SYS-CON MEDIA Authors: Elizabeth White, Ed Featherston, Kevin Benedict, Adrian Bridgwater, Carmen Gonzalez

News Feed Item

CGI posts strong Q1 results

Records $2.8 billion in contract awards and 48% EPS growth excluding integration costs

MONTREAL, QUEBEC -- (Marketwired) -- 01/29/14 -- CGI Group Inc. (TSX: GIB.A)(NYSE: GIB)

Q1-F2014 year-over-year highlights


--  Revenue of $2.6 billion, up 4.4%;
--  Bookings of $2.8 billion, or 106.5% of revenue;
--  Backlog of $19.3 billion, up $972 million;
--  Adjusted EBIT of $302.9 million, up 44.6%;
--  Adjusted EBIT margin of 11.5%, up 320 basis points;
--  Net earnings of $207.9 million or diluted EPS of $0.65 excluding
    integration costs;
--  Net earnings of $189.8 million, or diluted EPS of $0.60 including
    integration costs;
--  Cash provided by operating activities of $66.3 million;
--  Repurchased 2.5 million shares during the quarter;
--  Return on invested capital of 12.7%.

Note: All figures in Canadian dollars. Q1-F2014 MD&A, interim condensed
consolidated 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.

CGI Group Inc. (TSX: GIB.A)(NYSE: GIB) reported fiscal 2014 first quarter revenue of $2.64 billion, compared with $2.53 billion in the year ago period, representing growth of 4.4%.

Adjusted EBIT was $302.9 million, representing a margin of 11.5%. This represents an improvement of 44.6% when compared with $209.5 million, or 8.3% of revenue in Q1-F2013.

Net earnings in Q1-F2014 were $207.9 million or 65 cents per diluted share, excluding Logica related integration costs of $22.6 million. This compares with $137.8 million or 44 cents per share in Q1-F2013.

On a GAAP basis, including the integration costs, net earnings in Q1-F2014 were $189.8 million and diluted earnings per share were 60 cents. This compares with $22.4 million or 7 cents per diluted share in the year ago period.

The company generated $66.3 million in cash from operating activities during the quarter, and $119.6 million when excluding the $53.3 million of integration-related payments. Over the last twelve months, excluding the integration-related cash disbursements, CGI has generated $818.7 million or $2.58 in diluted cash per share.

During the quarter, the Company booked $2.8 billion in contract awards, of which 45% was new business, for a book to bill ratio of 107%. This brings the trailing twelve months bookings to $10.3 billion or 101% of revenue. At the end of December 2013, the Company's backlog of signed orders stood at $19.3 billion, up $972 million compared with the same period last year.


----------------------------------------------------------------------------
In millions of Canadian dollars except
 earnings per share and where noted
                                                  Q1-F2014         Q1-F2013
----------------------------------------------------------------------------
Revenue                                            2,644.7          2,532.9
----------------------------------------------------------------------------
Adjusted EBIT                                        302.9            209.5
Margin                                                11.5%             8.3%
----------------------------------------------------------------------------
Net earnings, prior to integration-related
 costs                                               207.9            137.8
----------------------------------------------------------------------------
Earnings per share (diluted), prior to
 integration-related costs                            0.65             0.44
----------------------------------------------------------------------------
Integration-related costs                             22.6            153.4
----------------------------------------------------------------------------
Net earnings                                         189.8             22.4
Margin                                                 7.2%             0.9%
----------------------------------------------------------------------------
Earnings per share (diluted)                          0.60             0.07
----------------------------------------------------------------------------
Weighted average number of outstanding
 shares (diluted)                              318,679,293      315,061,479
----------------------------------------------------------------------------
Net finance costs                                     27.4             25.5
----------------------------------------------------------------------------
Net debt                                             2,890            2,965
----------------------------------------------------------------------------
Net debt to capitalization ratio                      38.9%            44.7%
----------------------------------------------------------------------------
Cash provided by operating activities                 66.3            224.5
----------------------------------------------------------------------------
Days of sales outstanding (DSO)                         55               46
----------------------------------------------------------------------------
Return on invested capital                            12.7%            10.9%
----------------------------------------------------------------------------
Bookings                                             2,818            2,845
----------------------------------------------------------------------------
Backlog                                             19,253           18,281
----------------------------------------------------------------------------

"We delivered very solid performance in the quarter as we continued to leverage our expanded global scale and capabilities to the benefit of our clients and investors," said Michael E. Roach, President and CEO, CGI. "We are well positioned to grow as the market gradually improves as demonstrated by our strong bookings of $2.8 billion in the quarter, which was balanced across all geographies and was composed of 45% new business."

