CGI posts strong Q3 results

CGI posts strong Q3 results 
EPS improves 27% year-over-year 
MONTREAL, QUEBEC -- (Marketwired) -- 07/30/14 --  CGI Group Inc.
(TSX: GIB.A)(NYSE: GIB) 
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 http://www.cgi.com/investors 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 26.8%.  
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
million.                                                                    

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 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. 
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 sol
utions. 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: www.cgi.com. 
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
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/en/media-room 
Contacts:
Lorne Gorber
Senior Vice-President, Global Communications
and Investor Relations
lorne.gorber@cgi.com
+1 514-841-3355
 
 
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