TORONTO and GATINEAU, QC, Aug. 9,
2023 /PRNewswire/ -- Converge Technology Solutions Corp.
("Converge" or "the Company") (TSX: CTS) (FSE: 0ZB)
(OTCQX: CTSDF) is pleased to provide its financial results for
the three and six months period ended June
30, 2023 ("Q2-23"). All figures are in Canadian
dollars unless otherwise stated.
Financial Summary
In $000s except per
share amounts
|
|
Q2
2023
|
Q2 2022
|
|
H1
2023
|
H1 2022
|
Gross
Sales1
|
|
957,219
|
729,678
|
|
1,922,477
|
1,403,607
|
Revenue
|
|
665,813
|
515,196
|
|
1,344,011
|
1,009,236
|
Gross profit
(GP)
|
|
175,672
|
133,152
|
|
347,260
|
242,196
|
Gross profit (GP)
%
|
|
26.4 %
|
25.8 %
|
|
25.8 %
|
24.0 %
|
Adjusted
EBITDA1
|
|
41,527
|
39,187
|
|
82,735
|
68,836
|
Adjusted
EBITDA1 as a % of
GP
|
|
23.6 %
|
29.4 %
|
|
23.8 %
|
28.4 %
|
Adjusted
EBITDA1 as a % of
Revenue
|
|
6.2 %
|
7.6 %
|
|
6.2 %
|
6.8 %
|
Net (loss)
income
|
|
(4,495)
|
11,678
|
|
(7,856)
|
9,270
|
Adjusted net
income1
|
|
$25,124
|
29,900
|
|
$49,565
|
52,410
|
Adjusted
EPS1
|
|
$0.12
|
$0.14
|
|
$0.24
|
$0.24
|
Q2-23 Financial Highlights:
- Gross sales1 of $957.2
million compared to $729.7
million in Q2-22; an increase of $227.5 million or 31%
- Gross services sales1 of $317.2 million increased by 33%
year-over-year
- Gross Profit of $175.7 million
compared to $133.1 million in Q2-22;
an increase of $42.5 million or
32%
- Organic gross profit growth for Q2-23 was 2.5% driven by 14.4%
increase in services organic gross profit
- Adjusted EBITDA1 of $41.5
million, increasing from $39.2
million in Q2-22 by 6%
- Revenue for Q2-23 of $665.8
million, an increase of 29% over Q2-22
- Product Bookings backlog2 at the end of Q2-23 was
$447.6 million
- Achieved 112 net new logos3 in Q2-23, securing 215
net new logos in H1-23
___________________________________
|
1 This is
a Non-IFRS measure (including non-IFRS ratio) and not a
recognized, defined or a standardized measure under IFRS. See the
Non-IFRS Financial Measures section of this news release for
definitions, uses and a reconciliation of historical non-IFRS
financial measures to the most directly comparable IFRS financial
measures.
|
2 Bookings
backlog is calculated as purchase orders received from customers
not yet delivered at the end of the fiscal period for North America
Region.
|
3 Statistic
based on North American Region.
|
Q2-23 Business Highlights & Subsequent to Quarter
- Board of Directors authorize second quarter dividend of
$0.01 per common share to be paid on
September 22nd, 2023 to
shareholders of record at the close of business on September 8th, 2023
- Converge concluded its previously announced NCIB program
after purchasing 4.28 million shares throughout Q2-23
- 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% of Converge
sales representatives in North
America are now driving more than 4 solution areas with
their clients," said Greg Berard,
Converge Global CEO. "In today's IT 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, 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 Q2-23."
Conference Call Details:
Date: Wednesday, Aug 9th, 2023
Time: 8:00 AM Eastern Time
Participant Webcast Link:
Webcast Link – https://app.webinar.net/gkXqYQ1YE8v
Participant Dial-in Details with Operator
Assistance:
Conference ID:
70789128
Toronto:
416-764-8609
North American Toll Free: 888-390-0605
International Toll-Free Numbers:
Germany: 08007240293
Ireland: 1800939111
Spain: 900834776
Switzerland: 0800312635
United Kingdom: 08006522435
You may register and enter your phone number to receive an
instant automated call back via
https://emportal.ink/3OgdiaZ
Recording Playback:
Webcast Link - https://app.webinar.net/gkXqYQ1YE8v
Toronto: 416-764-8677
North American Toll Free: 1-888-390-0541
Replay Code: 789128 #
Expiry Date: August 16th,
2023
Please connect at least 15 minutes prior to the conference
call to ensure time for any software download that may be required
to access the webcast. A live audio webcast accompanied by
presentation slides and archive of the conference call and webcast
will be available by visiting the Company's website
at https://convergetp.com/investor-relations/.
