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Converge Technology Solutions Corp
Symbol CTS
Shares Issued 185,905,081
Close 2021-08-11 C$ 11.31
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Converge Technology earns $1.02-million in Q2

2021-08-11 16:12 ET - News Release

Mr. Shaun Maine reports

CONVERGE TECHNOLOGY SOLUTIONS REPORTS SECOND QUARTER 2021 FINANCIAL RESULTS

Converge Technology Solutions Corp. has provided its financial results for the three and six months ended June 30, 2021.

Q221 highlights:

  • Second quarter revenue increased 52 per cent over last year to $345.3-million;
  • Gross profit increased 43 per cent over last year to $78.2-million;
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 86 per cent to $21.7-million from $11.7-million last year;
  • Not included in the company's Q2 numbers are $54.6-million of revenue and $3.9-million of adjusted EBITDA, which are part of the Vicom Infinity and Infinity System acquisitions announced on June 30, 2021, but not yet closed;
  • Net income was $1-million, compared with a loss of $4.4-million last year;
  • Closed $172.5-million equity financing at $7.50 per common share in June, 2021;
  • Added Doris Albiez to the European advisory board and appointed Darlene Kelly and Thomas Volk to the Converge board at the Converge annual general meeting;
  • Completed the acquisitions of Dasher Technologies Inc., a leading Silicon Valley based IT (information technology) solution provider; Exactly IT, a next-generation managed IT service provider; and signed definitive agreements to acquire both Vicom Infinity Inc. and Infinity Systems Software;
  • Achieved five key 2021 IBM awards, including: the Beacon Award; Top North America Sell Business Partner of the Year; Top North America IBM and Red Hat Synergy Partner of the Year; IBM Data and AI Business Unit Excellence Award for Cloud Pak for Data; and IBM Business Unit Excellence Award for Protect: Digital Trust;
  • Added 121 net new logos throughout the quarter;
  • Achieved titanium partner status with Intel Corp.; diamond status with Palo Alto Networks; elite partner status with Pure Storage; and ranked within top 50 on CRN's 2021 Solution Provider 500 List.

Subsequent to quarter:

  • Completed acquisition of Rednet AG, an IT service provider headquartered in Mainz, Germany, marking the company's first European acquisition;
  • Ranked 14th on CRN's 2021 Fast Growth 150 list; announced as Ingram Micro's Blue Series Partner of the Year and Core Partner of the Year for North America; and recipient of the 2021 North American Microsoft Surface Reseller of the Year.

"Converge is extremely proud to announce another record quarter of performance," said Shaun Maine, chief executive officer of Converge. "The team continues to execute in all aspects of our business as we focus on providing best-in-class solutions to our increasing roster of valued customers. In addition to our exceptional North American growth, we are extremely excited to have closed our platform acquisition in Europe and we look forward to replicating our North American success overseas. To further expand our investor base around our European expansion, the company will be exploring a secondary listing in the London Stock Exchange. Our scale and reach as well as the depth of expertise within our key practice areas make Converge one of the premier IT solutions providers in the market and we look forward to continuing to deliver for our valued customers, shareholders, employees and stakeholders. Additionally, Converge has created a new cybersecurity-focused SaaS [software as a service] entity, Portage CyberTech Inc., which combines its Becker Carrol and Vivvo business units. Portage will focus on growing its unique offerings and expanding its footprint in the months ahead and may raise capital directly to finance organic and M&A [merger and acquisition] growth for its SaaS solutions. These are exciting times for Converge and we remain steadfast in our objective to meet and exceed the expectations of our customers and shareholders."

Conference call details

Date:  Thursday, Aug. 12, 2021

Time:  9 a.m. Eastern Time

Participant dial-in numbers

Local Toronto:  1-647-794-4605

Toll-free North America:   1-888-204-4368

Germany:   0800-589-4609

United Kingdom:  0800-358-6377

Conference ID:  7839132

Recording playback numbers

Toronto:  1-647-436-0148

Toll-Free North America:   1-888-203-1112

Passcode:  7839132

Expiry date:   Aug. 19, 2021

A live audio webcast and archive of the conference call will be available by visiting the company's website. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to listen to the webcast.

About Converge Technology Solutions Corp.

Converge Technology Solutions is a software-enabled IT and cloud solutions provider focused on delivering industry-leading solutions and services. Converge's regional sales and services organizations deliver advanced analytics, cloud and cybersecurity offerings to clients across various industries. The company supports these solutions with managed services, digital infrastructure and talent expertise offerings 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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