Q4-2024 Highlights Revenues decreased 11.5% to $120.5 million, compared to $136.2 million for the same quarter last year. On a sequential basis, revenues increased by $0.1 million, from the third quarter of this year. 83.9% of revenues were generated from clients which we had in the same quarter last year. Gross margin as a percentage of revenues(1) increased to 32.1%, compared to 29.9% for the same quarter last year. On a sequential basis, gross margin as a percentage of revenues increased, compared to 31.3% for the third quarter of this year. Gross margin decreased 4.9% to $38.7 million, compared to $40.7 million for the same quarter last year. Selling, general and administrative expenses decreased by $6.4 million, or 17.7%, to $29.6 million, compared to $36.0 million for the same quarter last year. Adjusted EBITDA(2) increased 0.4% to $10.5 million, for an Adjusted EBITDA Margin(2) of 8.7% of revenues, compared to $10.5 million, or an Adjusted EBITDA Margin of 7.7% of revenues, for the same quarter last year. On a sequential basis, Adjusted EBITDA increased by $1.0 million, from $9.5 million for the third quarter of this year. Net earnings was $2.3 million, or $0.02 per share, compared to a net loss of $20.0 million, or $0.21 per share, for the same quarter last year. Adjusted Net Earnings(2) increased by $1.1 million, or 21.1%, to $6.1 million, compared to $5.0 million for the same quarter last year. This translated into Adjusted Net Earnings per Share(2) of $0.06, compared to $0.05 for the same quarter last year. Net cash from operating activities was $9.7 million, representing an increase of $5.3 million, from $4.4 million for the same quarter last year. Q4 bookings(1) reached $133.9 million, which translated into a book-to-bill ratio(1) of 1.11. The book-to-bill ratio would be 1.27 if revenues from the two long-term contracts signed as part of an acquisition in the first quarter of fiscal year 2022 were excluded. Backlog(1) represented approximately 16 months of trailing twelve-month revenues as at March 31, 2024. Signed 21 new clients. F2024 Highlights Revenues decreased 6.0% to $491.1 million, compared to $522.7 million last year. Gross margin as a percentage of revenues increased to 30.4%, compared to 29.0% last year. Gross margin decreased 1.6% to $149.3 million, compared to $151.8 million last year. Selling, general and administrative expenses decreased by $4.9 million, or 3.9%, to $121.6 million, compared to $126.5 million last year. Adjusted EBITDA decreased 1.8% to $35.5 million, for an Adjusted EBITDA Margin of 7.2% of revenues, from $36.1 million, or an Adjusted EBITDA Margin of 6.9% of revenues, last year. Net loss was $16.7 million, or $0.17 per share, compared to a net loss of $30.1 million, or $0.32 per share, last year. Adjusted Net Earnings decreased by $1.1 million, or 7.7%, to $13.6 million, compared to $14.7 million last year. This translated into Adjusted Net Earnings per Share of $0.14, compared to $0.16 last year. Net cash from operating activities was $15.7 million, representing a decrease of $13.3 million, or 45.7%, from $28.9 million last year. Fiscal 2024 bookings reached $480.5 million, which translated into a book-to-bill ratio of 0.98. The book-to-bill ratio would be 1.13 if revenues from the two long-term contracts signed as part of an acquisition in the first quarter of fiscal year 2022 were excluded. MONTREAL, June 13, 2024 /CNW/ - Alithya Group inc. (TSX:ALYA) ("Alithya" or the "Company" or "our") reported today its results for the fourth quarter and fiscal 2024 ended March 31, 2024. 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) F2024-Q4 F2023-Q4 F2024 F2023 Revenues 120,540 136,224 491,125 522,701 Gross Margin 38,747 40,732 149,310 151,774 Gross Margin as a percentage of revenues(%)(1) 32.1 % 29.9 % 30.4 % 29.0 % Selling, general and administrative expenses 29,608 35,978 121,558 126,522 Selling, general and administrative expenses (%)(1) 24.6 % 26.4 % 24.8 % 24.2 % Adjusted EBITDA(2) 10,504 10,463 35,471 36,122 Adjusted EBITDA Margin %(2) 8.7 % 7.7 % 7.2 % 6.9 % Net Earnings (Loss) 2,298 (19,993) (16,660) (30,097) Basic and Diluted Earnings (Loss) per Share 0.02 (0.21) (0.17) (0.32) Adjusted Net Earnings(2) 6,055 5,001 13,608 14,742 Adjusted Net Earnings per Share(2) 0.06 0.05 0.14 0.16 (1) These are other financial measures without a standardized definition under IFRS, which may not be comparable to similar measures used by other issuers. See "Non-IFRS and Other Financial Measures" below. (2) These are non-IFRS financial measures without a standardized definition under IFRS, which may not be comparable to similar measures used by other issuers. More information and quantitative reconciliations of Adjusted Net Earnings and Adjusted EBITDA to the most directly comparable IFRS measures are presented below under the caption "Non-IFRS and Other Financial Measures". "Adjusted EBITDA Margin" refers to the percentage of total revenue that Adjusted EBITDA represents for a given period. Quote by Paul Raymond, President and CEO, Alithya: "Our fiscal 2024 fourth quarter