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
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. 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.
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.