Shares of CGI Group (CGI Group Stock Quote, Chart, News: TSX:GIB.A) are up today after the company’s first quarter saw earnings grow by nearly 25%.
In its Q1, 2015, CGI posted adjusted EBITDA of $344.0-million on revenue of $2.54-billion, a stealthier performance than the $302.9-million in EBITDA it delivered on a topline of $2.64-billion in last year’s first quarter.
CEO Michael Roach said the company is firing on all cylinders.
“Our strong performance continues to reinforce our ability and commitment to creating significant value for our investors,” he said. “Our pipeline of new opportunities is expanding, reflecting improving market conditions and growing client recognition of the significant value created by our business enabling solutions. Our operational and financial discipline is visible in our ability to increase earnings and accelerate cash generation. Together with our expanded access to long-term capital, we are well positioned with ample financial flexibility to execute our build and buy profitable growth strategy.”
A closer look at CGI’s business revealed more positive news. At the end of December, the company’s the company’s backlog of signed orders at stood at a record $20.2-billion. CGI is also reducing its debt; its net debt was down nearly a billion dollars to $1.9-billion. The Montreal-based company now has about $2-billion in cash and unused credit facilities.
At press time, shares of CGI Group on the TSX were up 4.4% to $49.00.
We Hate Paywalls Too!
At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.