CGI reports 9.1% year-over-year revenue growth in Q4 while improving net earnings by 66%



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

    Caps off strong fiscal 2007, growing EPS by 78% and generated operating
    cash flow of $550.2 million

    MONTREAL, Nov. 14 /CNW Telbec/ -

    
    Highlights

    Q4 F2007 vs Q4 F2006                  Fiscal 2007 vs Fiscal 2006

    - Revenue up 9.1% to $922.8 million   - Revenue up 6.7% to $3.71 billion
    - Adjusted EBIT up 11% to             - Adjusted EBIT up 31% to
      $101.5 million                        $407.8 million
    - Net earnings up 66% to              - Net earnings up 61% to
      $65.6 million                         $236.4 million
    - EPS up 67% to 20 cents              - EPS up 78% to 71 cents
    - Cash generated by operating         - Cash generated by operating
      activities up 132% to                 activities up 80% to
      $120.4 million, or $0.36 per          $550.2 million, or $1.65 per
      share                                 share


    CGI Group Inc. (TSX: GIB.A; NYSE:   GIB) reported fourth quarter revenue of
$922.8 million, up 9.1% compared with $845.8 million in the fourth quarter of
2006. On a constant currency basis, this represents growth of 11.3%.
    Adjusted EBIT in Q4 2007 was $101.5 million, or 11.0% of revenue. This is
an 11.4% increase compared with adjusted EBIT of $91.1 million or 10.8% of
revenue in Q4 2006.
    Net earnings in the fourth quarter were $65.6 million, for a net margin of
7.1%. This is an improvement of 66% compared with net earnings of
$39.5 million for a net margin of 4.7% in Q4 2006.
    Earnings per share were 20 cents in the fourth quarter, compared with
12 cents in the fourth quarter of 2006, representing an increase of 67%.
    Cash generated by operating activities totaled $120.4 million in the
fourth quarter. This represents an improvement of 132% compared with
$51.8 million generated in Q4 of fiscal 2006.
    As part of its Normal Course Issuer Bid, the Company repurchased
5.6 million shares in addition to making $31.5 million dollars in net debt
repayments during the fourth quarter of 2007.
    In the fourth quarter, new contract bookings totaled $840.9 million, an
improvement of 82% from the same period last year.

    ---------------------------------------------
    In $ millions except margin, share data
     amounts and DSO
    -------------------------------------------------------------------------
                                                      Q4-2007       Q4-2006
    -------------------------------------------------------------------------
    Revenue                                            $922.8        $845.8
    -------------------------------------------------------------------------
    Year-over-year growth @
     constant currency                                   11.3%         (4.0%)
    -------------------------------------------------------------------------
    Adjusted EBIT margin                                 11.0%         10.8%
    -------------------------------------------------------------------------
    Net earnings                                        $65.6         $39.5
    -------------------------------------------------------------------------
    Net earnings margin                                   7.1%          4.7%
    -------------------------------------------------------------------------
    Basic and diluted EPS                               $0.20         $0.12
    -------------------------------------------------------------------------
    Weighted average number of outstanding
     shares (diluted)                             334,520,373   337,497,214
    -------------------------------------------------------------------------
    Number of shares outstanding at end of
     period                                       324,753,874   331,693,044
    -------------------------------------------------------------------------
    DSO (Days of sales outstanding)                        44            52
    -------------------------------------------------------------------------
    Total long-term debt                               $473.2        $813.3
    -------------------------------------------------------------------------

    "Our fourth quarter results continued to show a strengthening of all key
performance indicators, including double digit revenue growth and industry
leading margins," said Michael E. Roach, President and Chief Executive
Officer. "The enhancements we made to our business development model have
significantly increased our ongoing ability to consistently and profitably
grow our business globally."

