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CGI posts 148% revenue growth in Q1

CGI posts 148% revenue growth in Q1 
Records diluted EPS of 44 cents before Logica integration costs 
MONTREAL, QUEBEC -- (Marketwire) -- 01/30/13 -- CGI Group Inc.
(TSX:GIB.A)(NYSE:GIB) 
Q1-F2013 year-over-year highlights  


 
--  Revenue of $2.53 billion, up 147.5% on a constant currency basis; 
--  Bookings of $2.85 billion, or 112.3% of revenue; 
--  Backlog of $18.3 billion, up 34.8%; 
--  Adjusted EBIT of $209.5 million, up 49.7%; 
--  Adjusted EBIT margin of 8.3%; 
--  Net earnings of $137.8 million or diluted EPS of 44 cents excluding
    integration costs; 
--  Net earnings of $22.4 million, or diluted EPS of 7 cents including
    integration costs; 
--  Cash provided by operating activities of $224.5 million, or 71 cents per
    diluted share; 
--  Debt reduced by $107.1 million during the quarter; 
--  Return on invested capital of 10.9%. 

 
Note: All figures in Canadian dollars. Q1-F2013 MD&A, condensed
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 2013 first
quarter revenue of $2.53 billion, up 147.5% on a constant currency
basis compared with the year ago period and up 55.4% sequentially.
Q1-F2013 marks the first full quarter impact of the August 20, 2012
Logica plc acquisition.  
Adjusted EBIT was $209.5 million, representing a margin of 8.3%. This
compares with $139.9 million in the year ago period. 
Excluding integration costs, net earnings were $137.8 million, or 44
cents per diluted share, compared with $106.5 million or 40 cents per
diluted share in Q1-F2012. Including the $153.4 million integration
costs, net earnings were $22.4 million and diluted earnings per share
were 7 cents. 
The Company generated $224.5 million in cash from operating
activities during the quarter, representing an increase of $75.8
million compared with Q1-F2012. Over the last twelve months, CGI
generated $689.1 million of cash from operating activities or $2.42
per diluted share.  


 
----------------------------------------------------------------------------
In millions of Canadian dollars except                                      
 earnings per share and where noted                                         
                                                 Q1-F2013          Q1-F2012 
----------------------------------------------------------------------------
Revenue                                           2,532.9           1,032.1 
----------------------------------------------------------------------------
Adjusted EBIT                                       209.5             139.9 
Margin                                                8.3%             13.6%
----------------------------------------------------------------------------
Net earnings, excluding integration                                         
 costs                                              137.8             106.5 
Earnings per share (diluted), excluding                                     
 integration costs                                   0.44              0.40 
----------------------------------------------------------------------------
Integration costs                                   153.4                -- 
----------------------------------------------------------------------------
Net earnings                                         22.4             106.5 
Earnings per share (diluted)                         0.07              0.40 
----------------------------------------------------------------------------
Weighted average number of outstanding                                      
 shares (diluted)                             315,061,479       268,913,505 
----------------------------------------------------------------------------
Net finance costs                                    25.5               4.8 
----------------------------------------------------------------------------
Net debt                                            2,965               880 
----------------------------------------------------------------------------
Net debt to capitalization ratio                     44.7%             26.6%
----------------------------------------------------------------------------
Cash provided by operating activities               224.5             148.7 
----------------------------------------------------------------------------
Days of sales outstanding (DSO)                        49                51 
----------------------------------------------------------------------------
Return on invested capital                           10.9%             12.8%
----------------------------------------------------------------------------
Bookings                                            2,845             1,392 
----------------------------------------------------------------------------
Backlog                                            18,281            13,558 
----------------------------------------------------------------------------

 
During the quarter, the Company booked $2.8 billion in new contract
wins, extensions and renewals, bringing the last twelve months total
bookings to $6.6 billion, or 106% of revenue. At the end of December
2012, the Company's backlog of signed orders stood at $18.3 billion,
up $4.7 billion compared with the same period last year.  
"I am very pleased with our overall performance and with the progress
we made with respect to executing our Logica integration plan, which
is designed to create incremental and long-term value for all
stakeholders," said Michael E. Roach, President and Chief Executive
Officer. "Our clients continue to respond in a positive manner to the
expanded scale and scope of our offerings and operations following
our merger." 
During the quarter, net debt was reduced by $140.6 million for a net
debt of $2.96 billion, representing a net debt to capitalization of
44.7% at the end of December 2012. At the end of Q1-2013, the Company
had approximately $1.1 billion in available cash and unused credit
facilities.  
Normal Course Issuer Bid 
Over the last twelve months, 1.1 million shares were purchased at an
average price of $20.68 for a total investment of $21.7 million. On
January 30, 2013 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 20.7 million shares during the next year, subject to
acceptance by the Toronto Stock Exchange. 
Q1-F2013 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)
226-1792 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. 
F2012 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 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. 
About CGI  
Founded in 1976, CGI Group Inc. is the fifth largest independent
information technology and business process services firm in the
world. With approximately 71,000 members located in offices and
global delivery centers in the Americas, Europe and Asia Pacific, CGI
offers 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. Further to the recent
acquisition of Logica, CGI's annualized revenue is in excess of C$10
billion, with an estimated order backlog of approximately C$18.3
billion; its shares are listed on the TSX (GIB.A) and the NYSE (GIB)
and are included in the FTSE4Good Index. Website: www.cgi.com. 
Non-GAAP financial metrics used in this release: Constant currency
growth, adjusted EBIT, net debt to capitalization, 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
Contacts:
Lorne Gorber
Senior Vice-President,
Global Communications and Investor Relations
lorne.gorber@cgi.com
514-841-3355
 
 
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