CGI reports fourth quarter and Fiscal 2024 results

PR Newswire

MONTRÉAL, Nov. 6, 2024

Stock Market Symbols

GIB.A (TSX)

GIB $(NYSE)$

cgi.com/newsroom

Fourth quarter revenue up 4.4% and diluted earnings per share (EPS) up 8.5%

Q4-F2024 performance highlights

   -- Revenue of $3.66 billion, up 4.4% year-over-year or 2.0% year-over-year 
      in constant currency1; 
 
   -- Earnings before income taxes of $592.4 million, up 6.2% year-over-year, 
      for a margin1 of 16.2%; 
 
   -- Adjusted EBIT1 of $600.2 million, up 4.7% year-over-year, for a margin1 
      of 16.4%; 
 
   -- Net earnings of $435.9 million, up 5.2% year-over-year, for a margin1 of 
      11.9%; 
 
   -- Net earnings excluding specific items1,2 of $439.1 million, up 4.2% 
      year-over-year, for a margin1 of 12.0%; 
 
   -- Diluted EPS of $1.91, up 8.5% year-over-year; 
 
   -- Diluted EPS excluding specific items1,2 of $1.92, up 7.3% year-over-year; 
 
   -- Cash provided by operating activities of $629.1 million, representing 
      17.2% of revenue1; and 
 
   -- Bookings1 of $3.82 billion, for a book-to-bill ratio1 of 104.4%. 

F2024 performance highlights

   -- Revenue of $14.68 billion, up 2.7% year-over-year or 0.9% year-over-year 
      in constant currency1; 
 
   -- Earnings before income taxes of $2.29 billion, up 4.2% year-over-year, 
      for a margin1 of 15.6%; 
 
   -- Adjusted EBIT1 of $2.42 billion, up 4.5% year-over-year, for a margin1 of 
      16.5%; 
 
   -- Net earnings of $1.69 billion, up 3.8% year-over-year, for a margin1 of 
      11.5%; 
 
   -- Net earnings excluding specific items1,3 of $1.77 billion, up 5.1% 
      year-over-year, for a margin1 of 12.0%; 
 
   -- Diluted EPS of $7.31, up 6.6% year-over-year; 
 
   -- Diluted EPS excluding specific items1,3 of $7.62, up 7.8% year-over-year; 
 
   -- Cash provided by operating activities of $2.20 billion, representing 
      15.0% of revenue1; 
 
   -- Bookings of $16.04 billion, for a book-to-bill ratio of 109.3%; and 
 
   -- Backlog1 of $28.72 billion or 1.9x annual revenue. 

Note: All figures in Canadian dollars. F2024 MD&A, audited 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 U.S. Securities and Exchange Commission on EDGAR at www.sec.gov.

 
___________________________________ 
(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 
provided by 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 Accounting Standards) 
measure, as applicable. These are not standardized financial measures under 
IFRS Accounting Standards and might not be comparable to similar financial 
measures disclosed by other companies. 
(2) Specific items in Q4-F2024 include: $3.2 million in acquisition-related 
and integration costs, net of tax; Specific items in Q4-F2023 include: 
$6.7 million from the cost optimization program, net of tax. 
(3) Specific items in F2024 include: $5.1 million in acquisition-related and 
integration costs and $68.1 million from the cost optimization program, both 
net of tax; Specific items in F2023 include: $42.1 million in 
acquisition-related and integration costs and $6.7 million from the cost 
optimization program, both net of tax. 
 

MONTRÉAL, Nov. 6, 2024 /PRNewswire/ - CGI (TSX: GIB.A) $(GIB)$

Q4-F2024 results

"I am pleased with CGI's fourth quarter results as our team delivered increasing revenue growth, sustained earnings expansion, and strong cash from operations," said François Boulanger, President and Chief Executive Officer. "Looking ahead to fiscal year 2025, we continue to see opportunities for CGI to deliver on our full offering value proposition, which enables clients to achieve business outcomes. In addition, our financial strength deepens our position as an active consolidator."

For the fourth quarter of Fiscal 2024, the Company reported revenue of $3.66 billion, representing a year-over-year growth of 4.4%. When excluding foreign currency variations, revenue grew by 2.0% year-over-year.

Earnings before income taxes were $592.4 million, up 6.2% year-over-year, for a margin of 16.2%, up 30 basis points compared to the same period last year. Adjusted EBIT was $600.2 million, up 4.7% year-over-year, for a margin of 16.4%, up 10 basis points compared to the same period last year.

