Welcome!

News Feed Item

CGI posts strong Q2 results

Revenue grows 7% and EPS doubles year-over-year

MONTREAL, QUEBEC -- (Marketwired) -- 04/30/14 -- CGI (TSX: GIB.A)(NYSE: GIB)

Q2-F2014 year-over-year highlights

--  Revenue of $2.7 billion, up 7.0%;

--  Bookings of $2.9 billion, or 105.4% of revenue;

--  Backlog of $19.5 billion, up $1.5 billion;

--  Adjusted EBIT of $341.5 million, up 30.5%;

--  Adjusted EBIT margin of 12.6%, up 220 basis points;

--  Net earnings of $230.9 million, or diluted EPS of $0.73;

--  Net earnings of $229.6 million or diluted EPS of $0.72 excluding
    specific items;

--  Cash provided by operating activities of $350.7 million;

--  Repurchased 346,700 shares during the quarter;

--  Return on invested capital of 13.4%.


Note: All figures in Canadian dollars. Q2-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 (TSX: GIB.A) (NYSE: GIB) reported fiscal 2014 second quarter revenue of $2.7 billion, compared with $2.5 billion in the year ago period, representing growth of 7.0%.

During the quarter, the Company booked $2.9 billion in contract awards, of which 40% was new business, for a book-to-bill ratio of 105.4%. This brings the global trailing twelve months bookings to $10.9 billion or 105.3% of revenue. At the end of March 2014, the Company's backlog of signed orders stood at $19.5 billion, up $1.5 billion compared with the same period last year.

Adjusted EBIT was $341.5 million, for a margin of 12.6%. This represents an improvement of 30.5% compared with $261.6 million, or 10.4% of revenue in the year ago period.

Net earnings in the quarter were $230.9 million or 73 cents per diluted share. This compares to $114.2 million or 36 cents per diluted share in Q2-F2013.

Excluding specific items, net earnings were $229.6 million or 72 cents per diluted share. This compares with $175.9 million or $0.56 per diluted share in Q2-F2013, representing an improvement of 28.6%.

The company generated $350.7 million in cash from operating activities during the quarter, and $400.5 million when excluding the $49.8 million of integration-related payments. Over the last twelve months, excluding the integration-related cash disbursements, CGI has generated $949.1 million in cash or $2.98 per diluted share.

----------------------------------------------------------------------------
In millions of Canadian dollars except earnings per
share and where noted
----------------------------------------------------------------------------
                                                        Q2-F2014    Q2-F2013
----------------------------------------------------------------------------
Revenue                                                  2,704.3     2,526.2
----------------------------------------------------------------------------
Adjusted EBIT                                              341.5       261.6
Margin                                                     12.6%       10.4%
----------------------------------------------------------------------------
Net earnings, excluding specific items(i)                  229.6       175.9
Margin                                                     8.5 %        7.0%
----------------------------------------------------------------------------
Earnings per share (diluted), excluding specific
items(i)                                                    0.72        0.56
----------------------------------------------------------------------------
Net earnings                                               230.9       114.2
Margin                                                      8.5%        4.5%
----------------------------------------------------------------------------
Earnings per share (diluted)                                0.73        0.36
----------------------------------------------------------------------------
Weighted average number of outstanding shares
(diluted)                                            316,695,250 315,760,249
----------------------------------------------------------------------------
Net finance costs                                           25.0        30.3
----------------------------------------------------------------------------
Net debt                                                 2,678.2     2,914.3
----------------------------------------------------------------------------
Net debt to capitalization ratio                           35.6%       43.0%
----------------------------------------------------------------------------
Cash provided by operating activities                      350.7       147.2
----------------------------------------------------------------------------
Days of sales outstanding (DSO)                               47          46
----------------------------------------------------------------------------
Return on invested capital                                 13.4%       11.1%
----------------------------------------------------------------------------
Bookings                                                 2,850.3     2,210.2
----------------------------------------------------------------------------
Backlog                                                   19,476      18,019
----------------------------------------------------------------------------

(i)Specific items include: $26 million in integration-related expenses ($81.4 million in Q2-F2013), a tax benefit of $11.9 million and the resolution of acquisition-related provisions in the amount of $11.7 million.

"Our strong performance in the quarter is a clear reflection of our ongoing ability to execute our business model on a global basis," said Michael E. Roach, President and CEO. "Our ability to generate increased cash from operations is becoming more visible as we complete the $525 million investment in our integration program. Looking ahead, our focus will be on intensifying the expansion and conversion of our pipeline of opportunities into bookings and high quality revenue, reflecting our diversified market coverage."

During the quarter the Company repurchased 346,700 shares for $11.5 million, at an average price of $33.08. Net debt was $2.7 billion at the end of March 2014, representing a net debt to capitalization ratio of 35.6% compared to 43.0% at the end of March 2013. At the end of Q2-F2014, the Company had approximately $1.5 billion in available cash and unused credit facilities.

Q2-F2014 results conference call

Management will host a conference call this morning at 9:00 a.m. Eastern time to discuss results. Participants may access the call by dialing 866-225-2055 or via www.cgi.com/en/investors. For those unable to participate on the live call, a podcast and copy of the slides will be archived for download at www.cgi.com/en/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 earnings excluding integration-related costs, adjustments related to tax and the resolution of acquisition-related provisions, diluted earnings per share excluding integration-related costs, adjustments related to tax and the resolution of acquisition-related provisions, 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 and 3 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

Contacts:
Lorne Gorber
Senior Vice-President, Global Communications
and Investor Relations
[email protected]
+1 514-841-3355

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
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...