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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 ...
CGI(GIB) - 2022 Q2 - Earnings Call Transcript
2022-04-27 15:57
CGI Inc. (NYSE:GIB) Q2 2022 Earnings Conference Call April 27, 2022 9:00 AM ET Company Participants Kevin Linder - Senior Vice President, Finance and Treasury, & Head of Investor Relations François Boulanger - Executive Vice President & Chief Financial Officer George Schindler - President & Chief Executive Officer Conference Call Participants Stephanie Price - CIBC Thanos Moschopoulos - BMO Capital Markets Paul Treiber - RBC Capital Markets Brian Essex - Goldman Sachs Richard Tse - National Bank Operator Go ...
CGI(GIB) - 2022 Q2 - Earnings Call Presentation
2022-04-27 13:26
Second Quarter Fiscal 2022 Financial Results and highlights For the three month period ended March 31, 2022 April 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 and discl ...