was highlighted by ongoing progress in focusing on higher value services for our clients. This is reflected in the continued increase in our gross margin and Adjusted EBITDA, and reduced SG&A expenses. Our gross margin of 32.1 percent and Adjusted EBITDA margin of 8.7 percent represent new high-water marks for Alithya. I am particularly pleased with our team's achievements in another quarter of solid bookings and sequential revenue increase. Our fourth quarter results demonstrate our ability to exercise operational efficiency during challenging global market conditions, which positions us well to begin our new three-year strategic plan. Our Q4 bookings were solid and we generated year over year revenue growth in the U.S. and in our international operations. Overall, fiscal 2024 was a successful year of repositioning our brand, elaborating on our solutions and service offerings, and building up our global capabilities. We also continued to expand our geographic reach through an increased smart shoring footprint. Collectively, those efforts have contributed to broader appeal for our clients, many of whom turn to us as their trusted partner to assist with their digital transformations and adoption of emerging AI-driven solutions. As we enter fiscal 2025, we are excited to launch a strategic plan that will diligently guide us over the next three years. Our new plan establishes targets for client, employee and investor initiatives. This plan will be reviewed in more detail at our next investor day scheduled in September 2024. From an investor perspective, our plan includes targets for both revenue and margin expansion. We target between 5 and 10 percent of annualized organic growth and 150 million dollars of acquisition-related revenue growth over the next three years. Our three-year objective is to also increase our Adjusted EBITDA margin from 8.7 percent, in Q4 fiscal 2024, to a range of 11 to 13 percent. We also target to increase our gross margins through the increased use of our AI and IP solutions, and by increasing the percentage of our business delivered from our smart shoring centers." Fourth Quarter Results Revenues Revenues amounted to $120.5 million for the three months ended March 31, 2024, of which 83.9% was generated from clients which we had in the same quarter last year, representing a decrease of $15.7 million, or 11.5%, from $136.2 million for the three months ended March 31, 2023. On a sequential basis, revenues increased by $0.1 million, from the third quarter of this year. Revenues in Canada decreased by $16.6 million, or 20.4%, to $64.6 million for the three months ended March 31, 2024, from $81.2 million for the three months ended March 31, 2023. The decrease in revenues was principally due to a reduction in information technology investments in the banking sector, and certain client projects reaching maturity compared to the same quarter last year. On a sequential basis, revenues in Canada decreased by $3.4 million, from $68.0 million for the third quarter of this year. U.S. revenues increased by $1.1 million, or 2.4%, to $50.4 million for the three months ended March 31, 2024, from $49.3 million for the three months ended March 31, 2023, due primarily to organic growth in certain areas of the business, partially offset by an unfavorable US$ exchange rate impact of $0.2 million between the two periods. On a sequential basis, revenues in the U.S. increased by $3.3 million, from $47.1 million for the third quarter of this year. International revenues decreased by $0.3 million, or 4.8%, to $5.5 million for the three months ended March 31, 2024, from $5.8 million for the three months ended March 31, 2023, mainly due to reduced activities in Australia. Gross Margin Gross margin decreased by $2.0 million, or 4.9%, to $38.7 million for the three months ended March 31, 2024, from $40.7 million for the three months ended March 31, 2023. Gross margin as a percentage of revenues increased to 32.1% for the three months ended March 31, 2024, from 29.9% for the three months ended March 31, 2023. On a sequential basis, gross margin as a percentage of revenues increased, from 31.3% for the third quarter of this year, despite the seasonal governmental employer benefits reset as at January 1, 2024. In Canada, gross margin as a percentage of revenues increased, compared to the same quarter last year, mainly due to higher margin offerings, higher hourly billing rates, and a proportionally larger decrease in the use of subcontractors compared to permanent employees. On a sequential basis, gross margin as a percentage of revenues also increased compared to the third quarter of this year. In the U.S., gross margin as a percentage of revenues increased, compared to the same quarter last year, as a result of higher utilization and improved project performance. On a sequential basis, gross margin as a percentage of revenues also increased, compared to the third quarter of this year. International gross margin as a percentage of revenues increased compared to the same quarter last year, mainly as a result of higher ...