CGI profit rises as lower excluded costs help the comparison
Fourth-quarter revenue grew 3.3%, while reported net earnings rose much faster than adjusted net earnings. All figures are in Canadian dollars.
CGI reported fiscal fourth-quarter revenue of C$4.15 billion, up 3.3% from a year earlier, and net earnings of C$460.7 million, up 20.8%. The quarter ended September 30.
Two profit-growth readings
Diluted earnings per share rose to C$2.24 from C$1.72. On the company's adjusted measure, diluted EPS increased 8.5% to C$2.31, while adjusted net earnings rose only 0.8% to C$475.4 million.
The difference partly reflects lower costs excluded from adjusted earnings. CGI's after-tax adjustment for restructuring, acquisitions and integration was C$14.6 million in the quarter, compared with C$90.4 million a year earlier. Those are real differences in the reported comparison, not evidence that recurring profit grew at the same pace as reported net earnings.
Bookings and cash flow
The business consulting and technology-services company reported C$4.53 billion of quarterly bookings, a book-to-bill ratio of 109.2%. Bookings exceeded revenue for the quarter, but are not the same as sales already recognized.
Cash provided by operating activities was C$551.9 million. Revenue, net earnings, adjusted earnings and operating cash flow measure different parts of the business; none should be substituted for another when reading the results.
All amounts in this article are Canadian dollars. Adjusted earnings and adjusted EPS are company-defined non-GAAP measures, separate from the reported results.
