Mr. Greg Berard reports
CONVERGE TECHNOLOGY SOLUTIONS REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS
Converge Technology Solutions Corp. has provided its financial results for the three and six months ended June 30, 2023 (Q2 2023).
Q2 2023 financial highlights:
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Gross sales of $957.2-million compared with $729.7-million in Q2 2022 -- an increase of $227.5-million, or 31 per cent;
- Gross services sales of $317.2-million increased by 33 per cent year-over-year;
- Gross profit of $175.7-million compared with $133.1-million in Q2 2022 -- an increase of $42.5-million, or 32 per cent;
- Organic gross profit growth for Q2 2023 was 2.5 per cent, driven by 14.4-per-cent increase in services organic gross profit;
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $41.5-million, a 6-per-cent increase from $39.2-million in Q2 2022;
- Revenue for Q2 2023 of $665.8-million, an increase of 29 per cent over Q2 2022;
- Product bookings backlog at the end of Q2 2023 was $447.6-million;
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Achieved 112 net new logos in Q2 2023, securing 215 net new logos in H1 2023.
Q2 2023 business highlights and subsequent to quarter:
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Board of directors authorized second-quarter dividend of one cent per common share to be paid on Sept. 22, 2023, to shareholders of record at the close of business on Sept. 8, 2023.
- Converge concluded its previously announced NCIB (normal course issuer bid) program after purchasing 4.28 million shares throughout Q2 2023.
- The company announced that the Toronto Stock Exchange approved the company's notice of intention to make a normal course issuer bid. Pursuant to the NCIB, the company may purchase for cancellation up to an aggregate of 19,427,276 common shares. All common shares acquired by the company under the NCIB will be cancelled.
"Converge continued to execute on its cross-sell strategy throughout the second quarter, and drove high-value solutions with clients by leveraging our advisory, implementation and managed services across all practice areas. Today 60 per cent of Converge sales representatives in North America are now driving more than four solution areas with their clients," said Greg Berard, Converge global chief executive officer. "In today's IT [information technology] environment, Converge continues to shape and transform innovation, revolutionizing client-technology interactions. A distinguishing reason clients continue to partner with Converge is our ability to provide end-to-end solutions for cloud, hardware and software, all while leveraging the technical expertise required for effective professional and managed services. Converge has built a unique set of skills supported by foundational partnerships across analytics, AI [artificial intelligence], cloud and cybersecurity, and will continue to develop leading solutions to adapt with our clients' growing needs. I am extremely proud of our team's performance, which has resulted in record gross profit in Q2 2023."
Conference call details
Date: Wednesday, Aug. 9, 2023
Time: 8 a.m. ET
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About Converge
Technology Solutions Corp.
Converge is a services-led, software-enabled, information technology and cloud solution provider focused on delivering industry-leading solutions. Converge's global approach delivers advanced analytics, application modernization, cloud platforms, cybersecurity, digital infrastructure and digital workplace offerings to clients across various industries. The company supports these solutions with advisory, implementation and managed service expertise across all major IT vendors in the marketplace. This multifaceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors.
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