Mr. Shaun Maine reports
CONVERGE REPORTS THIRD QUARTER 2023 RESULTS
Converge Technology Solutions Corp. has provided its financial results for the three-month and nine-month period ended Sept. 30, 2023.
Third quarter 2023 financial highlights:
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Gross sales
of $1,037-million, an increase of 42 per cent from the comparative period in the prior year;
- For the first nine months of 2023, achieved gross sales organic growth of 10.8 per cent;
- Revenue of $710.1-million, an increase of 38 per cent from the comparative period in the prior year;
- Gross profit increased 25 per cent to $174.1-million from $139.7-million in Q3 2022;
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 33 per cent to $41.3-million from $31-million in Q3 2022;
- Net income of negative $3.3-million, compared with $18.2-million in Q3 2022;
- Cash flows from operating activities were $95.9-million, an increase of $80.9-million, compared with $15-million in Q3 2022;
- Decreased net leverage to 1.8 times compared with 2.24 times in Q2 2023;
- Reduced net debt (cash less borrowings) by $44.3-million to $307.5-million, compared with $351.9-million in Q2 2023;
- Product bookings backlog at the end of Q3 2023 was $479-million, an increase of $32-million from Q2 2023.
"The structural demand tailwinds of planning, implementing and monitoring complex technology projects, whether AI [artificial intelligence], cloud or cyber related, are driving a higher quality revenue mix," said Shaun Maine, group chief executive officer. "Converge continues to witness significant demand for higher-end products, services and solutions, which is crucial to positioning the company as a trusted adviser to our clients."
Subsequent to quarter-end
The company's board of directors authorized a third quarter dividend of one cent per common share to be paid on Dec. 28, 2023, to shareholders of record at the close of business on Dec. 13, 2023.
Financial outlook
Converge is providing financial guidance for the three months ended Dec. 31, 2023, as follows:
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Gross profit between $177-million and $184-million;
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Adjusted EBITDA between $45-million and $47-million.
Conference call details
Date: Tuesday, Nov. 14, 2023
Time:
8 a.m. Eastern Standard Time
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Conference ID:
64850592
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Recording playback
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Expiry date: Nov. 21, 2023
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About Converge
Technology Solutions Corp.
Converge Technology Solutions is a service-led, software-enabled IT (information technology) and cloud solutions 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 services 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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