CGI Expands Q2 2008 Net Earnings by 10% with Growth in Revenue and Bookings
April 29 2008 - 7:30AM
PR Newswire (US)
Stock Market Symbols GIB.A (TSX) GIB (NYSE) MONTREAL, April 29
/PRNewswire-FirstCall/ -- CGI Group Inc. (TSX: GIB.A; NYSE: GIB)
reported fiscal 2008 second quarter revenue of $949.1 million. This
represents 5.3% year-over-year revenue growth on a constant
currency basis. Relative to the same year ago period, foreign
exchange fluctuations negatively impacted Q2 2008 revenue by $52.5
million, or 5.5%. Earnings before taxes were $100.4 million or
10.6% of revenue. This compares with $92.4 million, or 9.7% of
revenue in the second quarter of 2007. Net earnings in Q2 2008 were
$68.8 million or 7.2% of revenue compared with net earnings of
$62.7 million or 6.6% of revenue in the same quarter last year.
This represents a 9.7% year-over-year increase. Earnings per share
in the second quarter were 21 cents compared with 19 cents reported
in Q2 2007. This represents an improvement of 11.7%. The Company
generated $44.4 million in cash from its operating activities. The
decrease compared with the year ago period resulted from a net
change in working capital of $66.1 million driven by the timing of
client payments; the annual payout of fiscal 2007 profit
participation; and, the payment of prior year tax assessments. The
Company expects to return to normalized cash generation levels for
the remaining quarters of fiscal 2008. On a trailing twelve month
basis, CGI has generated $419.5 million in cash from its operating
activities, or 11.3% of revenue.
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In millions of Canadian dollars except when noted Q2 F2008 YTD
F2008 Q2 F2007 YTD F2007
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Revenue $ 949.1 $ 1,863.8 $ 951.3 $ 1,855.4
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Adjusted EBIT $ 107.8 $ 214.3 $ 102.0 $ 201.7 Margin % 11.4% 11.5%
10.7% 10.9%
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Earnings before taxes (EBT) $ 100.4 $ 200.7 $ 92.4 $ 158.5 Margin %
10.6% 10.8% 9.7% 8.5%
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Net earnings $ 68.8 $ 141.4 $ 62.7 $ 106.4 Margin % 7.2% 7.6% 6.6%
5.7%
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Earnings per share - in $ $ 0.21 $ 0.43 $ 0.19 $ 0.32
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Weighted average number of outstanding shares (diluted) 326,942,285
328,368,726 332,897,921 331,946,896
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Interest on long-term debt $ 7.2 $ 14.5 $ 11.6 $ 24.1
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Net debt to capitalization ratio % 15.3% - 20.2% -
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Days of sales outstanding (DSO) - in days 46 - 43 -
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Bookings $ 1,060 $ 2,211 $ 859 $ 1,628
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During the quarter, the Company booked $1.1 billion in new contract
wins, extensions and renewals, including $584 million in the US.
The book-to-bill ratio was 112% of revenue for the second quarter,
resulting in a backlog of $12.04 billion at the end of March, 2008,
or 3.2 times annual revenue. On a rolling twelve month basis, CGI's
book-to-bill stands at 104% of revenue. "Our performance during the
second quarter and throughout the first half of fiscal 2008 shows
that our clients continue to rely on CGI solutions, managed
services and high-end consulting work to help them win and grow in
all market conditions," said Michael E. Roach, President and Chief
Executive Officer. "As a result, in the first six months of fiscal
2008, we have grown our revenue by more than $100 million on a
constant currency basis while improving our net earnings by 33%."
The Company continues to enhance its financial flexibility to
invest in outsourcing contracts, accretive acquisitions, share buy
backs and/or debt reduction. As part of its Normal Course Issuer
Bid, the Company repurchased for cancellation 6.3 million
subordinate class A shares during the second quarter for a total
commitment of $68.1 million. Long-term debt decreased by $145.0
million compared with Q2 2007. At the end of March 2008, net debt
was $367.0 million for a net debt to capitalization ratio of 15.3%,
an improvement from 20.2% at the end of Q2 2007. Second Quarter
F2008 Results Conference Call Management will host a conference
call to discuss results at 8:00 a.m. Eastern Daylight Time this
morning. Participants may access the call by dialing 1-866-225-0198
or on the Web at http://www.cgi.com/. 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 http://www.cgi.com/. 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 27,000 professionals. CGI
provides end-to-end IT and business process services to clients
worldwide from offices in Canada, the United States, Europe, Asia
Pacific as well as from centers of excellence in North America,
Europe and India. CGI's annual revenue run rate stands at $3.8
billion and at March 31st, 2008, CGI's order backlog was $12.04
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: http://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 a
reconciliation of these non-GAAP measures with 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 MD&A 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
sections 138.3 and following of the Ontario Securities Act. 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 and 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 MD&A, in CGI's Annual Report on Form 40-F
filed with the U.S. Securities and Exchange Commission (filed on
EDGAR at http://www.sec.gov/), the Company's Annual Information
Form filed with the Canadian securities authorities (filed on SEDAR
at http://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 significantly differ from our
current expectations in the Risks and Uncertainties section.
DATASOURCE: CGI GROUP INC. CONTACT: Lorne Gorber, Vice-President,
Global Communications and Investor Relations, (514) 841-3355
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