Converge Reports Preliminary Fourth Quarter and Fiscal Year 2024 Financial Results and Conference Call Details

Canada NewsWire

TORONTO and GATINEAU, QC, Feb. 10, 2025

TORONTO and GATINEAU, QC, Feb. 10, 2025 /CNW/ - Converge Technology Solutions Corp. ("Converge" or "the Company") (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF), today announced preliminary results for the fourth quarter ("Q4-2024") and fiscal year ended December 31, 2024. The Company will hold a conference call to discuss complete financial results for Q4-2024 and fiscal year ended December 31, 2024 on Thursday, March 6(th) , 2025 at 8:00am EST. The call will be hosted by the Converge leadership team, followed by a question-and-answer period. Converge will report its financial results in the morning prior to the call.

Q4-2024 Preliminary Results:

   -- Gross sales1 is expected to be approximately $1.1 billion, an increase of 
      2.5% year-over-year. 
 
   -- Revenue is expected to be approximately $680.8 million, an increase of 
      4.6% year-over-year. 
 
   -- Gross profit is expected to be approximately $178.6 million, a decline of 
      1.6% year-over-year. 
 
   -- Adjusted EBITDA1 is expected to be approximately $47.9 million, an 
      increase of 3.0% year-over-year. 
 
   -- Cash from operating activities is expected to be approximately $57.0 
      million, representing 119% of Adjusted EBITDA1. 
 
   -- Loss before income taxes is expected to be approximately $21.2 million, 
      an increase of $16.8 million year-over-year, primarily driven by loss 
      from investment in Portage CyberTech Inc. ("Portage") of approximately 
      $24.0 million due to impairment charges. 

Fiscal 2024 Preliminary Results:

   -- Gross sales1 is expected to be approximately $4.1 billion, an increase of 
      2.1% year-over-year. 
 
   -- Revenue is expected to be approximately $2.6 billion, a decline of 4.2% 
      year-over-year. 
 
   -- Gross profit is expected to be approximately $691.4 million, a decline of 
      1.6% year-over-year. 
 
   -- Adjusted EBITDA1 is expected to be approximately $167.3 million, a 
      decline of 1.7% year-over-year. 
 
   -- Cash from operating activities is expected to be approximately $269.4 
      million, representing 161% of Adjusted EBITDA1. 
 
   -- Loss before income taxes is expected to be approximately $200.5 million, 
      an increase of $182.0 million year-over-year, primarily driven by 
      impairment loss on the Company' German segment of $176.1 million and loss 
      from investment in Portage of approximately $25.9 million due to 
      impairment charges. 
 
_________________________________ 
([1]) This is a non-IFRS measures and not a recognized, 
 defined or a standardized measure under IFRS. This 
 non-IFRS financial measure reported by the Company 
 are defined in the "Non-IFRS Financial Measures" section 
 of this press release. 
 

The above results are preliminary in nature and unaudited, and are inherently uncertain due to a number of factors, and remain subject to review by the Company's management, audit committee and board of directors and the completion of regular financial closing and review procedures and audit procedures for Q4-2024 and fiscal year ended December 31, 2024, as applicable. These estimates are not a comprehensive statement of the Company's financial results for Q4-2024 and fiscal year December 31, 2024 The preliminary unaudited figures disclosed herein should not be viewed as a substitute for audited financial statements prepared in accordance with generally accepted accounting principles. Additional adjustments to the preliminary unaudited figures presented above may be identified, and final results for the relevant fiscal periods may differ materially from these preliminary unaudited figures and will not be finalized until after the Company completes its normal year-end accounting procedures, including execution of internal controls over financial reporting. These preliminary unaudited figures are intended to provide information about management's current expectations regarding certain aspects of Converge's financial performance. Reliance on the information presented herein may not be appropriate for other purposes. Please see the section below entitled "Forward- Looking Information".

The Company will provide additional discussion and analysis regarding its fourth quarter results when it reports its complete financial results for Q4-2024 and fiscal year ended December 31, 2024.

Conference Call Details:

Date: Thursday, March 6(th) , 2025

Time: 8:00 AM Eastern Standard Time

Participant Webcast Link:

Webcast Link -- https://app.webinar.net/5dw46kbzGAR

Participant Dial-in Details with Operator Assistance:

Conference ID: 07389

Toronto: 1-416-945-7677

North American Toll Free: 1-888-699-1199

International Toll-Free Numbers:

Germany: 498005889782

Ireland: 35315251826

Spain: 34917918582

Switzerland: 41432107274

United Kingdom: 448002797040

You may register and enter your phone number to receive an instant automated call back via https://emportal.ink/3WRn7js

Recording Playback:

Webcast Link - https://app.webinar.net/5dw46kbzGAR

Toronto: 1-289-819-1450

North American Toll Free: 1-888-660-6345

Replay Code: 07389 #

Expiry Date: March 13(th) , 2025

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 reimagining the way businesses think about IT--a vision driven by people, for people. Since 2017, we've focused on delivering outcomes-driven solutions that tackle human-centered challenges. As a services-led, software-enabled, IT & Cloud Solutions provider, we combine deep expertise, local connections, and global resources to deliver industry-leading solutions.

Through advanced analytics, artificial intelligence (AI), cloud platforms, cybersecurity, digital infrastructure, and workplace transformation, we empower businesses across industries to innovate, streamline operations, and achieve meaningful results. Our AIM (Advise, Implement, Manage) methodology ensures solutions are tailored to our customers' specific needs, aligning with existing systems to drive success without complexity.

Discover IT reimagined with Converge--where innovation meets people. Learn more at convergetp.com.

For further information:

Investor Relations

investors@convergetp.com

Phone: 416-360-1495

Non-IFRS Financial Measures

This press release refers to certain performance indicators including Adjusted EBITDA and gross sales that do 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 operating results and can highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company also 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 in order 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. 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. Investors are encouraged to review the Company's financial statements and disclosures in their entirety, are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures.

Please see "Non-IFRS Financial & Supplementary Financial Measures" and "Summary of Consolidated Financial Results" in the Company's most recent Management Discussion and Analysis, which is available on the Company's profile on SEDAR+ at www.sedarplus.ca, for further details on certain non-IFRS measures, which information is incorporated by reference herein.

Adjusted EBITDA

Adjusted EBITDA represents net income or loss adjusted to exclude amortization, depreciation, net finance expense, foreign exchange gains and losses, other expenses and income, share-based compensation expense, income tax expense or recovery, change in fair value of contingent consideration, impairment loss, gain or loss on loss of control of subsidiary, income or loss from investment in associates and acquisition, integration, restructuring and other expenses. Acquisition and transaction related costs primarily consists of acquisition-related compensation tied to continued employment of pre-existing shareholders of the acquiree not included in the total purchase consideration and professional fees. Integration costs primarily consist of professional fees incurred related to integration of acquisitions completed. Restructuring costs mainly represent employee exit costs as a result of synergies created from acquisitions and organizational changes. 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 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.

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