Read more about our F2011 financial results (PDF)
Read more about our F2011 MD&A (PDF)
CGI Group Inc. (TSX: GIB.A) (NYSE: GIB) generated revenue of $4.32 billion for the fiscal year ended September 30, 2011 compared with $3.73 billion in fiscal 2010, representing an increase of 15.8%. Foreign exchange fluctuations unfavourably impacted revenue by $116.1 million or 3.1% compared with the same period last year. Excluding this impact, revenue growth was 18.9%.
Adjusted EBIT in F2011 was $562.0 million, compared with $511.9 million in F2010, an increase of 9.8%. Adjusted EBIT margin was 13.0%.
Net earnings were $435.1 million compared with $362.8 million in F2010, an increase of 19.9%. Net earnings margin was 10.1% in F2011, compared with 9.7% in the previous year.
Diluted earnings per share were $1.58 compared with $1.24 in F2010, an increase of 27.4%.
For the fiscal year, CGI generated $571.2 million in cash from operations, or 13.2% of revenue, representing $2.07 per diluted share.
During the fiscal year, the Company acquired 16.4 million shares as part of its previous and current Normal Course Issuer Bid for $305.0 million, at an average price of $18.63. In addition, the Company reduced its net debt by $113.4 million during the fiscal year finishing with net debt of $897.4 million, representing a net debt to capitalization of 26.8%.
In fiscal 2011, new contract signings totaled $4.9 billion or 113% of revenue. The Company’s backlog at year-end was $13.5 billion or 3.1 times our 2011 revenue.
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Q4 F2011 Results
For the fourth quarter of fiscal 2011, CGI generated revenue of $1.03 billion, compared with $1.01 billion in the year ago period, representing an increase of 2.4%. On a constant currency basis, this represents growth of 5.3%. Foreign exchange fluctuations unfavourably impacted revenue by $29.2 million or 2.9% compared with the same period last year.
Net earnings in the fourth quarter were $73.1 million and diluted earnings per share were 27 cents. This compares with $84.1 million or 30 cents per share in the year ago period. This reflects a pre-tax charge of $45.4 million related to the advancement of real estate consolidation plans, workforce adjustments and a non-cash impairment charge related to business solutions.
Excluding this charge, adjusted EBIT in Q4-2011 was $148.2 million, or 14.4% of revenue compared with $149.1 million or 14.8% of revenue in the same period last year.
Net earnings in the fourth quarter would have been $104.8 million, representing a margin of 10.2%. This compares with Q4 2010 net earnings of $101.1 million, or 10.0% of revenue.
Diluted earnings per share would have been 39 cents, compared with 36 cents in the fourth quarter of 2010, representing an increase of 8.3%.
“While the restructuring charge in the fourth quarter was necessary to improve our competitive position, it will be accretive to earnings per share in fiscal 2012,” said Michael E. Roach, President and CEO. “We delivered strong and balanced results in fiscal 2011 and have entered fiscal 2012 in an excellent position both strategically and operationally.”
Cash provided by operating activities totaled $192.8 million in the fourth quarter or 18.7% of revenue representing $0.71 per share.
In the fourth quarter, new contract signings totaled $1.5 billion, or 143% of revenue, composed primarily of new bookings in the government and financial services sectors.
“Despite ongoing uncertainty in the US federal marketplace, we have seen a significant increase in contract awards as CGI Federal delivered a record book-to-bill of 269% in the quarter,” added Mr. Roach. “We remain convinced that CGI is well-positioned to continue growing our government business globally, and specifically in the US as the flow of contract awards returns to more normalized levels.”
The following table presents the Q4 results for both 2010 and 2011:
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As part of its Normal Course Issuer Bid, the Company acquired 3.3 million shares for $63.8 million during the fourth quarter of 2011 at an average price of $19.13 per share. This brings the cumulative total number of shares purchased under the current Normal Course Issuer Bid to approximately 9.7 million shares or 42% of the authorized limit for the current buyback program, which runs into February 2012.
Q4 and Full-Year F2011 Results Conference Call
Senior management will host a conference call to discuss results at 9 a.m. EST this morning. Participants may access the call by dialing (866) 223-7781 or on the Web at www.cgi.com/investors. Supporting slides for the call will also be available. For those unable to participate on the live call, a podcast and copy of the slides will be archived for download at www.cgi.com/investors.
About CGI
Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 31,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices and centers of excellence in Canada, the United States, Europe and Asia Pacific. As at September 30, 2011, CGI's revenue was $4.3 billion and its order backlog was $13.5 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in both the Dow Jones Sustainability Index and the FTSEXGood Index. Website: www.cgi.com.
Non-GAAP financial metrics used in this release: Constant currency growth, adjusted EBIT, net debt to capitalization, DSO, ROE and ROIC
CGI reports its financial results in accordance with GAAP. 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 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 section 138.3 and following of the Ontario Securities Act. 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 Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), 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. You will find more information about the risks that could cause our actual results to differ significantly from our current expectations in the Risks and Uncertainties section.
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For more information:
Colin Brown
Manager, Investor Relations
colin.brown@cgi.com
514-841-3634
