CGI reports revenue growth while expanding EPS by 19% and signs $1.68 billion in new contracts in Q2-2009

    Generates $187.3 million in cash from operations

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

    Q2-2009 year-over-year highlights:

    - Revenue of $948.3 million, up 1.9%;
    - Bookings of $1.68 billion or 177% of revenue;
    - Net earnings of $77.5 million, up 12.7%;
    - Net earnings margin of 8.2%;
    - EPS of 25 cents, up 19%;
    - Cash generated from operating activities of $187.3 million, up 308%;
    - Backlog reaches $12.0 billion.

    Note: All figures are in Canadian dollars. Q2-2009 MD&A, financial
    statements and accompanying notes can be found at and have
    been filed with both SEDAR in Canada and EDGAR in the U.S.

    MONTREAL, May 6 /CNW Telbec/ - 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
    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.

    In millions of Canadian
     dollars except EPS and
     when noted

                             Q2 F2009    YTD F2009     Q2 F2008    YTD F2008
    Revenue                     948.3      1,948.7        930.8      1,826.2
    Adjusted EBIT               107.0        221.1        108.4        213.9
    Margin                       11.3%        11.3%        11.6%        11.7%
    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%
    Net Earnings                 77.5        157.1         68.8        141.4
    Margin                        8.2%         8.1%         7.4%         7.7%
    Earnings per share
     (diluted)                   0.25         0.50         0.21         0.43
    Cash provided by
     operating activities       187.3        266.9         45.9        167.0
    Weighted average
     number of
     outstanding shares
     (diluted)            311,411,994  311,129,594  326,942,285  328,368,726
    Interest on long-term
     debt                         5.3         12.0          7.2         14.5
    Net debt                    105.4        105.4        361.9        361.9
    Net debt to
     capitalization ratio         4.0%         4.0%        15.2%        15.2%
    Days of sales
     outstanding (DSO)             42           42           44           44
    Bookings                    1,676        2,451        1,043        2,177
    Backlog                    12,019       12,019       11,672       11,672

    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
    "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 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

    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:

    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, and in
CGI's annual and quarterly MD&A and Annual Information Form filed with the
Canadian securities authorities (filed on SEDAR at, 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,

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890