CGI reports revenue of $1.1 billion and net earnings of $53 million for first nine months of fiscal 2000
Montreal, Quebec - Wednesday, July 26, 2000, 7:00 AM EDT
* Third quarter revenue totals $330.7 million;
net earnings are $6.9 million
CGI Group Inc. (TSE: GIB.A; NYSE: GIB) announced today its
financial results for the nine months and third quarter ended
June 30, 2000. Results are in line with the pre-announcement of
June 22, 2000. All figures are in Canadian dollars.
For the first nine months of the year, CGI recorded revenue of
$1.1 billion, compared with $1.0 billion for the same period one
year earlier. Revenue from projects related to the BCE Inc. group
of companies amounted to $359 million or 32.2% of the total,
compared with $392 million or 38.6% of the total a year ago.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) totalled $146.9 million, compared with $157.7 million in
the first nine months of 1999. CGI recorded earnings before
amortization of goodwill of $66.4 million, or $0.25 per share,
compared with $72.6 million, or $0.27 per share, in the first
nine months of fiscal 1999. Net earnings for the nine months
totalled $53.2 million, or $0.20 per share, compared with $61.2
million, or $0.23 per share, the previous year.
For the three-month period ended June 30, 2000, CGI's revenue
totalled $330.7 million, compared with $342.3 million in the
third quarter a year ago. EBITDA in the third quarter was $28.9
million, compared with $56.5 million in 1999. Earnings before
amortization of goodwill for the period were $11.3 million, or
$0.04 per share, compared with $25.6 million, or $0.10 per share,
a year ago. Net earnings were $6.9 million, or $0.03 per share on
a fully diluted basis, compared with $21.7 million, or $0.08 per
share fully diluted, in the third quarter of fiscal 1999.
During the quarter, CGI signed $100 million in new contracts. As
of the third quarter, CGI's e-business revenue has grown to 25%
of total revenue and represents $330 million on an annualized
basis. Today, most of CGI's new projects have an e-business
component. The Company's order backlog totalled $7.0 billion at
June 30, 2000, compared with $7.2 billion at March 31, 2000.
The Company's balance sheet remains strong, with cash and cash
equivalents of $33.3 million and working capital of $180.3
million.
"During the third quarter, we have been supporting some of our
key clients in their cost reduction programs," said Serge Godin,
chairman and CEO of CGI. "As part of the normal course of
business for outsourcing contracts, we commit to helping our
clients reduce their IT costs. Normally, this reduction is offset
by the signing of additional new business with other clients. In
the third quarter, however, CGI did not sign large IT outsourcing
contracts because of delays in the awarding of contracts in the
industry, and this has impacted our results," he added.
"But while experiencing delays in IT systems integration and
consulting work, CGI continues to sign a growing number of
e-business projects," said Mr. Godin. "Also, the need for major
IT services in our targeted economic sectors should translate
into solid demand in fiscal 2001. The North American IT industry
seems to be resuming growth and we are confident of realizing
part of our $4 billion in proposals outstanding over the
mid-term," he added.
CGI's $50 million e-business strategic investment program is
already generating new contracts. For example, CGI recently
signed application service provider (ASP) contracts using an SAP
platform. Also, the Company has submitted several bids to clients
for Internet Data Centre (IDC) services that include a
Web-hosting, database management and call centre offering. The
Company's technology infrastructure provides it with a
competitive edge in this area.
Founded in 1976, CGI is the largest Canadian information
technology consulting firm and the fifth largest independent in
North America, based on its revenue run rate of CDN$1.3 billion.
CGI's order backlog totals CDN$7.0 billion. CGI has 9,000
professionals and provides end-to-end IT services and business
solutions to 2,500 clients in Canada, the United States and more
than 23 countries around the world. CGI's shares are listed on
the New York Stock Exchange (GIB), as well as on the Toronto
Stock Exchange (GIB.A). The Company is included in the TSE 300
Composite and TSE 100 indices. Web site: www.cgi.ca.
Financial statements are attached.
All statements contained in this or any other press release of
CGI Group 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 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 or Form 40F filed with the SEC and its
Annual Information Form filed with Canadian securities
commissions, which important factors are included here by
reference. |
