MONTREAL: Alithya Group inc. (TSX: ALYA) (NASDAQ: ALYA) ("Alithya" or the "Company"), a leader in strategy and digital transformation with 2,000 highly skilled professionals and offering business solutions across Canada, the US and Europe, reported today its results for the fourth quarter and 2019 fiscal year ended March 31, 2019. All amounts are in Canadian dollars unless otherwise stated.
Summary of the financial results for the 4th quarter and 2019 fiscal year
(in thousands of $, except per share information and margin)
Gross Margin (%)
This is a non-IFRS financial measure. Please refer to the "Non-IFRS Measures" section at the end of this press release and in the MD&A.
"We finished the year with strong results and are very pleased with the faster integration progress of Edgewater Technology, after only 5 months. The contribution of Edgewater Technology exceeded our expectations and was an important contributor to fourth quarter results, which fueled revenue growth by 79.5% to $72.6 million. Revenues in our Canadian operations remained stable as project timing variations with some larger customers were offset by important wins with new and existing customers, reflecting our transformation towards higher value business offerings, as well as by the progressive replacement of subcontractors by permanent employees," said Paul Raymond, CEO of Alithya.
"For the quarter, gross margin increased to 29.3%, from 22.1% last year, driven by the contribution of Edgewater Technology as well as by the direct effect in Canada of management's long-term strategy to transition the business towards higher value-added revenue streams. Adjusted EBITDA increased year-over-year and should progressively continue to improve as the overhead expenses related to Edgewater Technology decrease and operational synergies continue to materialize."
Fourth Quarter Results
Revenues amounted to $72.6 million up $32.1 million, or 79.5%, from $40.5 million for the same period last year. The Edgewater Technology acquisition accounted for $32.2 million of the increase. The rapid and efficient integration allowed us to generate solid organic growth of 6.0%, in US dollars, year over year on a comparable basis. Slowdowns or delayed starts with...