CGI reports strong margin and EPS growth in Q3-F2010

PR Newswire -- July 27, 2010

Q3-F2010 year-over-year highlights from continuing operations:

- Revenue of $901.6 million, up 0.7% on a constant currency basis; - Bookings of $838 million; - Adjusted EBIT of $124.5 million, up 10.0%; - Adjusted EBIT margin of 13.8%, up from 11.9% - Earnings of $85.9 million, up 12.0%; - Earnings margin of 9.5%, up from 8.1%; - Diluted EPS of 30 cents, up 20%; - Cash from operating activities of $102.8 million; - Backlog of $11.4 billion.

Note: All figures are in Canadian dollars and from continuing operations. Q3 F2010 MD&A, financial statements and accompanying notes may be found at and have been filed with both SEDAR in Canada and EDGAR in the U.S.

Stock Market Symbols GIB.A (TSX) GIB (NYSE)

MONTREAL, July 27 /PRNewswire-FirstCall/ - CGI Group Inc. (TSX: GIB.A; NYSE: GIB) reported fiscal 2010 third quarter revenue of $901.6 million. Foreign exchange fluctuations unfavourably impacted revenue by $55.3 million, or 5.8% compared with the same period last year. Sequentially, and year-over-year, revenue was stable on a constant currency basis.

Adjusted EBIT was $124.5 million compared with $113.1 million in the same quarter last year, representing an increase of 10.0% year-over-year. This represents an adjusted EBIT margin of 13.8% up from 11.9% in the third quarter of 2009.

Net earnings were $85.9 million or 9.5% of revenue compared with $76.7 million in the same quarter last year, representing an increase of 12.0% year-over-year.

Diluted earnings per share were 30 cents, up 20.0% compared with 25 cents in the same period last year.

The Company generated $102.8 million in cash from operating activities, or 11.4% of revenue for the third quarter. On a last twelve months basis, CGI has generated $586.3 million or approximately $1.96 in cash per diluted share.

Normal Course Issuer Bid

The Company purchased 7.1 million CGI shares during the quarter for $111.8 million. Since the beginning of the fiscal year on October 1, 2009, 27,483,385 shares were purchased at an average price of $14.31 for a total investment of $393.3 million.

On January 27, 2010 the Company's Board of Directors authorized the renewal of the Normal Course Issuer Bid for the purchase of up to an additional 10% of the Company's public float of shares, or approximately 25 million shares during the next year. As at June 30, 2010 the Company has purchased 40% of its allowable amount.

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