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Gold/Mining/Energy : CGI Group (GIB.A) - -- Ignore unavailable to you. Want to Upgrade?

To: toccodolce who wrote (129)	12/3/1997 3:25:00 PM
From: Dennis McFern	Respond to of 1673

check this out ! =================================================================== Canadian Corporate News --- Hot Off The Wire News Release for "CGI GROUP INC" =================================================================== * As of January 1, 1997, many Canadian public companies are * required to electronically file their disclosure documents. *** Visit tefa.com for more information. =================================================================== NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: CGI GROUP INC. TSE, ME SYMBOL: GIB.A DECEMBER 3, 1997 CGI Reports 90 percent Revenue Growth and 186 percent Net Earnings Growth for Fiscal 1997 MONTREAL, QUEBEC-- Fourth quarter growth of 88 percent in revenues and 401 percent in net earnings CGI (ME, TSE-Gib.A) today announced results for the fiscal year ended September 30, 1997, the 21st consecutive year of revenue growth. Revenue increased by 90.1 percent to $231.9 million compared with $122.0 million the previous year, with approximately half the growth reflecting new and renewed outsourcing and systems integration contracts, and the balance resulting from strategic acquisitions, notably CDSL which CGI acquired in April 1997 and also the first full year of some earlier acquisitions and a joint venture company. Net earnings in fiscal 1997 increased by 185.7 percent to $7.8 million ($0.40 per share) compared with $2.7 million ($0.16 per share) in fiscal 1996 on 13.5 percent more shares outstanding in 1997 on a weighted average basis. The company's net profit margin increased to 3.3 percent in fiscal 1997, including a margin of 3.9 percent in the fourth quarter, from 2.2 percent in fiscal 1996. Cash flow increased 177.6 percent to $21.8 million ($1.12 per share), from $7,851,000 ($0.46 per share) in fiscal 1996. In the fourth quarter ended September 30, 1997, revenue increased 88.3 percent to $72.4 million from $38.5 million in the same quarter of fiscal 1996, and net earnings increased 401 percent to $2.9 million ($0.14 per share) from $572,000 ($0.06 per share) a year ago. Cash flow increased 216 percent to $9.0 million ($0.43 per share), from $2.9 million ($0.16 per share) in the fourth quarter of fiscal 1996. "The fourth quarter performance results from strategic initiatives which position CGI for continuing strong growth in our targeted IT services markets," said Serge Godin, Chairman and CEO. "We continue to strengthen our position in each of our targeted markets through a combination of internal growth and acquisitions." CGI's increasing profitability reflects a number of factors: the growth of outsourcing contracts as a percentage of total revenue, efficiencies resulting from the application of ISO 9001 standards to project management, economies of scale related to business growth, and synergies from integrating recent acquisitions. Subsequent to year end, CGI acquired the Insurance Systems group of Teleglobe Inc. (TIS), the third largest outsourcer and provider of business solutions to the property and casualty insurance industry in North America and the largest in Canada. TIS results were consolidated into those of CGI as of October 23, 1997 and the revenue contribution of this acquisition will be reflected in the first quarter of fiscal 1998. CGI continues to benefit from a strong balance sheet, particularly subsequent to year end with the acquisition of the Insurance Systems group of Teleglobe Inc. (TIS) and the issuance to Bell Canada of an additional $43.7 million of first preferred shares, series 1, to