CGI posts strong Q2 results

CGI posts strong Q2 results 
Revenue grows 7% and EPS doubles year-over-year 
MONTREAL, QUEBEC -- (Marketwired) -- 04/30/14 --  CGI (TSX:
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
"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 coverage."  
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). Website: 
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
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