CGI'S FIRST-QUARTER EARNINGS UP 40%.MONTREAL, QUEBEC--(BUSINESS WIRE)--JANUARY 25, 1995--THE CGI GROUP CGI Group Inc. (TSX: GIB.A, NYSE: GIB) is a Canadian-based information technology (IT) management and business process services (BPS) company. Founded in 1976 as Conseillers en Gestion et Informatique 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) During its Annual Meeting of Shareholders held today in Montreal, the information technology service firm 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. announced, for the three months ended December 31, 1994, a fifth consecutive quarterly improvement in results. For the first quarter of this year, CGI posted net earnings of $435,000 or $0.07 per share, up 38.5% over net earnings of $314,000 or $0.05 per share for the same period last year. The Company's revenue totalled $24.4 million, up 8%. In keeping with the trend set over the past year, CGI's enhanced profitability resulted mainly from an increase in the gross margin, and more specifically from a better control of the Company's costs through more efficient management of its large- scale contracts. 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. (before research and development, depreciation and amortization, interest and income taxes) grew by 28% to stand at $1.9 million for the first quarter, while the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: went from 6.6% to 7.8%. Serge Godin, President and Chief Executive Officer of CGI, indicated that the Company's sustained growth and improvement in profitability are especially promising in that they occurred in the area most directly tied to the profitability of the information technology consulting Information technology consulting (IT consulting or business and technology services) is a field that focuses on advising businesses on how best to use information technology to meet their business objectives. industry: the management of large systems integration contracts. To ensure that such fixed-price contracts are profitable and to reduce its risk, CGI has implemented a rigorous management framework covering all phases of a project - from the initial proposal to final delivery - which is systematically applied to all of its new contracts today. Over the past year, the Company has worked towards obtaining ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 certification for its project management framework. CGI's Quebec City office was granted ISO 9001 certification in June 1994, thereby becoming North America's first organization in the information technology consulting field to comply with this international quality standard. Most of the Company's other offices have initiated the certification process, and management expects 90% of CGI's network to achieve ISO 9001 by the end of 1995. In implementing ISO 9001 across the board, the Company's objective is to acquire additional tools to increase it profitability through faster, more cost-effective and more efficient execution of its contracts. Outlook ------- Management believes that CGI's first-quarter results bode well for this year, since the Company normally generates the greatest proportion of its revenues and earnings during the second and third quarter. CGI expects growth of 10% to 15% in its revenues for the year ending September 30, 1995. However, improving its profitability and the effectiveness of its financial resources will remain the Company's priority objective, with a special emphasis on penetrating new markets and the implementation throughout its network of the ISO 9001 standard for its project management framework. Management is confident that the Company's profit margins will continue to rise, based on the trend of the past quarters and the size of its order book, which currently tops the $100 million mark. Profile ------- Founded in 1976, CGI is one of the leading information technology consulting firms in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The Company has over 1,200 employees and reported sales in excess of $93 million for the past 12 months. With its complementary expertise in information systems, telecommunications and management, CGI is strongly positioned in three of its industry's principal sectors: consulting services - including business process reengineering See reengineering. - systems integration and outsourcing. The Company serves some 1,500 medium-sized and large corporations in the private and public sectors through its network of permanent offices and special project offices across Canada and the United States. CGI's subordinate 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. are traded on The Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg and The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the GIB.A ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors . -0-
THE CGI GROUP INC.
CONSOLIDATED STATEMENT OF EARNINGS
for the three-month period ended December 31
(In thousands of dollars, except earnings per share)
(unaudited)
1994 1993
Revenue $24,408 $22,611
__________ _________
Operating expenses
Direct costs, selling and
administration expenses 22,492 21,111
Research and development 395 280
Depreciation and amortization
of fixed assets 287 329
Amortization of development costs 36 47
Amortization of goodwill 67 61
Interest on long-term debt 62 64
Other interest expenses 292 132
__________ _________
23,631 22,024
__________ _________
Earnings before income taxes 777 587
Income taxes 342 273
__________ _________
NET EARNINGS $ 435 $ 314
__________ _________
__________ _________
Weighted average number of
outstanding Class A subordinate
and Class B Shares 6,355,027 6,232,924
__________ __________
__________ __________
Earnings per share, Class A
subordinate and Class B $0.07 $0.05
__________ __________
__________ __________
CONTACT: Andre Imbeau Executive Vice-President and Chief Financial Officer or Paule Dore Vice-President, Corporate Affairs (514) 841-3200 REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-330-5311 or 80 |
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