Alithya Group Inc. (NASDAQ:ALYA) Q3 2020 Earnings Conference Call - Final Transcript
Feb 13, 2020 • 09:00 am ET
Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Alithya's Third Quarter 2020 Earnings Conference Call. [Operator Instructions] Following, the presentation we will conduct a question-and-answer session and instruction will be provided at that time for you to queue up for questions. [Operator Instructions]
Before turning the meeting over to management, please be advised that this conference call will contain statements that are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. [Operator Instructions]I will now turn the conference over to Pierre Bouchet [Phonetic], President at Maison Resonne [Phonetic]. Please go ahead.
Good morning, everyone. Thank you for joining us for the Alithya's third quarter fiscal 2020 results conference call. The press release and MD&A with complete financial statement and related notes were issued earlier today and are posted on our website. The related webcast presentation can also be found on our website in the Investors section.
Presenting this morning are Paul Raymond, Alithya's President and Chief Executive Officer; and Claude Thibault, Senior Vice President and CFO. Following their comments, we will open the call for questions.
Before we begin, I'd like to specify that this call is intended for the financial community. So please be advised that this will contain statements that are forward-looking and subject to a number of risks and uncertainties that can cause actual results differ materially from those anticipated. Please refer to the risks and uncertainties section of our MD&A available on our website for more details. Let me remind you that all figures expressed on today's call are in Canadian dollars, unless otherwise stated, and be aware that we will refer to some indicators that are non-IFRS measures. Please refer to our MD&A for more details.
I will now turn over the call over to Paul.
Thank you, Pierre. Good morning, everyone. [Foreign Speech]. I'm very happy to be with you today to discuss our latest results. And we will dive into numbers in just a minute, but I want to highlight what I feel are three key takeaways from the quarter and how it fits into Alithya's growth strategy more broadly.
First, the uptrend in the gross margin continued. Our gross margin remains one of the highest on record. Second, both the adjusted EBITDA and adjusted margin reached their highest level since going public. And lastly, as we scale, we continue to drive integration and operational synergies and savings. Since the acquisition of Edgewater, our SG&A has been declining in absolute dollars and percentage of total revenue.
During the third quarter, Alithya was very active on the acquisition front. The acquisition of Matricis in October 2019, of Travercent in December 2019 and the addition of Askida post quarter end, will clearly accelerate our growth going forward and reinforce our platforms on both sides of the border. In all, these acquisitions represent a total value of close to CAD50 million, which we financed with a combination of debt and shares.