46 slides from Cgi Inc. Class A's earnings presentation, Aug 1, 2007
Slide 1: About CGI
About CGI CGI Group Inc. Quarterly Report 3 For the third quarter ended June 30, 2007 Founded in 1976, CGI Group Inc. ("CGI") is one of the largest independent information technology ("IT") and business process services firms in the world. CGI and its Stock Exchanges affiliated companies employ appr
Slide 2: Table of Contents
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Table of Contents CONTRACTUAL OBLIGATIONS ................................................ 16 BASIS OF PRESENTATION..........................................................
Slide 3: Basis of Presentation and Forward-Looking Statements
CGI Group Inc. Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Basis of Presentation Throughout this document, CGI Group Inc. is referred to as “CGI”, “we” , “our” or “Company”. This Management’s Discussion and Analysis o
Slide 4: Non-GAAP Measures
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Adjusted EBIT is used by our management as a measure of our operating performance as it provides information that can be used to evaluate the effectiveness of our business f
Slide 5: Competitive Environment, Vision, Mission and Strategy
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 We take great pride in delivering services of the highest quality to our clients. To do so consistently, we have implemented and maintain a quality program under the ISO (In
Slide 6: Acquisition, CIA Control and Share Repurchase
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Acquisition On May 3, 2007, we completed the acquisition of privately held Codesic Consulting, an IT services firm located in Seattle, Washington, for an aggregate considera
Slide 7: Overview of the Third Quarter
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Overview of the Third Quarter Selected Quarterly Information June 30, March 31, December 31, September 30, June 30, For the 3 months ended 2007 2007 2006 2006 2006 Backlog1
Slide 8: Overview of Financial Performance
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Overview of Financial Performance Revenue Variation 3 months 3 months 9 months 9 months ended June ended June ended June ended June 30, 2007 30, 2006 30, 2007 30, 2006 Reven
Slide 9: Revenue by Line of Business
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Revenue by Line of Business (LOB) 3 months 3 months 9 months 9 months ended June, ended June ended June ended June 2007 30, 2006 Change 30, 2007 30, 2006 Change (in '000 of
Slide 10: Revenue Distribution
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Revenue Distribution The following tables provide additional information regarding our revenue mix: C E D A B i A B A C ii B Contract Types Geographic Markets Targeted Verti
Slide 11: Client Concentration and Operating Expenses
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Client Concentration In the third quarter of fiscal 2007, our revenue from BCE and its subsidiaries, our largest client, represented 11.4% of our total revenue, compared to
Slide 12: Adjusted EBIT by LOB
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Adjusted EBIT by LOB 3 months 3 months 9 months 9 months ended June ended June ended June ended June 30, 2007 30, 2006 Change 30, 2007 30, 2006 Change (in '000 of dollars ex
Slide 13: Earnings Before Income Taxes
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Earnings Before Income Taxes The following table provides, for the periods indicated, a reconciliation between our adjusted EBIT and earnings before income taxes which is re
Slide 14: Income Taxes and Earnings
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 the 2006 rate was impacted by the revaluation of future income tax balances resulting from a statutory rate decrease in Canada starting in 2008 which was enacted on June 22,
Slide 15: Liquidity
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 CGI’s basic and diluted weighted average number of shares outstanding at the end of the third quarter of 2007 was down 2.9% and 1.2% respectively compared with the third qua
Slide 16: Investing Activities and Cash Flows
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 In the third quarter of 2007, a total of $54.2 million was invested, an increase of $9.7 million compared with the $44.5 million in the same quarter of last year. For the ye
Slide 17: Credit Facilities and Long-term Debt
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 Our cash position and credit facilities are sufficient to support our growth strategy. At June 30, 2007, cash and cash equivalents were $96.7 million and the total available
Slide 18: Off-Balance Sheet Financing and Guarantees
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 In the normal course of business, we may provide certain clients, principally governmental entities, with bid and performance bonds. In general, we would only be liable for
Slide 19: Accounting Policies and Critical Estimates
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 The disclosures provided for the interim periods do not conform in all respects to the requirements of GAAP for the annual consolidated financial statements; therefore, the
Slide 20: Critical Accounting Estimates: Goodwill and Income Taxes
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 experience and client creditworthiness. Indicators of improbable collection include client bankruptcy, client litigation, industry downturns, client cash flow difficulties o
Slide 21: Revenue Recognition
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 to make a reasonable estimate of the loss to determine whether a loss accrual or disclosure in the consolidated financial statements is required. Revenue Recognition The det
Slide 22: Restructuring Accruals
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 The Company announced in the second quarter of fiscal 2006 a plan to reduce its workforce and to close and consolidate certain facilities. The plan was initiated because of
