Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • Data Privacy
  • Français
  • my CNW 
    • Login
    • Register
  • Client Login 
    • Online Member Centre
    • Next Gen Communications Cloud
    • Cision Communications Cloud®
  • Sign Up
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
Advanced Search
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Canadian Federal Government
      • Canadian Municipal Government
      • Canadian Provincial Government
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

  • Advanced Search
  • Overview
  • Multichannel Amplification
  • Monitoring
  • Distribution
  • Multimedia
  • Guaranteed Paid Placement
  • AI Tools
  • IR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Hamburger menu
  • Cision Canada
  • Send a Release
  • FR
    • Phone

    • 877-269-7890 from 8 AM - 10 PM ET

    • ALL CONTACT INFO
    • Contact Cision

      877-269-7890
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Overview
  • Multichannel Amplification
  • Monitoring
  • Distribution
  • Multimedia
  • Guaranteed Paid Placement
  • AI Tools
  • IR
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR

Converge Technology Solutions Reports Fourth Quarter and Fiscal Year 2020 Financial Results

Converge Technology Solutions Corp. (CNW Group/Converge Technology Solutions Corp.)

News provided by

Converge Technology Solutions Corp.

Mar 09, 2021, 16:00 ET

Share this article

Share toX

Share this article

Share toX

TORONTO and GATINEAU, QC, March 9, 2021 /CNW/ -  Converge Technology Solutions Corp. ("Converge" or "the Company") (TSX:CTS) (FSE:0ZB) (OTCQX:CTSDF) a national platform of regionally focused Hybrid IT solution providers in the U.S. and Canada, is pleased to provide its financial results for the three and twelve month periods ended December 31, 2020.  All figures are in CAD dollars unless otherwise stated.

Q420 & FY20 Highlights

  • Fourth quarter revenue increased 35% over the last year to $289.6 million and annual revenue increased 38% to $948.8 million
  • Fourth quarter adjusted EBITDA increased 98% over the last year to $23.4 and annual adjusted EBITDA increased 92% to $60.5 million
  • Fourth quarter net income was $1.0 million and annual net loss was $4.2 million
  • Strengthened the balance sheet with $109 million of equity raised in 2020
  • Completed front office integration of 12 subsidiaries, resulting in over $20 million of estimated annualized cost savings
  • Closed a three-year committed $140 million revolving credit facility that will result in over $8 million in estimated annual interest cost savings
  • Completed five acquisitions in 2020 including Quebec-based PCD Solutions, Inc., Texas-based Unique Digital, Inc., Missouri-based Workgroup Connections, Inc., Saskatchewan-based Vivvo Applications Studio LTD., and US Northeast-based Vicom Computer Services, Inc.
  • Ranked as fastest growing Company on the 2020 CRN Fast Growth 150 List; named Red Hat Rising Star Partner of the Year; awarded 2020 Ingram Micro Cloud Reseller Partner of the Year North America; achieved Network Virtualization and Cloud Management & Automation VMware Master Competencies; achieved Titanium Partner status with Dell Technologies; and received Cisco CX Specialization Status

Subsequent to Quarter in 2021

  • Closed $86.5 million equity financing at $4.85 per common share in January 2021
  • Recognized as a top-performing Company on the OTCQX Best 50 List and the TSX Venture 50 List for 2 years in a row
  • Graduated to the TSX from the TSX Venture Exchange on February 11th, 2021
  • Completed two acquisitions including CarpeDatum LLC, an AI and analytics specialist and Accudata Systems, Inc., a cybersecurity and managed services provider

"Converge has never been stronger or better positioned for continued growth than it is today", said Shaun Maine, CEO of Converge.  "Our recent efforts ranging from the strengthening of our balance sheet, to the expansion of our geographical reach into valuable marketplaces such as Texas, to our recent graduation to the TSX, put us in an ideal position to meet the IT solutions needs of our large and growing base of customers. We had our strongest quarter to date in Q4, generating $289.5 million of revenue and $23.4 million of adjusted EBITDA.  Annually adjusted EBITDA growth was over 90% for the second year in a row.  We also welcomed a number of new institutional and individual investors as shareholders over the past year and will continue to focus on growth and executing on our business strategy for the benefit of all Converge stakeholders."

"For our team to have produced these results while managing the pressure and demands of COVID-19, truly speaks volumes to the dedication and ambition of every one of our employees," added Greg Berard, President of Converge. "As we celebrate the achievements and overcoming the adversity 2020 presented us with, we will harness that momentum to help drive further meaningful growth in the year to come."

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.

A live audio webcast and archive of the conference call will be available by visiting the Company's website at https://convergetp.com/investor-relations/. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.

