CGI Group Inc. (NYSE:GIB) Q4 2018 Earnings Conference Call Transcript
Nov 07, 2018 • 09:00 am ET
Good morning, ladies and gentlemen, and welcome to the CGI Fourth Quarter and Fiscal 2018 Conference Call.
I would now like to turn the meeting over to Mr. Lorne Gorber, EVP, Investor and Public Relations. Please go ahead, Mr. Gorber.
Thank you, Ruth, and good morning. With me to discuss CGI's fourth quarter and fiscal year 2018 results are George Schindler, our President and CEO; and Francois Boulanger, EVP and CFO. This call is being broadcast on cgi.com and recorded live from Montreal at 9:00 AM, Eastern Time on Wednesday, November 7, 2018. The press release we issued earlier this morning as well as our 2018 MD&A, financial statements and accompanying notes, all of which are filed with both SEDAR and EDGAR, are available for download on our website along with supplemental slides.
(Forward-Looking Cautionary Statements)
We are reporting our financial results in accordance with 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 Q4 and full year financial performance, and then George will provide strategic and operational highlights for fiscal 2018 and our outlook for fiscal 2019.
So with that, Francois?
Thank you, Lorne, and good morning, everyone. I am pleased to share our fourth quarter and fiscal 2018 results. Starting with Q4. Revenue was CAD2.8 billion, an increase of CAD191 million or 7.3% compared with Q4 last year. On a constant currency basis, revenue grew 5%. Organic growth accelerated to just over 2% in the quarter on the strength of prior quarter's bookings. Bookings were CAD3.5 billion in Q4 for a book-to-bill of 126%, up CAD621 million from last year. Again, this quarter, more than half of the bookings were new business.
Adjusted EBIT in Q4 increased to CAD436 million for a margin of 15.6%, up 40 basis points year-over-year, mainly due to a profitable new revenue growth and the impact of restructuring to accelerate our growth strategy. As planned, we completed all remaining actions in Q4 related to the restructuring program, incurring the last CAD20 million of expenses and bringing the total investment to CAD189 million. The full benefits of the program will be reflected in fiscal 2019 results.
Client buying trends and CGI's positioning to meet this demand had resulted in our current revenue mix and includes higher SI&C volumes, fueled by business from new mergers and client demand for our digital transformation consulting services, less infrastructure revenue as we accelerated our asset-light strategy and growth in IT solutions and services as we launch an enhanced offerings, selling them through new client relationships. Net earnings were CAD293 million in Q4 and EPS was CAD1.03, up 47% compared with CAD0.70 last year. When excluding restructuring and integration expenses, net earnings were CAD310 million for a margin of 11.1% and earnings per share were