CGI Group Inc. (NYSE:GIB) Q2 2015 Earnings Conference Call - Final Transcript

Apr 29, 2015 • 09:00 am ET

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CGI Group Inc. (NYSE:GIB) Q2 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

[Opearator Instructions] Good morning, ladies and gentlemen. Welcome to the CGI Second Quarter 2015 Conference Call. I will now turn the meeting over to Mr. Lorne Gorber, Senior Vice President, Global Communications and Investor Relations. Please go ahead Mr. Gorber.

Executive
Lorne Gorber

Thank you Oliver and good morning. With me to discuss CGI's second quarter of fiscal 2015 are Michael Roach, our President and CEO; and Francois Boulanger, Executive Vice President and CFO. This call is being broadcast on cgi.com, and recorded live at 9 AM on Wednesday, April 29, 2015. Supporting slides, as well as the press release financial statements and MD&A issued earlier this morning are available on cgi.com in addition to being filed with both filed with SEDAR and EDGAR.

Some statements made on the call may be forward looking. Actual events or results may differ materially from those expressed or implied, and CGI disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The complete Safe Harbor Statement is available on cgi.com and included in this morning disclosures. We encourage our investors to read it in its entirety.

We are reporting our financial results in accordance with International Financial Reporting Standards or IFRS. However, we will also discuss non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each one used in our reporting. All of the figures expressed on this call are in Canadian unless otherwise noted.

This morning in an effort to get more of you into the Q&A our prepared remarks will be very brief. We are trying this shorter format based on your feedback, asking for more Q&A time. I will turn it over to Francois as usual to review our Q2 financial performance and then Mike will make a few comments on the six-month results before going right into your questions. So with that, Francois.

Executive
Francois Boulanger

Thank you Lorne, and good morning everyone. I am pleased to share our results for Q2 fiscal 2015. Revenue was CAD2.6 billion compared with CAD2.7 billion in the year ago period. Three primary factors account for the year-over-year delta. The completion of projects in North America last year make up approximately two-thirds or CAD60 million. The biggest portion relates to the winddown of government health care projects in the US, volume reduction from the Nordic region, some of which ties back to plan integration related contract run-offs, and finally a net headwind from currency with a stronger US dollar being more than offset by the euro and Swedish krona.

Bookings for the quarter were impacted by the traditional second quarter seasonality compounded by ongoing sector-wide delays in the US federal business and more recently the UK election contract freeze. Over the last 12 months, bookings are running 107% of revenue. We remain optimistic by the European market's positive response for our solutions and offerings as all segments are surpassing 100% book-to-bill.

Adjusted EBIT was CAD363 million in the quarter, while our EBIT