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Q1-F2011 year-over-year highlights:
- Revenue of $1.12 billion, up 25.9% at constant currency;
- Bookings of $1.2 billion, or 106% of revenue;
- Adjusted EBIT of $158.5 million, up 32.7%;
- Net earnings of $126.6 million, up 13.8%;
- Net earnings margin of 11.3%;
- Diluted EPS of 45 cents, up 21.6%;
- Cash from operating activities of $95.2 million;
- Backlog of $13.1 billion.
Note: All figures are in Canadian dollars. Q1-F2011 MD&A, financial statements and accompanying notes may be found at www.cgi.com/investor s and have been filed with both SEDAR in Canada and EDGAR in the U.S.
MONTREAL, Jan. 26 /PRNewswire-FirstCall/ – CGI Group Inc. (TSX: GIB.A; NYSE: GIB) reported fiscal 2011 first quarter revenue of $1.12 billion, an increase of 22.7% compared with the same period last year. Revenue on a constant currency basis was up 25.9% after adjusting for foreign exchange fluctuations which negatively impacted revenue in the quarter by $29.4 million, or 3.2% compared with the same period last year.
Adjusted EBIT was $158.5 million compared with $119.4 million in the same quarter last year, an improvement of 32.7%. This represents an adjusted EBIT margin of 14.1% up from 13.1% in the first quarter of 2010.
The current quarter included favourable tax adjustments in the amount of $18.7 million compared with $30.5 million in Q1-F2010.
Net earnings were $126.6 million or 11.3% of revenue compared with $111.2 million in the same quarter last year, representing an increase of 13.8% year-over-year.
Diluted earnings per share were 45 cents, up 21.6% compared with 37 cents in the same period last year.
On a comparable basis, when excluding the tax adjustments from both periods, net earnings were $109.4 million or 9.8% of revenue in Q1-F2011, compared with $80.7 million, or 8.8% of revenue in the same period last year. Diluted earnings per share would have been 39 cents, up 44.4% compared with 27 cents in the first quarter of 2010.
The Company generated $95.2 million in cash from operating activities. Over the last twelve months, CGI generated $481.4 million or $1.68 in cash per diluted share.
|Earnings per share (diluted)||0.45||0.37|
|Weighted average number of outstanding shares (diluted)||278,457,599||301,953,549|
|Interest on long-term debt||5.8||3.7|
|Net debt to capitalization ratio||30.6%||—|
|Cash provided by operating activities||95.2||166.1|
|Days of sales outstanding (DSO)||42||30|
|Return on equity||17.2%||15.2%|
|Return on invested capital||15.7%||15.4%|
During the quarter, the Company booked $1.2 billion in new contract wins, extensions and renewals, bringing the total bookings over the last twelve months to $4.2 billion or 108% of revenue. At the end of December 2010, the Company’s backlog of signed orders stood at $13.1 billion, after being adjusted for the unfavourable currency impact. This represents 3.0x annual revenue.
"Our strong performance in the first quarter was driven primarily by increased client project activity and the positive impact of our merger with Stanley, both of which position us for continued profitable growth throughout fiscal 2011," said Michael E. Roach, President and Chief Executive Officer. "In line with our commitment to be a financially strong company, delivering superior returns to our investors, we’re extending our share buyback program to February 2012. This program has returned approximately $2 billion to shareholders since 2006."
Following the Q4-F2010 acquisition of Stanley, the Company’s net debt at the end of December, 2010 was $1.0 billion for a net debt to capitalization of 30.6%. At the end of Q1-F2011, the Company had $700 million in available capital, including $80 million in cash and cash equivalents as well as $600 million under its line of credit secured through 2012.
Normal Course Issuer Bid
Annual General Meeting of Shareholders
Note to the media: A press conference will be held immediately following the Annual General Meeting, at approximately 12 noon.
Use of Non-GAAP Financial Information
SOURCE CGI GROUP INC.