Tech consultancy CGI announces strong third quarter results
Montreal-based global IT consultancy CGI reported a strong fiscal 2019 Q3, with revenues of $3.12 billion – up 6.1% over Q3 2018, or 6.6% in constant currency, since currency fluctuation negatively impacted revenue by $14 million.
This follows a strong Q2 2019, which saw revenues of $3.1 billion, for a 4.0% increase year-over-year.
Adjusted EBIT in the third quarter was $472.2 million, increasing by $38.9 million year-over-year, or 8.9%. Net earnings increased 7.3% to reach $309.4 million in the quarter, while earnings per diluted share (EPS) were $1.12 – an increase of 12% from $1.00 in Q3 2018.
"I am pleased with this quarter's results of continued revenue growth and profitability expansion as we execute our build and buy strategy in every operating segment," George D. Schindler, president and CEO of CGI, said. "We continue to see strong client demand for our end-to-end services worldwide."
Bookings in the quarter reached $2.95 billion, and $12.77 billion over the last twelve months. CGI’s project backlog stood at $22.42 billion at the end of June, down slightly from $22.9 billion at the end of March 2019.
The IT consultancy had revenues of $11.5 billion in fiscal 2018, with an employee base of approximately 77,500 people across the globe.
CGI, a publically listed company on the TSX and NYSE, also invested approximately $500 million in the quarter to buy back 5.16 million shares from la Caisse. The transaction was part of the institutional investor’s periodic portfolio restructuring.
CGI also invested $519.2 million to acquire control of IT consultancy Acando through the acquisition of an additional 73.5% of outstanding shares, for a total purchase price of $623.8 million. The acquisition of the Sweden-based consultancy added 2,100 professionals and significantly strengthened CGI’s footprint in Northern Europe.
The company’s net debt to capitalization was 25.2% at the end of June, compared to 19.6% last year. CGI had approximately $1.32 billion in available cash and unused credit facilities at the end of the quarter.
