SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 OF
THE
SECURITIES EXCHANGE ACT OF 1934
For
the month of August 2007
Commission
File Number 1-14858
CGI
Group Inc.
(Translation
of Registrant’s Name Into English)
1130
Sherbrooke Street West
7th
Floor
Montréal,
Québec
Canada H3A
2M8
(Address
of Principal Executive Offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F
Form 40-F ü
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ____
Note:
Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form
6-K
if submitted solely to provide an attached annual report to security
holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7): ____
Note:
Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form
6-K
if submitted to furnish a report or other document that the registrant foreign
private issuer must furnish and make public under the laws of the jurisdiction
in which the registrant is incorporated, domiciled or legally organized (the
registrant's "home country"), or under the rules of the home country exchange
on
which the registrant's securities are traded, as long as the report or other
document is not a press release, is not required to be and has not been
distributed to the registrant's security holders, and, if discussing a material
event, has already been the subject of a Form 6-K submission or other Commission
filing on EDGAR.
Indicate
by check mark whether the registrant by furnishing the information contained
in
this form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No ü
If
“Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-___.
Enclosure:
Press release dated August 1, 2007.
This
Form 6-K shall be deemed incorporated by reference in the Registrant’s
Registration Statement on Form S-8, Reg. Nos. 333-13350, 333-66044, 333-74932
and 333-112021.
PRESS
RELEASE
Stock
Market Symbols
GIB.A
(TSX)
GIB
(NYSE)
CGI
POSTS Q3 BOOKINGS OF $1 BILLION,
GROWS
YEAR-OVER-YEAR REVENUE BY 8% AND
INCREASES
NET EARNINGS BY 80%
Q3
Highlights
|
·
|
Revenue
of $933.3 million;
|
|
·
|
Net
earnings of $64.4 million;
|
|
·
|
Net
earnings margin of 6.9%;
|
|
·
|
Basic
EPS of 20 cents;
|
|
·
|
Cash
generated from operating activities of $134.6
million;
|
|
·
|
Debt
reduction and stock buy backs totaled $86.1
million;
|
|
·
|
Bookings
of $1.0 billion.
|
Note:
Full Q3 F2007
MD&A, financial statements and accompanying notes may be found at
www.cgi.com and
have been filed
with both Sedar in Canada and Edgar in the
U.S.
Montreal,
Quebec, August 1, 2007– CGI Group Inc. (TSX: GIB.A; NYSE: GIB) reported
fiscal 2007 third quarter revenue today of $933.3 million, representing 7.7%
year-over-year growth.
On
a
constant currency basis, the Company grew by 8% year-over-year – 6% in Canada;
10% in the U.S.; and 15% in Europe and Asia Pacific – and slightly improved on a
sequential basis.
Net
earnings in Q3 were $64.4 million or 6.9% of revenue compared with net earnings
of $35.9 million or 4.1% of revenue in the same quarter last year. This
represents an 80% increase year-over-year.
Basic
earnings per share in the third quarter were 20 cents, and 19 cents on a fully
diluted basis. This compares with 11 cents on both a basic and fully diluted
basis in the same period last year.
The
Company generated $134.6 million in cash from its operating activities, or
14.4%
of revenue. This compares with $107.6 million in the third quarter of fiscal
2006. Over the last twelve months, CGI has generated $481.6 million or $1.45
in
cash per share from its operating activities.
“Our
strategic initiatives, including our full offering business development strategy
and the accelerated deployment of our global delivery model, continue to yield
the desired positive outcomes of increased bookings, revenue and margins,” said
Michael E. Roach, President and Chief Executive Officer.
CGI
Reports Q3 F2007 Results
August 1, 2007
Page 2
|
In
000’s except margin, share data amounts and
ratios
|
||||
|
Q3
F2007
|
Q3
F2006
|
Nine
months
ending
June
30,
2007
|
Nine
months
ending
June
30,
2006
|
|
|
Revenue
|
$933,318
|
$866,504
|
$2,788,720
|
$2,631,803
|
|
Net
earnings
|
$64,433
|
$35,944
|
$170,825
|
$107,001
|
|
Margin
|
6.9%
|
4.1%
|
6.1%
|
4.1%
|
|
Basic
earnings per share
|
$0.20
|
$0.11
|
$0.52
|
$0.29
|
|
Fully
diluted earnings per share
|
$0.19
|
$0.11
|
$0.51
|
$0.29
|
|
Weighted
average number of outstanding shares
|
328,830,594
|
338,714,368
|
329,451,399
|
371,656,027
|
|
Interest
on long-term debt
|
$9,375
|
$13,146
|
$33,488
|
$29,852
|
|
Total
long-term debt
|
$518.1
|
$810.7
|
||
|
Net
debt to capitalization
|
17.7%
|
25.5%
|
||
|
Days
of sales outstanding (DSO)
|
43
|
48
|
||
|
Bookings
|
$1,006,858
|
$877,177
|
Note:
All dollar figures are in Canadian dollars, unless otherwise
specified.
