CGI Group Inc. (NYSE:GIB) Q4 2015 Earnings Conference Call - Final Transcript
Nov 11, 2015 • 09:00 am ET
Thank you, Wayne, and good morning.
With me to discuss CGI's Fourth Quarter and Fiscal 2015 Results 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 9:00 AM on Wednesday, November 11, 2015. Supporting slides, as well as the press release, financial statements and MD&A issued earlier this morning are available on cgi.com and will be 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 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's disclosures.
We encourage our investors to read it in its entirety. We are reporting our 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 first to review our Q4 financial performance, and then Mike will comment on the full year as well as our strategic and operational outlook. So with that, Francois?
Thank you, Lorne, and good morning, everyone.
I'm pleased to share the results of another strong quarter. Revenue was CAD2.6 billion, up 4% compared with CAD2.5 billion last year. Currency fluctuations positively impacted revenue by CAD178 million or 7%. Accordingly, our negative growth rate of 3% represents a 50% improvement from Q1 fiscal 2015, an additional proof point that we are moving towards positive growth.
The book-to-bill was 110%, with CAD2.9 billion in contracts awarded, bringing the full-year book-to-bill to 113% compared to 97% last year. Adjusted EBIT was CAD370 million compared to CAD370 million last year. EBIT margin remained strong at 14.7%. When excluding amortization of customer relationships, all operating segments generated double-digit margins.
Last quarter, we announced a CAD60 million restructuring to improve our competitive position. Against this program, CAD36 million were expensed in Q4. We expect the remainder to be taken in Q1 and the benefits to materialize throughout fiscal 2016. The company's tax rate continues to rise due to the profitability of the US operations. Our Q4 income tax rate increased to 27% from 24.5% last year.
Net earnings were CAD260 million, excluding restructuring charges, representing a margin of 10.1%, 70 basis points higher than last year. The higher tax rate negatively impacted EPS by CAD0.01. As a result, earnings per share were CAD0.82 from CAD0.73 last year, up 12.3% and up 13.7% on a comparable tax rate basis from last year.
Based on our current business mix and the continued momentum in our US operations, we expect our fiscal 2016 effective tax rate to be in the range of