Net earnings were $435.9 million, up 5.2% compared with the same period last year, for a margin of 11.9%. Diluted earnings per share, as a result, were $1.91 compared to $1.76 last year, representing an increase of 8.5%.

Net earnings excluding specific items(1) were $439.1 million, for a margin of 12.0%, representing an increase of 4.2% year-over-year. On the same basis, diluted earnings per share increased by 7.3% to $1.92, up from $1.79 for the same period last year.

Cash provided by operating activities was $629.1 million, representing 17.2% of revenue.

Bookings were $3.82 billion, representing a book-to-bill ratio of 104.4% or 109.3% on a trailing twelve-month basis.

As of September 30, 2024, the number of CGI consultants and professionals worldwide stood at approximately 90,250.

During the fourth quarter of Fiscal 2024, the Company acquired businesses for an investment of $330.2 million net of cash acquired, invested $81.6 million back into its business and $49.4 million under its current Normal Course Issuer Bid to pay for and cancel 338,500 of its Class A subordinate voting shares.

F2024 results

The Company reported revenue of $14.68 billion, representing a year-over-year growth of 2.7%. When excluding foreign currency variations, revenue grew by 0.9% year-over-year.

 
____________________________________ 
(1) Specific items in F2024 include: $5.1 million in acquisition-related and 
integration costs and $68.1 million from the cost optimization program, both 
net of tax; Specific items in F2023 include: $42.1 million in 
acquisition-related and integration costs and $6.7 million from the cost 
optimization program, both net of tax. 
 

Earnings before income taxes were $2.29 billion, up 4.2% year-over-year, for a margin of 15.6%, up 20 basis points compared to the same period last year. Adjusted EBIT was $2.42 billion, up 4.5% year-over-year, for a margin of 16.5%, up 30 basis points compared to the same period last year.

Net earnings were $1.69 billion, up 3.8% compared with the same period last year, for a margin of 11.5%. Diluted earnings per share, as a result, were $7.31 compared to $6.86 last year, representing an increase of 6.6%.

Net earnings excluding specific items(2) were $1.77 billion, for a margin of 12.0%, representing an increase of 5.1% year-over-year. On the same basis, diluted earnings per share increased by 7.8% to $7.62, up from $7.07 for the same period last year.

As of September 30, 2024, the Company's backlog reached $28.72 billion or 1.9x annual revenue.

Cash provided by operating activities was $2.20 billion, or 15.0% of revenue, representing an increase of 4.4% on a year-over-year basis.

During Fiscal 2024, the Company acquired businesses for an investment of $380.3 million, net of cash acquired. In addition, the Company invested $360.7 million back into its business and $934.8 million under its previous and current Normal Course Issuer Bid to pay for, cancel and settle 6,597,158 of its Class A subordinate voting shares.

Return on invested capital was 16.0%, remaining stable on a year-over-year basis.

As at September 30, 2024, long-term debt and lease liabilities, including both their current and long-term portions, were $3.31 billion, down from $3.74 billion at the same time last year, primarily due to the $670.4 million scheduled repayment of a term loan. As of the same date, net debt stood at $1.82 billion, down from $2.13 billion at the same time last year. The net debt-to-capitalization ratio was 16.2% at the end of September 2024, down 420 basis points when compared to the prior year.

At the end of September 2024, with cash and cash equivalents of $1.5 billion, and an undrawn revolving credit facility, the Company had $3.0 billion in readily available liquidity to pursue its Build and Buy profitable growth strategy.

 
_______________________________ 
(2) Specific items in F2024 include: $5.1 million in acquisition-related and 
integration costs and $68.1 million from the cost optimization program, both 
net of tax; Specific items in F2023 include: $42.1 million in 
acquisition-related and integration costs and $6.7 million from the cost 
optimization program, both net of tax. 
 
 
Financial highlights                    Q4-F2024  Q4-F2023   F2024     F2023 
--------------------------------------  --------  --------  --------  -------- 
In millions of Canadian dollars except 
earnings per share and where noted 
--------------------------------------  --------  --------  --------  -------- 
Revenue                                  3,660.4   3,507.3  14,676.2  14,296.4 
--------------------------------------  --------  --------  --------  -------- 
Year-over-year revenue growth              4.4 %     8.0 %     2.7 %    11.1 % 
--------------------------------------  --------  --------  --------  -------- 
Constant currency revenue growth           2.0 %     2.2 %     0.9 %     8.0 % 
--------------------------------------  --------  --------  --------  -------- 

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