Stock Market Symbols
Q1-F2011 year-over-year highlights:
Revenue of $1.12 billion, up 25.9% at constant currency;
Bookings of $1.2 billion, or 106% of revenue;
Adjusted EBIT of $158.5 million, up 32.7%;
Net earnings of $126.6 million, up 13.8%;
Net earnings margin of 11.3%;
Diluted EPS of 45 cents, up 21.6%;
Cash from operating activities of $95.2 million;
Backlog of $13.1 billion.
Note: All figures are in Canadian dollars. Q1-F2011 MD&A, financial
statements and accompanying notes may be found at www.cgi.com/investors and have been filed with both SEDAR in Canada and EDGAR in the U.S.
MONTREAL, Jan. 26 /CNW Telbec/ - CGI Group Inc. (TSX: GIB.A; NYSE: GIB)
reported fiscal 2011 first quarter revenue of $1.12 billion, an
increase of 22.7% compared with the same period last year. Revenue on a
constant currency basis was up 25.9% after adjusting for foreign
exchange fluctuations which negatively impacted revenue in the quarter
by $29.4 million, or 3.2% compared with the same period last year.
Adjusted EBIT was $158.5 million compared with $119.4 million in the
same quarter last year, an improvement of 32.7%. This represents an
adjusted EBIT margin of 14.1% up from 13.1% in the first quarter of
The current quarter included favourable tax adjustments in the amount of
$18.7 million compared with $30.5 million in Q1-F2010.
Net earnings were $126.6 million or 11.3% of revenue compared with
$111.2 million in the same quarter last year, representing an increase
of 13.8% year-over-year.
Diluted earnings per share were 45 cents, up 21.6% compared with 37
cents in the same period last year.
On a comparable basis, when excluding the tax adjustments from both
periods, net earnings were $109.4 million or 9.8% of revenue in
Q1-F2011, compared with $80.7 million, or 8.8% of revenue in the same
period last year. Diluted earnings per share would have been 39 cents,
up 44.4% compared with 27 cents in the first quarter of 2010.
The Company generated $95.2 million in cash from operating activities.
Over the last twelve months, CGI generated $481.4 million or $1.68 in
cash per diluted share.
In millions of Canadian dollars except earnings per share
and where noted
Earnings before income taxes
Earnings per share (diluted)
Weighted average number of outstanding shares (diluted)
Interest on long-term debt
Net debt to capitalization ratio
Cash provided by operating activities
Days of sales outstanding (DSO)
Return on equity
Return on invested capital
During the quarter, the Company booked $1.2 billion in new contract
wins, extensions and renewals, bringing the total bookings over the
last twelve months to $4.2 billion or 108% of revenue. At the end of
December 2010, the Company's backlog of signed orders stood at $13.1
billion, after being adjusted for the unfavourable currency impact.
This represents 3.0x annual revenue.
"Our strong performance in the first quarter was driven primarily by
increased client project activity and the positive impact of our merger
with Stanley, both of which position us for continued profitable growth
throughout fiscal 2011," said Michael E. Roach, President and Chief
Executive Officer. "In line with our commitment to be a financially
strong company, delivering superior returns to our investors, we're
extending our share buyback program to February 2012. This program has
returned approximately $2 billion to shareholders since 2006."
Following the Q4-F2010 acquisition of Stanley, the Company's net debt at
the end of December, 2010 was $1.0 billion for a net debt to
capitalization of 30.6%. At the end of Q1-F2011, the Company had $700
million in available capital, including $80 million in cash and cash
equivalents as well as $600 million under its line of credit secured
Normal Course Issuer Bid
The Company purchased and cancelled 5.0 million CGI shares during the
quarter for $81.0 million at an average price of $16.28. Over the last
twelve months, 28.3 million shares were purchased at an average price
of $15.35 for a total investment of $434 million. On January 26, 2011
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 23 million shares
during the next year, subject to acceptance by the Toronto Stock
First Quarter F2011 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
(866) 226-1792 or on the Web at 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 www.cgi.com/investors.
Annual General Meeting of Shareholders
This morning at 11:00 a.m., the Company will hold its Annual General
Meeting of shareholders at the Omni Mount-Royal Hotel, 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/investors. 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 noon.
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 31,000
professionals. CGI provides end-to-end IT and business process services
to clients worldwide from offices and centers of excellence in Canada,
the United States, Europe and Asia Pacific. As at December
31, CGI's annualized revenue was approximately C$4.5 billion and its
order backlog was approximately C$13.1 billion. CGI shares are listed
on the TSX (GIB.A) and the NYSE (GIB) and are included in both, the Dow
Jones Sustainability Index and the FTSE4Good Index. 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 reconciliations of these non-GAAP
measures with the GAAP financial statements are provided in the MD&A
which is posted on CGI's website, and filed with SEDAR and EDGAR.
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 Report on Form 40-F
filed with the U.S. Securities and Exchange Commission (filed on EDGAR
at www.sec.gov), 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. You
will find more information about the risks that could cause our actual
results to differ significantly from our current expectations in the
Risks and Uncertainties section.
SOURCE CGI GROUP INC.
For further information:
Global Communications and Investor Relations