Annual Consolidated Financial Statements of Alithya Group inc.
For the years ended March 31, 2020, 2019 and 2018
TABLE OF CONTENTS
Report of Independent Registered Public Accounting Firm.....................................................................3
Consolidated Statements of Operations..................................................................................................5
Consolidated Statements of Financial Position.......................................................................................6
Consolidated Statements of Changes in Shareholders' Equity...............................................................6
Consolidated Statements of Comprehensive Loss..................................................................................9
Consolidated Statements of Cash Flows.................................................................................................9
1. | Governing statutes and nature of operations............................................................................. | 11 |
2. | Summary of significant accounting policies................................................................................ | 11 |
3. | Business combinations, divestiture and private placement........................................................ | 29 |
4. | Accounts receivable and other receivables................................................................................ | 42 |
5. | Property and equipment............................................................................................................. | 42 |
6. | Leases........................................................................................................................................ | 42 |
7. | Intangibles.................................................................................................................................. | 44 |
8. | Goodwill...................................................................................................................................... | 45 |
9. | Accounts payable and accrued liabilities.................................................................................... | 47 |
10. | Long-term debt........................................................................................................................... | 48 |
11. | Income taxes.............................................................................................................................. | 49 |
12. | Share capital and dividends........................................................................................................ | 51 |
13. | Commitments and contingencies................................................................................................ | 60 |
14. | Related parties............................................................................................................................ | 61 |
15. | Earnings per share..................................................................................................................... | 62 |
16. | Reconciliation of liabilities arising from financing activities......................................................... | 63 |
17. | Additional information on consolidated loss............................................................................... | 44 |
18. | Financial expenses..................................................................................................................... | 64 |
19. | Supplementary cash flow information......................................................................................... | 64 |
20. | Segment and geographical information...................................................................................... | 65 |
21. | Financial instruments.................................................................................................................. | 66 |
22. | Capital disclosures...................................................................................................................... | 70 |
23. | Subsequent events..................................................................................................................... | 71 |
Report of Independent | |
Raymond Chabot Grant ThorntonLLP | |
Registered Public Accounting | Suite 2000 |
National Bank Tower | |
Firm | 600 De La Gauchetière Street West Montréal, Quebec |
H3B 4L8 | |
T514-878-2691 | |
To the Board of Directors and | |
Shareholders of Alithya Group inc. | |
Opinion on the Consolidated Financial Statements |
We have audited the accompanying consolidated statements of financial position of Alithya Group inc. (hereafter "the Company") as of March 31, 2020 and 2019, the related consolidated statements of operations, changes in shareholders' equity, comprehensive loss, and cash flows for each of the three years in the period ended March 31, 2020, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of March 31, 2020 and 2019, and the results of its consolidated operations and its consolidated cash flows for each of the three years in the period ended March 31, 2020, in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
Adoption of New Accounting Standard
As discussed in Note 2 to the consolidated financial statements, the Company has changed its method of accounting for leases in 2020 due to the adoption of IFRS 16 -Leases.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
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reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Company's auditor since 2012.
Montréal, Canada,
June 18, 2020
1CPA auditor, CA public accountancy permit no. A121855
CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended March 31,(in thousands of Canadian dollars, except per share data)
2018 | |||
Notes | $ | ||
Revenues | 2 | 209,478 | 159,290 |
Cost of revenues | 2 | 155,202 | 124,597 |
Gross margin | 54,276 | 34,693 | |
Operating expenses | |||
Selling, general and administrative expenses | 17 | 52,615 | 31,403 |
Business acquisitions and integration costs | 5,818 | 2,079 | |
Depreciation | 5, 6 | 980 | 870 |
Amortization of intangibles | 7 | 8,092 | 5,724 |
Foreign exchange expense (gain) | (144) | 58 | |
Impairment of intangibles and goodwill | 7, 8 | - | - |
67,361 | 40,134 | ||
Operating loss | (13,085) | (5,441) | |
Financial expenses | 18 | 2,241 | 2,097 |
Gain on sale of subsidiary | 3 | - | - |
Loss before income taxes | (15,326) | (7,538) | |
Income tax expense (recovery) | |||
Current | 11 | 289 | 81 |
Deferred | 11 | (3,140) | (395) |
(2,851) | (314) | ||
Net loss | (12,475) | (7,224) | |
Basic and diluted loss per share | 15 | (0.34) | (0.31) |
|5 |
Alithya Group inc. - Consolidated Financial Statements for the years ended March 31, 2020, 2019 and 2018
2020 $
279,007 196,033 82,974
76,782
4,637
3,368
11,278
(161)
28,036
123,940
(40,966)
2,347
(681)
(42,632)
237 (3,202) (2,965)
(39,667)
2019 $
(0.70)
The accompanying notes are an integral part of these consolidated financial statements.
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Alithya Group Inc. published this content on 19 June 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 June 2020 11:56:09 UTC