Cgi Inc. Class A · TSX:GIB.A
Cgi Inc. Class A — Q1 2007 Earnings Presentation
30 slides from Cgi Inc. Class A's earnings presentation, Jan 31, 2007
Slide 1: MD&A for the first quarter ended December 31, 2006
CGI Group Inc. Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 www.cgi.com About CGI Founded in 1976, CGI Group Inc. (“CGI”) is one of the largest independent information technology and business process services firms
Slide 2: Table of Contents
CGI Group Inc. Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Table of Contents OPERATING ACTIVITIES ................................................................. 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 first quarter ended December 31, 2006 January 30, 2007 Basis of Presentation Throughout this document, CGI Group Inc. is referred to as “CGI”, “we” , “our” or “Company”. This management’s disc
Slide 4: Non-GAAP Measures and Corporate Overview
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 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 busine
Slide 5: Lines of Business and Competitive Environment
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Our operations are managed through two lines of business (“LOB”), in addition to Corporate services, namely: IT services and BPS. The focus of these LOB’s is as follows:
Slide 6: Competitive Position Strengthening Program and Share Repurchase
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 The expansion of the Global Delivery Model created approximately 250 new positions in our centres of excellence in Atlantic Canada, southwest Virginia, and India that wi
Slide 7: Overview of the First Quarter
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Overview of the First Quarter Selected Quarterly Information December 31, September 30, June 30, March 31, December 31, For the three months ended 2006 2006 2006 2006 20
Slide 8: Financial Review: Revenue
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Financial Review Revenue Revenue Variation For the three months ended December 31 2006 2005 Revenue (in '000 of dollars) 904,060 898,463 Variation prior to foreign curre
Slide 9: Revenue by LOB
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Revenue by LOB For the three months ended December 31 2006 2005 Change (in '000 of dollars except for percentage) $ $ % IT services prior to foreign currency impact 793,
Slide 10: Revenue Distribution
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 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 V
Slide 11: BCE Revenue and Operating Expenses
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 BCE Revenue In the first quarter of fiscal 2007, BCE, our largest client, represented 12.3% of our revenue, compared to 14.0% in the first quarter of 2006. Operating Exp
Slide 12: Adjusted EBIT by LOB
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Adjusted EBIT by LOB For the three months ended December 31 2006 2005 Change (in '000 of dollars except for percentage) $ $ % IT services 100,651 86,458 16.4 As a percen
Slide 13: Earnings Before Income Taxes
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Earnings Before Income Taxes The following table provides, for the periods indicated, a reconciliation between our adjusted EBIT and earnings before income taxes which i
Slide 14: Restructuring Costs Related to Specific Items
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Restructuring Costs Related to Specific Items The company recorded a charge of $23.0 million in relation to the competitive position strengthening program. Further detai
Slide 15: Interest, Gain on Sale of Assets, Income Taxes
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Interest on Long-term Debt The increase in interest on long-term debt during the quarter reflects the associated increase in long-term debt drawn from the Company’s cred
Slide 16: Net Earnings, Shares and Liquidity
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 For the first quarter of 2007, the decrease in net earnings, when compared to the first quarter of 2006, was primarily due to the charges related to the restructuring pr
Slide 17: Investing and Financing Activities
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Investing Activities In the first quarter of 2007, cash used in investing activities was $28.6 million, a decrease of $3.7 million compared with $32.3 million in the sam
Slide 18: Capital Resources
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Capital Resources Total Available at Outstanding at Commitment December 31, 2006 December 31, 2006 (in '000 of dollars) $ $ $ Cash and cash equivalents - 146,561 - Unsec
Slide 19: Capital Resources Ratios and Off-Balance Sheet Financing
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Days sales outstanding decreased by six days to 44 when compared with last year, mainly due to the timing of payments from large customers. Return on invested capital in
Slide 20: Related Party Transactions
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Related Party Transactions In the normal course of business, CGI is party to contracts with Innovapost, a joint venture, pursuant to which CGI is its preferred IT suppli
Slide 21: Critical Accounting Estimates
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Critical Accounting Estimates The Company’s significant accounting policies are described in Note 2 of the September 30, 2006 audited consolidated financial statements.
Slide 22: Critical Accounting Estimates (continued)
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 assumptions such as future cash flows, growth projections, terminal values and discount rates. Significant changes in the estimates and assumptions used in goodwill impa
Slide 23: Revenue Recognition and Contract Costs
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 provision for the loss is made in the period in which the loss first becomes apparent. Another assessment, related to a contract which involves the provision of multiple
Slide 24: Change in Accounting Policies
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Change in Accounting Policies The CICA has issued the following new Handbook Sections which were effective for interim periods beginning on or after October 1, 2006: a)
Slide 25: Financial Instruments
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 c) Section 1535, “Capital disclosures”, establishes standards for disclosing information about an entity's capital and how it is managed. It describes the disclosure of
Slide 26: Risks and Uncertainties
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 The ability to continue developing and expanding service offerings to address emerging business demands and technology trends – We strive to remain at the forefront of d
Slide 27: Risks and Uncertainties (continued)
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 purposes; the absence in some jurisdictions of effective laws to protect our intellectual property rights; restrictions on the movement of cash and other assets; restric
Slide 28: Guarantees and Tax Credits Risk
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Guarantees risk – In the normal course of business, we enter into agreements that may provide for indemnification and guarantees to counterparties in transactions such a
Slide 29: Risks Related to the Market
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 extent that management is required to devote significant time, attention and resources to the integration of operations, personnel and technology, our ability to service
Slide 30: Legal Proceedings
Management’s Discussion and Analysis of Financial Position and Results of Operations For the first quarter ended December 31, 2006 Legal Proceedings From time to time, the Company is involved in various litigation matters arising in the ordinary course of its business. As at December 31, 2006, the C