PRESS
RELEASE
Stock
Market Symbols
GIB.A
(TSX)
GIB
(NYSE)
CGI
REPORTS $1.6 BILLION IN NEW CONTRACT BOOKINGS AND STRONG EPS
GROWTH
IN Q1-F2010
Q1-F2010
year-over-year highlights from continuing operations:
|
·
|
Revenue of
$913.0 million;
|
|
·
|
Bookings of
$1.6 billion, up 105%;
|
|
·
|
Adjusted
EBIT o
f $119.4 million, up
4.6%;
|
|
·
|
Net
earnings of $111.2 million, up
38.9%;
|
|
·
|
Net
earnings margin of 12.2%, up from
8.0%;
|
|
·
|
Diluted EPS
of 37 cents, up 42.3%;
|
|
·
|
Cash from
operating activities of $166.1 million, up
108.7%;
|
|
·
|
Backlog of
$11.4 billion.
|
|
|
Note:
All figures are in Canadian dollars and from continuing operations. Q1
F2010 MD&A, financial statements and accompanying notes may be found
at
cgi.com/investors
and have been filed with both SEDAR in Canada and EDGAR in the
U.S.
|
Montreal, Quebec, January 27,
2010
– CGI Group Inc. (TSX: GIB.A; NYSE: GIB) reported fiscal 2010 first
quarter revenue of $913.0 million. Foreign exchange fluctuations unfavourably
impacted revenue by $50.3 million, or 5.0% compared with the same period last
year. Sequentially, revenue was stable on a constant currency
basis.
Adjusted EBIT was
$119.4 million compared with $114.2 million in the same quarter last year.
This represents an adjusted EBIT margin of 13.1% up from 11.4% in the first
quarter of 2009.
The current
quarter included favourable tax adjustments in the amount of $30.5 million
compared with $8.6 million in Q1-2009.
Net earnings were
$111.2 million or 12.2% of revenue compared with $80.1 million in the same
quarter last year, representing an increase of 38.9%
year-over-year.
Diluted earnings
per share were 37 cents, up 42.3% compared with 26 cents in the same period last
year.
On a comparable
basis when excluding the tax adjustments, net earnings were $80.7 million or
8.8% of revenue in Q1-F2010, compared with $71.4 million in the same period last
year. Diluted earnings per share would have been 27 cents, up 17.4% compared
with 23 cents in the first quarter of 2009.
The Company
generated $166.1 million in cash from operating activities, or 18.2% of revenue
for the first quarter, compared with $79.6 million or 8.0% of revenue in the
same
period last year.
Over the last twelve months, CGI generated $716.8 million or $2.33 in cash per
diluted share.
Normal
Course Issuer Bid
The Company
purchased and cancelled 11.4 million CGI shares during the quarter for $150.4
million. Over the last twelve months, 24,615,420 shares were purchased at an
average price of $12.32 for a total investment of $303.3 million. On
January 27, 2010 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 25 million shares during the
next year, subject to acceptance by the Toronto Stock Exchange.
|
In millions
of Canadian dollars from continuing operations except earnings per share
and where noted
|
|
|
|
|
Q1
F2010
|
Q1
F2009
|
|
Revenue
|
913.0
|
1,000.4
|
|
Adjusted
EBIT
Margin
|
119.4
13.1%
|
114.2
11.4%
|
|
Earnings
before income taxes
Margin
|
116.6
12.8%
|
105.8
10.6%
|
|
Net
earnings
|
111.2
|
80.1
|
|
Margin
|
12.2%
|
8.0%
|
|
Earnings
per share (diluted)
|
0.37
|
0.26
|
|
Weighted
average number of outstanding shares (diluted)
|
301,953,549
|
310,654,514
|
|
Interest on
long-term debt
|
3.7
|
6.7
|
|
Net debt to
capitalization ratio
|
n/a
|
9.6%
|
|
Cash
provided by operating activities
|
166.1
|
79.6
|
|
Days of
sales outstanding (DSO)
|
30
|
52
|
|
Return on
invested capital
|
15.4%
|
14.1%
|
|
Bookings
|
1,591
|
775
|
|
Backlog
|
11,410
|
11,400
|
During the
quarter, the Company booked $1.6 billion in new contract wins, extensions and
renewals, bringing the total bookings over the last twelve months to $4.9
billion. At the end of December 2009, the Company’s backlog of signed orders
stood at $11.4 billion, up $517 million from the end of fiscal 2009. This
represents 3.0x annual revenue.
“Increased client
project activity and growing momentum in our sales funnel coupled with higher
bookings reinforce our expectation of a gradual return to more traditional
levels of top line growth during the remainder of our fiscal year,” said Michael
E. Roach, President and Chief Executive Officer. “Our cash generation ability
combined with the strength of our
balance sheet
allows us to execute our
Build
& Buy
profitable growth strategy and return excess cash to
shareholders through the extension of our share buyback program.”
At the end of the
fiscal first quarter, the Company had over $1.7 billion in available capital,
including $346.4 million in cash and an unused $1.4 billion under its line of
credit secured through 2012. The net cash position of the Company in excess of
its total debt at the end of the quarter was $73.0 million.
First
Quarter F2010 Results Conference Call
Management will
host a conference call to discuss results at 9:30a.m. Eastern time this morning.
Participants may access the call by dialing (866) 226-1792 or on the Web at
cgi.com/investors
.
Supporting slides for the call will also be available. 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
.
Annual
General Meeting of Shareholders
This morning at
11:00a.m., the Company will hold its Annual General Meeting of shareholders at
the Omni Mount-Royal Hotel, 1050 Sherbrooke Street West, Montreal. The meeting,
being presided over by Serge Godin, Founder and Executive Chairman, will be
broadcast live via
cgi.com/investors
.
Michael E. Roach, President and Chief Executive Officer will also address the
meeting and a question and answer session will follow with the Executive
team.
Note to the
media: A press conference will be held immediately following the Annual General
Meeting, at approximately 12 noon.
About
CGI
Founded in 1976,
CGI Group Inc. is one of the largest independent information technology and
business process services firms in the world. CGI and its affiliated companies
employ approximately 26,000 professionals. CGI provides end-to-end IT and
business process services to clients worldwide from offices in Canada, the
United States, Europe and Asia Pacific as well as from centers of excellence in
North America, Europe and India. As at December 31, 2009, CGI's order backlog
was $11.4 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB)
and are included in the S&P/TSX Composite Index as well as the S&P/TSX
Capped Information Technology and MidCap Indices. Website:
www.cgi.com
.
Use
of Non-GAAP Financial Information
CGI reports its
financial results in accordance with GAAP. However, management believes that
certain 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. Explanations as well as reconciliations of these
non-GAAP measures with the GAAP financial statements are provided in the
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 Report on Form 40-F filed with the U.S. Securities and
Exchange Commission (filed on EDGAR at www.sec.gov), 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. You will find more
information about the risks that could cause our actual results to differ
significantly from our current expectations in the Risks and Uncertainties
section.
-30-
For
more information:
Lorne
Gorber
Vice-President
Global
Communications and Investor Relations
(514)
841-3355
lorne.gorber@cgi.com