(TSX:GIB.A)(NYSE:GIB)
Q1-F2012 highlights:
-- Revenue of $1.03 billion;
-- Bookings of $1.4 billion, or 135% of revenue;
-- Backlog of $13.6 billion;
-- Adjusted EBIT of $139.9 million;
-- Adjusted EBIT margin of 13.6%;
-- Net earnings of $106.5 million;
-- Net earnings margin of 10.3%;
-- Diluted EPS of 40 cents;
-- Cash provided by operating activities of $148.7 million or $0.55 per
diluted share;
-- Investment of $63.4 million in share buyback;
-- Reduced debt by $47.2 million;
-- Return on equity of 18.4%; return on invested capital 12.8%.
Note: All figures are in Canadian dollars. Q1-F2012 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.
Beginning in Q1-F2012, the Company reports its results under the
International Financial Reporting Standards (IFRS).
CGI Group Inc. (TSX:GIB.A)(NYSE:GIB) reported fiscal 2012 first
quarter revenue of $1.03 billion, up 2.6% compared with Q4-F2011
and down 5.6% compared with Q1-F2011.
Adjusted EBIT was $139.9 million, representing a margin of
13.6%.
Net earnings were $106.5 million or 10.3% of revenue and diluted
earnings per share were 40 cents.
Q1-F2011 included a favourable tax adjustment as well as other
previously disclosed items which have been removed for
year-over-year comparison purposes. As a result, Q1-F2012 adjusted
EBIT compares favourably with $138.1 million or 12.7% in the year
ago period; net earnings margin improved from 10% of revenue and
diluted earnings per share improved from 39 cents in Q1-F2011.
The Company generated $148.7 million in cash from operating
activities during the quarter, or 14.4% of revenue. This represents
an improvement of $50.9 million compared with Q1-F2011. Over the
last twelve months CGI has generated $620.9 million or $2.27 in
cash per diluted share.
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In millions of Canadian dollars except
earnings per share and where noted
Q1-F2012 Q1-F2011
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Revenue 1,032.1 1,093.7
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Adjusted EBIT 139.9 154.8
Margin 13.6% 14.2%
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Net earnings 106.5 126.7
Margin 10.3% 11.6%
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Earnings per share (diluted) 0.40 0.45
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Weighted average number of outstanding shares
(diluted) 268,913,505 278,985,258
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Net finance costs 4.8 5.3
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Net debt to capitalization ratio 26.6% 31.1%
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Cash provided by operating activities 148.7 97.8
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Days of sales outstanding (DSO) 51 42
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Return on equity 18.4% 17.2%
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Return on invested capital 12.8% 15.7%
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Bookings 1,392 1,191
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Backlog 13,558 12,980
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During the quarter, the Company booked $1.4 billion in new
contract wins, extensions and renewals, bringing the total bookings
over the last twelve months to $5.1 billion, for a book-to-bill of
122%. At the end of December 2011, the Company's backlog of signed
orders stood at $13.6 billion, up $578 million compared with the
same period last year. The backlog represents approximately 3.3
times revenue on a trailing twelve month basis.
"The relevance of our services and solutions to our clients'
requirements was demonstrated by our strong bookings in the quarter
and by the $5.1 billion in new contracts signed over the past 12
months," said Michael E. Roach, President and Chief Executive
Officer. "Our operational and financial discipline is reflected by
our strong cash generating ability which has enabled further debt
reduction and the ongoing repurchase of shares in the quarter. We
continue to see opportunities to shape and develop additional
profitable growth opportunities across all our markets."
During the quarter, the Company reduced debt by $47.2 million
for a net debt of $879.5 million at the end of the quarter,
representing a net debt to capitalization of 26.6%. At the end of
Q1 F2012, the Company had approximately $1.3 billion in available
cash and unused credit facilities.
Normal Course Issuer Bid
The Company purchased and cancelled 3.4 million CGI shares
during the quarter for $63.4 million at an average price of $18.87.
Over the last twelve months, 14.8 million shares were purchased at
an average price of $19.48 for a total investment of $287.4
million. On February 1, 2012 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 22.1 million shares during the next
year, subject to acceptance by the Toronto Stock Exchange.
First quarter F2012 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 dialling (866) 226-1792 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.
Annual General and Special Meeting of Shareholders
This morning at 11:00 a.m., the Company will hold its Annual
General and Special 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 www.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.
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 December 31, CGI's annualized revenue was
approximately $4.1 billion and its order backlog was approximately
$13.6 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 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 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/investors
Contacts: Lorne Gorber Senior Vice-President Global
Communications and Investor Relations
514-841-3355lorne.gorber@cgi.com
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