About Converge
Converge Technology Solutions Corp. is a services-led,
software-enabled, IT & 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 multi-faceted approach enables Converge to
address the unique business and technology requirements for all
clients in the public and private sectors. For more information,
visit convergetp.com.
Summary of Consolidated Statements of Financial
Position
(expressed in thousands of Canadian dollars)
|
|
June 30,
2023
|
December 31,
2022
|
Assets
|
|
|
|
Current
|
|
|
|
Cash
|
|
$
78,443
|
$
159,890
|
Restricted cash
|
|
2,611
|
5,230
|
Trade and other receivables
|
|
781,330
|
781,683
|
Inventories
|
|
160,411
|
158,430
|
Prepaid expenses and other assets
|
|
23,337
|
23,046
|
|
|
|
1,046,132
|
1,128,279
|
Non-current
|
|
|
|
Other assets
|
|
17,943
|
4,646
|
Property, equipment, and right-of-use assets, net
|
|
73,659
|
88,352
|
Intangible assets, net
|
|
419,403
|
463,751
|
Goodwill
|
|
561,283
|
563,848
|
Total assets
|
|
$
2,118,420
|
$
2,248,876
|
|
|
|
|
|
Liabilities
|
|
|
|
Current
|
|
|
|
Trade and other
payables
|
|
$
814,855
|
$
824,924
|
Other financial liabilities
|
|
63,082
|
123,932
|
Deferred revenue
|
|
47,475
|
60,210
|
Borrowings
|
|
398
|
421,728
|
Income taxes payable
|
|
7,816
|
7,112
|
|
|
|
933,626
|
1,437,906
|
Non-current
|
|
|
|
Other financial liabilities
|
|
51,701
|
77,183
|
Borrowings
|
|
429,909
|
-
|
Deferred tax liabilities
|
|
88,278
|
102,977
|
Total
liabilities
|
|
$
1,503,514
|
$
1,618,066
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Common shares
|
|
604,144
|
595,019
|
Contributed surplus
|
|
9,243
|
7,919
|
Exchange rights
|
|
-
|
1,705
|
Accumulated other comprehensive income
|
|
156
|
13,708
|
Deficit
|
|
(27,186)
|
(18,441)
|
Total equity
attributable to shareholders of Converge
|
|
586,357
|
599,910
|
Non-controlling
interest
|
|
28,549
|
30,900
|
|
|
614,906
|
630,810
|
Total liabilities and
shareholders' equity
|
|
$
2,118,420
|
$
2,248,876
|
Summary of Consolidated Statements of Loss and Comprehensive
Loss
(expressed in thousands of Canadian dollars)
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Product
|
$
|
511,597
|
$
|
410,361
|
$
|
1,048,286
|
$
|
807,753
|
Service
|
|
154,216
|
|
104,835
|
|
295,725
|
|
201,483
|
Total
revenue
|
|
665,813
|
|
515,196
|
|
1,344,011
|
|
1,009,236
|
Cost of
sales
|
|
490,141
|
|
382,044
|
|
996,751
|
|
767,040
|
Gross
profit
|
|
175,672
|
|
133,152
|
|
347,260
|
|
242,196
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
136,699
|
|
95,823
|
|
268,732
|
|
176,235
|
Income before the
following
|
|
38,973
|
|
37,329
|
|
78,528
|
|
65,961
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
26,893
|
|
17,178
|
|
52,783
|
|
31,657
|
Finance expense,
net
|
|
10,652
|
|
3,094
|
|
20,002
|
|
4,912
|
Special
charges
|
|
13,292
|
|
5,559
|
|
17,576
|
|
11,280
|
Share-based
compensation
|
|
1,117
|
|
1,685
|
|
1,965
|
|
2,897
|
Other (income)
expenses
|
|
(6,529)
|
|
(3,265)
|
|
(4,060)
|
|
3,138
|
Income before income
taxes
|
|
(6,452)
|
|
13,078
|
|
(9,738)
|
|
12,077
|
|
|
|
|
|
|
|
|
|
Income tax (recovery)
expense
|
|
(1,957)
|
|
1,400
|
|
(1,882)
|
|
2,807
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(4,495)
|
$
|
11,678
|
$
|
(7,856)
|
$
|
9,270
|
Net (loss) income
attributable to:
