CGI posts strong Q1 results

CGI posts strong Q1 results 
Records $2.8 billion in contract awards and 48% EPS growth excluding
integration costs 
MONTREAL, QUEBEC -- (Marketwired) -- 01/29/14 -- CGI Group Inc.
(TSX:GIB.A)(NYSE:GIB) 
Q1-F2014 year-over-year highlights  


 
--  Revenue of $2.6 billion, up 4.4%;  
--  Bookings of $2.8 billion, or 106.5% of revenue; 
--  Backlog of $19.3 billion, up $972 million; 
--  Adjusted EBIT of $302.9 million, up 44.6%; 
--  Adjusted EBIT margin of 11.5%, up 320 basis points; 
--  Net earnings of $207.9 million or diluted EPS of $0.65 excluding
    integration costs; 
--  Net earnings of $189.8 million, or diluted EPS of $0.60 including
    integration costs; 
--  Cash provided by operating activities of $66.3 million; 
--  Repurchased 2.5 million shares during the quarter; 
--  Return on invested capital of 12.7%. 
 
Note: All figures in Canadian dollars. Q1-F2014 MD&A, interim condensed     
consolidated 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 2014 first
quarter revenue of $2.64 billion, compared with $2.53 billion in the
year ago period, representing growth of 4.4%.  
Adjusted EBIT was $302.9 million, representing a margin of 11.5%.
This represents an improvement of 44.6% when compared with $209.5
million, or 8.3% of revenue in Q1-F2013.  
Net earnings in Q1-F2014 were $207.9 million or 65 cents per diluted
share, excluding Logica related integration costs of $22.6 million.
This compares with $137.8 million or 44 cents per share in Q1-F2013.  
On a GAAP basis, including the integration costs, net earnings in
Q1-F2014 were $189.8 million and diluted earnings per share were 60
cents. This compares with $22.4 million or 7 cents per diluted share
in the year ago period. 
The company generated $66.3 million in cash from operating activities
during the quarter, and $119.6 million when excluding the $53.3
million of integration-related payments. Over the last twelve months,
excluding the integration-related cash disbursements, CGI has
generated $818.7 million or $2.58 in diluted cash per share.  
During the quarter, the Company booked $2.8 billion in contract
awards, of which 45% was new business, for a book to bill ratio of
107%. This brings the trailing twelve months bookings to $10.3
billion or 101% of revenue. At the end of December 2013, the
Company's backlog of signed orders stood at $19.3 billion, up $972
million compared with the same period last year.  


 
----------------------------------------------------------------------------
In millions of Canadian dollars except                                      
 earnings per share and where noted                                         
                                                  Q1-F2014         Q1-F2013 
----------------------------------------------------------------------------
Revenue                                            2,644.7          2,532.9 
----------------------------------------------------------------------------
Adjusted EBIT                                        302.9            209.5 
Margin                                                11.5%             8.3%
----------------------------------------------------------------------------
Net earnings, prior to integration-related                                  
 costs                                               207.9            137.8 
----------------------------------------------------------------------------
Earnings per share (diluted), prior to                                      
 integration-related costs                            0.65             0.44 
----------------------------------------------------------------------------
Integration-related costs                             22.6            153.4 
----------------------------------------------------------------------------
Net earnings                                         189.8             22.4 
Margin                                                 7.2%             0.9%
----------------------------------------------------------------------------
Earnings per share (diluted)                          0.60             0.07 
----------------------------------------------------------------------------
Weighted average number of outstanding                                      
 shares (diluted)                              318,679,293      315,061,479 
----------------------------------------------------------------------------
Net finance costs                                     27.4             25.5 
----------------------------------------------------------------------------
Net debt                                             2,890            2,965 
----------------------------------------------------------------------------
Net debt to capitalization ratio                      38.9%            44.7%
----------------------------------------------------------------------------
Cash provided by operating activities                 66.3            224.5 
----------------------------------------------------------------------------
Days of sales outstanding (DSO)                         55               46 
----------------------------------------------------------------------------
Return on invested capital                            12.7%            10.9%
----------------------------------------------------------------------------
Bookings                                             2,818            2,845 
----------------------------------------------------------------------------
Backlog                                             19,253           18,281 
----------------------------------------------------------------------------

 
"We delivered very solid performance in the quarter as we continued
to leverage our expanded global scale and capabilities to the benefit
of our clients and investors," said Michael E. Roach, President and
CEO, CGI. "We are well positioned to grow as the market gradually
improves as demonstrated by our strong bookings of $2.8 billion in
the quarter, which was balanced across all geographies and was
composed of 45% new business." 
Net debt was $2.9 billion at the end of December 2013, representing a
net debt to capitalization ratio of 38.9% compared to 44.7% in
Q1-F2013. At the end of Q1-F2014, the Company had approximately $1.2
billion in available cash and unused credit facilities. 
Normal Course Issuer Bid 
The Company purchased and cancelled 2.5 million CGI shares during the
quarter for $100.0 million at an average price of $40.15. Over the
last twelve months, 3.2 million shares were purchased at an average
price of $38.26 for a total investment of $122.8 million. On January
29, 2014 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 21.8
million shares during the next year, subject to acceptance by the
Toronto Stock Exchange. 
Q1-F2014 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
866-225-2055 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. 
Fiscal 2013 Annual General Meeting of Shareholders 
This morning at 11:00 a.m. Eastern time, the Company will hold its
Annual General Meeting of Shareholders at the Ritz Carlton Hotel in
Montreal (1228 Sherbrooke Street West). The meeting, as well as the
question and answer session which follows will be broadcast live via
cgi.com/investors.  
About CGI  
Founded in 1976, CGI Group Inc. is the fifth largest independent
information technology and business process services firm in the
world. Approximately 68,000 professionals serve thousands of global
clients from offices and delivery centers across the Americas, Europe
and Asia Pacific, leveraging 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. With annual revenue in
excess of C$10 billion and an order backlog exceeding C$19 billion,
CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website:
www.cgi.com. 
Non-GAAP financial metrics used in this release: Adjusted EBIT, net
debt, net debt to capitalization ratio, 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
+1 514-841-3355
lorne.gorber@cgi.com
 
 
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