Mr. George Schindler reports

CGI REPORTS SECOND QUARTER FISCAL 2024 RESULTS

CGI Inc. has released its financial results for the second quarter of fiscal 2024.

Q2 F2024 results

"In the quarter, our team continued to deliver shareholder value with strong net earnings and cash generation, even as some client industries continued to face uncertain economic conditions," said George D. Schindler, president and chief executive officer. "Through CGI's portfolio of end-to-end service offerings, which are designed to deliver tangible and trusted business outcomes, we continue to partner with clients to bring value now and to position CGI for future profitable growth opportunities."

For the second quarter of fiscal 2024, the company reported revenue of $3.74-billion, representing a year-over-year increase of 0.7 per cent. When excluding foreign currency variations, revenue was stable year-over-year.

Earnings before income taxes were $577.4-million, up 2.3 per cent year-over-year, for a margin of 15.4 per cent, up 20 basis points compared with the same period last year. Adjusted EBIT (earnings before interest and taxes) was $628.5-million, up 4.6 per cent year-over-year, for a margin of 16.8 per cent, up 60 basis points compared with the same period last year.

Net earnings were $426.9-million, up 1.8 per cent compared with the same period last year, for a margin of 11.4 per cent. Diluted earnings per share, as a result, were $1.83 compared with $1.76 last year, representing an increase of 4 per cent.

Net earnings excluding specific items were $459.4-million, for a margin of 12.3 per cent, representing an increase of 5.6 per cent year-over-year. On the same basis, diluted earnings per share increased by 8.2 per cent to $1.97, up from $1.82 for the same period last year.

Cash provided by operating activities was $502-million, representing 13.4 per cent of revenue. On a trailing 12-month basis, cash provided by operating activities was $2.1-billion, representing 14.6 per cent of revenue.

Bookings were $3.75-billion, representing a book-to-bill ratio of 100.4 per cent or 112.8 per cent on a trailing 12-month basis. As of March 31, 2024, the company's backlog reached $26.82-billion or 1.9 times annual revenue.

As of March 31, 2024, the number of CGI consultants and professionals worldwide stood at approximately 90,000.

During the second quarter of fiscal 2024, the company invested $102.6-million back into its business, and $260-million under its current normal course issuer bid to purchase for cancellation 1,741,730 of its Class A subordinate voting shares.

Return on invested capital was 15.9 per cent, an increase of 30 basis points on a year-over-year basis.

As at March 31, 2024, long-term debt and lease liabilities, including both their current and long-term portions, were $3.03-billion, down from $3.85-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 $1.73-billion, down from $2.53-billion at the same time last year. The net debt-to-capitalization ratio was 16.4 per cent at the end of March, 2024, down 760 basis points when compared with the prior year.

At the end of March, 2024, with cash and cash equivalents of $1.3-billion, and an undrawn revolving credit facility, the company had $2.8-billion in readily available liquidity to pursue its build and buy profitable growth strategy.

Retirement of Michael E. Roach from CGI's board of directors

After nearly 18 years serving on CGI's board of directors, Mr. Roach has retired effective March 31, 2024. Since joining CGI in 1998, Mr. Roach served in several executive positions culminating in his decade-long tenure as CGI's president and chief executive officer. "On behalf of the board of directors and all our professionals, I would like to thank Mike for his valuable leadership, commitment and remarkable contribution to the success of our company," said Serge Godin, founder and executive chairman of the board.

Q2 F2024 results conference call

Management will host a conference call this morning at 9 a.m. (EDT) to discuss results. Participants may access the call by dialling 1-800-717-1738, conference ID: 43710, or on 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 the CGI website. Interested parties may also access a replay of the call by dialling 1-888-660-6264, passcode: 43710, until June 1, 2024.

About CGI Inc.

Founded in 1976, CGI is among the largest independent information technology 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 $14.30-billion and CGI shares are listed on the Toronto Stock Exchange (GIB.A) and the New York Stock Exchange (GIB).

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