CGI Inc.

Good morning, ladies and gentlemen. Welcome to the CGI third quarter fiscal 2020 conference call. I would now like to turn the meeting over to Mr. Warren Gorber, Executive Vice President, Investor and Public Relations. Please go ahead, Mr. Gorber.

Thank you, Sharon, and good morning. With me to discuss CGI's third quarter fiscal 2020 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 a.m. Eastern Time on Wednesday, July 29, 2020. 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 have been filed with both CDAR and ADGAR. Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or applied. 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 in 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 International Financial Reporting Standards, or IFRS. As always, 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. So with that, I'll turn the line over to Francois to discuss the quarter.

Thank you, Lauren, and good morning, everyone. I am pleased to share our results for the third quarter. Revenue came in at $3.1 billion, down 2.2% when compared to last year, and representing a constant currency decline of 3.5% year-over-year. IP remained stable both sequentially and year-over-year at 21% of revenue. We had a near-term headwind from transaction volumes from certain SaaS-based IP engagements due to the pandemic impact. For example, Travel restrictions reduced U.S. visa volumes, and increased unemployment had a negative effect on payroll volumes. However, UIP revenue was added to the portfolio from the recent acquisitions of Sunflower, Scisis, and Mitzi, which offset these temporary transaction declines. While the impact of the pandemic was felt broadly across our operations in the quarter, we initiated the necessary actions to minimize the bottom line impact to position CGI for future profitable growth. As such, we expect a gradual improvement in the months and quarters ahead. Despite widespread economic pressures around the world during the quarter, we were able to close $2.8 billion in new contracts for a book-to-bill of 93% higher than last quarter, a proof point regarding the strength of our existing client relationships and our ability to win business throughout the crisis. As client executives and CGI consultants continue to slowly and safely return to an adapted workplace, we believe the opportunity for increased collaboration with current and prospective clients will accelerate our book-to-bill going forward. Over the last 12 months, we booked $11.8 billion in new contracts, or 97% of revenue. Our global backlog remains healthy at $22.3 billion, or 1.8 times revenue, the vast majority of which are long-term managed services engagements. Adjusted EBIT decrease in Q3 to $448 million for an EBIT margin of 14.7%, down 50 basis points compared to the same period last year. The decrease was largely due to non-recurring expenses taken in Q3. For example, we took a $10 million impairment charge related to specific IP solutions for both all-in gas and infrastructure. Upsetting this headwind, Canada, the UK, and Asia-Pacific continued to post higher margins year-over-year. Our effective tax rate in Q3 was 27% or 26.1% when excluding non-deductible restructuring expenses. This compares with 25.9% last year and remains within our expected range for the full year. Integration costs related mainly to recent acquisitions total $20 million in Q3, and we also incurred restructuring expenses of $39.5 million in the quarter, initiating the actions in response to the pandemic we outlined in Q2. At that time, we announced an expected range of 2% to 5% of our professionals to be on temporary layoff status until there was more clarity on the evolving crisis. With an additional quarter behind us and more clarity on the business impacts and our recovery prospects, We now expect to permanently restructure approximately 2% of our consultants and professionals. We initiated these actions in Q3 and expect to complete the majority of them in Q4 for a total cost now of up to $115 million. This amount is higher than previously communicated due to the fact that the majority of permanent actions would be concentrated in European geographies with drives higher restructuring costs. We do not expect additional restructuring related to the pandemic at this time. Excluding these costs, net earnings were solid at $308.4 million for a margin of 10.1% and EPS of $1.18. Cash provided by operating activities was robust at $584.8 million or 19.2% of revenue representing an increase of $209.6 million compared with Q3 last year. This improvement was driven by a lower DSO of 48 days compared to 52 days in the same period last year, indicating better collections. Government programs allowing for temporary tax payment deferrals and the positive impact resulting from the adoption of IFRS 16. Over the last 12 months, $1.9 billion in cash has been generated by operating activities, or 15.2% of revenue. In the quarter, we invested $79 million into our business, largely in IP, and managed services engagements. As planned, we did not complete any share buybacks in Q3. Looking ahead, for now the priority will remain the same, which is to focus on investments in growth, for our business, and including the acceleration of both metro market and transformational acquisition opportunities. Net debt to capitalization decreased sequentially due to strong cash generation from 34.8% in Q2 to 28% at the end of June and remains within our comfort zone. With cash of $1.4 billion on hand and a $1.5 billion revolver that remains fully accessible, we now have more than $2.9 billion readily available to pursue profitable growth, including over 1,000 potential merger targets in various stages of our pipeline, with more than 20 discussions ongoing. Now I'll turn the call over to George to provide more details on the operations, our strategy, and on the outlook for our business and markets. George?