EX-99.1 2 alithyagroupinterimfsengli.htm EX-99.1 Document

backdropb.jpg

picture1b.jpg
Interim Condensed Consolidated
Financial Statements
of Alithya Group inc.

For the three months ended June 30, 2024 and 2023
(unaudited)

Exhibit 99.1



TABLE OF CONTENTS


INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended June 30,
(in thousands of Canadian dollars, except per share data) (unaudited)20242023
Notes$$
Revenues11120,875 131,595 
Cost of revenues782,345 93,502 
Gross margin38,530 38,093 
Operating expenses
Selling, general and administrative expenses731,659 32,499 
Business acquisition, integration and reorganization costs8783 1,105 
Depreciation71,095 1,668 
Amortization of intangibles4,644 6,824 
Foreign exchange gain(17)(128)
38,164 41,968 
Operating income (loss)366 (3,875)
Net financial expenses92,372 3,220 
Loss before income taxes(2,006)(7,095)
Income tax expense (recovery)
Current104 201 
Deferred652 (51)
756 150 
Net loss(2,762)(7,245)
Other comprehensive income (loss)
Items that may be classified subsequently to profit or loss
Cumulative translation adjustment on consolidation of foreign subsidiaries544 (1,412)
544 (1,412)
Comprehensive loss(2,218)(8,657)
Basic and diluted loss per share6(0.03)(0.08)
The accompanying notes are an integral part of these interim condensed consolidated financial statements.


Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 2

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As atJune 30,March 31,
(in thousands of Canadian dollars) (unaudited)20242024
Notes$$
Assets
Current assets
Cash10,832 8,859
Accounts receivable and other receivables84,146 98,808
Unbilled revenues22,522 14,937
Tax credits receivable9,337 9,942
Prepaids 8,012 7,069
134,849 139,615
Non-current assets
Tax credits receivable3,683 10,938
Other assets2,267 2,267 
Property and equipment4,358 4,590
Right-of-use assets5,211 5,606
Intangibles77,049 81,273
Deferred tax assets5,215 5,715
Goodwill167,393 166,493
400,025 416,497
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities70,927 74,917
Deferred revenues23,990 25,293
Current portion of lease liabilities4,171 4,136
Current portion of long-term debt34,262 12,687
103,350 117,033
Non-current liabilities
Contingent consideration4,124 4,082
Long-term debt3103,647 104,695
Lease liabilities6,714 7,384
Deferred tax liabilities8,259 8,099
226,094 241,293
Shareholders' equity
Share capital4312,058 312,409
Deficit(159,932)(157,370)
Accumulated other comprehensive income5,150 4,606
Contributed surplus16,655 15,559
173,931 175,204
400,025 416,497
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 3

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
For the three months ended June 30,
(in thousands of Canadian dollars, except share data) (unaudited)
NotesShares
outstanding		Share capitalDeficitAccumulated other
comprehensive
income		Contributed
surplus		Total
Number$$$$$
Balance as at March 31, 202495,415,248 312,409 (157,370)4,606 15,559 175,204 
Net loss— — (2,762)— — (2,762)
Other comprehensive income— — — 544 — 544 
Total comprehensive (loss) income— — (2,762)544 — (2,218)
Share-based compensation5— — — — 931 931 
Share-based compensation granted on business acquisition5— — — — 410 410 
Shares purchased for cancellation4(82,273)(287)115 — — (172)
Shares purchased for settlement of RSUs4,5(63,856)(223)85 — — (138)
Delivery of Subordinate Voting Shares upon settlement of RSUs4,563,856 159 — — (245)(86)
Total contributions by, and distributions to, shareholders(82,273)(351)200 — 1,096 945 
Balance as at June 30, 202495,332,975 312,058 (159,932)5,150 16,655 173,931 
Balance as at March 31, 202395,195,816 311,967 (141,481)4,610 14,092 189,188 
Net loss— — (7,245)— — (7,245)
Other comprehensive loss— — — (1,412)— (1,412)
Total comprehensive (loss) income— — (7,245)(1,412)— (8,657)
Share-based compensation— — — — 836 836 
Share-based compensation granted on business acquisition— — — — 885 885 
Cash settlement of RSUs issued as share-based compensation— — — — (371)(371)
Issuance of Subordinate Voting Shares from settlement of RSUs14,707 33 — — (33)— 
Shares purchased for cancellation(65,939)(230)81 — — (149)
Total contributions by, and distributions to, shareholders(51,232)(197)81 — 1,317 1,201 
Balance as at June 30, 202395,144,584 311,770 (148,645)3,198 15,409 181,732 
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 4

