Company News: Page (1) of 1 - 07/30/14 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page facebook

CGI posts strong Q3 results

EPS improves 27% year-over-year (July 30, 2014)

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 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: 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


Copyright @ Marketwire

Page: 1


Related Keywords:Sales, Finance, Sales & Marketing, Productivity Applications, Business Issues, Law & Regulations, Management, Finance/Accounting, Sales, CEO/CFO, Finance/Accounting, Sales, Canada, USA, Marketwire, unused, Inc., IT (Information Technology), Science, Computer Science, Business, Other,


DMO TEXT LINKS
(Click here to place a textlink on this site)

Get 10 days of free unlimited access to lynda.com.
What do you want to learn today? Online video tutorials to help you learn software, creative, and business skills.
Click Here!


500 GB hard drives
Edge E540 20C6008QUS 15.6" LED Notebook - Intel - Core i7 i7-4702MQ 2.2GHz - Matte Black - Silver (4 GB RAM - 500 GB HDD - DVD-Writer - Intel HD 4600 - Windows 7 Professional 64-bit - 1366 x 768 Display - Bluetooth)
By Lenovo, start from $ 679.99
ThinkCentre M93p Small Form Factor Desktop (2.9 GHz Intel Core i5-4570T, 4 GB DDR3, 500 GB HDD, Intel HD Graphics 4600, Windows 7 Professional)
By Lenovo, start from $ 559.99
ThinkCentre M93z 10AF000FUS All-in-One Computer - Intel Core i3 i3-4130 3.4GHz - Desktop - Business Black (4 GB RAM - 500 GB HDD - DVD-Writer - Intel HD 4400 - Windows 7 Professional 64-bit - 23" Display - Wireless LAN - Bluetooth)
By Lenovo, start from $ 918.28
ThinkCentre M93p 10A7000BUS Desktop Computer - Intel Core i5 i5-4570 3.20 GHz - Mini-tower - Business Black (4 GB RAM - 500 GB HDD - DVD-Writer - Intel HD 4600 - Windows 7 Professional 64-bit)
By Lenovo, start from $ 839.99
X140e 20BL000BUS 11.6" LED Notebook - AMD - A-Series A4-5000 1.5GHz - Midnight Black (4 GB RAM - 500 GB HDD - AMD Radeon HD 8330 - Windows 7 Professional 64-bit - 1366 x 768 Display - Bluetooth)
By Lenovo, start from $ 389.99
ThinkCentre M73z 10BC000DUS All-in-One Computer - Intel Core i3 i3-4130 3.4GHz - Desktop - Business Black (4 GB RAM - 500 GB HDD - DVD-Writer - Intel HD 4400 - Windows 7 Professional 64-bit - 20" Display - Wireless LAN - Bluetooth)
By Lenovo, start from $ 694.99
HOT THREADS on DMN Forums
Content-type: text/html  Rss  Add to Google Reader or
Homepage    Add to My AOL  Add to Excite MIX  Subscribe in
NewsGator Online 
Real-Time - what users are saying - Right Now!

@ Copyright, 2014 Digital Media Online, All Rights Reserved