At CGI's annual shareholders' meeting today, which for the first time was also broadcast live on the company's web site, Serge Godin, Chairman and CEO, reported that the company achieved a number of milestones during the past year that significantly strengthen its position in the IT services industry in North America and internationally.
"We are determined to rapidly become a world champion in the field of IT services," Mr. Godin said.
Mr. Godin said that during the past year, CGI:
- Maintained high growth in key performance measures - revenue, EBITDA, earnings, earnings per share and cash flow - while maintaining a strong balance sheet and building a net cash position in excess of $100 million.
- Gained the critical mass required to propose on a regular basis on IT services megacontracts. The company's annual revenue run rate is CDN$1.3 billion, making CGI the sixth largest IT services company in North America.
- Increased its order backlog to CDN$6.5 billion from CDN$1.3 billion a year ago. This backlog of secured contracts ensures revenue growth into the future, contributes to earnings stability and helps make CGI a defensive stock as well as a growth stock.
- Increased IT outsourcing contracts, as a percentage of total revenue, to 75% on a run rate basis. Outsourcing contracts typically are for five to 10 years, expandable and renewable.
- Increased to 80% the proportion of high value added services contracts, including systems architecture, systems development and maintenance and business process re-engineering.
- Through acquisitions and new contracts, strengthened its position in the financial services sector - notably retail banking and property and casualty insurance - and became a major player in the telecommunications sector. These are among the two largest sectors for IT services investments, and now represent more than 75% of CGI's revenue.
- In October, listed its shares on the New York Stock Exchange to broaden its investor base and provide a local currency for U.S. acquisitions.
- Continued to be one of the best performing stocks on the Toronto and Montreal stock exchanges, with a gain of 155% for the calendar year.
"We doubled the number of CGI employees to 8,000, adding IT expertise and depth of management, and we increased our presence in the U.S. and internationally," said Jean Brassard, President and Chief Operating Officer.
"This growth reflects our commitment to partner with our clients to meet or exceed their requirements," Brassard said. "We have earned the reputation for consistently delivering on time and on budget. This results largely from our ISO 9001 management frameworks, which are extended to our outsourcing clients and in turn become a marketing advantage for them with their customers."
CGI is the largest independent information technology consulting firm in Canada and the sixth largest in North America, based on its revenue run rate of $1.3 billion. The company's order backlog totals approximately $6.5 billion. CGI has 8,000 professionals and provides end-to-end IT services and business solutions to some 2,000 clients in Canada, the United States and 20 countries around the world. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto and Montreal exchanges (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite and TSE 200 indexes. Web site: www.cgi.ca
All statements contained in this or any other press release of CGI Group Inc., or in any document filed by the Company with the U.S. Securities and Exchange Commission, or in any other written or oral communication by or on behalf of the company, that do not directly and exclusively relate to historical facts, constitute "forward looking statements" within the meaning of the U.S. Private Securities Litigation Report Act of 1995. These statements represent the Company's expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved.
This press release may contain forward looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the company's business and results of operations. There are a number of factors that could cause actual results to differ materially from those indicated. Such factors include, without limitation, the various factors set forth in the Company's annual report.
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For further information, contact:
André Imbeau
Executive Vice-President & CFO
(514) 841-3200
Paule Doré
Executive Vice-President, Corporate Affairs
(514) 841-3200
