CGI expands Q1 2008 net earnings by 66% fueled by growth in revenue and bookings



    
    Stock Market Symbols
    GIB.A (TSX)
    GIB (NYSE)

    Q1 2008 year-over-year highlights:
    - Revenue of $914.7 million, up 6.1% on a constant currency basis;
    - Earnings before taxes of $100.4 million, up 51.8%;
    - Net earnings of $72.6 million, up 66.2%;
    - Net earnings margin of 7.9%, up from 4.8%;
    - EPS of 22 cents, up 67.1%;
    - Cash generated from operating activities in Q1 2008 of $118.7 million;
    - Debt repayments and stock buy backs in Q1 2008 totaled $75.1 million;
    - Q1 2008 bookings of $1.15 billion, compared with $769.0 million in
      Q1 2007.

    Note: Full Q1 F2008 MD&A, financial statements and accompanying notes may
    be found at www.cgi.com  and have been filed with both Sedar in Canada
    and Edgar in the U.S.
    

    MONTREAL, Feb. 5 /CNW Telbec/ - CGI Group Inc. (TSX: GIB.A; NYSE:   GIB)
reported fiscal 2008 first quarter revenue today of $914.7 million. This
represents 6.1% year-over-year revenue growth on a constant currency basis,
compared with the first quarter of 2007. Relative to the same year ago period,
foreign exchange fluctuations negatively impacted the Company's revenue by
$44.2 million, or 4.9% of revenue.
    Earnings before taxes were $100.4 million or 11.0% of revenue. This is an
improvement of 51.8% compared with the first quarter of 2007.
    Net earnings in Q1 2008 were $72.6 million or 7.9% of revenue compared
with net earnings of $43.7 million or 4.8% of revenue in the same quarter last
year. This represents a 66.2% year-over-year increase.
    The first quarter results included one-time tax benefits of $6.3 million,
primarily related to a federal income tax rate change in Canada. Excluding
these one-time tax adjustments, the net earnings margin was 7.2%.
    Earnings per share in the first quarter were 22 cents. This compares with
13 cents in the same period last year.
    The Company generated $118.7 million in cash from its operating
activities, or 13% of revenue. On a rolling twelve month basis, CGI has
generated $502.7 million or $1.51 in cash per share from its operating
activities.

    
    -------------------------------------------------------------------------
    In millions of Canadian dollars
     except when noted
                                                      Q1 F2008      Q1 F2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenue                                        $     914.7   $     904.1
    -------------------------------------------------------------------------
    Adjusted EBIT                                  $     106.5   $      99.7
    Margin                                                11.6%         11.0%
    -------------------------------------------------------------------------
    Earnings before taxes (EBT)                    $     100.4   $      66.1
    Margin                                                11.0%          7.3%
    -------------------------------------------------------------------------
    Net earnings                                   $      72.6   $      43.7
    Margin                                                 7.9%          4.8%
    -------------------------------------------------------------------------
    Earnings per share                             $      0.22   $      0.13
    -------------------------------------------------------------------------
    Weighted average number of outstanding
     shares (diluted)                              329,785,001   331,588,537
    -------------------------------------------------------------------------
    Interest on long-term debt                     $       7.3   $      12.5
    -------------------------------------------------------------------------
    Net debt to capitalization ratio                      14.2%         22.6%
    -------------------------------------------------------------------------
    Days of sales outstanding (DSO)                         41            44
    -------------------------------------------------------------------------
    Bookings                                       $   1,151.1   $     769.0
    -------------------------------------------------------------------------
    

    During the quarter, the Company booked $1.15 billion in new contract
wins, extensions and renewals, resulting in a book-to-bill of 126% in the
quarter. At the end of December 2007, the Company's backlog stood at      
$12.04 billion or 3.3 times annual revenue.
    "I am very pleased with our strong overall performance in Q1 as we
continue to build on the momentum created in fiscal 2007," said Michael E.
Roach, President and Chief Executive Officer. "We remain convinced that our
focus on execution will continue to be the key to achieving our profitable
growth targets and operating strategy. In this regard, the ongoing execution
of our business development strategy continues to surface significant growth
opportunities and sales as validated by the sustained improvement in bookings
this quarter and over the last several quarters."
    The Company continues to enhance its financial flexibility to invest in
large outsourcing contracts, accretive acquisitions, share buy backs and debt
reduction. As part of its Normal Course Issuer Bid, the Company repurchased
for cancellation 1.4 million subordinate class A shares during the first
quarter for a total investment of $15.8 million.
    In addition, long-term debt decreased by $37.5 million during the
quarter. At the end of December 2007, net debt was reduced to $328.6 million,
improving the Company's net debt to capitalization ratio to 14.2%.
    During the quarter, the Company entered into forward contracts to limit
the principal repayments on US$192 million (valued at $255.8 million when
issued in 2004) in Senior U.S. unsecured notes, thereby locking in its
obligation in Canadian dollars to $194.2 million.

    Normal Course Issuer Bid Renewal

    Under the terms of the current Normal Course Issuer Bid which commenced
on February 5, 2007, the Company repurchased 11.8 million of its Class A
subordinate shares for $127.2 million. On February 5, 2008, the Company's
Board of Directors authorized the renewal of the Normal Course Issuer Bid and
the purchase of up to 10% of the public float of the Company's Class A
subordinate shares, or approximately 28.5 million shares during the next year,
subject to regulatory approval.

    First Quarter F2008 Results Conference Call

    Management will host a conference call to discuss results at 9:30 a.m.
Eastern time this morning. Participants may access the call by dialing
1-866-225-0198 or on the Web at 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 www.cgi.com.

    Annual General Meeting of Shareholders

    This morning at 11 a.m., the Company will hold its Annual General Meeting
of shareholders at the Omni Mont-Royal Hotel, Salon Les Saisons, 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.
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.

    Note to the media: A press conference will be held immediately following
the Annual General Meeting, at approximately 12:15 p.m.

    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 26,500 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 $3.7 billion and at December 31st, 2007, 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:
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 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 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.




For further information:

For further information: Lorne Gorber, Vice-President, Global
Communications and Investor Relations, (514) 841-3355


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