AGM speaking notes - part 3
Andre Imbeau, EVP and CFO
Thank you, Jean.
The total quality approach discussed by Jean also applies to our financial management, which emphasizes a strong balance sheet. Balance sheet strength has become particularly important with the increasing percentage of outsourcing business, as these clients look to partnering with us for five to 10 years or more.
This past year, concurrent with our outstanding growth, we basically eliminated all debt and achieved a balance sheet which ranks with the best in the industry.
I'll provide a brief overview of fiscal 1997, and then provide first quarter 1998 results released today.
Fiscal 1997 marked the 21st consecutive year of revenue growth - and the strongest, growing 90% to $231.9 million.
Net earnings increased 186% to $7.8 million or 20 cents per share, adjusted for the 2-for1 stock split last month and based on 13% more shares outstanding than a year ago.
Cash flow increased 177% to $21.8 million or 56 cents per share.
Our net profit margin increased to 3.3% from 2.2% in 1996. In the fourth quarter, it increased to 3.9%.
We have provided a pro forma balance sheet to reflect the TIS acquisition and the additional $43.7 million invested by Bell Canada in CGI to maintain its interest at 23.8%.
On this basis, shareholders' equity increased 226% to $236 million; we eliminated debt and had $12.7 million cash.
Results for the first quarter ended December 31, which we released earlier this morning, continue strong. Revenue increased 175% to $115.8 million from a year ago, reflecting acquisitions and internal growth.
Net earnings increased 379% to $5.0 million, with earnings per share increasing 234% to 9 cents. This resulted in a net margin of 4.3%, compared with 2.5% a year ago. Cash flow increased 452% to $14.6 million, or 27 cents per share.
Looking ahead, continuing growth is virtually guaranteed by our much expanded order backlog, and we plan to continue to gradually increase profit margins thanks to our business mix and economies of scale.
Serge will now conclude with an outlook. Serge. |