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended June 30,
(in thousands of Canadian dollars) (unaudited)20242023
Notes$$
Operating activities
Net loss(2,762)(7,245)
Adjustments for:
Depreciation and amortization5,7398,492
Net financial expenses92,3723,220
Share-based compensation51,3411,721
Deferred taxes652(51)
Unrealized foreign exchange gain(54)(344)
Realized foreign exchange loss on repayment of long-term debt54—
Impairment of property and equipment and right-of-use assets and loss on lease termination7—1,383
Settlement of RSUs—(371)
Other—18
7,3426,823
Changes in non-cash working capital items109,354774
Net cash from operating activities16,6967,597
Investing activities
Additions to property and equipment(239)(195)
Additions to intangibles—(41)
Net cash used in investing activities(239)(236)
Financing activities
Increase in long-term debt, net of related transaction costs34,29430,763
Repayment of long-term debt(44,805)(29,165)
Repayment of lease liabilities, including lease termination costs(1,514)(971)
Shares purchased for settlement of RSUs4(138)—
Shares purchased for cancellation4(172)(149)
Financial expenses paid9(2,207)(2,995)
Net cash used in financing activities(14,542)(2,517)
Effect of exchange rate changes on cash58(288)
Net change in cash1,9734,556
Cash, beginning of period8,85922,583
Cash, end of period10,83227,139
Cash paid (included in cash flow from operating activities)
Income taxes paid216235
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 5
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
1. GOVERNING STATUTES AND NATURE OF OPERATIONS
Alithya Group inc. (together with its subsidiaries, “Alithya” or the “Company”) is a professional services firm providing IT services and solutions through the optimal use of digital technologies in the areas of strategic consulting, enterprise transformation and business enablement.
The Company’s Class A subordinate voting shares (the “Subordinate Voting Shares”) trade on the Toronto Stock Exchange (“TSX”) under the symbol “ALYA”.
The Company’s head office is located at 1100, Robert-Bourassa Boulevard, Suite 400, Montréal, Québec, Canada, H3B 3A5.
2. BASIS OF PREPARATION
Statement of Compliance
These interim condensed consolidated financial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, and should be read in conjunction with the annual audited consolidated financial statements for the year ended March 31, 2024. The Company applied the accounting policies adopted in its most recent annual audited consolidated financial statements for the year ended March 31, 2024, except for changes as detailed below.
These interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors (the “Board”) on August 13, 2024.
Basis of Measurement
These interim condensed consolidated financial statements have been prepared under the historical cost basis except for
•Identifiable assets acquired and liabilities and contingent liabilities resulting from a business combination, which are generally measured initially at their fair values at the acquisition date;
•Lease obligations, which are initially measured at the present value of the lease payments that are not paid at the lease commencement date; and
•Equity classified share-based payment arrangements which are measured at fair value at grant date pursuant to IFRS 2, Share-Based Payment.


Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 6
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
2. BASIS OF PREPARATION (CONT’D)
ACCOUNTING STANDARD AMENDMENTS EFFECTIVE FOR THE YEAR ENDING MARCH 31, 2025
The following amendments to existing standards were adopted by the Company on April 1, 2024:
IAS 1 - Presentation of Financial Statements
On January 23, 2020, the IASB issued amendments to IAS 1 - Presentation of Financial Statements, to clarify the classification of liabilities as current or non-current. For the purposes of non-current classification, the amendments removed the requirement for a right to defer settlement or roll over of a liability for at least twelve months to be unconditional. Instead, such a right must have substance and exist at the end of the reporting period. After reconsidering certain aspects of the 2020 amendments, the IASB reconfirmed that only covenants with which a company must comply on or before the reporting date affect the classification of a liability as current or non-current. Additional disclosure will be required to help users understand the risk that those liabilities could become repayable within twelve months after the reporting date. The amendments also clarify how a company classifies a liability that includes a counterparty conversion option. The amendments state that: settlement of a liability includes transferring a company’s own equity instruments to the counterparty; and when classifying liabilities as current or non-current, a company can ignore only those conversion options that are recognized as equity. The amendments to IAS 1 apply retrospectively and are effective for annual periods beginning on or after January 1, 2024. The amendments of IAS 1 had no impact on the Company’s interim condensed consolidated financial statements.
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE
At the date of authorization of these interim condensed consolidated financial statements, certain new standards, amendments and interpretations, and improvements to existing standards have been published by the IASB but are not yet effective and have not been adopted early by the Company. Management anticipates that all the relevant pronouncements will be adopted in the first reporting period following the date of application. Information on new standards, amendments and interpretations, and improvements to existing standards, which could potentially impact the Company’s consolidated financial statements, are detailed as follows:
IFRS 18 - Presentation and Disclosures in Financial Statements
On April 9, 2024, the IASB published the new IFRS 18 – Presentation and Disclosures in Financial Statements that will replace IAS 1 – Presentation of Financial Statements.
IFRS 18 covers four main areas:
•Introduction of defined subtotals and categories in the statement of profit or loss
•Introduction of requirements to improve aggregation and disaggregation
•Introduction of disclosures about management-defined performance measures (MPMs) in the notes to the financial statements
•Targeted improvements to the statement of cash flows by amending IAS 7 – Statement of Cash Flows
IFRS 18 applies retrospectively and is effective for annual periods beginning on or after January 1, 2027, with earlier application permitted. Management is currently evaluating the impact of the amendment on its consolidated financial statements.




Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 7
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
3. LONG-TERM DEBT
The following table summarizes the Company’s long-term debt:
As atJune 30,March 31,
20242024
$$
Senior secured revolving credit facility (the "Credit Facility") (a)
79,908 81,073 
Secured loans (b)
— 8,537 
Subordinated unsecured loans (c)
20,000 20,000 
Balance of purchase price payable with a nominal value of $8,523,000 (US$6,230,000) (March 31, 2024 - $8,436,000 (US$6,230,000)), non-interest bearing (4.4% effective interest rate), payable in annual installments of $4,262,000 (US$3,115,000), maturing on July 1, 2025
8,346 8,172 
Unamortized transaction costs (net of accumulated amortization of $238,000 and $215,000)
(345)(400)
107,909 117,382 
Current portion of long-term debt4,262 12,687 
103,647 104,695 
(a) The Credit Facility is available to a maximum amount of $140,000,000 which can be increased under an accordion provision to $190,000,000, under certain conditions, and can be drawn in Canadian dollars and the equivalent amount in U.S. dollars. It is available in prime rate advances, CORRA advances, SOFR advances and letters of credit of up to $2,500,000.
The advances bear interest at the Canadian or U.S. prime rate, plus an applicable margin ranging from 0.75% to 1.75%, or CORRA or SOFR rates, plus an applicable margin ranging from 2.00% to 3.00%, as applicable for Canadian and U.S. advances, respectively. The applicable margin is determined based on threshold limits for certain financial ratios. As security for the Credit Facility, Alithya provided a first ranking hypothec on the universality of its assets excluding any leased equipment and Investissement Québec’s first ranking lien on tax credits receivable for the financing related to refundable tax credits. Under the terms of the agreement, the Company is required to maintain certain financial covenants which are measured on a quarterly basis.
The Credit Facility matures on April 1, 2026 and is renewable for additional one-year periods at the lender’s discretion, but the term of the Credit Facility cannot exceed three years.
As at June 30, 2024, the amount outstanding under the Credit Facility includes $72,507,000 (March 31, 2024 - $71,773,000) payable in U.S. dollars (US$53,000,000; March 31, 2024 - US$53,000,000).
The Company has an additional operating credit facility available to a maximum amount of $2,736,000 (US$2,000,000), bearing interest at the U.S. prime rate plus 1.00%. This operating credit facility can be terminated by the lender at any time. There was no amount outstanding under this additional operating credit facility as at June 30, 2024.


Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 8
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
3. LONG-TERM DEBT (CONT’D)
(b) The secured loans issued by Investissement Québec to finance the Company’s 2023 refundable tax credits have been full repaid during the three months ended June 30, 2024.
(c) The subordinated unsecured loans with Investissement Québec, in the amount of $20,000,000, mature on October 1, 2026 and are renewable for one additional year at the lender’s discretion. For the period up to October 1, 2025, the first $10,000,000 bears fixed interest rates ranging between 6.00% and 7.25% and the additional $10,000,000 bears interest ranging between 7.10% and 8.35%, determined and payable quarterly, based on threshold limits for certain financial ratios. The interest rates for the period between October 1, 2025 to October 1, 2026 will be communicated by the lender at the latest fifteen days prior to October 1, 2025. Once communicated, the Company will have the option to partially or fully repay the loans, without penalties, by October 1, 2025 at the latest.
Under the terms of the loans, the Company is required to maintain compliance with certain financial covenants which are measured on a quarterly basis.
(a)(c) The Company was in compliance with all of its financial covenants as at June 30, 2024 and March 31, 2024.
4. SHARE CAPITAL
The following table presents information concerning issued share capital activity for the period:
Subordinate Voting SharesMultiple Voting Shares
Number of shares$Number of shares$
Beginning balance as at April 1, 202488,141,000 307,585 7,274,248 4,824 
Shares purchased for cancellation(82,273)(287)— — 
Shares purchased for settlement of RSUs(63,856)(223)— — 
Delivery of shares upon settlement of RSUs63,856 159 — — 
Ending balance as at June 30, 202488,058,727 307,234 7,274,248 4,824 
During the three months ended June 30, 2024, the following transactions occurred:
•82,273 Subordinate Voting Shares were purchased for cancellation under the Company's normal course issuer bid for a total cash consideration of $172,000 and a carrying value of $287,000. The excess of the carrying value over the purchase price in the amount of $115,000 was recorded as a reduction to deficit.
•63,856 Subordinate Voting Shares were purchased for settlement of RSUs for a total cash consideration of $138,000 and a carrying value of $223,000. The excess of the carrying value over the purchase price in the amount of $85,000 was recorded as a reduction to deficit. 63,856 RSUs were settled and 63,856 Subordinate Voting Shares were delivered with a carrying value of $159,000, which was reclassified from contributed surplus. The purchase and delivery of Subordinate Voting Shares upon settlement of RSUs were completed by the administrative agent of the Share Unit Plan (“SUP”), in accordance with the terms of the SUP and the Services Agreement entered into between the Company and the administrative agent.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 9
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
5. SHARE-BASED COMPENSATION
Stock options
The following tables present information concerning outstanding stock options issued by currency:
Number of stock optionsWeighted average exercise price (CAD)
$
Beginning balance as at April 1, 20243,320,696 3.22 
Forfeited(95,969)3.24 
Expired(15,000)2.21 
Ending balance as at June 30, 20243,209,727 3.23 
Exercisable at period end2,501,175 3.22 
Number of stock optionsWeighted average exercise price (USD)
$
Beginning balance as at April 1, 2024 and ending balance as at June 30, 20241,016,575 2.55 
Exercisable at period end714,407 2.54 
Included in the 2,501,175 stock options exercisable issued in Canadian dollars, 505,264 stock options are available to purchase Multiple Voting Shares as at June 30, 2024.
Deferred Share Units (“DSUs”)
The following table presents information concerning the outstanding number of DSUs for the period:
Number of DSUs
Beginning balance as at April 1, 20241,178,080 
Granted to non-employee directors84,838 
Ending balance as at June 30, 20241,262,918 
During the three months ended June 30, 2024, 84,838 fully vested DSUs, in aggregate, were granted under the Long-Term Incentive Plan (“LTIP”) to non-employee directors of the Company at an average grant date fair value of $2.14, per DSU, for an aggregate fair value of $182,000.
As at June 30, 2024, included in the 1,262,918 DSUs are 958,230 DSUs issued under the LTIP and 304,688 DSUs issued under the SUP.
Restricted Share Units (“RSUs”)
The following table presents information concerning the outstanding number of RSUs for the period:
Number of RSUs
Beginning balance as at April 1, 2024349,700 
Settled(103,748)
Ending balance as at June 30, 2024245,952 
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 10
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
5. SHARE-BASED COMPENSATION (CONT’D)
RSUs issued under the SUP are settled in Subordinate Voting Shares purchased on the open market through the SUP’s administrative agent, and to the extent that the Company has an obligation under tax laws to withhold an amount for an employee’s tax obligation associated with the share-based payment, the Company settles RSUs on a net basis.
During the three months ended June 30, 2024, 103,748 RSUs issued under the SUP with a carrying value of $245,000, were settled on a net basis. 63,856 Subordinate Voting Shares were purchased on the open market and delivered, with an amount of $159,000 previously credited to contributed surplus transferred to share capital. The balance of 39,892 RSUs, in the amount of $86,000, were withheld to satisfy the employee’s statutory withholding tax requirements and are included in accounts payable and accrued liabilities in the statement of financial position as at June 30, 2024.
As at June 30, 2024, all 245,952 RSUs were issued under the SUP.
Performance Share Units (“PSUs”)
The following table presents information concerning the outstanding number of PSUs for the period:
Number of PSUs
Beginning balance as at April 1, 20242,156,527 
Forfeited(146,271)
Ending balance as at June 30, 20242,010,256 
As at June 30, 2024, all 2,010,256 PSUs were issued under the LTIP.
Other
During the three months ended June 30, 2024, the Company committed to the issuance of RSUs under the SUP and PSUs under the LTIP to certain eligible employees as part of their long-term incentives for the fiscal year ending March 31, 2025. The terms and conditions of the awards were not finalized as at June 30, 2024. The estimated total fair values are based on a percentage of the eligible employees’ annual base salary and represent $2,501,000 for RSUs and $2,291,000 for PSUs. The RSUs and PSUs will vest in the first quarter of the year ending March 31, 2028 and the related expense is recognized over the vesting period.

Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 11
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
5. SHARE-BASED COMPENSATION (CONT’D)
Share-Based Compensation expense
Total share-based compensation expense for the period is summarized as follows:
For the three months ended June 30,
20242023
$$
Stock options50 185 
Share purchase plan – employer contribution344 357 
Share-based compensation granted on business acquisitions410 885 
DSUs182 184 
RSUs307 15 
PSUs392 452 
1,685 2,078 
6. EARNINGS (LOSS) PER SHARE
For the three months ended June 30,
20242023
$$
Net loss(2,762)(7,245)
Weighted average number of Shares outstanding (a)
95,386,00195,190,628
Basic and diluted loss per share(0.03)(0.08)
(a) "Shares" include the Subordinate Voting Shares and Multiple Voting Shares
The potentially dilutive outstanding equity instruments, which are the DSUs, PSUs and options mentioned in Note 5 granted under the LTIP and certain shares to be issued as part of anniversary payments related to business acquisition, were not included in the calculation of diluted earnings per share since the Company incurred losses and the inclusion of these equity instruments would have an antidilutive effect.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 12
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
7. ADDITIONAL INFORMATION ON CONSOLIDATED LOSS
The following table provides additional information on the consolidated loss:
For the three months ended June 30,
20242023
$$
Expenses by Nature
Employee compensation and subcontractor costs107,226 117,842 
Tax credits (a)
(1,954)(2,391)
Licenses and telecommunications3,297 3,460 
Professional fees2,047 1,757 
Other expenses3,388 3,950 
Impairment of property and equipment and right-of-use assets and loss on lease termination— 1,383 
Depreciation of property and equipment490 998 
Depreciation of right-of-use assets605 670 
115,099 127,669 
Expenses by Function
Cost of revenues82,345 93,502 
Selling, general and administrative expenses (b)
31,659 32,499 
Depreciation1,095 1,668 
115,099 127,669 
(a) Tax credits are included in cost of revenues.
(b) Selling, general and administrative expenses includes termination and benefit costs for key management personnel of $1,502,000 (2023 - nil) and $246,000 (2023 - nil) of reversal of share-based compensation expense for forfeited equity instruments.
8. BUSINESS ACQUISITION, INTEGRATION AND REORGANIZATION COSTS
The following table summarizes business acquisition, integration and reorganization costs:
For the three months ended June 30,
20242023
$$
Integration costs (a)
124 739 
Reorganization costs (b)
566 166 
Employee compensation on business acquisition (c)
93200
7831,105
(a) For the three months ended June 30, 2024, integration costs consisted mainly of common area expenses on vacated premises previously acquired as part of business acquisitions. For the three months ended June 30, 2023, integration costs consisted mainly of termination of leases of vacated premises previously acquired as part of business combinations.
(b) Reorganization costs consisted of employee termination costs.
(c) Employee compensation on business acquisition included deferred cash consideration from the acquisition of U.S.-based Datum Consulting Group, LLC and its international affiliates.
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 13
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
9. NET FINANCIAL EXPENSES
The following table summarizes net financial expenses:
For the three months ended June 30,
20242023
$$
Interest on long-term debt2,137 3,021 
Interest on lease liabilities124 189 
Amortization of finance costs77 98 
Interest accretion on balance of purchase price payable88 127 
Financing fees108 52 
Interest income(162)(267)
2,3723,220
10. SUPPLEMENTARY CASH FLOW INFORMATION
Changes in non-cash working capital items are as follows:
For the three months ended June 30,
20242023
$$
Accounts receivable and other receivables15,068 6,718 
Unbilled revenues(7,494)4,246 
Tax credits receivable7,860 (2,354)
Prepaids(916)(932)
Other assets— 61 
Accounts payable and accrued liabilities(3,673)(5,668)
Deferred revenues(1,491)(1,297)
9,354774
During the three months ended June 30, 2024, non-cash investing and financing activities included additions to right-of-use assets and lease liabilities in the amount of $183,000 (June 30, 2023 - $454,000).
Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 14
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
11. SEGMENT INFORMATION
The following tables present the Company's operations based on reportable segments:
For the three months ended June 30, 2024
CanadaU.S.InternationalTotal
$$$$
Revenues65,135 50,708 5,032 120,875 
Operating income by segment9,923 8,838 121 18,882 
Head office general and administrative expenses12,011 
Business acquisition, integration and reorganization costs783 
Foreign exchange loss (gain)(17)
Operating income before depreciation and amortization6,105 
Depreciation and amortization5,739 
Operating income366 
For the three months ended June 30, 2023
CanadaU.S.InternationalTotal
$$$$
Revenues76,987 49,244 5,364 131,595 
Operating income by segment7,971 8,441 712 17,124 
Head office general and administrative expenses11,530 
Business acquisition, integration and reorganization costs1,105 
Foreign exchange loss (gain)(128)
Operating income before depreciation and amortization4,617 
Depreciation and amortization8,492 
Operating loss(3,875)

Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 15
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023
(Tabular amounts are in thousands of Canadian dollars, except share and per share data in tables) (unaudited)
11. SEGMENT INFORMATION (CONT’D)
Information about revenues
An analysis of the Company’s revenues from customers for each major service category is as follows:
For the three months ended June 30, 2024
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (a)
55,861 27,000 4,653 87,514 
Enterprise transformation services - fixed-fee arrangements5,808 9,154 379 15,341 
Business enablement services3,466 14,554 — 18,020 
65,135 50,708 5,032 120,875 
For the three months ended June 30, 2023
CanadaU.S.InternationalTotal
$$$$
Strategic consulting and enterprise transformation services - time and materials arrangements (a)
66,059 27,474 4,402 97,935 
Enterprise transformation services - fixed-fee arrangements7,604 8,387 962 16,953 
Business enablement services3,324 13,383 — 16,707 
76,987 49,244 5,364 131,595 
(a) Including $31,948,000 (2023 - $26,333,000) of time and materials arrangements applying the Input Method.
Major customer
During the three months ended June 30, 2024, no client generated more than 10% of total revenues (June 30, 2023 - one client generated more than 10% of total revenues for $15,448,000).
As at June 30, 2024 and as at March 31, 2024, no customer represented more than 10% of total accounts receivable and other receivables.
12. FINANCIAL INSTRUMENTS
Fair Value of Financial Instruments
The carrying amount of cash, accounts receivable and other receivables, other assets, accounts payable and accrued liabilities and long-term debt bearing interest at variable rates is a reasonable approximation of fair value.
The fair value of the long-term debt bearing interest at fixed rates is estimated by discounting expected cash flows at rates that would be currently offered to the Company for debts of the same remaining maturities and conditions (Level 2). For both June 30, 2024 and March 31, 2024, the Company has determined that the fair value of the Credit Facility, the secured loans, the subordinated unsecured loans and the balance of purchase price payable are not significantly different than their carrying amount.



Alithya Group inc. – Interim Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023
| 16