|
|
|
|
|
|
|
|
|
Shareholders of
Converge
|
|
(3,548)
|
|
12,017
|
|
(5,505)
|
|
10,223
|
Non-controlling
interest
|
|
(947)
|
|
(339)
|
|
(2,351)
|
|
(953)
|
|
$
|
(4,495)
|
$
|
11,678
|
$
|
(7,856)
|
$
|
9,270
|
Other comprehensive
(loss) income
|
|
|
|
|
|
|
|
|
Item that may be
reclassified subsequently to income:
|
|
|
|
|
|
|
|
|
Exchange differences
on translation of foreign operations
|
|
(15,725)
|
|
5,554
|
|
(13,552)
|
|
(1,034)
|
|
|
(15,725)
|
|
5,554
|
|
(13,552)
|
|
(1,034)
|
Comprehensive (loss)
income
|
$
|
(20,220)
|
$
|
17,232
|
$
|
(21,408)
|
$
|
8,236
|
Comprehensive (loss)
income attributable to:
|
|
|
|
|
|
|
|
|
Shareholders of
Converge
|
|
(19,273)
|
|
17,571
|
|
(19,057)
|
|
9,189
|
Non-controlling
interest
|
|
(947)
|
|
(339)
|
|
(2,351)
|
|
(953)
|
|
|
(20,220)
|
|
17,232
|
|
(21,408)
|
|
8,236
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
41,527
|
|
39,187
|
|
82,735
|
|
68,836
|
Adjusted EBITDA as a
% of Gross Profit
|
|
23.6 %
|
|
29.4 %
|
|
23.8 %
|
|
28.4 %
|
Adjusted EBITDA as a
% of Revenue
|
|
6.2 %
|
|
7.6 %
|
|
6.2 %
|
|
6.8 %
|
Summary of Consolidated Statements of Cash Flows
(expressed in thousands of Canadian dollars)
|
|
|
For the three
months
ended June 30,
|
For the six
months
ended June
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Cash flows (used in)
from operating activities
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(4,495)
|
$
|
11,678
|
$
|
(7,856)
|
$
|
9,270
|
Adjustments to
reconcile net (loss) income to net
cash from operating activities
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
29,235
|
|
18,739
|
|
56,785
|
|
33,969
|
Unrealized foreign
exchange (gains) losses
|
|
|
(5,281)
|
|
(2,968)
|
|
(2,818)
|
|
3,701
|
Share-based
compensation expense
|
|
|
1,117
|
|
1,685
|
|
1,965
|
|
2,897
|
Finance
expense, net
|
|
|
10,652
|
|
3,094
|
|
20,002
|
|
4,912
|
Gain on
sale of property and equipment
|
|
|
(598)
|
|
-
|
|
(598)
|
|
-
|
Change in
fair value of contingent consideration
|
|
|
6,551
|
|
-
|
|
6,551
|
|
-
|
Income tax
(recovery) expense
|
|
|
(1,957)
|
|
1,400
|
|
(1,882)
|
|
2,807
|
|
|
|
35,224
|
|
33,628
|
|
72,149
|
|
57,556
|
Changes in
non-cash working capital items
|
|
|
(40,349)
|
|
9,214
|
|
(41,585)
|
|
(44,290)
|
|
|
|
(5,125)
|
|
42,842
|
|
30,564
|
|
13,266
|
Income
taxes paid
|
|
|
(4,520)
|
|
(16,272)
|
|
(11,446)
|
|
(17,025)
|
Cash (used in) from
operating activities
|
|
|
(9,645)
|
|
26,570
|
|
19,118
|
|
(3,759)
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(2,091)
|
|
(3,123)
|
|
(7,197)
|
|
(14,479)
|
Proceeds on disposal of
property and equipment
|
|
|
3,681
|
|
-
|
|
3,749
|
|
178
|
Payment of contingent
consideration
|
|
|
(975)
|
|
-
|
|
(9,935)
|
|
(10,168)
|
Payment of deferred
consideration
|
|
|
(4,066)
|
|
(5,208)
|
|
(29,720)
|
|
(6,948)
|
Payment of NCI
liability
|
|
|
-
|
|
-
|
|
(29,994)
|
|
-
|
Business combinations,
net of cash acquired
|
|
|
-
|
|
(131,545)
|
|
-
|
|
(199,471)
|
Cash used in
investing activities
|
|
|
(3,451)
|
|
(139,876)
|
|
(73,097)
|
|
(230,888)
|
|
|
|
|
|
|
|
|
|
|
Cash flows (used in)
from financing activities
|
|
|
|
|
|
|
|
|
|
Transfers from (to)
restricted cash
|
|
|
2,371
|
|
58,980
|
|
2,587
|
|
(4,513)
|
Interest
paid
|
|
|
(7,365)
|
|
(2,102)
|
|
(15,242)
