CGI Group's CEO Discusses Q1 2012 Results - Earnings Call Transcript

The figures for the comparative period have also been adjusted accordingly. There were no other significant adjustments related to IFRS that I would like to highlight to you. However, I would point you to our note #13 in our Q1 financial statements for a comprehensive description of the adjustment and reconciliations related to the transition to this new set of accounting principles.

In the first quarter, revenue was $1.03 billion, a decrease of 5.6% or $61.6 million compared with the same period last year. However, on a sequential basis, the revenue increased by 2.6%. On a comparable basis, the revenue for the year-ago period contained 4 previously disclosed items, including a license sale in the U.S., the revenue from our interest in Québec-based CIA, and the revenue associated with 2 previously announced contracts, which were not renewed. Excluding these items, the year-over-year revenue growth was 1.9%. Adjusted EBIT in Q1 was $139.9 million, and our EBIT margin remains strong at 13.6%.

I would like to remind you that in our Q1 F2011 was unusually strong, as it included the benefit of the license sale noted above that did not have any associated cost, as well as a recovery of a significant bad debt. Both of these items were pointed out last year to ensure that you have the appropriate visibility. Excluding the $16.7 million impact of these items, adjusted EBIT would have been $138.1 million or 12.7% of revenue, that's providing for year-over-year improvement of 0.9%. Net earnings were $106.5 million, representing a net margin of 10.3%. Last year, in Q1, you may recall that we recognized $18.7 million of tax benefits from the expiration of statutory limitation periods, as well as the last tranche of the acquisition and integration costs related to Stanley. Excluding these items, our net earnings margin of 10.3% is an improvement from 10.0% in Q1 2011, and diluted earnings per share of $0.40 compares favorably to 39% -- $0.39 in the year-ago period.

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