Mr. George Schindler reports

CGI REPORTS FIRST QUARTER FISCAL 2024 RESULTS

"CGI [Inc.] began fiscal year 2024 in a strong position, again demonstrating the resilience of our model and the disciplined execution of our plan," said George D. Schindler, president and chief executive officer. "The combination of our trusted client partnerships and end-to-end services contributed to bookings of $4.2-billion in the quarter and $16.4-billion, or 114 per cent of revenue, over the last 12 months. CGI's outcome-based offerings, particularly those focused on generating cost savings and accelerating modernization -- including through AI -- continue to resonate with clients. Our robust balance sheet, further strengthened in the quarter by the operational and delivery excellence of our team, enables us to continue driving our build-and-buy profitable growth strategy."

For the first quarter of fiscal 2024, the company reported revenue of $3.60-billion, representing a year-over-year increase of 4.4 per cent. When excluding foreign currency variations, revenue grew by 1.5 per cent year-over-year.

Earnings before income taxes were $527.1-million, up 2 per cent year-over-year, for a margin of 14.6 per cent, down 40 basis points compared with the same period last year, primarily as a result of expenses related to implementing CGI's previously announced cost optimization program. Adjusted EBIT (earnings before interest and taxes) was $584.2-million, up 5.4 per cent year-over-year, for a margin of 16.2 per cent, up 10 basis points compared with the same period last year.

Net earnings were $389.8-million, up 1.9 per cent compared with the same period last year, for a margin of 10.8 per cent. Diluted earnings per share, as a result, were $1.67 compared with $1.60 last year, representing an increase of 4.4 per cent.

Net earnings excluding specific items were $427.2-million. This represents an increase of 7.3 per cent year-over-year, and a margin of 11.9 per cent. On the same basis, diluted earnings per share increased by 10.2 per cent to $1.83, up from $1.66 for the same period last year.

Cash provided by operating activities was $577.2-million, representing 16 per cent of revenue. On a trailing 12-month basis, cash provided by operating activities was $2.1-billion, representing 14.4 per cent of revenue.

Bookings were $4.19-billion, up $152-million on a year-over-year basis, representing a book-to-bill ratio of 116.2 per cent. As of Dec. 31, 2023, the company's backlog stood at $26.57-billion or 1.8 times annual revenue.

As of Dec. 31, 2023, the number of CGI consultants and professionals worldwide stood at approximately 90,500.

During the first quarter of fiscal 2024, the company invested $49.4-million in business acquisitions, $85.4-million back into its business and $126.1-million under its current normal course issuer bid to purchase for cancellation 943,250 of its Class A subordinate voting shares.

Return on invested capital was 15.9 per cent, an increase of 40 basis points on a year-over-year basis.

As at Dec. 31, 2023, long-term debt and lease liabilities, including both their current and long-term portions, were $3-billion, down from $3.88-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 $1.84-billion, down from $2.50-billion at the same time last year. The net debt-to-capitalization ratio stood at 17.6 per cent at the end of December, 2023, down 650 basis points when compared with the prior year.

At the end of December, 2023, with cash and investments of $1.2-billion on hand, excluding funds held for clients, and a fully available revolving credit facility, the company had $2.7-billion in readily available liquidity to pursue its build-and-buy profitable growth strategy.

Normal course issuer bid

On Jan. 30, 2024, the company's board of directors authorized the renewal of its normal course issuer bid, which, subject to approval by the Toronto Stock Exchange, allows for the purchase for cancellation of up to 20,457,737 Class A subordinate voting shares over the next 12 months, representing approximately 10 per cent of the company's public float as of the close of business on Jan. 23, 2024. The current program will terminate on Feb. 5, 2024, and repurchases of Class A subordinate voting shares under the renewed program may commence on Feb. 6, 2024. For further information, please refer to the company's press release regarding the renewal of its normal course issuer bid.

Q1 FY 2024 results conference call

Management will host a conference call this morning at 9 a.m. (EST) to discuss results. Participants may access the call by dialling 1-888-396-8049 or 1-416-764-8646, conference ID 66827836, or via the CGI website. For those unable to participate on the live call, a podcast and copy of the slides will be archived for download on CGI's website. Interested parties may also access a replay of the call by dialling 1-877-674-7070, passcode 827836, until Feb. 28, 2024.

Annual general meeting of shareholders

This morning the company will hold its annual general meeting of shareholders. The meeting will be held at 11 a.m. (EST) via live webcast (password: CGI2023).

About CGI Inc.

Founded in 1976, CGI is among the largest independent information technology and business consulting services firms in the world. With 90,500 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.

We seek Safe Harbor.