(TSX: GIB.A)(NYSE: GIB)
Q3-F2011 year-over-year highlights:
-- Revenue of $1,037.9 million, up 18.0% at constant currency;
-- Bookings of $1.4 billion or 139% of revenue;
-- Adjusted EBIT of $144.3 million, up 12.2%;
-- Net earnings of $118.4 million, up 37.9%;
-- Net earnings margin of 11.4%, up 190 bps;
-- Diluted EPS of 43 cents, up 43.3%;
-- Backlog of $12.7 billion;
-- Return on equity of 20.3%, up 420 bps.
Note: All figures are in Canadian dollars. Q3-F2011 MD&A,
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. All non-GAAP measures are outlined on page
3.
CGI Group Inc. (TSX: GIB.A)(NYSE: GIB) reported fiscal 2011
third quarter revenue of $1.04 billion, an increase of 15.1%
compared with the same period last year. Revenue on a constant
currency basis was up 18.0% after adjusting for foreign exchange
fluctuations that unfavorably impacted revenue in the quarter by
$26.3 million, or 2.9% compared with the same period last year.
Adjusted EBIT was $144.3 million compared with $128.7 million in
the same quarter last year, an improvement of 12.2%. This
represents an adjusted EBIT margin of 13.9%.
Net earnings were $118.4 million or 11.4% of revenue compared
with $85.9 million in the same quarter last year, representing an
increase of 37.9% year-over-year.
Diluted earnings per share were 43 cents compared with 30 cents
in the same period last year, representing an improvement of
43.3%.
On a comparable basis, excluding $15.2 million in favourable tax
adjustments offset by the impact of acquisition and integration
related costs; net earnings would have been $103.6 million or 10.0%
of revenue in Q3-F2011, compared with $86.5 million, or 9.6% of
revenue in the same period last year. Diluted earnings per share
would have been 38 cents, up 26.7% compared with 30 cents in the
third quarter of 2010.
The Company generated $90.1 million in cash from operating
activities during the quarter and over the last twelve months has
generated $536.9 million or $1.93 in cash per diluted share.
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In millions of Canadian dollars except earnings
per share and where noted
Q3-F2011 Q3-F2010
==========================================================================
Revenue 1,037.9 901.6
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Adjusted EBIT 144.3 128.7
Margin 13.9% 14.3%
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Earnings before income taxes 142.4 120.2
Margin 13.7% 13.3%
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Net earnings 118.4 85.9
Margin 11.4% 9.5%
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Earnings per share (diluted) 0.43 0.30
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Weighted average number of outstanding shares
(diluted) 273,914,231 290,226,120
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Interest on long-term debt 4.2 4.4
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Net debt to capitalization ratio 28.3% 0.2%
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Cash provided by operating activities 90.1 102.8
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Days of sales outstanding (DSO) 52 36
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Return on equity 20.3% 16.1%
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Return on invested capital 15.8% 16.9%
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Bookings 1,442 838
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Backlog 12,657 11,358
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During the quarter, the Company booked $1.44 billion in new
contract wins, extensions and renewals, bringing the total bookings
over the last twelve months to $4.5 billion, for a book-to-bill of
104%. At the end of June 2011, the Company's backlog of signed
orders stood at $12.7 billion, up $1.3 billion compared with the
same period last year after incorporating the unfavourable currency
impact. The backlog represents approximately 3 times revenue on a
trailing twelve month basis.
"We remain focused on the fundamentals of delivering quality
services to our clients, while proactively expanding our
capabilities and offerings by investing in high growth areas such
as cloud computing, cyber security and software solutions," said
Michael E. Roach, President and Chief Executive Officer. "The
strength in bookings during Q3 reinforces the relevance of our
services and solutions to our clients' requirements and
demonstrates our commitment to increasing our competitive position
in the global market. We remain in an excellent position to
continue executing our Build and Buy profitable growth
strategy."
The Company purchased 2.8 million CGI shares during the quarter
for $56.9 million at an average price of $20.51. Since the
beginning of the fiscal year, 13.0 million shares have been
purchased at an average price of $18.50 for a total investment of
$241.3 million. Under the current program, which ends in February
2012, the Company can still acquire 16.6 million shares.
At the end of Q3 F2011, the Company had $686.8 million in
available cash and unused credit facilities. Net debt was $913.4
million representing a net debt to capitalization of 28.3%.
Subsequent to the end of the quarter, on July 13, 2011, the
Company entered into a private debt placement with six large US
investors providing for an additional US$475 million in available
liquidity. The placement is comprised of three tranches maturing on
average in 8.2 years and carrying an average coupon fixed at 4.57%.
Under the terms of the placement, the Company does not have to draw
down the funds before December 15, 2011. In addition, it plans to
execute interest rate swaps subject to favorable market conditions
in order to reduce its financing costs and maximize
flexibility.
Third Quarter F2011 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) 223-7781 or on the Web at
www.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
www.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 31,000 professionals. CGI provides end-to-end IT and
business process services to clients worldwide from offices and
centres of excellence in Canada, the United States, Europe and Asia
Pacific. As at June 30, CGI's annualized revenue was approximately
$4.2 billion and its order backlog was approximately $12.7 billion.
CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are
included in both the Dow Jones Sustainability Index and the
FTSE4Good Index. Website: www.cgi.com.
Non-GAAP financial metrics used in this release: Constant
currency growth, adjusted EBIT, net debt to capitalization, DSO,
ROE and ROIC
CGI reports its financial results in accordance with GAAP.
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 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 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.
Contacts: Lorne Gorber Senior Vice-President Global
Communications and Investor Relations 514-841-3355
lorne.gorber@cgi.com www.cgi.com/investors
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