Montreal: Its acquisition of Logica has driven sharp earnings and revenue growth at Canadian IT services consultancy CGI.
In its fourth quarter to September 30th, 2013, CGI posted pre-tax profits (EBIT) up 175% to Canadian $313.4 million on revenue up 53% at $2.5 billion.
Full year 2013 pre-tax profits were up 101% to $1.1 billion, on revenue up 111% to $10.1 billion.
- Revenue of $2.5 billion, up 52.7%
- Bookings of $2.5 billion, up 64.2%
- Backlog of $18.7 billion, up more than $1.0 billion
- Adjusted EBIT of $313.4 million, up 174.6%
- Adjusted EBIT margin of 12.7%
- Net earnings of $213.6 million or diluted EPS of 67 cents, excluding acquisition-related and integration costs and unfavorable tax adjustments
- Net earnings of $141.0 million, or diluted EPS of 44 cents on a GAAP basis, including acquisition-related and integration costs and unfavourable tax adjustments
During the quarter, CGI booked $2.5 billion in contract wins, or 102% of revenue. The Company's backlog at the end of Q4 was $18.7 billion, representing a year-over-year increase of more than $1.0 billion.
"I am very pleased with the strong performance delivered in the fourth quarter and throughout fiscal 2013," said Michael E. Roach, President and Chief Executive Officer.
"After a full year, the Logica merger and successful execution of our integration program has, and will continue to yield significant benefits for our clients, employees and shareholders. Going forward, our focus remains on realizing incremental revenue and cost synergies that will drive additional earnings accretion in fiscal 2014 and beyond."
"In summary we begin fiscal 2014 in an excellent position strategically, operationally and financially."
Fiscal 2013 highlights:
- Revenue of $10.1 billion, up111.3%.
- EBIT was $1.1 billion, up 101%, with a margin of 10.7%
- Before acquisition-related and integration costs as well as net unfavourable tax adjustments, net earnings were $727.7 million, up 81%
- Including $338.4 million of acquisition-related and integration costs and $11.1 million in net unfavourable tax adjustments net earnings were $455.8 million, up 247%
- The Company generated $671.3 million in cash from operations in F2013
- New contract bookings reached $10.3 billion during the year, for a book-to-bill of 102% of revenue.
Against a total integration budget of $525.0 million, integration expenses have amounted to $448.2 million since August 2012. CGI says it expects to spend the remaining balance of $76.8 million over the next four quarters.