Mr. Shaun Maine reports
CONVERGE REPORTS RECORD Q4 AND FY 2023 RESULTS
Converge Technology Solutions Corp. has provided its financial results for the three months and fiscal year ended Dec. 31, 2023.
Fourth quarter
2023 highlights
(year over year, unless otherwise noted):
-
Gross sales
of $1.08-billion, an increase of $121.9-million, or 12.7 per cent;
- Gross sales organic growth of 10.9 per cent and gross profit organic growth
of 5.7 per cent;
-
Revenue of $651.1-million, an increase of $10.2-million;
-
Gross profit increased 7.5 per cent to $181.5-million, representing a gross margin of 27.9 per cent;
-
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 8.0 per cent to $46.5-million;
-
Net income of $4.8-million, an increase of $9.4-million;
-
Cash from operating activities was $114.5-million, an increase of $84.1-million, compared with $30.4-million for the comparative period in the prior year;
-
Reduced net debt
by $52-million year over year and by $97.7-million compared with Q3 2023 to $209.8-million, representing a leverage ratio of 1.23 times as at Dec. 31, 2023;
-
Product backlog at the end of the fourth quarter of 2023 was $412-million, a decrease of $67-million from the comparative period in the prior year.
Fiscal year 2023 highlights (year over year, unless otherwise noted):
-
Gross sales
of $4.04-billion in the year, up from $3.09-billion, representing an increase of 30.6 per cent;
-
Gross sales organic growth of 10.9 per cent and gross profit organic growth of 8.1 per cent;
-
Revenue of $2.71-billion, up from $2.16-billion, representing an increase of 25.0 per cent;
-
Gross profit of $702.9-million, an increase of 27.6 per cent from $550.8-million for the comparative period in the prior year;
-
Adjusted EBITDA of $170.3-million, up $27.4-million, or 19.2 per cent, year over year;
-
Cash from operating activities amounted to $229.5-million, an increase of $188-million;
-
Repurchased 5.3 million shares for an aggregate investment of $17.3-million.
"We are entering 2024 with significant pipeline momentum, propelled by demand for legacy modernizations, for advanced customer-centric solutions and by the massive surge of interest in artificial intelligence (AI) solutions," said Shaun Maine, group chief executive officer. "We are extremely well positioned -- strategically, operationally and financially -- to capitalize on this tailwind to drive industry-leading growth and to continue improving our margin profile, our visibility and by leveraging our cash-generating abilities for the benefit of our shareholders."
Subsequent to quarter-end
On March 5, 2024, the board declared a quarterly dividend of one cent per common share to be paid on March 26, 2024, to shareholders of record at the close of business on March 12, 2024.
Financial outlook
Converge is providing its guidance for the three months ended March 31, 2024 (Q1 2024), and fiscal 2024 as shown in an attached table.
Conference call details
Date: Wednesday, March 6, 2024
Time: 8 a.m. Eastern Standard Time
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About Converge
Technology Solutions Corp.
Converge 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, artificial intelligence (AI), 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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