During
the quarter, the Company booked $1.0 billion in new contract wins, extensions
and renewals, resulting in a book-to-bill of 108% in the quarter. At the end
of
June 2007, the Company’s backlog stood at $12.4 billion or more than 3.5 times
annualized revenue.
As
part
of its Normal Course Issuer Bid, the Company repurchased for cancellation
1.3 million subordinate class A shares during the third quarter at an
average price of $11.28 per share, for a total investment of $14.4 million.
To date in fiscal 2007, the Company has bought 6.7 million shares at an average
price of $9.53 per share for a total investment of $63.8 million.
In
addition, long-term debt decreased by $75.9 million during the quarter. At
the
end of June 2007, net debt was reduced to $421.4 million, improving the
Company’s net debt to capitalization ratio to 17.7%. The Company continues to
enhance its financial flexibility to invest in large outsourcing contracts,
accretive acquisitions, buy back additional shares of CGI and continue to reduce
debt.
“I
am
very pleased with our strong overall performance this quarter and year-to-date.
I am also pleased that the market has begun to reflect our performance in the
valuation of CGI’s equity. As we continue executing to our strategic plan, there
remain significant appreciation opportunities,” concluded Michael E.
Roach.
Quarterly
Conference Call
CGI’s
Executive Team will host a conference call to discuss results at 9:00 am EDT
this morning. Participants may access the call by dialing toll-free
(866) 542-4146 or on www.cgi.com. Supporting slides for the call
will also be available. For those unable to participate on the live call, a
webcast as well as a copy of the slides will be archived. In addition, podcasts
of earnings calls are available for download through RSS feeds or on
www.cgi.com.
Use
of Non-GAAP Financial Information
CGI
reports its financial results in accordance with GAAP. However, management
believes that certain non-GAAP measures provide useful information to investors
regarding the Company’s financial condition and results of operations as they
provide additional measures of its performance. Explanations as well as a
reconciliation of these non-GAAP measures with GAAP financial statements are
provided in the MD&A which is posted on CGI’s website, and filed with SEDAR
and EDGAR.
CGI
Reports Q3 F2007 Results
August 1, 2007
Page 3
About
CGI
Founded
in 1976, CGI Group Inc. is one of the largest independent information technology
and business process services firms in the world. CGI and its affiliated
companies employ approximately 25,500 professionals. CGI provides end-to-end
IT
and business process services to clients worldwide from offices in Canada,
the
United States, Europe, Asia Pacific as well as from centers of excellence in
North America, Europe and India. CGI's annual revenue run rate stands at $3.7
billion (US$3.5 billion) and at June 30th, 2007, CGI's
order
backlog was $12.4 billion (US$11.6 billion). CGI shares are listed on the TSX
(GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index
as well as the S&P/TSX Capped Information Technology and MidCap Indices.
Website: www.cgi.com.
Forward-Looking
Statements
All
statements in this press release that do not directly and exclusively relate
to
historical facts constitute “forward-looking statements” within the meaning of
that term in Section 27A of the United States Securities Act of 1933, as
amended, and Section 21E of the United States Securities Exchange Act of 1934,
as amended, and are “forward-looking information” within the meaning of sections
138.3 and following of the Ontario Securities Act, as amended. These statements
and this information represent CGI Group Inc.’s (“CGI”) intentions, plans,
expectations and beliefs, and are subject to risks, uncertainties and other
factors, of which many are beyond the control of the Company. These factors
could cause actual results to differ materially from such forward-looking
statements or forward-looking information. These factors include and are not
restricted to the timing and size of new contracts, acquisitions and other
corporate developments; the ability to attract and retain qualified members;
market competition in the rapidly-evolving information technology industry;
general economic and business conditions, foreign exchange and other risks
identified in the Management’s Discussion and Analysis (“MD&A”) in CGI’s
Annual Report or Form 40-F filed with the U.S. Securities and Exchange
Commission (filed on EDGAR at www.sec.gov), and in CGI’s annual and
quarterly MD&A and Annual Information Form filed with the Canadian
securities authorities (filed on SEDAR at www.sedar.com), as well as
assumptions regarding the foregoing. The words “believe,” “estimate,” “expect,”
“intend,” “anticipate,” “foresee,” “plan,” and similar expressions and
variations thereof, identify certain of such forward-looking statements or
forward-looking information, which speak only as of the date on which they
are
made. In particular, statements relating to future performance are
forward-looking statements and forward-looking information. CGI disclaims any
intention or obligation to publicly update or revise any forward-looking
statements or forward-looking information, whether as a result of new
information, future events or otherwise. Readers are cautioned not to
place undue reliance on these forward-looking statements or on this
forward-looking information.
-30-
For
more information:
Investors
Lorne
Gorber
Vice-President,
Global Communications and Investor Relations
514-841-3355
Media
Philippe
Beauregard
Director,
Corporate Communications and Public Affairs
514-841-3218
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
CGI
Group Inc.
|
||
|
Date:
August 1, 2007
|
(Registrant)
By
/s/ David G.
Masse
Name: David
G. Masse
Title: Assistant
Corporate Secretary
|
|