Alithya reports continued growth for fiscal 2020 and provides an update on its COVID-19 response.

MONTREAL: Alithya Group inc. (TSX: ALYA) (NASDAQ: ALYA) ("Alithya" or the "Company"), a leader in strategy and digital transformation with more than 2,000 professionals and offering digital business solutions across Canada, the US and Europe, reported today its results for the fourth quarter of fiscal 2020 ended March 31, 2020.

All amounts are in Canadian dollars unless otherwise stated.

Summary of the financial results for the 4th quarter and for the twelve-month period:

Financial Highlights

(in thousands of $, except for

margin percentages)

F2020-Q4

F2019-Q4

F2020

F2019

Revenues

73,181

72,643

279,007

209,478

Gross Margin

20,953

21,252

82,974

54,276

Gross Margin (%)

28.6 %

29.3 %

29.7 %

25.9 %

Adjusted EBITDA(1)

2,015

2,227

11,791

6,209

Adjusted EBITDA Margin(1) (%)

2.8 %

3.1 %

4.2 %

3.0 %

Impairment of intangibles and goodwill

28,036

--

28,036

--

Net loss(2)

(33,975)

(2,730)

(39,667)

(12,475)

(1)

These are a 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.

(2)

Includes an impairment of intangibles and goodwill of $28.0 million in Q4-F2020 and fiscal 2020

"Alithya, and most of its customers, are fortunate to operate as essential services providers. In response to the COVID-19 crisis, we proactively implemented business continuity plans focused on three priorities: protecting our people, our clients and the Company. We responded quickly by implementing an immediate work-from-home policy for our employees as well as offering our clients uninterrupted support and helping them migrate to cloud environments as they were forced to adapt to teleworking conditions. In addition, we took active steps to manage our liquidity by further optimizing our cost structure, restricting all non-essential expenses, limiting capital expenditures as well as reviewing and taking advantage of all available government programs. We are closely monitoring developments and will consider additional initiatives as the situation evolves," stated Paul Raymond, President and CEO of Alithya.

"While this unprecedented crisis had limited impact on our fourth quarter results, we expect it to impact our results over the next few quarters. From April to mid-June, we observed a longer sales cycle as well as delays in some projects, albeit most clients remained committed to their projects long term. While COVID-19 has created short-term uncertainty, we believe demand for digital transformation services will remain strong as companies will increasingly need to improve operational efficiencies. Given this context, Alithya is well positioned to benefit from this future growth as it has successfully built its reputation as a trusted and experienced partner.

"Fiscal 2020 was an exceptional year in Alithya's journey to become a leader in digital transformation in North America. We reached record-breaking results in terms of revenue, gross margin, Adjusted EBITDA and cash flow generated from operations. We successfully integrated our acquisition of Edgewater Technology, completed three other strategic acquisitions and received numerous awards. We ended the year in a solid financial position, and we believe we have taken the necessary measures to give ourselves the financial flexibility required to weather the current crisis.

"Going forward, we will remain focused on the execution of our strategic plan which is to increase our scale through acquisitions and organic growth, including developing new markets, diversifying our customer base and expanding our higher value-added service offerings. Finally, I would like to thank our professionals and our clients for their unwavering commitment, trust and support during these unprecedented times, as well as thank our incredible healthcare workers and other first responders who remain on call 24/7 trying to make our lives better during these extremely challenging times," concluded Mr. Raymond.

Fiscal 2020 Results

Revenues amounted to $279.0 million for the year ended March 31, 2020, a $69.5 million increase, or 33.2%, from $209.5 million for the year ended March 31, 2019. US revenues increased by $72.1 million, driven primarily by additional months of revenues from our US acquisitions (Edgewater Technology and Travercent) compared to the...