remains confident in its ability to deliver double-digit EPS accretion and invest in growth opportunities [40] Other Important Information - The company invested $103 million back into the business and $133 million in share buybacks in Q4 [18] - CGI's effective tax rate in Q4 was 25.4%, with expectations for future quarters to be in the range of 24.5% to 26.5% [16] - The company's return on invested capital increased by 80 basis points to 15.7% [18] Q&A Session Summary Question: Digital Transformation Progress - Management compared the digital transformation journey to a baseball game, suggesting it is still in the early innings and may not have a definitive end [45] Question: Client Demand for Future Services - Clients are increasingly interested in data analytics, cloud technologies, and the integration of technology with business processes [46] Question: Hiring Plans - CGI has slowed some open positions due to reduced turnover but remains focused on hiring, particularly early-career talent [47][48] Question: Offshore and Nearshore Mix - The company is committed to its proximity model but is also expanding global delivery centers to manage wage inflation and provide cost-effective solutions [52][53] Question: Capital Allocation Strategy - The 2% tax on buybacks will not affect CGI's capital allocation strategy in 2023, but future plans will consider this factor [55] Question: European Market Outlook - Despite macroeconomic pressures, CGI's European operations remain resilient, with government contracts providing countercyclical support [70][71] Question: U.S. Political Landscape Impact - CGI's work is bipartisan, with IT modernization and cybersecurity remaining key priorities regardless of political changes [72][73] Question: M&A Activity and Margins - Recent M&A activity has temporarily impacted margins, but the company expects to achieve CGI margin targets over the coming quarters [64][65] Question: IP Booking Strength - The strength in IP bookings is driven by both demand and outbound efforts, with a focus on bundling IP with managed services and BPO [96][97] Question: Offshore Delivery and Virtual Work - Virtual work has provided a tailwind for offshore delivery, but nearshore centers are also seen as a key differentiator in balancing cost and regulatory considerations [120][121] Question: Vendor Consolidation - CGI is well-positioned to benefit from vendor consolidation, with a significant portion of 2022 bookings coming from new or expanded workshare [125]
CGI(GIB) - 2022 Q3 - Earnings Call Transcript
2022-07-27 18:01
CGI, Inc. (NYSE:GIB) Q3 2022 Earnings Conference Call July 27, 2022 9:00 AM ET Company Participants Kevin Linder - SVP, Finance & Treasury and Head, IR François Boulanger - EVP & CFO George Schindler - President, CEO & Director Steve Perron - SVP & Corporate Controller Conference Call Participants Thanos Moschopoulos - BMO Capital Markets Stephanie Price - CIBC Jerome Dubreuil - Desjardins Securities Steven Li - Raymond James Daniel Chan - TD Securities Paul Treiber - RBC Capital Markets Brian Essex - Goldm ...
CGI(GIB) - 2022 Q3 - Earnings Call Presentation
2022-07-27 18:00
Third Quarter Fiscal 2022 Financial Results and highlights For the three and nine months ended June 30, 2022 and 2021 July 27, 2022 Forward-looking information and statements Our presentations contain "forward-looking information "within the meaning of Canadian securities laws and "forward-looking statements" w ithin 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 ...