CGI Group Inc. (NYSE:GIB) Q3 2015 Earnings Conference Call - Final Transcript
Jul 29, 2015 • 09:00 am ET
Thank you, Corey; and good morning, everyone. With me to discuss CGI's third 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 9:00AM on Wednesday, July 29th, 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 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 statement 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's 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 dollar figures expressed in this call are Canadian unless otherwise noted.
I'll turn it over to Francois as usual to first review our Q3 financial performance and then to Mike to make a few comments on our operating strategic highlights. So with that, Francois?
Thank you, Lorne; and good morning, everyone. I am pleased to share the results of another strong quarter. Revenue was $2.6 billion compared with $2.7 billion last year and flat with Q2. Four primary factors account for the year-over-year delta. The additional efforts needed last year to complete the wind down of government healthcare projects in the U.S., the temporary slowdown in UK government spending as a result of the recent election, the continued delays in U.S. Federal Government procurement and a headwind from currency as a stronger U.S. dollar has been more than offset by the euro and Swedish krona. These factors were partially offset by the ongoing strength in our commercial business, growth in IP related services and solutions globally, as well as organic growth in France.
For the last 12 months, our bookings totaled $10.8 billion or 106% of revenue. For the quarter, $2.2 billion in contracts were awarded for 87% of revenue, reflecting the seasonality of our government business coupled with delays in U.S. Federal and the UK government. Areas of strength in the quarter were France, the Nordics and the U.S. excluding federal each exceeding a 100% of revenue and building their backlog of future business.
Adjusted EBIT was $371 million, while our EBIT margin increased by 170 basis points to 14.5%. The continued improvement in our North American operations is contributing to the ongoing profitability. Net earnings were a record $257 million up 14% from last year. Net earnings margin was 10.1%, up a 170 basis points in line with pre-acquisition levels of profitability.
Earnings per shares were