CGI - SECOND-QUARTER FINANCIAL RESULTS.MONTREAL, QUEBEC--(BUSINESS WIRE)--APRIL 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 ) For the three months ended March 31, 1995, 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. 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. recorded revenue of $24,760,000, an increase of 3.1% compared with revenue for the corresponding quarter of the previous year. 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) rose to $2,150,000, up 11.3% over $1,931,000 last year. The Company posted net earnings of $300,000 or $0.05 per share, down from $484,000 or $0.08 per share for the same period one year earlier, mainly due to higher financial expenses. For the first six months of the current fiscal year, CGI recorded sales of $49,168,000, up 5.5% over revenues for the corresponding period in 1994. Operating income grew by 18.5% to $4,066,000, up from $3,431,000 last year. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: therefore improved from 7.4% to 8.3%. CGI posted net earnings of $735,000 or $0.12 per share, compared with $798,000 or $0.13 per share in 1994. CGI was awarded new contracts with in excess of $35 million during the second quarter, half of which were in outsourcing. The Company also delivered several major systems integration projects according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. schedule and within budget, which will generate substantial cash inflows over the next three months. In addition, the Company closed its Victoria, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography office, which mainly served government agencies in the region. Due to the shrinking of this market in recent years, CGI has decided to concentrate on the private sector in British Columbia. This closing, which is partially accountable for the moderate growth of revenue compared with last year, resulted in non- recurring operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of approximately $250,000 during the second quarter, but will have a beneficial effect on the Company's general profitability. "We are pleased to see that despite the costs associated with closing the Victoria office, our operating margin further improved during the second quarter, rising from 8% in 1994 to 8.7% this year. This favourable trend stemmed directly from our strategy aimed at implementing our project management framework and the 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 standard throughout the Group," stated Serge Godin, President and Chief Executive Officer of CGI. 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 of approximately $94 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, 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 covering Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. . 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 .
THE CGI GROUP INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of dollars, except earnings per share)
(unaudited)
Three months ended March 31,
1995 1994
Revenue $ 24,760 $ 24,006
_________ _________
Operating expenses
Direct costs, selling and
administration expenses 22,610 22,075
Research and development 650 462
Depreciation and amortization
of fixed assets 334 257
Amortization of development costs 58 47
Amortization of goodwill 64 62
Interest on long-term debt 78 50
Other interest expenses 435 197
_________ _________
24,229 23,150
_________ _________
Earnings before income taxes 531 856
Income taxes 231 372
_________ _________
NET EARNINGS $ 300 $ 484
_________ _________
_________ _________
Weighted average number of outstanding
Class A and Class B Shares 6 364 608 6 266 386
_________ _________
_________ _________
Earnings per share, Class A subordinate
and Class B $ 0.05 $ 0.08
_________ _________
_________ _________
Six months ended March 31,
1995 1994
Revenue $ 49,168 $ 46,617
_________ _________
Operating expenses
Direct costs, selling and
administration expenses 45,102 43,186
Research and development 1,045 742
Depreciation and amortization
of fixed assets 621 586
Amortization of development costs 94 94
Amortization of goodwill 131 123
Interest on long-term debt 140 114
Other interest expenses 727 329
_________ _________
47,860 45,174
_________ _________
Earnings before income taxes 1,308 1,443
Income taxes 573 645
_________ _________
NET EARNINGS $ 735 $ 798
_________ _________
_________ _________
Weighted average number of outstanding
Class A and Class B Shares 6 359 765 6 240 424
_________ _________
_________ _________
Earnings per share, Class A subordinate
and Class B $ 0.12 $ 0.13
CONTACT: Andre Imbeau Executive Vice-President and Chief Financial Officer Paule Dore Vice-President, Corporate Affairs (514) 841-3200 |
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