CGI reports revenue growth while expanding EPS by 19% and signs $1.68 billion in new contracts in Q2-2009
May 06 2009 - 6:30AM
PR Newswire (US)
Generates $187.3 million in cash from operations MONTREAL, May 6
/PRNewswire-FirstCall/ -- CGI Group Inc. (TSX: GIB.A; NYSE: GIB)
reported fiscal 2009 second quarter revenue today of $948.3
million. This represents 1.9% revenue growth compared with the
second quarter of 2008. Approximately 44% of the quarter's revenue
was generated outside of Canada, up from 36% in the same quarter
last year in line with the Company's business strategy. Earnings
from continuing operations before taxes and non-controlling
interest were $101.7 million, or 10.7% of revenue, compared with
$101.1 in the second quarter of 2008. Net earnings in Q2-2009 were
$77.5 million or 8.2% of revenue compared with earnings of $68.8
million in the same quarter last year, representing a 12.7%
year-over-year increase. Earnings per share in the second quarter
were 25 cents up 19%, compared with 21 cents in the same period
last year. The Company generated $187.3 million in cash from its
operating activities, or 19.8% of revenue. In the first half of
fiscal 2009, CGI has generated $266.9 million or $0.86 in cash per
diluted share from its operating activities, or 13.7% of revenue.
This represents an improvement of $99.9 million compared with the
first half of fiscal 2008. At the end of the fiscal second quarter,
the Company had access to more than $1.5 billion in capital,
including $186.4 million in cash and an unused $1.36 billion under
its line of credit secured through 2012. Debt repayments in the
three month period totaled $213.9 million, leaving net debt at the
end of the second quarter at $105.4 million for a net debt to
capitalization ratio of 4.0%, reduced from 15.2% in Q2-2008.
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In millions of Canadian dollars except EPS and when noted Q2 F2009
YTD F2009 Q2 F2008 YTD F2008
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Revenue 948.3 1,948.7 930.8 1,826.2
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Adjusted EBIT 107.0 221.1 108.4 213.9 Margin 11.3% 11.3% 11.6%
11.7%
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Earnings from continuing operations before taxes and
non-controlling interest 101.7 207.3 101.1 200.5 Margin 10.7% 10.6%
10.9% 11.0%
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Net Earnings 77.5 157.1 68.8 141.4 Margin 8.2% 8.1% 7.4% 7.7%
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Earnings per share (diluted) 0.25 0.50 0.21 0.43
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Cash provided by operating activities 187.3 266.9 45.9 167.0
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Weighted average number of outstanding shares (diluted) 311,411,994
311,129,594 326,942,285 328,368,726
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Interest on long-term debt 5.3 12.0 7.2 14.5
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Net debt 105.4 105.4 361.9 361.9
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Net debt to capitalization ratio 4.0% 4.0% 15.2% 15.2%
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Days of sales outstanding (DSO) 42 42 44 44
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Bookings 1,676 2,451 1,043 2,177
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Backlog 12,019 12,019 11,672 11,672
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During the quarter, the Company booked $1.68 billion in new
contract wins, or 177% of revenue. Bookings in each of Canada, the
US and Europe exceeded 100% of revenue with the government and
healthcare as well as financial services verticals accounting for
89% of worldwide bookings. This brings the value of CGI's signed
contracts over the last twelve months to $4.4 billion, or 115% of
revenue. At the end of March 2009, the Company's backlog of signed
orders stood at $12.0 billion or 3.2 times annual revenue. "We
remain focused on helping clients through these challenging market
conditions," said Michael E. Roach, President and Chief Executive
Officer. "Our managed services offering combined with our business
solutions and unique global delivery capabilities continue to
deliver incremental value to clients in terms of cost savings and
efficiency improvements throughout their operations." "The market
response to our solutions accelerated during the quarter, as
evidenced by $1.68 billion in new bookings, up 116% from the first
quarter. I was very pleased with the ongoing ability of all
business units to execute to our plan in the quarter, improving EPS
and generating $187.3 million in cash from operations allowing us
to lower our net debt to $105.4 million, our lowest level in 13
quarters. We continue to have the operational and the financial
capability to fully realize our profitable growth strategy,"
concluded Mr. Roach. Second Quarter F2009 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
http://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 http://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 25,500
professionals in over 100 offices across 16 countries. 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 31, 2009, CGI's order backlog was $12.0 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 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
sections 138.3 and following of the Ontario Securities Act, as
amended. These statements and this information represent CGI Group
Inc.'s ("CGI") 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 information technology industry; general economic
and business conditions, foreign exchange and other risks
identified in the Management's Discussion and Analysis ("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/),
and in CGI's annual and quarterly MD&A and 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. DATASOURCE: CGI GROUP INC. CONTACT: Lorne Gorber,
Vice-President, Global Communications and Investor Relations, (514)
841-3355,
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