|
|
(3,058)
|
Dividend
paid
|
|
|
(2,067)
|
|
(1,100)
|
|
(2,067)
|
|
(1,100)
|
Payments of lease
liabilities
|
|
|
(5,089)
|
|
(2,304)
|
|
(10,224)
|
|
(5,032)
|
Repurchase of common
shares
|
|
|
(14,230)
|
|
-
|
|
(14,230)
|
|
-
|
Repayment of notes
payable
|
|
|
(40)
|
|
(38)
|
|
(80)
|
|
(159)
|
Net (repayment)
proceeds from borrowings
|
|
|
(22,815)
|
|
22,351
|
|
11,384
|
|
184,819
|
Cash (used in) from
financing activities
|
|
|
(49,235)
|
|
75,787
|
|
(27,872)
|
|
170,957
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
during the period
|
|
|
(62,331)
|
|
(37,519)
|
|
(81,851)
|
|
(63,690)
|
Effect of foreign
exchange on cash
|
|
|
1,746
|
|
4,526
|
|
404
|
|
(328)
|
Cash, beginning of
period
|
|
|
139,028
|
|
217,168
|
|
159,890
|
|
248,193
|
Cash, end of
period
|
|
$
|
78,443
|
$
|
184,175
|
$
|
78,443
|
$
|
184,175
|
Non-IFRS Financial Measures
This release refers to certain performance indicators including
Adjusted EBITDA that does not have any standardized meaning
prescribed by IFRS and may not be comparable to similar measures
presented by other companies. Management believes that these
measures are useful to most shareholders, creditors, and other
stakeholders in analyzing the Company's results. These non-IFRS
financial measures should not be considered as an alternative to
the consolidated income (loss) or any other measure of performance
under IFRS.
Adjusted EBITDA
Adjusted EBITDA represents net income or loss adjusted to
exclude amortization, depreciation, interest expense and finance
costs, foreign exchange gains and losses, share-based compensation
expense, income tax expense, and special charges. Special charges
consist primarily of restructuring related expenses for employee
terminations, lease terminations, and restructuring of acquired
companies, as well as certain legal fees or provisions related to
acquired companies. From time to time, it may also include
adjustments in the fair value of contingent consideration, and
other such non-recurring costs related to restructuring, financing,
and acquisitions.
The Company uses Adjusted EBITDA to provide investors with a
supplemental measure of its operating performance and thus
highlight trends in its core business that may not otherwise be
apparent when relying solely on IFRS financial measures. The
Company believes that securities analysts, investors and other
interested parties frequently use non-IFRS measures in the
evaluation of issuers. Management also uses non-IFRS measures to
facilitate operating performance comparisons from period to period,
prepare annual operating budgets and assess the ability to meet
capital expenditure and working capital requirements.
Adjusted EBITDA is not a recognized, defined or standardized
measure under IFRS. The Company's definition of Adjusted EBITDA
will likely differ from that used by other companies and therefore
comparability may be limited. Adjusted EBITDA should not be
considered a substitute for or in isolation from measures prepared
in accordance with IFRS. Investors are encouraged to review
the Company's financial statements and disclosures in their
entirety and are cautioned not to put undue reliance on non-IFRS
measures and view them in conjunction with the most comparable IFRS
financial measures.