maintain its 23.8 percent interest in CGI. Following these two transactions, on a pro forma basis, CGI as of October 23, 1997 has no debt, $12 million cash, and a $163.7 million increase in shareholders' equity from $72.3 million at September 30, 1997. Following the acquisition in October, CGI had an order backlog in excess of $1.3 billion, compared with $175 million a year earlier. At least half of the increase during the year was from internally generated contracts, primarily new outsourcing contracts and a 100 percent renewal rate of existing contracts. Operations Review During the fourth quarter, CGI continued to build its order backlog. In July, CGI was awarded a $3 million contract to customize and install AMICUS library management software for The British Library in conjunction with Axis Resources. In September, CGI became the first non-financial institution member of Canada's Interac electronic payment system with the ability to provide Interac services including shared cash dispensing and direct payment to clients on a stand alone basis. CGI launched this service with a contract with the Canadian affiliate of Republic National Bank of New York. Subsequent to the fiscal year end, CGI acquired TIS, thereby increasing its revenue run rate to in excess of $500 million, gaining a strong base of property and casualty insurance clients in the U.S. and in Canada, and a presence in the U.K. which will also provide access to European markets. CGI is the largest independent information technology consulting firm Canada. CGI has 4,000 professionals, a revenue run rate in excess of $500 million, and an order backlog valued at over $1.3 billion. CGI provides end-to-end IT services and business solutions to some 2,000 clients throughout North America and elsewhere in the world. /T/ THE CGI GROUP INC. Consolidated statements of earnings years ended September 30 (in thousands of dollars, except earnings per share) 1997 1996 $ $ Revenue 231,916 122,015 ------- ------- Operating expenses Direct costs, selling and administration expenses 203,677 111,299 Research and development 3,115 2,115 Depreciation and amortization of fixed assets 3,583 1,264 Amortization of costs related to outsourcing contracts 3,985 538 Amortization of software and development costs 591 86 Amortization of goodwill 1,517 475 Interest on long-term debt 647 235 Other interest expenses 908 352 -------- ------- 218,023 116,364 -------- ------- Earnings before income taxes, share in the results of an entity subject to significant influence and share of non controlling interest 13,893 5,651 Income taxes 5,685 2,426 -------- ------- Earnings before share in the results of an entity subject to significant influence and share of non controlling interest 8,208 3,225 Share in the results of an entity subject to significant influence, net of deferred income taxes of $159 ($260 in 1996) (310) (507) Share of non controlling interest (133) - -------- ------- Net earnings 7,765 2,718 -------- ------- Weighted average number of outstanding Class A subordinate shares, Class B shares and first preferred shares, Series 1 19,450,702 17,137,172 ---------- ---------- Earnings per Class A subordinate share, Class B share and first preferred share, Series 1 0.40 0.16 -------- ------- /T/ -30- FOR FURTHER INFORMATION PLEASE CONTACT: CGI Group Inc. Andre Imbeau Executive Vice-President and CFO (514) 841-3200 Internet: www.cgi.ca or CGI Group Inc. Paule Dore Executive Vice-President, Corporate Affairs (514) 841-3200 Internet: www.cgi.ca INDUSTRY: DTC SUBJECT: ERN -0- =================================================================== You may change your service options at anytime by visiting: cdn-news.com ===================================================================

