Q1-2025 Highlights Revenues decreased 8.1% to $120.9 million, compared to $131.6 million for the same quarter last year. On a sequential basis, revenues increased by $0.4 million, from $120.5 million for the fourth quarter of last year. 83% 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 31.9%, compared to 28.9% for the same quarter last year. Gross margin increased 1.1% to $38.5 million, compared to $38.1 million for the same quarter last year. Selling, general and administrative expenses decreased by $0.8 million, or 2.6%, to $31.7 million, compared to $32.5 million for the same quarter last year. Net loss was $2.8 million, or $0.03 per share, compared to a net loss of $7.2 million, or $0.08 per share, for the same quarter last year. Adjusted Net Earnings(2) amounted to $4.9 million, representing an increase of $1.9 million, or 65.1%, from $3.0 million for same quarter last year. This translated into Adjusted Net Earnings per Share(2) of $0.05, compared to $0.03 for the same quarter last year. Adjusted EBITDA(2) increased 11.1% to $10.1 million, for an Adjusted EBITDA Margin(2) of 8.3% of revenues, compared to $9.1 million, for an Adjusted EBITDA Margin of 6.9% of revenues, for the same quarter last year. Net cash from operating activities was $16.7 million, representing an increase of $9.1 million, from $7.6 million for the same quarter last year. Q1 Bookings(1) reached $98.2 million, which translated into a Book-to-Bill Ratio(1) of 0.81 for the quarter. The Book-to-Bill Ratio would be 0.92 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 June 30, 2024. Signed 22 new clients. MONTREAL, Aug. 14, 2024 /PRNewswire/ - Alithya Group inc. (TSX:ALYA) ("Alithya" or the "Company" or "our") reported today its results for the first quarter of fiscal 2025 ended June 30, 2024. All amounts are in Canadian dollars unless otherwise stated. Summary of the financial results for the first quarter: Financial Highlights (in thousands of $, except for margin percentages) F2025-Q1 F2024-Q1 Revenues 120,875 131,595 Gross Margin 38,530 38,093 Gross Margin as a percentage of revenues (%)(1) 31.9 % 28.9 % Selling, general and administrative expenses 31,659 32,499 Selling, general and administrative expenses as a percentage of revenues (%)(1) 26.2 % 24.7 % Net Loss (2,762) (7,245) Basic and Diluted Loss per Share (0.03) (0.08) Adjusted Net Earnings(2) 4,944 2,992 Adjusted Net Earnings per Share(2) 0.05 0.03 Adjusted EBITDA(2) 10,058 9,055 Adjusted EBITDA Margin (%)(2) 8.3 % 6.9 % (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: "We are pleased to disclose financial results for the first quarter fiscal 2025. Despite global market conditions, our team delivered stable sequential revenues and continuing profitability improvements. Our adjusted EBITDA represented an increase of 11 percent over the first quarter of fiscal 2024. As clients increasingly turn to us for higher value services, our solid gross margin as a percentage of revenues reached 31.9 percent, representing incremental growth compared to the same quarter of last year. Additionally, in maintaining our cost management focus, our SG&A expenses for the first quarter of fiscal 2025 decreased by 2.6 percent year-over-year, while holding steady sequentially, despite company-wide annual salary increases on April 1st. Our team continued to deliver shareholder value in the quarter, with strong Adjusted Net Earnings and cash generation, including net cash from operating activities of $16.7 million, representing a 119.8 percent increase from the same period last year. Additionally, our total long-term debt decreased, due primarily to the repayment of secured loans. As we forge ahead in fiscal 2025, we remain focused on profitable revenue growth in alignment with the objectives of our new strategic plan, and we can clearly see the positive impacts of our operational efficiency initiatives implemented in fiscal 2024. We look forward to outlining this new plan during our Investor Day presentations on Tuesday, September 10th." First Quarter Results Revenues Revenues amounted to $120.9 million for the three months ended June 30, 2024, representing a decrease of $10.7 million, or 8.1%, from $131.6 million for the three months ended June 30, 2023. On a sequential basis, revenues increased by $0.4 million, from $120.5 million for the fourth quarter of last year. Revenues in Canada decreased by $11.9 million, or 15.4%, to $65.1 million for the three months ended June 30, 2024, from $77.0 million for the three months ended June 30, 2023. The decrease in revenues was due primarily 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 increased by $0.5 million, from $64.6 million for the fourth quarter of last year. U.S. revenues increased by $1.5 million, or 3.0%, to $50.7 million for the three months ended June 30, 2024, from $49.2 million for the three months ended June 30, 2023, due primarily to organic growth in certain areas of the business, including a favorable US$ exchange rate impact of $0.9 million between the two periods. On a sequential basis, revenues in the U.S. increased by $0.3 million, including a favorable US$ exchange rate impact of $0.2 million, from $50.4 million for the fourth quarter of last year. International revenues decreased by $0.4 million, or 6.2%, to $5.0 million for the three months ended June 30, 2024, from $5.4 million for the three months ended June 30, 2023. Gross Margin Gross margin increased by $0.4 million, or 1.1%, to $38.5 million for the three months ended June 30, 2024, from $38.1 million for the three months ended June 30, 2023. Gross margin as a percentage of revenues increased to 31.9% for the three months ended June 30, 2024, from 28.9% for the three months ended June 30, 2023. On a sequential basis, gross margin as a percentage of revenues decreased only slightly, compared to 32.1% for the fourth quarter of last year, despite salary increases that came into effect at the beginning of this fiscal year. In Canada, gross margin as a percentage of revenues increased, compared to the same quarter last year, mainly due to 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 fourth quarter of last year. In the U.S., gross margin as a percentage of revenues remained stable compared to the same quarter last year. International gross margin as a percentage of revenues decreased compared to the same quarter last year. Selling, General and Administrative Expenses Selling, general and administrative expenses totaled $31.7 million for the three months ended June 30, 2024, representing a decrease of $0.8 million, or 2.6%, from $32.5 million for the three months ended June 30, 2023. Selling, general and administrative expenses as a percentage of revenues amounted to 26.2% for the three months ended June 30, 2024, compared to 24.7% for the same period last year. The decrease in selling, general and administrative expenses was driven mainly by decreases of $1.4 million in impairment of property and equipment and right-of-use assets, stemming from impairment charges last year as part of Alithya's ongoing review of its real estate strategy following ...