CGI posts strong Q3 results

FOR: CGI Group Inc. 
JULY 30, 2014 
CGI posts strong Q3 results 
EPS improves 27% year-over-year 
MONTREAL, QUEBEC--(Marketwired - July 30, 2014) - CGI Group Inc.
Q3-F2014 year-over-year highlights  
--  Revenue of $2.7 billion, up 3.9%; 
--  Adjusted EBIT of $342.2 million, up 17.5%;  
--  Adjusted EBIT margin of 12.8%, up 150 basis points;  
--  Net earnings of $225.1 million, or diluted EPS of $0.71; 
--  Net earnings of $229.8 million excluding specific items, or diluted EPS 
of $0.72;  
--  Cash provided by operating activities of $345.9 million, up 159.7%; 
--  Bookings of $2.5 billion and backlog of $18.8 billion; and 
--  Return on invested capital of 13.3%, up 100 basis points.   
Note: All figures in Canadian dollars. Q3-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.  
To access the financial results - click here (PDF)  
To access the MD&A - click here (PDF) 
CGI (TSX:GIB.A) (NYSE:GIB) reported fiscal 2014 third quarter revenue of $2.7
billion, representing growth of 3.9% compared with the same period last year.  
Adjusted EBIT for the three months was $342.2 million, an improvement of 17.5%
compared with $291.2 million in the year ago period. Adjusted EBIT margin
increased by 150 basis points to 12.8% from 11.3% in Q3-F2013. 
Net earnings in the quarter were $225.1 million, compared with $178.2 million,
representing a year-over-year improvement of 26.3%. Earnings per diluted share
were $0.71 compared with $0.56 in Q3-2013, representing an improvement of
Excluding specific items, net earnings were $229.8 million, compared with
$200.4 million in the year ago period, representing a growth of 14.7%. Earnings
per diluted share were $0.72 for the quarter, up 14.3% year-over-year. 
The company generated $345.9 million in cash from operating activities during
the quarter, and $381.8 million when excluding $35.9 million of
integration-related disbursements. Over the last twelve months, excluding
integration-related disbursements, CGI generated more than $1.1 billion or
$3.48 in cash per diluted share.  
"Our team continues to deliver solid performance executing to our business
plan and creating significant value for shareholders," said Michael E.
Roach, President and CEO. "Our ability to generate more than a billion
dollars in cash from operations over the last twelve months allowed us to
reduce our net debt by $500 million and affords us significant operating
flexibility to continue investing in our Build and Buy profitable growth
strategy. Looking ahead, our focus is squarely on the conversion of new sales
opportunities into bookings and high quality growth, leveraging the strength of
our diversified market coverage." 
 In millions of Canadian dollars except earnings                           
  per share and where noted                                                 
Q3-F2014    Q3-F2013 
 Revenue                                               2,667.0     2,567.3 
 Adjusted EBIT                                           342.2       291.2 
 Margin                                                   12.8%       11.3%
 Net earnings, excluding specific items(i)               229.8       200.4 
 Margin                                                    8.6%        7.8%
 Earnings per share (diluted), excluding specific                          
  items(i)                                                0.72        0.63 
 Net earnings                                            225.1       178.2 
 Earnings per share (diluted)                             0.71        0.56 
 Weighted average number of outstanding shares                             
  (diluted)                                        318,519,083 317,653,145 
 Net finance costs                                        24.1        26.1 
 Net debt                                              2,389.0     2,873.0 
 Net debt to capitalization ratio                         32.6%       41.1%
 Cash provided by operating activities                   345.9       133.2 
 Days of sales outstanding (DSO)                            47          49 
 Return on invested capital                               13.3%       12.3%
 Bookings                                              2,451.4     2,753.8 
 Backlog                                                18,781      18,747 
(i)Specific items in Q3-F2014 include: $14.5 million in integration-related 
costs, offset by the positive resolution of acquisition-related provisions  
in the amount of $8.0 million. Specific items in Q3-2013 include: $53.5     
million in integration-related costs and favourable tax adjustments of $14.9
During the quarter, the Company signed $2.5 billion in contract awards,
including European bookings of $1.7 billion. Globally, bookings on a trailing
twelve month basis were $10.6 billion or 101.4% of revenue at the end of June
2014, while the backlog of orders stood at $18.8 billion. 
Net debt was $2.4 billion at the end of June 2014, for a net debt to
capitalization ratio of 32.6% compared to 41.1% in the year ago period. At the
end of Q3-2014, the Company had approximately $1.2 billion in available cash
and unused credit facilities. 
Q3-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 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 of
approximately 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
and 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, ROIC, backlog and book-to-bill ratio.  
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- Jul/30/2014 10:30 GMT
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