In This Article:
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Revenue: $115.8 million, down 3.9% year-over-year, up 3.8% sequentially.
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Gross Margin: 32.3%, up 100 basis points year-over-year, up 170 basis points sequentially.
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Bookings: $138.4 million, with a book-to-bill ratio of 1.2 times revenue.
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Adjusted EBITDA Margin: 8.9%, up from 7.8% year-over-year.
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Adjusted Net Earnings: $5.7 million, an increase of $1.4 million year-over-year.
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Net Cash from Operating Activities: $11.7 million, a decrease of $3.9 million year-over-year.
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Net Debt: $108 million, with a leverage ratio of 2.6 times net debt to trailing 12-month adjusted EBITDA.
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SG&A Expenses: $28.8 million, a decrease of 2.4% year-over-year.
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Cash and Credit Availability: $63.7 million.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alithya Group Inc (ALYAF) reported strong Q3 bookings of $138.4 million, representing a book-to-bill ratio of 1.2 times revenue.
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The company achieved a record gross margin of 32.3%, up from 31.3% in the previous year.
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The Oracle division exceeded expectations with strong revenue, gross margin, and EBITDA, driven by successful ERP and HCM payroll project implementations.
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Alithya Group Inc (ALYAF) continues to focus on expanding its SmartShore capabilities, with 9.3% of professionals based in SmartShore centers.
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The acquisition of XRM Vision broadens SmartShoring capabilities in Morocco, with identified opportunities for leveraging these new capabilities.
Negative Points
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Consolidated revenues for Q3 were down $4.7 million or 3.9% year-over-year.
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Revenues in Canada decreased by $6.3 million or 9.3% year-over-year, primarily due to a major client's project reaching maturity.
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The US gross margin as a percentage of revenue decreased compared to the same quarter last year due to a decrease in digital adoption subscription revenues.
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Net cash from operating activities decreased by $3.9 million compared to the prior year, primarily due to working capital irrigation.
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The sequential increase in net debt of approximately $12 million reflects the acquisition of XRM and unfavorable FX impact on US dollar-denominated debt.
Q & A Highlights
Q: Can you discuss the rebound in banking and insurance sectors and whether the momentum is sustainable? A: Bernard Dockrill, Chief Operating Officer: We've seen positive bookings in the Canadian banking market, and the pipeline remains strong. While there are market uncertainties, we are cautiously optimistic about future results.