CGI Reports Continuing Strong Growth in First Quarter of Fiscal 1999 - Revenue increased 189 percent, EBITDA 212 percent and earnings 268 percent.MONTREAL--(BUSINESS WIRE)--Jan. 27, 1999--CGI Group Inc.(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :GIB See NIST binary. .A.) (ME:GIB.A.) (NYSE NYSE See: New York Stock Exchange :GIB) 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. continued to achieve triple-digit revenue growth and increased profitability while maintaining a strong financial position in the first quarter of fiscal 1999. All dollar amounts are in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents . For the three months ended December 31,1998, CGI reported a 188.7 percent increase in revenue to $334.3 million, compared with $115.8 million in the same quarter of fiscal 1998. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses increased 74.7 percent to $25.5 million ($0.19 per share) from $14.6 million ($0.14 per share) in the first quarter of fiscal 1998. The net profit margin increased to 5.5 percent, from 5.0 percent in the fourth quarter of fiscal 1998 and 4.3 percent in the first quarter of fiscal 1998. The increase reflects the growing proportion of business represented by IT 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. , increasing economies of scale, and additional efficiencies realized from the application of 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 certified See certification. management frameworks. In the first quarter of fiscal 1999, outsourcing represented 75 percent of revenue, compared with 62 percent in the first quarter of 1998. At December 31, 1998 the order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. was $6.5 billion. The balance sheet was strong, with a cash position of $117.7 million and minimal debt. "Through acquisitions and internal growth, CGI is becoming a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , strong growth company," said 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 and Chief Executive Officer. "We are the largest independent IT services company in Canada, where we continue to see excellent growth potential, and the sixth largest 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. . We are committed to becoming a major IT services player in the U.S. market, where we are targeting the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. sectors." As part of its strategy to increase its presence in U.S. markets, CGI listed its shares on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. in October. During and subsequent to the quarter ended December 31, 1998, CGI signed a number of IT services contracts, including: - An $18 million contract over five years with Air Canada to support, maintain and assist in the evolution of the airline's PeopleSoft enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) system for finance, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and pay systems; - A $22 million contract over six years with the Canadian Payments Association The Canadian Payments Association (CPA) is a not-for profit association created in 1980 by an act of parliament, the Canadian Payments Act, to "establish and operate national systems for the clearing and settlement of payments and other arrangements for the making or exchange of to provide systems operating services for the Large Value Transfer System (LVTS LVTS Large Value Transfer System (SAGUS Security) LVTS Local Video Teleconferencing Service ) which will become operational in 1999. The LVTS is a national electronic system designed primarily for sending and receiving Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. large value payments, expected to total more than $100 billion per day; - Contracts with two companies within the BCE BCE abbr. 1. Bachelor of Chemical Engineering 2. Bachelor of Civil Engineering BCE Abbreviation for before the Common Era. Inc. group of companies. CGI signed a $24 million 10-year contract with NEXACOR Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Management, Bell Canada's real estate subsidiary, which includes applications built on J.D. Edwards (J.D. Edwards & Company, Denver, CO, www.jdedwards.com) A developer of multinational, integrated enterprise software for distribution, finance, human resources, manufacturing and supply chain management. ERP solutions. CGI also signed two IT outsourcing contracts with Telebec, BCE's telecommunications subsidiary serving 300 Quebec municipalities, totalling $115 million over 10 years; - A major enterprise software agreement with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Canada, to cost-effectively support CGI customers who use IBM technology. CGI is the largest independent 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 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. 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 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 (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite and TSE 200 indexes. Web site: www.cgi.ca Financial Statements are attached. All statements contained in this or any other press release of 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., 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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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.
CGI GROUP INC.
