Improving market conditions contribute to strong performance
Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
Q2-F2010 year-over-year highlights from continuing operations:
- Revenue of $910.4 million, up 3.5% on a constant currency basis;
- Bookings of $1.1 billion or 124% of revenue;
- Adjusted EBIT of $124.0 million, up 15.6%;
- Adjusted EBIT margin of 13.6%, up from 11.3%;
- Earnings of $81.6 million, up 6.5%;
- Earnings margin of 9.0%, up from 8.1%;
- Diluted EPS of 28 cents, up 12%;
- Cash from operating activities of $125.0 million or 13.7% of revenue;
- Backlog of $11.4 billion.
Note: All figures are in Canadian dollars and from continuing operations.
Q2 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, April 28 /PRNewswire-FirstCall/ - CGI Group Inc.
(TSX: GIB.A; NYSE: GIB) reported fiscal 2010 second quarter revenue
of $910.4 million. Foreign exchange
fluctuations unfavourably impacted revenue by $70.9 million, or 7.5% compared with the same
period last year. Excluding this impact, revenue growth was
3.5%.
Adjusted EBIT was $124.0 million
compared with $107.3 million in the
same quarter last year, representing an increase of 15.6%. This
represents an adjusted EBIT margin of 13.6% up from 11.3% in the
second quarter of 2009.
Earnings from continuing operations were $81.6 million or 9.0% of revenue compared with
$76.6 million in the same quarter
last year, an increase of 6.5% year-over-year. On a comparable
year-over-year basis, excluding a $7.3
million positive tax adjustment in the year ago period, the
increase was $12.3 million or
17.8%.
Net earnings were $81.6 million in
the quarter compared with $77.8
million in Q2-2009, for an improvement of 4.9%.
Diluted earnings per share were 28
cents, up 12.0% compared with 25
cents in the same period last year. Excluding the positive
tax adjustment in Q2-2009, the improvement was 5 cents a share, or 21.7%.
The Company generated $125.0
million in cash from operating activities, or 13.7% of
revenue for the second quarter. Over the last twelve months, CGI
generated $654.5 million or
$2.15 in cash per diluted share.
Normal Course Issuer Bid
On January 27, 2010 the Company's
Board of Directors authorized the renewal of the Normal Course
Issuer Bid (NCIB) and the purchase of up to an additional 10% of
the Company's public float, or approximately 25 million shares
between February 9, 2010 and
February 8, 2011. During the second
quarter of fiscal 2010, the Company purchased 9.0 million CGI
shares, of which 2.95 million were under the renewed NCIB, leaving
22.2 million shares available for purchase.
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In millions of Canadian dollars from continuing
operations except earnings per share and where
noted
Q2 F2010 Q2 F2009
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Revenue* 910.4 948.3
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Adjusted EBIT 124.0 107.3
Margin 13.6% 11.3%
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Earnings before income taxes 120.9 101.9
Margin 13.3% 10.7%
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Earnings 81.6 76.6
Margin 9.0% 8.1%
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Earnings per share (diluted) 0.28 0.25
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Weighted average number of outstanding
shares (diluted) 295,089,439 311,411,994
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Interest on long-term debt 3.8 5.3
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Days of sales outstanding (DSO) 35 42
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Return on invested capital 16.0% 14.1%
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Return on equity 15.5% 15.1%
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Bookings 1,131 1,676
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Backlog 11,420 12,019
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* Revenue includes a negative currency impact of $70.9 million for
Q2-2010 when compared to Q2-2009
During the quarter, the Company booked $1.1 billion in new contract wins, extensions and
renewals, bringing the total bookings over the last twelve months
to $4.3 billion or 117% of revenue.
At the end of March 2010, the
Company's backlog of signed orders stood at $11.4 billion. This represents 3.1x annual
revenue.
"Increased client activity and a gradual improvement in our
systems integrations and consulting business helped us return to
revenue growth in Q2," said Michael E.
Roach, President and Chief Executive Officer. "While the
impact of currency fluctuations reduced our top line by more than
$70 million, I'm pleased that we
mitigated the negative impact on the bottom line, as evidenced by
our increasing margins and earnings per share. As well, the
strength of the Canadian dollar continues to be advantageous in our
ongoing execution of our Build & Buy profitable growth
strategy."
At the end of the fiscal second quarter, the Company had over
$1.7 billion in available capital,
including $419.1 million in cash and
cash equivalents and short-term investments as well as an unused
$1.3 billion under its line of credit
secured through August of 2012. The net cash position of the
Company in excess of its total debt at the end of the quarter was
$35.3 million.
For the last twelve months, the Company's return on invested
capital was 16.0% and its return on equity was 15.5%.
Second Quarter F2010 Results Conference Call
Management will host a conference call to discuss results at
9:00 a.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.
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 March 31,
2010, 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 both, the Dow Jones Sustainability
World Index and the FTSE4Good Index. 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.
SOURCE CGI GROUP INC.