To: toccodolce who wrote (129)	12/3/1997 5:51:00 PM
From: BM	Respond to of 1673

CGI Announces 2-for-1 Share Split Here's the announcement Tom - no I hadn't heard (nor voted). DECEMBER 3, 1997 CGI Announces 2-for-1 Share Split MONTREAL, QUEBEC--CGI today announced that its Board of Directors has approved a two-for-one split of all its shares issued and outstanding, effective December 15, 1997. This represents the company's second such split over the past four months. CGI believes that this split will provide greater market liquidity for its Class A Subordinate Shares which are listed on the Toronto and Montreal stock exchanges. CGI is the largest Canadian-owned independent information technology consulting firm with close to 4,000 professionals and a revenue-run rate in excess of $500 million. The company's order book totals more than $1.3 billion. CGI provides end-to-end services and business solutions to some 2,000 clients throughout North America and internationally.

To: toccodolce who wrote (129)	12/4/1997 9:53:00 PM
From: BM	Respond to of 1673

Banking System Services With Ontario Credit Unions Tom, it just keeps getting better doesn't it? With all the cash they have, I'm still waiting for the news of an acquisition of some kind. DECEMBER 4, 1997 CGI Signs Master Agreement for Banking System Services With Ontario Credit Unions MONTREAL, QUEBEC--CGI and a group of more than 70 Ontario-based credit unions today announced the signing of a five-year agreement according to which CGI will provide the credit unions with advanced client-server banking system services. This agreement is expected to generate revenue of approximately $50 million over five years, based on the participation of 70 credit unions. The state-of-the- art solution will allow the credit unions to provide their members with greater product consistency and to broaden services offered while reducing their costs and increasing the system's overall efficiency. "We are pleased to make this enhanced system available to credit unions," said David Agnew, Executive Vice-President and Corporate Secretary at Credit Union Central of Ontario. "As a group, we are joining together to complete the strategic acquisition of a system that places credit unions at the forefront of our industry. With this technology in place, we believe this is the beginning of an important new era for Ontario credit unions." Fran‡ois Chasse, CGI's Executive Vice-President, Technology Management Services, added that "CGI is pleased that it was selected by Ontario credit unions for its new banking services. We have the ability to provide Ontario credit unions with leading-edge technology and to serve their additional needs in areas such as facilities management and telecommunications network services. Based on our 25-year relationship, we understand credit union requirements and are delighted to renew our partnership to help them achieve their strategic direction." CGI's NT(R)-based solution was developed using Prologic Corporation's Ovation(R) banking system and Probe(R) technology. Agnew added that the CGI solution was selected on the basis of an extensive comparative analysis of various leading products. "We chose CGI as a partner because its technology was more advanced and for its ability to deliver a total solution without relying on outside partners for complementary expertise," he said. The system's more advanced architecture and infrastructure will better meet the needs of its credit union members. "One of its advantages is that it is engineered in such a way that other products may be linked to it rather than built into it," added Agnew. "Its extensive scalability will also allow our credit unions to leverage its architecture for as few as one or two workstations or for two hundred." Following the signing of a master contract binding CGI and the credit union group until December 31, 2003, individual credit unions have begun signing their own service agreements with CGI. The credit union group is comprised of financial service co- operatives in every part of Ontario. Together, they have assets of well over $5 billion and more than 500,000 members. Credit unions are community-based financial institutions, owned by their members and offering a full range of financial services. CGI is the largest Canadian-owned independent information technology consulting firm with 4,000 professionals and a revenue run-rate of $500 million. The company's backlog is currently valued at $1.3 billion. It provides end-to-end IT services and business solutions to some 2,000 clients throughout Canada, the U.S. and elsewhere in the world. CGI's shares are listed on the Toronto and Montreal stock exchanges under the GIB.A symbol. Website address: www.cgi.ca

To: toccodolce who wrote (129)	12/9/1997 10:35:00 PM
From: BM	Read Replies (1) \| Respond to of 1673

Tom, I had a hunch about an acquisition - here's one. There are no financials mentioned so perhaps just an exchange of shares. I had thought more in terms of a US acquisition but perhaps there will be more releases leading up to the split next week. DECEMBER 10, 1997 CGI Acquires Interest in it Consulting Firm MONTREAL, QUEBEC--The CGI Group today announced it has signed a letter of agreement with Quebec City-based Conseillers en informatique d'affaires CIA inc., according to which CGI will acquire a 33 1/3 percent interest in the 70-employee firm. "We are pleased to associate ourselves with CIA, a company we know well and which shares our values," said Serge Godin, CGI's Chairman and CEO. "As an information technology firm, CIA specializes in serving the government and the financial sector, two areas of expertise that are of strategic importance to us." Ghyslain Rivard, President and General Manager of CIA, added that "CIA and CGI already cooperate in several projects and we have seen to what extent the sharing of our resources allows us to better serve our respective clients. Working more closely together will enable us to realize important synergies, both in business development and in the delivery of large projects." CIA was founded in 1992 and provides information technology consulting services, primarily to the government and financial sector, including financial institutions and insurance companies. CIA and CGI also share the fact that they have both secured ISO 9001 certification. CGI is the largest Canadian-owned independent information technology consulting firm with 4,000 professionals and a revenue run-rate of $500 million. The company's backlog is currently valued at $1.3 billion. It provides end-to-end IT services and business solutions to some 2,000 clients throughout Canada, the U.S. and elsewhere in the world. CGI's shares are listed on the Toronto and Montreal stock exchanges under the GIB.A symbol. Website address: www.cgi.ca.