PR Newswire
TORONTO and GATINEAU, QC, March 15, 2023
TORONTO and GATINEAU, QC, March 15, 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 full fiscal year ("FY22") and three-month periods ended December 31, 2022 ("Q4-22"). All figures are in Canadian dollars unless otherwise stated.
FY 2022 Financial Highlights:
"In 2022, Converge grew faster than any comparable public provider globally, expanding gross profit by 59% year-over-year, translating to gross profit organic growth of 10.5%", said Shaun Maine, CEO of Converge. "And, we expect to continuously improve on these results in 2023, outpacing the market on growth by expanding on high-value solution areas such as data analytics, AI, cloud, and cybersecurity while simultaneously rolling out various managed services and continuing to expand our offerings into Europe."
____________________________ |
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 |
Q4-2022 Financial Highlights:
"We are successfully executing against our strategy, while managing backlog and inventory challenges, demonstrating the resilience of our offering despite current macro-economic conditions," continued Maine. "We are pleased to report that over 90% of the Q4 backlog has been shipped in the first quarter of 2023, which we expect will contribute to a strong Q1 2023. We anticipate Q1 financial performance to be closer to Q4, as compared to historical trends where Q1 has been seasonally about 20% to 25% lower than Q4. While the overall market is expected to remain flat in 2023, we anticipate that we will gain market share organically, and that we'll see improvements in our gross profit and Adjusted EBITDA1 margins."
Q4-2022 & FY22 Business Highlights
___________________________ |
3 Bookings represents the gross contracted revenue based on actual revenue recognized in the period, plus the change in bookings backlog from the prior quarter |
Subsequent developments
"Richard advanced our finance organization with best-in-class processes during his tenure with us and made a long-lasting positive impact on Converge", said Maine. "I personally want to thank Richard for all that he has done for Converge and wish him all the best in his recovery. Matt has proven himself as a strong finance executive and I am confident in Matt's ability to step up and lead our finance organization again."
Software net-down change
In Q4, the Company adopted an accounting policy change in response to emerging IFRS guidance that introduced new interpretations of a company's role when it resells certain OEM software licenses, for companies that previously reported software revenue on a gross basis, to move to net treatment ("software net-down"). The accounting policy change is applied to the full-year audited 2022 results and 2021 for comparative purposes. Additionally, the quarterly impacts of the software net-down to the Company's 2022 and 2021 reported results have been included as an appendix within, and can also be found in the Company's Q4 and FY22 MD&A.
The following table details the impact of the software net-down change on the Company's Q4-22 and FY22 and prior year reported net revenue:
| Q4-22 | Q4-21 | |||
| Balance pre- | Impact of | Net revenue | Reclassified | |
Product | $ 638,261 | (130,631) | $ 507,630 | $ 353,884 | |
Managed services | 33,344 | - | 33,344 | 22,372 | |
Third party and professional services | 99,953 | - | 99,953 | 69,695 | |
Total net revenue | $ 771,558 | (130,631) | $ 640,927 | $ 445,951 | |
| | | | | |
| | | |||
| FY22 | FY21 | |||
| Balance pre- | Impact of | Net revenue | Reclassified | |
Product | $ 2,057,477 | (356,810) | $ 1,700,667 | $ 1,038,197 | |
Managed services | 119,630 | - | 119,630 | 75,886 | |
Third party and professional services | 344,350 | - | 344,296 | 215,654 | |
Total net revenue | $ 2,521,457 | (356,810) | $ 2,164,647 | $ 1,329,737 | |
| | | | | |
Conference Call Details:
Date: Thursday, March 16th, 2023
Time: 8:00 AM Eastern Time
Participant Webcast Link:
Webcast Link - https://app.webinar.net/KZ5EdX0d7Yn
Participant Dial-in Details:
Confirmation #: 72210906
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 without operator assistance via https://emportal.ink/3k71T12.
Recording Playback:
Webcast Link - https://app.webinar.net/KZ5EdX0d7Yn
Toronto: 416-764-8677
North American Toll Free: 1-888-390-0541
Replay Code: 210906 #
Expiry Date: March 23rd, 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)
| December 31, 2022 | December 31, 2021 | |
Assets | | | |
Current assets | | | |
| Cash | $ 159,890 | $ 248,193 |
| Restricted cash | 5,230 | - |
| Trade and other receivables | 781,683 | 416,499 |
| Inventories | 158,430 | 104,254 |
| Prepaid expenses and other assets | 23,046 | 11,762 Werbung Mehr Nachrichten zur CTS Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. |