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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Converge Technology Solutions Corp | TSXV:CTS | TSX Venture | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.45 | 6.45 | 6.50 | 0 | 01:00:00 |
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER and TORONTO, March 28, 2019 /CNW/ - Converge Technology Solutions Corp. ("Converge" or "Company") (TSXV:CTS) (FSE:0ZB), a Hybrid IT solutions provider ("ITSP"), is pleased to provide its financial results for the three and twelve months ended December 31, 2018. All figures are in CAD dollars unless otherwise stated.
"We are very pleased with the results from our first full year of operations, having successfully completed phase one of our long-term growth strategy," stated Shaun Maine, Chief Executive Officer of Converge. "With five transactions completed over the course of 2018, each covering its own segment of the ITSP market, we ended the year with revenue of $459 million and Adjusted EBITDA1 $16.5 million. In the fourth quarter, we achieved revenue of $136.1 million and gross margin of 22.3% with Adjusted EBITDA1 of $5.8 million. We remain committed to our strategy of accretive acquisitions while remaining profitable. As well, we continue to see an increase in spend from our clients in both managed services and our public cloud offerings, which are both critical components of our strategy."
Mr. Maine continued, "As we look ahead to 2019, after having completed our January 2019 acquisition of Software Information Systems, we are extremely excited to realize the benefits of our cross-selling strategy among Converge companies, having already seen significant opportunities arise on this front. Furthermore, our backlog of acquisitions remains strong while we maintain our strategy of both organic growth and growth through strategic acquisitions."
Fiscal Year 2018 Financial Highlights
Fiscal year 2018 was the Company's first full year of operations. Accordingly, there is no comparable period analysis for fiscal year 2018.
1 EBITDA and Adjusted EBITDA are non-IFRS financial measures and do not have any standardized meaning under IFRS. See "Use of Non-IFRS Financial Measures" below. |
Fourth Quarter Financial Highlights
1 EBITDA and Adjusted EBITDA are non-IFRS financial measures and do not have any standardized meaning under IFRS. See "Use of Non-IFRS Financial Measures" below. |
Key Items from the Fourth Quarter
Key Items Subsequent to Quarter End
Fourth Quarter Conference Call
The Company will host a conference call featuring management's quarterly remarks and follow-up question and answer period.
A recording of the call will be available and posted on the Company's website. Dial-in details can be found below.
Conference Call Details:
Date: Friday, March 29th, 2019
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Toll Free – North America (+1) 888 390 0605
Conference ID: 51999150
Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 999150 #
Expiry Date: Friday, April 12th, 2019 at 11:59pm
Quarterly and Annual Results Materials
The Company's outlook is contained in its MD&A for the three and twelve months ended December 31, 2018, which is available along with the 2018 audited consolidated financial statements, at www.convergetp.com and at www.sedar.com.
Summary of Consolidated Financial Results
(in thousands of dollars)
For the three months ended December 31, | For the twelve months ended December 31, | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Revenues | $ | 136,088 | $ | 52,788 | $ | 459,193 | $ | 52,788 | |
Cost of sales | 105,765 | 42,136 | 369,224 | 42,136 | |||||
Gross profit | 30,323 | 10,652 | 89,969 | 10,652 | |||||
Selling, general and administrative expenses | 25,149 | 10,842 | 75,655 | 10,859 | |||||
Income (loss) before the following: | 5,174 | (190) | 14,314 | (207) | |||||
Depreciation and amortization | 1,850 | 783 | 5,100 | 783 | |||||
Finance expense, net | 2,551 | 1,143 | 7,549 | 1,144 | |||||
Change in fair value of contingent consideration | (186) | 1,472 | 7,447 | 1,472 | |||||
Transaction costs – acquisitions, including retention bonuses | 3,063 |
315 | 7,748 |
315 | |||||
Initial public offering costs | 1,622 | - | 2,282 | - | |||||
Other expense (income) | (323) | 109 | (224) | 109 | |||||
Net loss before taxes | $ | (3,403) | $ | (4,012) | $ | (15,588) | $ | (4,030) | |
Income tax expense (recovery) | 794 | (111) | 2,648 | (111) | |||||
Net loss | (4,197) | (3,901) | (18,236) | (3,919) | |||||
Exchange loss on translation of foreign operations | 469 | 24 | 691 | 24 | |||||
Comprehensive loss | $ | (4,666) | $ | (3,925) | $ | (18,927) | $ | (3,943) | |
EBITDA1 | $ | 1,583 | $ | (2,086) | $ | (744) | $ | (2,103) | |
Adjusted EBITDA1 | 5,759 | (299) | 16,509 | (316) | |||||
1 EBITDA and Adjusted EBITDA are non-IFRS financial measures and do not have any standardized meaning under IFRS. See "Use of Non-IFRS Financial Measures" below. |
About Converge
Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT solution providers to enhance their ability to provide multi-cloud solutions, blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today.
Notice to Reader: Use of Non-IFRS Financial Measures and 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 filing statement dated April 1st, 2019 which is available on SEDAR under the Company's profile at www.sedar.com in addition to the consolidated financial statements for theyears ended December 31, and 2017 together with the corresponding Management's Discussion and Analysis for additional risk factors described under "Risk Management".
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.
SOURCE Converge Technology Solutions Corp.
Copyright 2019 Canada NewsWire
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