Conference Call Details:

Date: Tuesday, March 9th, 2021
Time: 5:00 PM Eastern Time

Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Toll Free – North America (+1) 888 390 0605
Germany – 08007240293
United Kingdom - 08006522435
Conference ID: 40845533

Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 845533#
Expiry Date: March 16th, 2021

Consolidated Statements of Financial Position 
(expressed in thousands of Canadian dollars)                                                    


December 31, 2020

December 31, 2019

Assets



Current assets




 Cash

$

64,767

$

20,590


 Restricted cash

-

7,848


 Trade and other receivables

364,308

220,138


 Inventories

37,868

23,376


 Prepaid expenses and other assets

10,376

15,232



477,319

287,184

Long-term assets




Property, equipment, and right-of-use assets, net

23,558

27,428


Intangible assets, net

108,926

92,047


Goodwill

110,068

80,271


Other non-current assets

749

1,954



$

720,620

$

488,884





Liabilities



Current liabilities




Trade and other payables

$

398,003

$

248,218


Borrowings

133,281

142,123


Other financial liabilities

22,125

35,734


Convertible debenture

-

5,114


Debentures

-

3,629


Deferred revenue and other liabilities

17,376

9,737


Income taxes payable

764

660



571,549

445,215

Long-term liabilities




Other financial liabilities

28,858

33,111


Borrowings

5,882

14,573


Deferred tax liability

12,584

5,862



$

618,873

$

498,761





Shareholders' equity (deficiency)




Common shares

135,354

20,612


Warrants

-

243


Contributed surplus 

-

307


Exchange rights

4,853

6,773


Foreign exchange translation reserve

817

69


Deficit

(39,277)

(37,881)



101,747

(9,877)



$

720,620

$

488,884

Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
(expressed in thousands of Canadian dollars)                                                    



For the three months ended
December 31,


For the twelve months ended
December 31,



2020


2019


2020


2019










Revenues









Product

$

241,091

$

159,459

$

750,232

$

539,719

Service


48,466


55,246


198,567


148,076

Total revenue


289,557


214,705


948,799


687,795

Cost of sales


218,630


161,350


715,793


526,211

Gross profit


70,927


53,355


233,006


161,584










Selling, general and administrative expenses 


49,179


42,821


177,697


133,899

Income before the following


21,748


10,534


55,309


27,685










Depreciation and amortization


5,262


4,648


21,466


13,057

Finance expense, net


3,719


5,499


19,672


16,026

Special charges


7,149


2,455


15,063


10,640

Other expense (income)


1,723


(200)


1,609


719

Income (loss) before income taxes


3,895


(1,868)


(2,501)


(12,757)










Income tax expense (recovery)


2,945


(3,461)


1,674


(1,917)










Net income (loss)

$

950

$

1,593

$

(4,175)

$

(10,840)










Other comprehensive gain









Exchange loss (gain) on translation


(1,151)


(741)


(748)


(784)

of foreign operations

Comprehensive income (loss)

$

2,101

$

2,334

$

(3,427)

$

(10,056)










Adjusted EBITDA

$

23,375

$

11,832

$

60,493

$

31,622











Adjusted EBITDA (Non-IFRS Financial Measurement) 

Adjusted EBITDA represents net loss or income adjusted to exclude amortization, depreciation, interest expense and finance costs, foreign exchange gains and losses, 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 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.

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 December 31,

For the twelve months

ended December 31,


2020

2019

2020

2019

Net income (loss) before taxes

$

3,895

$

(1,868)

$

(2,501)

$

(12,756)

Finance expense

3,719

5,499

19,672

16,026

Depreciation and amortization

5,262

4,648

21,466

13,057

Depreciation included in cost of sales

1,058

1,342

5,109

4,830

Foreign exchange loss (gain)

3,486

(244)

2,878

(155)

PPP loan forgiveness

(1,194)

-

(1,194)

-

Special charges

7,149

2,455

15,063

10,620

Adjusted EBITD

$

23,375

$

11,832

$

60,493

$

31,622

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

  1. 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.

SOURCE Converge Technology Solutions Corp.

Converge Technology Solutions Corp., Email: [email protected], Phone: 416-360-1495

Related Links

https://convergetp.com/

Modal title

Organization Profile

Converge Technology Solutions Corp.

    Also from this source

  • Converge Technology Solutions Accelerates Generative AI Adoption with NVIDIA Blueprints

  • H.I.G. Capital Completes Acquisition of Converge Technology Solutions and Merger of Converge Technology Solutions and Mainline Information Systems to Form "Pellera Technologies"

  • H.I.G. Capital Completes Merger of Converge Technology Solutions and Mainline Information Systems to Form "Pellera Technologies"

Contact Cision

  • 866-245-2317
    from 8 AM - 10 PM ET
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media

Products

  • Cision Communications Cloud®
  • Media Monitoring
  • Content Distribution
  • Multimedia Distribution
  • Measurement & Analytics
  • Investor Relations

About

  • About Cision Canada
  • About Cision
  • Media Partners
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Platform
  • Next Gen Communications Cloud
  • Cision Communications Cloud®
  • my CNW

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Platform
  • Next Gen Communications Cloud
  • Cision Communications Cloud
  • my CNW
877-269-7890
from 8 AM - 10 PM ET
  • Terms of Use
  • Information Security Policy
  • Site Map
  • Cookie Settings
  • Accessibility Statement
Copyright © 2025 CNW Group Ltd. All Rights Reserved. A Cision company.