Q4-2021 Highlights
- Revenues increased 6.5% to $78.0
million, compared to $73.2
million for the same quarter last year. The consolidated
percentage increase would have been 7.7% assuming a constant US$
exchange rate
- Gross margin increased 12.0% to $23.5
million, compared to $20.9
million for the same quarter last year
- Gross margin as a percentage of revenues of 30.1%, higher than
the same quarter last year, and increasing on a sequential basis
from the third quarter
- Adjusted EBITDA(1) increased 61.8% to $3.3 million, compared to $2.0 million in the same quarter last year, and a
42.3% sequential improvement compared to $2.3 million in the third quarter
- Q4 bookings(1) reached $92.8
million, which translated into a book-to-bill
ratio(1) of 1.23
- Net loss of $2.5 million, or
$0.04 per share, compared to a net
loss of $34.0 million, or
$0.59 per share, for the same quarter
last year
- Closed on April 1, 2021, the
game-changing acquisition of R3D Consulting which included two
historic contracts with Beneva (insurance) and Québecor
(telecommunications) and will generate $600
million in combined guaranteed revenues over 10 years,
commencing April 1, 2021, mainly in
digital transformation and high added-value areas
- Awarded a multi-year contract with a $10
million initial value for plant level Operational Technology
cyber security consulting services in the North American
manufacturing/utilities sector
- Expanded Quality Assurance Practice with evolution of
proprietary software solution for automating and certifying test
plans for Oracle Fusion Cloud modules
- Named finalist in two categories of the Quebec's Federation of Chambers of Commerce's
prestigious business competition
- Selected as finalist in the Technology Association of Georgia
Awards
- Recipient of the Eagle Award for Microsoft Dynamics
partners
F2021 Highlights
- Revenues increased 3.1% to $287.6
million, compared to $279.0
million for fiscal 2020
- Gross margin percentage decreased to 28.9%, from 29.7%
year-over-year
- Adjusted EBITDA(1) decreased 18.2% to $9.6 million, from $11.8
million last year
- Fiscal 2021 bookings(1) reached $362.1 million, which translated into a
book-to-bill ratio(1) of 1.31
- Net loss of $17.3 million, or
$0.30 per share, compared to a net
loss of $39.7 million, or
$0.70 per share last year
MONTREAL, June 10, 2021 /PRNewswire/ - Alithya Group
inc. (TSX: ALYA) (NASDAQ: ALYA) ("Alithya" or the "Company"), a
leader in strategy and digital transformation employing more than
3,000 highly qualified professionals and offering enterprise cloud
solutions across Canada, the U.S.
and Europe, reported today its
results for the fourth quarter and fiscal 2021 ended March 31,
2021. All amounts are in Canadian dollars unless otherwise
stated.
Summary of the financial results for the fourth quarter and
for the twelve-month period:
Financial
Highlights
(in thousands of
$, except for margin percentages)
|
F2021-Q4
|
F2020-Q4
|
F2021
|
F2020
|
Revenues
|
77,971
|
73,181
|
287,643
|
279,007
|
Gross
Margin
|
23,454
|
20,953
|
83,017
|
82,974
|
Gross Margin
(%)
|
30.1 %
|
28.6 %
|
28.9 %
|
29.7 %
|
Adjusted
EBITDA(1)
|
3,262
|
2,015
|
9,645
|
11,792
|
Adjusted EBITDA
Margin(1) (%)
|
4.2 %
|
2.8 %
|
3.4 %
|
4.2 %
|
Net loss
|
(2,525)
|
(33,975)
|
(17,338)
|
(39,667)
|
(1)
|
These are non-IFRS
financial measures. Please refer to the "Non-IFRS Measures" section
at the end of this press release and in the MD&A for more
information and calculated amounts.
|
Quote by Paul Raymond,
President and CEO, Alithya:
"We are very pleased to report record quarterly revenues and
gross profits generated in the fourth quarter of Fiscal 2021. We
also finished the year with record bookings, and numerous new
clients, reflecting our well-established reputation as a trusted
advisor in digital transformation. These are extraordinary
accomplishments, in extraordinary times, and that positions us
favorably going into Fiscal 2022.
I am proud of our team's continued execution of our vision and
strategic plan. We are gaining share across targeted markets, as
previous acquisitions are also driving organic growth and
generating sequential performance improvements. The acquisition of
R3D Consulting was a milestone deal providing us with top talent
and expertise, particularly in the insurance and telecom
industries, as well as in the public sector. This transformational
acquisition is also adding two 10-year contracts that will add
approximately $600 million in
confirmed backlog as of April 1,
2021. Moving forward, this will generate significant
high-value, recurring revenue.