The Company has reconciled Adjusted EBITDA to the most
comparable IFRS financial measure as follows:
|
For the three
months
ended June
30,
|
For the six
months
ended June
30,
|
|
2023
|
2022
|
2023
|
2022
|
|
Net income (loss)
before taxes
|
$
(6,452)
|
$
13,078
|
$
(9,738)
|
$ 12,077
|
|
Finance
expense
|
10,652
|
3,094
|
20,002
|
4,912
|
|
Share-based
compensation expense
|
1,117
|
1,685
|
1,965
|
2,897
|
|
Depreciation and
amortization
|
26,893
|
17,178
|
52,783
|
31,657
|
|
Depreciation included
in cost of sales
|
2,342
|
1,561
|
4,002
|
2,312
|
|
Foreign exchange loss
(gain)
|
(6,317)
|
(2,968)
|
(3,855)
|
3,701
|
|
Special
charges
|
13,292
|
5,559
|
17,576
|
11,280
|
|
Adjusted
EBITDA
|
$
41,527
|
$
39,187
|
$
82,735
|
$
68,836
|
|
Adjusted EBITDA as a % of Gross Profit
The Company believes that Adjusted EBITDA as a % of Gross Profit
is a useful measure of the Company's operating efficiency and
profitability. This is calculated by dividing Adjusted EBITDA by
gross profit.
Adjusted Net Income (Loss) and Adjusted Earnings per Share
("EPS")
Adjusted Net Income (Loss) represents net income (loss) adjusted
to exclude special charges, amortization of acquired intangible
assets, and share-based compensation. The Company believes that
Adjusted Net Income (Loss) is a more useful measure than net income
(loss) as it excludes the impact of one-time, non-cash and/or
non-recurring items that are not reflective of Converge's
underlying business performance. Adjusted EPS is calculated by
dividing Adjusted Net Income (Loss) by the total weighted average
shares outstanding on a basic and diluted basis.
The Company has provided a reconciliation to the most comparable
IFRS financial measure as follows:
|
For the three
months
|
For the six
months
|
ended June
30,
|
ended June
30,
|
|
2023
|
2022
|
2023
|
2022
|
Net (loss)
income
|
$
(4,495)
|
$
11,678
|
$
(7,856)
|
$
9,270
|
Special
charges
|
13,292
|
5,559
|
17,576
|
11,280
|
Amortization of
acquired intangible assets
|
21,527
|
13,946
|
41,735
|
25,262
|
Foreign exchange
loss
|
(6,317)
|
(2,968)
|
(3,855)
|
3,701
|
Share-based
compensation
|
1,117
|
1,685
|
1,965
|
2,897
|
Adjusted Net
Income:
|
$
25,124
|
$
29,900
|
$ 49,565
|
$ 52,410
|
Basic
|
0.12
|
0.14
|
0.24
|
0.24
|
Gross sales and gross sales for organic growth
Gross sales, which is a non-IFRS measurement, reflects the gross
amount billed to customers, adjusted for amounts deferred or
accrued. The Company believes gross sales is a useful alternative
financial metric to net revenue, the IFRS measure, as it better
reflects volume fluctuations as compared to net revenue. Under the
applicable IFRS 15 'principal vs agent' guidance, the principal
records revenue on a gross basis and the agent records commission
on a net basis. In transactions where Converge is acting as an
agent between the customer and the vendor, net revenue is
calculated by reducing gross sales by the cost of sale
amount.
The Company has provided a reconciliation of gross sales to net
revenue, which is the most comparable IFRS financial measure, as
follows:
|
|
For the three
months
|
For the six
months
|
ended June
30,
|
ended June
30,
|
|
|
2023
|
2022
|
2023
|
2022
|
Product
|
|
$
639,996
|
$
491,821
|
$
1,305,306
|
$
945,210
|
Managed
services
|
|
45,182
|
32,268
|
85,818
|
66,251
|
Third party and
professional services
|
|
272,041
|
205,589
|
531,353
|
392,146
|
Gross sales
|
|
$
957,219
|
$
729,678
|
$
1,922,477
|
$
1,403,607
|
Adjustment for sales
transacted as agent
|
|
(291,406)
|
(214,482)
|
(578,466)
|
(394,371)
|
Net Revenue
|
|
$
665,813
|
$
515,196
|
$
1,344,011
|
$
1,009,236
|
Organic Growth
The Company measures organic growth at the gross sales and gross
profit levels, and includes the contributions under Converge
ownership in the current and comparative period(s). In calculating
organic growth, the Company therefore deducts gross sales and gross
profit generated from companies that were acquired in the current
reporting period.