    Fiscal 2007 results

    Revenue for fiscal 2007 was up 6.7% to $3.71 billion, compared with
$3.48 billion in fiscal 2006. This represents 7.1% year-over-year growth at
constant currency.
    Fiscal 2007 adjusted EBIT was $407.8 million, or 11.0% of revenue. This is
an increase of $97.5 million or 31% compared with $310.3 million in F2006.
    Net earnings in fiscal 2007 were $236.4 million for a net margin of 6.4%.
This represents a 61% increase compared with $146.5 million in fiscal 2006, or
a net earnings margin of 4.2%.
    On a fully diluted earnings per share basis, the Company reported 71 cents
compared with 40 cents in fiscal 2006, representing an increase of 78%.
    In fiscal 2007, CGI generated $550.2 million in cash from operations, or
$1.65 per share. This is an 80% improvement compared with $305.6 million in
cash generated during fiscal 2006.
    As part of its Normal Course Issuer Bid, the Company repurchased more than
12.3 million shares of CGI during the fiscal year for an investment of $126.4
million. In addition, net debt repayments of $331.0 million were made over the
last twelve months, for a net debt to capitalization ratio of 16.8%. As a
result, the Company finished fiscal 2007 with $88.9 million in cash and cash
equivalents on hand.
    In fiscal 2007, new contract signings totaled $3.3 billion or 0.9x
revenue. This includes a bookings adjustment of $200 million reflecting the
mutually agreed upon cancellation of a binding MOU with CAE that had been
booked in Q3. Including this impact and currency fluctuations, the Company's
backlog at year-end stood at $12.0 billion.

    ---------------------------------------------
    In $ millions except margin, share data
     amounts and DSO
    -------------------------------------------------------------------------
                                                       FY2007        FY2006
    -------------------------------------------------------------------------
    Revenue                                          $3,711.6      $3,477.6
    -------------------------------------------------------------------------
    Year-over-year growth @
     constant currency                                    7.1%         (2.8%)
    -------------------------------------------------------------------------
    Adjusted EBIT margin                                 11.0%          8.9%
    -------------------------------------------------------------------------
    Net earnings before restructuring costs
     related to specific items                         $251.1        $191.3
    -------------------------------------------------------------------------
    Margin                                                6.8%          5.5%
    -------------------------------------------------------------------------
    Basic EPS  before restructuring costs               $0.76         $0.53
    Diluted EPS before restructuring costs              $0.75         $0.52
    -------------------------------------------------------------------------
    Restructuring costs related to specific
     items (net of tax)                                 $14.7         $44.7
    -------------------------------------------------------------------------
    Net earnings                                       $236.4        $146.5
    -------------------------------------------------------------------------
    Margin                                                6.4%          4.2%
    -------------------------------------------------------------------------
    Basic EPS                                           $0.72         $0.40
    Diluted EPS                                         $0.71         $0.40
    -------------------------------------------------------------------------
    Weighted average number of outstanding
     shares (diluted)                             333,876,564   364,706,656
    -------------------------------------------------------------------------
    Number of shares outstanding at end of
     period                                       324,753,874   331,693,044
    -------------------------------------------------------------------------
    Total long-term debt                               $473.2        $813.3
    -------------------------------------------------------------------------
    Interest on long-term debt                          $41.8         $43.3
    -------------------------------------------------------------------------
    Net debt to capitalization ratio                     16.8%         27.2%
    -------------------------------------------------------------------------
    DSO (Days of sales outstanding)                        44            52
    -------------------------------------------------------------------------
    Order backlog                                     $12,042       $12,722
    -------------------------------------------------------------------------

    Note: Audited 2007 Annual Financial Statements are available on
    www.cgi.com and will be filed with both SEDAR and EDGAR. All dollar
    figures are in Canadian dollars, unless otherwise specified.

    "Fiscal 2007 was a very successful year for CGI. Throughout the year, we
were able to significantly enhance shareholder value by focusing on delivering
on the fundamentals necessary for sustained profitable growth. We grew revenue
while significantly increasing profitability and cash flow as we continue to
implement our build and buy strategy," added Roach. "In addition, we were able
to significantly reduce our debt and buy back shares for a total investment of
$459.5 million. We entered our F2008 in excellent position to continue to
profitably grow our business."

    Fourth Quarter and full-year F2007 Results Conference Call

    Senior management will host a conference call to discuss results at 9 a.m.
Eastern time this morning. Participants may access the call by dialing (877)
922-4773 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.

    Investor Day: Friday, November 16, 2007

    CGI will be hosting an Investor Day for equity analysts and institutional
shareholders on Friday, November 16th from 8 a.m.-2 p.m. in New York City.
Interested parties are invited to tune into the live webcast via www.cgi.com.
Please note that registration for this event was by invitation only and is now
closed.

    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 26,000 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 $3.7 billion and at September 30th, 2007, 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:
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 or 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. 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, lorne.gorber@cgi.com


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