During the fourth quarter, adjusted EBITDA(1) also
increased, compared to the same quarter last year. Our Canadian
operations revenues generated strong year-over-year organic growth
in the fourth quarter and, while our US revenues are still
recovering from the pandemic, they increased on a sequential basis
when compared to the third quarter of this year.
On the heels of our newly gained increased scale, our vision
continues to drive our long-term strategic plan, initiated in 2018,
and Fiscal 2022 should see us continue on our committed path of
profitable organic growth and quality acquisitions."
Fourth Quarter Results
Revenues
Revenues amounted to $78.0 million
for the three months ended March 31,
2021, a $4.8 million increase,
or 6.5%, from $73.2 million for the
three months ended March 31,
2020. Assuming a constant US$ exchange rate, the consolidated
percentage increase would have been 7.7%.
Revenues in Canada increased by
$7.2 million, or 19.0%, to
$45.4 million for the three months
ended March 31, 2021, from
$38.2 million for the three months
ended March 31, 2020. General organic
growth in most areas, growth at certain key clients and additional
revenues of $1.2 million from the
acquisition of Askida accounted for the bulk of the increase
in revenues. On a sequential basis, revenues in Canada increased by $5.3 million, from $40.0
million for the third quarter of this year.
U.S. revenues decreased by $1.8
million, or 5.8%, to $29.7
million for the three months ended March 31, 2021, from $31.5
million for the three months ended March 31, 2020 due primarily to the foreign
exchange variation impact over the two periods. Revenues would have
been $31.4 million with a constant
US$ exchange rate, while being negatively impacted by the COVID-19
pandemic. On a sequential basis, revenues in the U.S. increased by
$2.1 million, from $27.6 million for the third quarter of this year,
despite an unfavorable US$ exchange rate impact of $0.9 million and the ongoing negative impacts of
the COVID-19 pandemic.
In Europe, revenues decreased
to $2.9 million, from $3.5 million for the same quarter last year, a
result of the impacts of the COVID-19 pandemic at one important
client, partially offset by new business and clients and a
favorable impact of foreign exchange rate variations. On a
sequential basis, revenues in Europe decreased by $0.1 million, from $3.0
million for the third quarter of this year.
Gross margin
Gross margin increased by $2.6
million, or 12.0%, to $23.5
million for the three months ended March 31, 2021, from $20.9
million for the three months ended March 31, 2020. Gross margin as a percentage of
revenues increased to 30.1% for the three months ended March 31, 2021, from 28.6% for the three months
ended March 31, 2020. The percentage
increase was driven primarily by increased gross margin from
Canada and the U.S., due in part
to increased utilization rates and the changing mix of revenues, as
well as some governmental wage subsidies in Canada and the U.S., partially offset by the
negative impacts of the US$ exchange rate and the impact of
increased costs on one large project. Decreased gross margin in
Europe was due to the impacts of
the COVID-19 pandemic at one important client and by the negative
impacts of the COVID-19 pandemic on utilization rates. On a
sequential basis, the overall gross margin increased by
$3.1 million, or 14.8%, from
$20.4 million for the third quarter
of this year.
Adjusted EBITDA(1)
Adjusted EBITDA(1) amounted to $3.3 million for the three months ended
March 31, 2021, representing an
increase of $1.3 million, from
$2.0 million for the three months
ended March 31, 2020. The
contribution from the acquisition of Askida and increased margins
from higher value-added business were partially offset by increased
selling, general and administrative expenses. Adjusted EBITDA
Margin(1) was 4.2% for the three months ended
March 31, 2021, compared to a 2.8%
for the three months ended March 31,
2020.
Net loss
Net loss for the three months ended March
31, 2021 was $2.5 million, a
decrease of $31.5 million, from $34.0
million for the three months ended March 31, 2020, due to no impairment loss
recorded in the three months ended March 31,
2021 compared to a $28.0
million impairment loss for the three months ended
March 31, 2020. The decreased loss
was also a result of increased Adjusted EBITDA(1),
decreased share-based compensation, decreased amortization of
intangibles, decreased business acquisition and integration costs,
and increased income tax recovery in the three months ended
March 31, 2021, compared to the three
months ended March 31, 2020.
Liquidity and Capital Resources
Net cash used in operating activities was $2.2 million in the three months ended
March 31, 2021, reflecting
unfavorable changes in working capital of $3.0 million, an improvement from net cash used
in operating activities of $3.0
million for the same period last year.
