Alithya Group (ALYA) Reports Q4 Loss of $0.04 on Revenues of $78M

June 10, 2021 8:37 AM EDT
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Alithya Group (NASDAQ: ALYA) reported Q4 EPS of ($0.04), versus ($0.59) reported last year. Revenue for the quarter came in at $78 million, versus $73.2 million reported last year.

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 Qu├ębecor (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

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."

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.

For earnings history and earnings-related data on Alithya Group (ALYA) click here.



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