Consolidated statements of earnings
for the three-month periods ended December 31
(in thousands of dollars, except earnings per share) (unaudited)
--------------------------------------------------------------
1998 1997
---------------------------------------------------------------
$ $
Revenue 334,348 115,796
---------------------------------------------------------------
Operating expenses
Direct costs, selling and
administration expenses 283,688 99,058
Research and development 2,072 1,154
---------------------------------------------------------------
285,760 100,212
---------------------------------------------------------------
Operating earnings
(EBITDA) before: 48,588 15,584
---------------------------------------------------------------
Depreciation and
amortization of fixed assets 6,918 3,160
Amortization of costs related
to outsourcing contracts 4,078 1,871
Amortization of software and
development costs 469 319
Amortization of goodwill 3,760 1,419
---------------------------------------------------------------
15,225 6,769
---------------------------------------------------------------
Earnings before the following items 33,363 8,815
---------------------------------------------------------------
Interest
Long-term debt (179) (174)
Other (66)
Revenue 1,502
---------------------------------------------------------------
1,323 (240)
---------------------------------------------------------------
Earnings before income taxes, entity
subject to significant influence
and non-controlling interest 34,686 8,575
Income taxes 16,468 3,786
---------------------------------------------------------------
Earnings before equity subject
to significant influence and
non-controlling interest 18,218 4,789
Entity subject to significant
influence 19
Non-controlling interest 161
---------------------------------------------------------------
Net earnings 18,237 4,950
---------------------------------------------------------------
---------------------------------------------------------------
Weighted average number of outstanding
Class A subordinate shares, Class B
shares and for 1997 first preferred
shares, Series 1 133,435,674 106,949,186
---------------------------------------------------------------
---------------------------------------------------------------
CGI GROUP INC.
Consolidated statements of retained earnings
for the three-month periods ended December 31
(in thousands of dollars) (unaudited)
---------------------------------------------------------------
1998 1997
---------------------------------------------------------------
$ $
Balance at beginning 55,264 20,436
Net earnings 18,237 4,950
---------------------------------------------------------------
Balance at end 73,501 25,386
CGI GROUP INC.
Consolidated balance sheets
as at December 31
(in thousands of dollars) (unaudited)
---------------------------------------------------------------
1998 1997
---------------------------------------------------------------
$ $
Assets
Current assets
Cash and short-term investments 117,657 9,916
Accounts receivable 196,234 93,795
Income taxes 200
Work in progress 6,511 13,987
Prepaid expenses 9,392 5,887
---------------------------------------------------------------
329,794 123,785
Investment in an entity subject
to significant influence 640
Fixed assets 54,463 30,672
Costs related to outsourcing contracts 61,566 24,927
Software and development costs 1,405 3,660
Deferred income taxes 13,588 10,025
Goodwill 284,305 128,220
---------------------------------------------------------------
745,761 321,289
---------------------------------------------------------------
---------------------------------------------------------------
Liabilities
Current liabilities
Accounts payable and
accrued liabilities 206,901 66,896
Income taxes 14,852
Deferred revenues 17,558
Deferred income taxes 1,031 5,215
Current portion of long-term debt 5,979 3,053
---------------------------------------------------------------
246,321 75,164
Long-term debt 6,956 4,786
Non-controlling interest 339
---------------------------------------------------------------
253,277 80,289
---------------------------------------------------------------
Shareholders' equity
Capital stock 418,772 215,403
Contributed surplus 211 211
Retained earnings 73,501 25,386
---------------------------------------------------------------
492,484 241,000
---------------------------------------------------------------
745,761 321,289
---------------------------------------------------------------
---------------------------------------------------------------
CGI GROUP INC.
Consolidated statements of changes in financial position
for the three-month periods ended December 31
(in thousands of dollars) (unaudited)
---------------------------------------------------------------
1998 1997
---------------------------------------------------------------
$ $
Operating activities
Net earnings 18,237 4,950
Items not affecting cash
Depreciation and amortization
of fixed assets 6,918 3,160
Amortization of costs related
to outsourcing contracts 4,078 1,871
Amortization of software
and development costs 469 319
Amortization of goodwill 3,760 1,419
Deferred income taxes (7,938) 3,014
Entity subject to
significant influence (19)
Non-controlling interest (161)
---------------------------------------------------------------
25,505 14,572
Changes in non-cash operating working
capital items (16,955) 3,373
---------------------------------------------------------------
8,550 17,945
---------------------------------------------------------------
Financing activities
Issue of shares 163,779
Increase in long-term debt 4,107
Repayment of long-term debt (2,463) (21,202)
---------------------------------------------------------------
1,644 142,577
---------------------------------------------------------------
Investing activities
Business acquisitions (126,996)
Acquisitions of fixed assets (7,150) (5,591)
Costs related to outsourcing contracts (6,805) (3,197)
---------------------------------------------------------------
(13,955) (135,784)
---------------------------------------------------------------
Net cash (outflow) inflow (3,761) 24,738
Cash position at beginning 121,418 (14,822)
---------------------------------------------------------------
Cash position at end 117,657 9,916
---------------------------------------------------------------
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