Gross sales organic growth is calculated by deducting prior
period gross sales, as reported in the Company's public filings,
from current period gross sales for the same portfolio of
companies. Gross sales organic growth percentage is calculated by
dividing organic growth by prior period reported gross sales.
The following table calculates gross sales organic growth for
three and six months ended June 30,
2023:
|
|
For the three
months
|
For the six
months
|
ended June
30,
|
ended June
30,
|
|
|
2023
|
2022
|
2023
|
2022
|
Gross sales
|
|
$
957,219
|
$
729,678
|
$
1,922,477
|
$
1,403,607
|
Less: gross sales from
companies not
owned in comparative period
|
|
214,227
|
215,748
|
459,857
|
404,433
|
Gross sales of
companies owned in
comparative period
|
|
$
742,992
|
$
513,930
|
$
1,462,620
|
$
999,174
|
Prior period gross
sales
|
|
729,678
|
452,120
|
1,403,607
|
860,220
|
Organic Growth -
$
|
|
$
13,314
|
$ 61,810
|
$
59,013
|
$
138,954
|
Organic Growth -
%
|
|
1.8 %
|
13.7 %
|
4.2 %
|
16.2 %
|
Gross profit organic growth is calculated by deducting prior
period gross profit, as reported in the Companies public filings,
from current period gross profit for the same portfolio of
companies. Gross profit organic growth percentage is calculated by
dividing organic growth by prior period reported gross profit.
|
|
For the three
months
|
For the six
months
|
ended June
30,
|
ended June
30,
|
|
|
2023
|
2022
|
2023
|
2022
|
Gross profit
|
|
$
175,672
|
$
133,152
|
$
347,260
|
$ 242,196
|
Less: gross profit from
companies not
owned in comparative period
|
|
39,239
|
40,737
|
83,836
|
72,545
|
Gross profit of
companies owned in
comparative period
|
|
$
136,433
|
$ 92,415
|
$
263,424
|
$ 169,651
|
Prior period gross
profit
|
|
133,152
|
78,244
|
242,197
|
146,041
|
Organic Growth -
$
|
|
$
3,281
|
$ 14,171
|
$
21,227
|
$
23,610
|
Organic Growth -
%
|
|
2.5 %
|
18.1 %
|
8.8 %
|
16.2 %
|
Forward-Looking Information
This press release contains certain "forward-looking
information" and "forward-looking statements" (collectively,
"forward-looking statements") within the meaning of
applicable Canadian securities legislation regarding Converge and
its business. Any statement that involves discussions with respect
to predictions, expectations, beliefs, plans, projections,
objectives, assumptions, future events or performance (often but
not always using phrases such as "expects", or "does not expect",
"is expected" "anticipates" or "does not anticipate", "plans",
"budget", "scheduled", "forecasts". "estimates", "believes" or
intends" or variations of such words and phrases or stating that
certain actions, events or results "may" or "could, "would",
"might" or "will" be taken to occur or be achieved) are not
statements of historical fact and may be forward-looking
statements. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties,
and other factors which may cause the actual results and future
events to differ materially from those expressed or implied by such
forward-looking statements. Except as required by law, Converge
assumes no obligation to update the forward-looking statements of
beliefs, opinions, projections, or other factors, should they
change. The reader is cautioned not to place undue
reliance on forward-looking statements.
For a detailed description of the risks and uncertainties facing
the Company and its business and affairs, readers should refer to
the Company's filings statement available on SEDAR under the
Company's profile at www.sedar.com including its most recent Annual
Information Form, its Management Discussion and Analysis and its
Annual and Quarterly Financial Statements.
CONTACT : Converge Technology Solutions Corp., Email:
investors@convergetp.com, Phone: 416-360-1495
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