Slide 23: Future Accounting Changes
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 b) Section 3863, “Financial Instruments — Presentation”, establishes standards for presentation of the financial instruments and non- financial derivatives. It carries forwa
Slide 24: Risks Related to Our Industry
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 The availability and retention of qualified IT professionals – There is strong demand for qualified individuals in the IT industry. Over the years, we have been able to succ
Slide 25: Risks Related to Our Business
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 The financial and operational risks inherent in worldwide operations – We manage operations in 16 countries worldwide, with less than 10% of revenue coming from outside Nort
Slide 26: Risks Related to Our Business (continued)
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 fixed-price basis. Billing for fixed-price engagements is made in accordance with the contract terms agreed upon with our client, and revenue is recognized based on the perc
Slide 27: Risks Related to Acquisitions and the Market
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 mass in the U.S. and Europe. We cannot, however, make any assurances that we will be able to identify any potential acquisition candidates, consummate any additional acquisi
Slide 28: Controls and Legal Proceedings
Management’s Discussion and Analysis of Financial Position and Results of Operations For the third quarter ended June 30, 2007 As reported in our 2006 Annual Report, the Company evaluated the effectiveness of its disclosure controls and internal controls over financial reporting, supervised by and w
Slide 29: Consolidated Financial Statements
Consolidated Financial Statements of CGI GROUP INC. For the three and nine months ended June 30, 2007 and 2006
Slide 30: Consolidated Statements of Earnings
CGI GROUP INC. Consolidated Statements of Earnings For the three and nine months ended June 30 (in thousands of Canadian dollars, except share data) (unaudited) Three months ended Nine months ended June 30 June 30 2007 2006 2007 2006 $ $ $ $ Revenue 933,318 866,504 2,788,720 2,631,803 Operating expe
Slide 31: Consolidated Statements of Retained Earnings
Consolidated Statements of Retained Earnings For the three and nine months ended June 30 (in thousands of Canadian dollars) (unaudited) Three months ended Nine months ended June 30 June 30 2007 2006 2007 2006 $ $ $ $ Retained earnings, beginning of period 668,389 534,089 587,201 895,267 Net earnings
Slide 32: Consolidated Balance Sheets
CGI GROUP INC. Consolidated Balance Sheets (in thousands of Canadian dollars) As at June 30, 2007 As at September 30, 2006 (unaudited) (audited) $ $ Assets Current assets Cash and cash equivalents 96,698 115,729 Accounts receivable 475,317 479,767 Work in progress 197,087 197,381 Prepaid expenses an
Slide 33: Consolidated Statements of Cash Flows
CGI GROUP INC. Consolidated Statements of Cash Flows For the three and nine months ended June 30 (in thousands of Canadian dollars) (unaudited)) Three months ended Nine months ended June 30 June 30 2007 2006 2007 2006 $ $ $ $ Operating activities Net earnings 64,433 35,944 170,825 107,001 Adjustment
Slide 34: Notes: Summary of Significant Accounting Policies
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 1. Summary of significant accounting policies The interim consolidated financial statemen
Slide 35: Notes: Accounting Policies (continued)
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 1. Summary of significant accounting policies (continued) Change in accounting policies (
Slide 36: Notes: Finite-life Intangibles and Other Long-term Assets
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 2. Finite-life intangibles and other long-term assets As at June 30, 2007 As at September
Slide 37: Notes: Capital Stock
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 4. Capital stock, stock options and earnings per share a) Capital stock Changes in Class
Slide 38: Notes: Stock Options
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 4. Capital stock, stock options and earnings per share (continued) b) Stock options Under
Slide 39: Notes: Earnings per Share
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 4. Capital stock, stock options and earnings per share (continued) c) Earnings per share
Slide 40: Notes: Accumulated Other Comprehensive Loss
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 5. Accumulated other comprehensive loss Three months ended June 30, 2007 Nine months ende
Slide 41: Notes: Investments in Subsidiaries and Joint Ventures
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 6. Investments in subsidiaries and joint ventures (continued) a) Acquisitions (continued)
Slide 42: Notes: Amortization
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 7. Amortization Three months ended June 30 Nine months ended June 30 2007 2006 2007 2006
Slide 43: Notes: Restructuring Costs
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 8. Restructuring costs related to specific items On March 29, 2006, the Company announced
Slide 44: Notes: Segmented Information
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 9. Segmented information The Company has two lines of business (“LOB”): IT services and b
Slide 45: Notes: Segmented Information (continued)
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 9. Segmented information (continued) As at and for the nine months ended June 30, 2007 IT
Slide 46: Notes: Guarantees and Canadian to US GAAP Reconciliation
CGI GROUP INC. Notes to the Consolidated Financial Statements For the three and nine months ended June 30, 2007 and 2006 (tabular amounts only are in thousands of Canadian dollars, except share data)(unaudited) 10. Guarantees (continued) As at June 30, 2007, the Company has also entered into agreeme