Net bank borrowing(1) reached $21.1 million an improvement from $26.9 million as at March 31, 2020. Total
long-term debt as at March 31, 2021 increased by $1.8 million to $55.0
million from $53.2 million as
at March 31, 2020.
Fiscal 2021 Results
Revenues
Revenues amounted to $287.6
million for the twelve months ended March 31, 2021, an $8.6
million increase, or 3.1%, from $279.0 million for the twelve months ended
March 31, 2020.
Revenues in Canada increased by
$15.0 million, or 10.1%, to
$162.8 million for the twelve months
ended March 31, 2021, from
$147.8 million for the twelve months
ended March 31, 2020 increase.
Additional revenues of $13.1 million
from the acquisitions of Matricis and Askida and growth at certain
key clients accounted for the increase in revenues which were
partially offset by the negative impacts of the COVID-19
pandemic.
U.S. revenues decreased by $3.5
million, or 3.0%, to $114.6
million for the twelve months ended March 31, 2021, from $118.1 million for the twelve months ended
March 31, 2020, due primarily to the
negative impacts of the COVID-19 pandemic, which were felt
particularly strongly in the U.S. compared to Canada, partially offset by incremental
revenues of $10.2 million from the
acquisition of Travercent. In Europe, revenues decreased by $2.8 million, or 21.4%, to $10.3 million for the twelve months ended
March 31, 2021, from $13.1 million for the twelve months ended
March 31, 2020, primarily due to the
impacts of the COVID-19 pandemic at one important client.
Gross margin
Gross margin was stable at $83.0
million for the twelve months ended March 31, 2021 and 2020. Gross margin as a
percentage of revenues decreased to 28.9% for the twelve months
ended March 31, 2021, from 29.7% for
the twelve months ended March 31,
2020.
Adjusted EBITDA(1)
Adjusted EBITDA(1) amounted to $9.6 million for the twelve months ended
March 31, 2021, representing a
decrease of $2.2 million, from
$11.8 million for the twelve months
ended March 31, 2020. The
contribution from acquisitions and increased margins from higher
value-added business, were more than offset by the impacts of the
COVID-19 pandemic on utilization rates and increased selling,
general and administrative expenses. Adjusted EBITDA
Margin(1) was 3.4% for the twelve months ended
March 31, 2021, compared to 4.2% for
the twelve months ended March 31,
2020.
Net loss
Alithya's net loss for the twelve months ended March 31, 2021 was $17.3
million, a decrease of $22.4 million, from $39.7 million for the twelve months ended
March 31, 2020. The decreased loss
was driven primarily by no impairment loss recorded for the twelve
months ended March 31, 2021 compared
to a $28.0 million impairment loss
for twelve months ended March 31,
2020
Subsequent Event
On April 1, 2021, the Company
acquired all of the outstanding shares of R3D Consulting Inc. (now
Alithya IT Services Inc.), a private Quebec firm that specializes in digital
solutions. Subject to customary post-closing purchase price
adjustments, the purchase price was paid by the issuance of
25,182,676 subordinate voting shares of the Company, at a value of
$3.20 per share, which was the
closing share price on the TSX on April 1,
2021, cash of $1.0 million and
assumed long-term debt of $8.9
million on the closing date.
Outlook
As the context surrounding the COVID-19 pandemic continues to
evolve, and although Alithya was fortunate enough to be operating
as an essential services provider since the commencement of the
crisis, management remains very cautious with its outlook. The
Company's priority still is the protection of its people, its
clients and the Company. However, notwithstanding the pandemic, the
Company has shown its ability to navigate the crisis and maintain
focus on its three-to-five-year strategic plan, which sets as a
goal to consolidate its position as to become a North American
digital transformation leader.
According to this plan, Alithya's consolidated scale and scope
should allow it to leverage its geographies, expertise, integrated
offerings, and position on the value chain to target the fastest
growing IT services segments. Alithya's specialization in digital
technologies and the flexibility to deploy enterprise solutions,
and deliver solutions tailored to specific business objectives,
responds directly to client expectations. More specifically,
Alithya has established a three-pronged plan focusing on:
- Increasing scale through organic growth and strategic
acquisitions
- Achieving best-in-class employee engagement
- Providing its investors, partners and stakeholders with
long-term growing return on investment.
Forward-Looking Statements
This press release contains statements that may constitute
"forward-looking information" within the meaning of applicable
Canadian securities laws and "forward-looking statements" within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and other applicable U.S. safe harbours (collectively
"forward-looking statements"). Statements that do not exclusively
relate to historical facts, as well as statements relating to
management's expectations regarding the future growth, results of
operations, performance and business prospects of Alithya, and
other information related to Alithya's business strategy and future
plans or which refer to the characterizations of future events or
circumstances represent forward-looking statements. Such statements
often contain the words "anticipates," "expects," "intends,"
"plans," "predicts," "believes," "seeks," "estimates," "could,"
"would," "will," "may," "can," "continue," "potential," "should,"
"project," "target," and similar expressions and variations
thereof, although not all forward-looking statements contain these
identifying words.
