CGI: Increases of 30 Percent in Revenues and 325 Percent in Net Earnings for the Third Quarter.MONTREAL--(BUSINESS WIRE)--Aug. 6, 1996--CGI GROUP INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. .(ME, TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : GIB See NIST binary. .A) The three months ended June June: see month. 30, 1996 were highlighted by major strategic developments and a strong financial performance for CGI CGI in full Common Gateway Interface. Specification by which a Web server passes data between itself and an application program. Typically, a Web user will make a request of the Web server, which in turn passes the request to a CGI application program. . Revenue rose to $32.4 million, up 30 percent. Net earnings more than quadrupled, climbing from $204,000 to $867,000. Earnings per share amounted to $0.10 on a weighted average of 8,900,000 participating shares outstanding, more than triple the earnings per share of $0.03 (weighted average of 6,400,000 shares outstanding) for the corresponding quarter of 1995. CGI posted a 66 percent increase in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (earnings before R&D, depreciation, amortization, interest and income taxes), which amounted to $3.4 million for the third quarter. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: rose from 8.2 percent to 10.5 percent, mostly as a result of a higher personnel assignment rate due to the growth in business volume. The Company's profitability also benefited from a reduction in financial expenses of $400,000 since the beginning of the third quarter, and of $945,000 since the beginning of the year. For the nine months ended June 30, 1996, CGI recorded net earnings of $2,146,000, up 129 percent over net earnings of $939,000 generated for the same period in 1995. Earnings per share grew by 73.3 percent to $0.26 on a weighted average of 8,400,000 shares outstanding, up from $0.15 on 6,400,000 shares for the corresponding period of the previous year. Revenue totalled $83.5 million, up 12.8 percent over the first nine months of 1994-1995. The Company generated cash flow of over $4.7 million or $0.57 per share. In addition to internal growth, the increase in revenues during the third quarter is partly attributable to the acquisition of the outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. division of the IST Group effective May 1, 1996, which contributed to results for the last two months of the period. Recent Events Along with the acquisition of IST, the third quarter gave rise to a major strategic development in the outsourcing segment: the creation by CGI and the Caisse Caisse, a French word, may refer to:
Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. of a new service company specializing in information technology services for portfolio management. This company, in which CGI will hold 70 percent of the voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. , will start operations with an outsourcing contract for the Caisse valued at approximately $45 million, or $8.7 million annually for the next five years. On July July: see month. 5, 1996, CGI also completed the acquisition of all the outstanding shares of Optel P.M.I. Conseillers en Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Inc., a Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. firm with 25 professionals specializing in telecommunications consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" for large private-sector corporations and government agencies. In terms of business development, CGI has generated more than $20 million in new outsourcing contracts in the last three months, including an $11 million contract obtained in early July. Moreover, since the implementation of their strategic alliance in November November: see month. 1995, CGI and Bell Canada Bell Canada Enterprises (TSX: BCE, NYSE: BCE), legally BCE Inc., is a major Canadian telecommunications company. Through its subsidiaries including Bell Canada, Bell Aliant, Northwestel, Télébec, and NorthernTel, it is the incumbent local exchange carrier for have jointly developed contracts worth estimated revenues of $10 million for CGI. Also, CGI was successful in the marketing of business solutions, including the "year 2000" business solution which has yielded contracts worth $12 million since its launch. In addition, the Company further penetrated the international market by obtaining a $2 million contract for a European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. consortium for the installation of the AMICUS library system, a $2 million contract for a steel mill in Thailand, and contracts totalling approximately $1 million for the implementation of its frequency spectrum management system in Kuwait and Saudi Arabia Saudi Arabia (sä  `dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. .Outlook "In the past nine months, CGI has acquired the scope, positioning and tools to undergo steady expansion in the years to come," commented Serge serge 1 n. A twilled cloth of worsted or worsted and wool, often used for suits. [Middle English sarge, from Old French, from Vulgar Latin *s Godin, Chairman of the Board and Chief Executive Officer of the Company. "Our agreement with the Caisse de depot, together with the acquisitions of IST and Optel, will really start to contribute to CGI's financial results as of the fourth quarter of this year. Not only will 1995-1996 be our best fiscal year ever, but these recent events combined with our strategic alliance with Bell Canada, will in themselves generate enough revenues for CGI to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the average industry growth rate over the coming 12 months." Mr. Godin added that growth will stem primarily from the added-value outsourcing services sector, where the Company today has more than 400 professionals and six business centres in Quebec and Ontario. "The year's achievements have enabled us to broaden our range of skills and strengthen our technological infrastructure, thereby positioning us as a major force in outsourcing. We plan to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this positioning to step up our growth through acquisitions and strategic alliances," concluded Mr. Godin. -0-
THE CGI GROUP INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of dollars, except earnings per share)
(unaudited)
Three months ended June 30
1996 1995
Revenue $32,404 $24,918
_______ _______
Operating expenses
Direct costs, selling
and administration
expenses 29,010 22,877
Research and development 799 730
Depreciation and
amortization of fixed
assets 509 300
Amortization of
development costs 20 47
Amortization of goodwill 149 62
Interest on long-term debt 60 75
Other interest expenses 67 452
_______ _______
30,614 24,543
_______ _______
Earnings before income taxes and equity in an entity subject to significant influence 1,790 375
Income taxes 791 171
_______ _______
Earnings before equity in an
entity subject to significant
influence 999 204
Equity in an entity to significant
influence (132) -
_______ _______
NET EARNINGS $867 $204
_______ _______
Weighted average number of
outstanding first preferred
shares, Series 1, Class A
subordinate shares and
Class B shares 8,875,348 6,397,636
_________ _________
_________ _________
Earnings per share $0.10 $0.03
_______ _______
_______ _______
Nine months ended June 30
1996 1995
Revenue $83,545 $74,086
_______ _______
Operating expenses
Direct costs, selling
and administration
expenses 75,455 67,979
Research and development 1,884 1,775
Depreciation and
amortization of fixed
assets 1,000 921
Amortization of
development costs 43 141
Amortization of goodwill 277 193
Interest on long-term debt 192 215
Other interest expenses 257 1,179
_______ _______
79,108 72,403
_______ _______
Earnings before income taxes and equity in an entity subject to significant influence 4,437 1,683
Income taxes 1,998 744
_______ _______
Earnings before equity in an
entity subject to significant
influence 2,439 939
Equity in an entity to significant
influence (293) -
_______ _______
NET EARNINGS $2,146 $939
_______ _______
Weighted average number of
outstanding first preferred
shares, Series 1, Class A
subordinate shares and
Class B shares 8,355,072 6,372,389
_________ _________
_________ _________
Earnings per share $0.26 $0.15
_______ _______
_______ _______
CONTACT: CGI Serge Godin, 514/841-3200 Paule Dore, 514/841-3200 |
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