CGI Group Inc. (NYSE:GIB) Q3 2017 Earnings Conference Call - Final Transcript
Aug 02, 2017 • 09:00 am ET
Thank you, Maude, and good morning. With me to discuss CGI's Third Quarter Fiscal 2017 results are George Schindler, 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 Eastern Time on Wednesday, August 2, 2017. 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 on both our MD&A and press release, as well as on cgi.com. 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 to review our Q3 financial performance, and then to George, who will comment on our operational and strategic highlights. So with that, Francois?
Thank you, Lorne and good morning everyone. I'm pleased to share the results for the third quarter. Revenue grew for the sixth straight quarter, coming in at CAD2.8 billion, representing constant currency growth of 5.2% year-over-year or 3.7%, excluding the acquisitions made over the last year. On a GAAP basis, revenue growth was 6.4%, including a positive impact of CAD31 million from currency, mostly due to the US dollar.
Bookings were CAD2.7 billion for the quarter, over half of which were new business. Over the last 12 months, global bookings were CAD11.2 billion for a book-to-bill of 104%.
As an update of our IP30 initiative, IP drove 37% of bookings and accounted for 22% of revenue in the quarter, consistent with Q2 and up 400 basis points from Q3 last year.
Adjusted EBIT increased by CAD8.6 million to CAD399 million for a margin of 14.1%, down 50 basis points year-over-year, largely due to fewer working days compared to last year. Our effective tax rate in Q3 was 27.1%, compared with 26.5% last year. Going forward, we continue to expect a range of 27% to 29%.
On a GAAP basis, net earnings were CAD277 million and EPS was CAD0.92, compared with CAD0.89 last year. Integration cost related to the US acquisitions, ECS and CTS, totaled CAD2.9 million in Q3 or CAD1.8 million net of tax. The remaining expenses will be incurred in Q4.
Excluding these costs, net earnings were CAD279 million for a margin of 9.8% and EPS of