Net debt was $2.9 billion at the end of December 2013, representing a net debt to capitalization ratio of 38.9% compared to 44.7% in Q1-F2013. At the end of Q1-F2014, the Company had approximately $1.2 billion in available cash and unused credit facilities.

Normal Course Issuer Bid

The Company purchased and cancelled 2.5 million CGI shares during the quarter for $100.0 million at an average price of $40.15. Over the last twelve months, 3.2 million shares were purchased at an average price of $38.26 for a total investment of $122.8 million. On January 29, 2014 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 21.8 million shares during the next year, subject to acceptance by the Toronto Stock Exchange.

Q1-F2014 results conference call

Management will host a conference call at 9:00 a.m. Eastern time to discuss results. Participants may access the call by dialing 866-225-2055 or via cgi.com/investors. 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.

Fiscal 2013 Annual General Meeting of Shareholders

This morning at 11:00 a.m. Eastern time, the Company will hold its Annual General Meeting of Shareholders at the Ritz Carlton Hotel in Montreal (1228 Sherbrooke Street West). The meeting, as well as the question and answer session which follows will be broadcast live via cgi.com/investors.

About CGI

Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 68,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as a wide range of proprietary solutions. With annual revenue in excess of C$10 billion and an order backlog exceeding C$19 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website: www.cgi.com.

Non-GAAP financial metrics used in this release: Adjusted EBIT, net debt, net debt to capitalization ratio, DSO 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 2 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/newsroom

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DevOps approaches within “Unicorns” vary significantly from the reality of DevOps in the enterprise. Most enterprises manage portfolios of heterogeneous applications that are increasingly interconnected, delivered by global teams, at various stages of technology maturity, and are often encumbered by additional compliance and governance obligations. In his session at DevOps Summit, Dalibor Siroky, Director and co-founder at Plutora, will discuss the emerging and evolving experiences of Agile, Co...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
While Docker continues to be the darling of startups, enterprises and IT innovators around the world, networking continues to be a real mess. Indeed, managing the interaction between Docker containers and networks has always been fraught with complications. Without automation in networking, the vision of running Docker at scale and letting IT run the same apps unchanged on the laptop and in the data center or for any cloud cannot be realized.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises a...
Why does developer experience matters, what makes for a great developer experience and what is the relationship between developer experience and the broader field of user experience? Software developers are gaining more influence over the purchase decisions of technologies with which they must build on and with which they must integrate. For example, the success of Amazon Web Services, Heroku and MongoDB has been driven primarily by individual software developers choosing to use these tools, ra...
Enterprise IoT is an exciting and chaotic space with a lot of potential to transform how the enterprise resources are managed. In his session at @ThingsExpo, Hari Srinivasan, Sr Product Manager at Cisco, will describe the challenges in enabling mass adoption of IoT, and share perspectives and insights on architectures/standards/protocols that are necessary to build a healthy ecosystem and lay the foundation to for a wide variety of exciting IoT use cases in the years to come.
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
Zerto has announced the general availability of Zerto Virtual Replication 4.0 (ZVR 4.0). The company’s enterprise-class business continuity/disaster recovery (BC/DR) software is the first to protect, replicate, and migrate data between VMware vSphere and Microsoft Hyper-V hypervisors, as well as across private, hybrid and public cloud environments including Amazon Web Services (AWS). ZVR 4.0 also allows channel partners and cloud service providers to expand their offerings to grow revenues by pr...
Avnet, Inc. has announced that it ranked No. 4 on the InformationWeek Elite 100 – a list of the top business technology innovators in the U.S. Avnet was recognized for the development of an innovative cloud-based training system that serves as the foundation for Avnet Academy – the company’s education and training organization focused on technical training around top IT vendor technologies. The development of this system allowed Avnet to quickly expand its IT-related training capabilities around...
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...
This talk focuses on the application of DevOps fundamentals to include network infrastructure. It draws from real deployment case studies on the extension of today's paradigms to address the challenges of the network infrastructures' ability to seamlessly and cohesively integrate into agile workflows. In this session at DevOps Summit, Arista Networks will focus on configuration management using automation with a nod to future work necessary to include telemetry and ephemeral state information....
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM