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 6th, 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.
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[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.