Forward-looking statements in this press release include, among
other things, information or statements about: (i) our ability to
generate sufficient earnings to support our operations; (ii) our
ability to take advantage of business opportunities and meet our
goals set in our three-to-five-year strategic plan; (iii) our
ability to develop new business, broaden the scope of our service
offerings and enter into new contracts; (iv) our strategy, future
operations, and prospects; (v) our need for additional financing
and our estimates regarding our future financing and capital
requirements; (vi) our expectations regarding our financial
performance, including our revenues, profitability, research and
development, costs and expenses, gross margins, liquidity, capital
resources, and capital expenditures; (vii) our ability to realize
the expected synergies or cost savings relating to the integration
of our business acquisitions, and (viii) the impact of the COVID-19
pandemic and related response measures on our business operations,
financial results and financial position and those of our clients
and on the economy in general.
Forward-looking statements are presented for the sole purpose of
assisting investors and others in understanding Alithya's
objectives, strategies and business outlook as well as its
anticipated operating environment and may not be appropriate for
other purposes. Although management believes the expectations
reflected in Alithya's forward-looking statements were reasonable
as at the date they were made, forward-looking statements are based
on the opinions, assumptions and estimates of management and, as
such, are subject to a variety of risks and uncertainties and other
factors, many of which are beyond Alithya's control, and which
could cause actual events or results to differ materially from
those expressed or implied in such statements. Such risks and
uncertainties include but are not limited to those discussed in the
section titled "Risks and Uncertainties" of Alithya's Management's
Discussion and Analysis for the year ended March 31, 2021, as well as in Alithya's other
materials made public, including documents filed with Canadian and
U.S. securities regulatory authorities from time to time and which
are available on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Additional risks and uncertainties not currently known to Alithya
or that Alithya currently deems to be immaterial could also have a
material adverse effect on its financial position, financial
performance, cash flows, business or reputation.
Forward-looking statements contained in this press release are
qualified by these cautionary statements and are made only as of
the date of this press release. Alithya expressly disclaims any
obligation to update or alter any forward-looking statements, or
the factors or assumptions underlying them, whether as a result of
new information, future events or otherwise, except as required by
applicable law. Investors are cautioned not to place undue reliance
on forward-looking statements since actual results may vary
materially from them.
Non-IFRS Measures
This press release includes certain measures which have not been
prepared in accordance with IFRS. EBITDA, adjusted EBITDA, adjusted
EBITDA margin, net bank borrowing, bookings and book-to-bill ratio
are non-IFRS measures. These measures do not have any standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies. These
measures should be considered as supplemental in nature and not as
a substitute for the related financial information prepared in
accordance with IFRS. Please refer to the Management's Discussion
and Analysis for the year ended March 31, 2021 for a
description of such measures, a reconciliation to the most directly
comparable IFRS financial measure and calculated amounts.
Conference Call
Alithya will hold a conference call to discuss these results on
June 10, 2021 at 9:00 AM Eastern Time. Interested parties can join
the call by dialing 1.833.921.1635 (North
America) or 1.236.389.2651 (outside North America), conference ID: 2952967.
Persons unable to call in at this time may access a recording by
dialing 1.855.859.2056 and entering the passcode 2952967. This
recording will be available until July 10,
2021.
About Alithya
Alithya Group inc. is a leader in strategy and digital
transformation in North America. Founded in 1992, the Company
can count on more than 3,000 professionals in Canada, the
U.S. and Europe. Alithya's integrated offering is based
on four pillars of expertise: strategy services, application
services, enterprise cloud solutions and data and analytics.
Alithya deploys solutions, services, and skill sets to craft tools
tailored to its clients' unique business needs in the financial
services, manufacturing, renewable energy, telecommunications,
transportation and logistics, professional services, healthcare,
and government sectors. To learn more, go to alithya.com.
Note to readers: Management's Discussion and
Analysis, the annual audited consolidated financial statements and
notes thereto, and the Annual Information Form, for the year ended
March 31, 2021 are available on SEDAR
at www.sedar.com, on EDGAR at www.sec.gov and on the Company's
website at www.alithya.com. Shareholders may, upon request, receive
a hard copy of these documents free of charge.
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SOURCE Alithya