CGI posts strong Q2 results

FOR: CGI Group Inc. 
APRIL 30, 2014 
CGI posts strong Q2 results 
Revenue grows 7% and EPS doubles year-over-year 
MONTREAL, QUEBEC--(Marketwired - April 30, 2014) - CGI (TSX:GIB.A)(NYSE:GIB) 
Q2-F2014 year-over-year highlights 
--  Revenue of $2.7 billion, up 7.0%;  
--  Bookings of $2.9 billion, or 105.4% of revenue;  
--  Backlog of $19.5 billion, up $1.5 billion;  
--  Adjusted EBIT of $341.5 million, up 30.5%;  
--  Adjusted EBIT margin of 12.6%, up 220 basis points;  
--  Net earnings of $230.9 million, or diluted EPS of $0.73;  
--  Net earnings of $229.6 million or diluted EPS of $0.72 excluding 
specific items;  
--  Cash provided by operating activities of $350.7 million;  
--  Repurchased 346,700 shares during the quarter;  
--  Return on invested capital of 13.4%.   
Note: All figures in Canadian dollars. Q2-F2014 MD&A, interim condensed
consolidated financial statements and accompanying notes can be found at and have been filed with both SEDAR in Canada and EDGAR
in the U.S. 
CGI (TSX:GIB.A) (NYSE:GIB) reported fiscal 2014 second quarter revenue of $2.7
billion, compared with $2.5 billion in the year ago period, representing growth
of 7.0%. 
During the quarter, the Company booked $2.9 billion in contract awards, of
which 40% was new business, for a book-to-bill ratio of 105.4%. This brings the
global trailing twelve months bookings to $10.9 billion or 105.3% of revenue.
At the end of March 2014, the Company's backlog of signed orders stood at
$19.5 billion, up $1.5 billion compared with the same period last year.  
Adjusted EBIT was $341.5 million, for a margin of 12.6%. This represents an
improvement of 30.5% compared with $261.6 million, or 10.4% of revenue in the
year ago period. 
Net earnings in the quarter were $230.9 million or 73 cents per diluted share.
This compares to $114.2 million or 36 cents per diluted share in Q2-F2013.  
Excluding specific items, net earnings were $229.6 million or 72 cents per
diluted share. This compares with $175.9 million or $0.56 per diluted share in
Q2-F2013, representing an improvement of 28.6%. 
The company generated $350.7 million in cash from operating activities during
the quarter, and $400.5 million when excluding the $49.8 million of
integration-related payments. Over the last twelve months, excluding the
integration-related cash disbursements, CGI has generated $949.1 million in
cash or $2.98 per diluted share. 
In millions of Canadian dollars except earnings per                         
share and where noted                                                       
Q2-F2014    Q2-F2013
Revenue                                                  2,704.3     2,526.2
Adjusted EBIT                                              341.5       261.6
Margin                                                     12.6%       10.4%
Net earnings, excluding specific items(i)                  229.6       175.9
Margin                                                     8.5 %        7.0%
Earnings per share (diluted), excluding specific                            
items(i)                                                    0.72        0.56
Net earnings                                               230.9       114.2
Margin                                                      8.5%        4.5%
Earnings per share (diluted)                                0.73        0.36
Weighted average number of outstanding shares                               
(diluted)                                            316,695,250 315,760,249
Net finance costs                                           25.0        30.3
Net debt                                                 2,678.2     2,914.3
Net debt to capitalization ratio                           35.6%       43.0%
Cash provided by operating activities                      350.7       147.2
Days of sales outstanding (DSO)                               47          46
Return on invested capital                                 13.4%       11.1%
Bookings                                                 2,850.3     2,210.2
Backlog                                                   19,476      18,019
(i)Specific items include: $26 million in integration-related expenses ($81.4
million in Q2-F2013), a tax benefit of $11.9 million and the resolution of
acquisition-related provisions in the amount of $11.7 million. 
"Our strong performance in the quarter is a clear reflection of our
ongoing ability to execute our business model on a global basis," said
Michael E. Roach, President and CEO. "Our ability to generate increased
cash from operations is becoming more visible as we complete the $525 million
investment in our integration program. Looking ahead, our focus will be on
intensifying the expansion and conversion of our pipeline of opportunities into
bookings and high quality revenue, reflecting our diversified market
During the quarter the Company repurchased 346,700 shares for $11.5 million, at
an average price of $33.08. Net debt was $2.7 billion at the end of March 2014,
representing a net debt to capitalization ratio of 35.6% compared to 43.0% at
the end of March 2013. At the end of Q2-F2014, the Company had approximately
$1.5 billion in available cash and unused credit facilities. 
Q2-F2014 results conference call 
Management will host a conference call this morning at 9:00 a.m. Eastern time
to discuss results. Participants may access the call by dialing 866-225-2055 or
via 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 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).
Non-GAAP financial metrics used in this release: Adjusted EBIT, net earnings
excluding integration-related costs, adjustments related to tax and the
resolution of acquisition-related provisions, diluted earnings per share
excluding integration-related costs, adjustments related to tax and the
resolution of acquisition-related provisions, 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 and 3 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, and in the Company's 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. 
Lorne Gorber
Senior Vice-President, Global Communications
and Investor Relations
+1 514-841-3355 
INDUSTRY:  Aerospace and Defense - Electronics and Communications, Computers
and Software - Networking, Government - Security (law enforcement, homeland
-0- Apr/30/2014 10:30 GMT
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