CGI Group Inc. (NYSE:GIB) Q3 2016 Earnings Conference Call - Final Transcript
Jul 27, 2016 • 08:00 am ET
Good morning ladies and gentlemen. Welcome to the CGI Third Quarter 2016 Conference Call.
I would now like to turn the meeting over to Mr. Lorne Gorber, Executive Vice President, Global Communications & Investor Relations. Please go ahead.
Thank you, Wayne, and good morning. With me to discuss CGI's third quarter fiscal 2016 results are Michael Roach, our Chief Executive Officer; 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, July 27, 2016. Supplemental slides as well as the press release we issued earlier this morning are available for download along with our Q3 MD&A, financial statements and accompanying notes, all of which are being filed with both SEDAR and EDGAR.
Please note that 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 in both our MD&A and press release as well as on cgi.com and we encourage our investors to read it in its entirety.
We are reporting our financial results in accordance with the International Financial Reporting Standards or IFRS. 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 on this call are Canadian unless otherwise noted.
I'll turn it over to Francois first to review our Q3 financial performance and then Mike will comment on the strategic and operational highlights before we take your questions.
So with that, Francois?
Thank you, Lorne, and good morning, everyone. I'm pleased to share our results for Q3 fiscal 2016. Revenue was CAD2.7 billion, up CAD108 million compared with the same period of last year, representing growth of 4.2%. Foreign exchange fluctuations favorably impacted revenue by CAD93 million. On a constant currency basis revenue growth was 0.6%. This is a significant improvement from minus 3.5% in the year-ago period.
During the quarter, we booked CAD2.9 billion in new contracts, 54% of which is new business. This brings global bookings for the last 12 months to CAD11.7 billion or 110% of revenue. Adjusted EBIT was CAD390 million, up CAD19 million while our EBIT margin increased to 14.6%. This reflects an improved revenue mix, the ongoing benefits from the restructuring program completed in Q1 and expanding use of our global delivery centers.
Net earnings were CAD274 million, up 6.5% for a margin of 10.3%. Earnings per share of CAD0.89 compared favorably with CAD0.80 last year, an improvement of 11.3%.
Turning to cash, our operations generated CAD352 million in the third quarter. Cash from operations for the last 12 months is CAD1.4 billion, or 13% of revenue. We ended the quarter with a DSO of 45 days compared to 46 days last year. During the quarter,