Welcome!

News Feed Item

CGI posts strong Q1 results

Records $2.8 billion in contract awards and 48% EPS growth excluding integration costs

MONTREAL, QUEBEC -- (Marketwired) -- 01/29/14 -- CGI Group Inc. (TSX:GIB.A)(NYSE:GIB)

Q1-F2014 year-over-year highlights


--  Revenue of $2.6 billion, up 4.4%;  
--  Bookings of $2.8 billion, or 106.5% of revenue; 
--  Backlog of $19.3 billion, up $972 million; 
--  Adjusted EBIT of $302.9 million, up 44.6%; 
--  Adjusted EBIT margin of 11.5%, up 320 basis points; 
--  Net earnings of $207.9 million or diluted EPS of $0.65 excluding
    integration costs; 
--  Net earnings of $189.8 million, or diluted EPS of $0.60 including
    integration costs; 
--  Cash provided by operating activities of $66.3 million; 
--  Repurchased 2.5 million shares during the quarter; 
--  Return on invested capital of 12.7%. 

Note: All figures in Canadian dollars. Q1-F2014 MD&A, interim condensed     
consolidated financial statements and accompanying notes can be found at    
www.cgi.com/investors and have been filed with both SEDAR in Canada and     
EDGAR in the U.S.                                                           

CGI Group Inc. (TSX:GIB.A)(NYSE:GIB) reported fiscal 2014 first quarter revenue of $2.64 billion, compared with $2.53 billion in the year ago period, representing growth of 4.4%.

Adjusted EBIT was $302.9 million, representing a margin of 11.5%. This represents an improvement of 44.6% when compared with $209.5 million, or 8.3% of revenue in Q1-F2013.

Net earnings in Q1-F2014 were $207.9 million or 65 cents per diluted share, excluding Logica related integration costs of $22.6 million. This compares with $137.8 million or 44 cents per share in Q1-F2013.

On a GAAP basis, including the integration costs, net earnings in Q1-F2014 were $189.8 million and diluted earnings per share were 60 cents. This compares with $22.4 million or 7 cents per diluted share in the year ago period.

The company generated $66.3 million in cash from operating activities during the quarter, and $119.6 million when excluding the $53.3 million of integration-related payments. Over the last twelve months, excluding the integration-related cash disbursements, CGI has generated $818.7 million or $2.58 in diluted cash per share.

During the quarter, the Company booked $2.8 billion in contract awards, of which 45% was new business, for a book to bill ratio of 107%. This brings the trailing twelve months bookings to $10.3 billion or 101% of revenue. At the end of December 2013, the Company's backlog of signed orders stood at $19.3 billion, up $972 million compared with the same period last year.


----------------------------------------------------------------------------
In millions of Canadian dollars except                                      
 earnings per share and where noted                                         
                                                  Q1-F2014         Q1-F2013 
----------------------------------------------------------------------------
Revenue                                            2,644.7          2,532.9 
----------------------------------------------------------------------------
Adjusted EBIT                                        302.9            209.5 
Margin                                                11.5%             8.3%
----------------------------------------------------------------------------
Net earnings, prior to integration-related                                  
 costs                                               207.9            137.8 
----------------------------------------------------------------------------
Earnings per share (diluted), prior to                                      
 integration-related costs                            0.65             0.44 
----------------------------------------------------------------------------
Integration-related costs                             22.6            153.4 
----------------------------------------------------------------------------
Net earnings                                         189.8             22.4 
Margin                                                 7.2%             0.9%
----------------------------------------------------------------------------
Earnings per share (diluted)                          0.60             0.07 
----------------------------------------------------------------------------
Weighted average number of outstanding                                      
 shares (diluted)                              318,679,293      315,061,479 
----------------------------------------------------------------------------
Net finance costs                                     27.4             25.5 
----------------------------------------------------------------------------
Net debt                                             2,890            2,965 
----------------------------------------------------------------------------
Net debt to capitalization ratio                      38.9%            44.7%
----------------------------------------------------------------------------
Cash provided by operating activities                 66.3            224.5 
----------------------------------------------------------------------------
Days of sales outstanding (DSO)                         55               46 
----------------------------------------------------------------------------
Return on invested capital                            12.7%            10.9%
----------------------------------------------------------------------------
Bookings                                             2,818            2,845 
----------------------------------------------------------------------------
Backlog                                             19,253           18,281 
----------------------------------------------------------------------------

"We delivered very solid performance in the quarter as we continued to leverage our expanded global scale and capabilities to the benefit of our clients and investors," said Michael E. Roach, President and CEO, CGI. "We are well positioned to grow as the market gradually improves as demonstrated by our strong bookings of $2.8 billion in the quarter, which was balanced across all geographies and was composed of 45% new business."

Net debt was $2.9 billion at the end of December 2013, representing a net debt to capitalization ratio of 38.9% compared to 44.7% in Q1-F2013. At the end of Q1-F2014, the Company had approximately $1.2 billion in available cash and unused credit facilities.

Normal Course Issuer Bid

The Company purchased and cancelled 2.5 million CGI shares during the quarter for $100.0 million at an average price of $40.15. Over the last twelve months, 3.2 million shares were purchased at an average price of $38.26 for a total investment of $122.8 million. On January 29, 2014 the Company's Board of Directors authorized the renewal of the Normal Course Issuer Bid and the purchase of up to an additional 10% of the Company's public float of shares, or approximately 21.8 million shares during the next year, subject to acceptance by the Toronto Stock Exchange.

Q1-F2014 results conference call

Management will host a conference call at 9:00 a.m. Eastern time to discuss results. Participants may access the call by dialing 866-225-2055 or via cgi.com/investors. For those unable to participate on the live call, a podcast and copy of the slides will be archived for download at cgi.com/investors.

Fiscal 2013 Annual General Meeting of Shareholders

This morning at 11:00 a.m. Eastern time, the Company will hold its Annual General Meeting of Shareholders at the Ritz Carlton Hotel in Montreal (1228 Sherbrooke Street West). The meeting, as well as the question and answer session which follows will be broadcast live via cgi.com/investors.

About CGI

Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 68,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as a wide range of proprietary solutions. With annual revenue in excess of C$10 billion and an order backlog exceeding C$19 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website: www.cgi.com.

Non-GAAP financial metrics used in this release: Adjusted EBIT, net debt, net debt to capitalization ratio, DSO and ROIC

CGI reports its financial results in accordance with IFRS. However, management believes that these non-GAAP measures provide useful information to investors regarding the Company's financial condition and results of operations as they provide additional measures of its performance. Additional details for these non-GAAP measures can be found on page 2 of our MD&A which is posted on CGI's website, and filed with SEDAR and EDGAR.

Forward-Looking Statements

All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are "forward-looking information" within the meaning of Canadian securities laws. These statements and this information represent CGI's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements or forward-looking information. These factors include but are not restricted to: the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly evolving IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, in CGI's annual and quarterly Management's Discussion and Analysis ("MD&A"), in CGI's Annual Report, in CGI's Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), and in the Company's Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), as well as assumptions regarding the foregoing. The words "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan," and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information.

www.cgi.com/newsroom

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
To paraphrase someone famous, "The definition of insanity is to do something the same way over and over again and expect a different result". Humans are creatures of habit and when it comes to storage, old habits die hard. Why do we continue to put our faith in legacy storage providers when they haven't invented anything new in decades. Sure, they re-badge their products every couple of years to make their messaging look modern, but ultimately, it's the same old stuff with a new coat of lipsti...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...