Technology
Converge Reports Third Quarter 2024 Results
Published
2 days agoon
By
Year-to-date cash generated from operating activities increased by $97 million to $212 million, enabling continued net debt1 reduction and a return of $61.7 million in capital to shareholders1
Announces Completion of Group CEO Transition and Appoints Greg Berard, CEO to the Company’s Board of Directors
TORONTO and GATINEAU, QC, Nov. 12, 2024 /PRNewswire/ — Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) is pleased to provide its financial results for the three and nine months period ended September 30, 2024. All figures are in Canadian dollars unless otherwise stated.
Third Quarter 2024 Highlights (year-over-year, unless otherwise noted):
Gross sales1 of $945.0 million, a decrease of $91.8 million or 8.9%;Gross sales organic growth1 of (8.4%) and gross profit organic growth1 of (7.3%);Revenue of $630.7 million, a decrease of $79.4 million or 11.2%;Gross profit decreased 9.1% to $158.3 million, representing a gross margin of 25.1%;Adjusted EBITDA1 decreased 22.2% to $32.1 million;Cash from operating activities was $48.9 million, a decrease of $47.1 million, compared to $95.9 million for the comparative period in the prior year;Returned $10.0 million of capital to shareholders1 as compared to $3.1 million return of capital to shareholders in Q3 FY23; andReduced net debt1 by $30 million from $157.9 million at Q2 2024; maintaining a leverage ratio1 below 1.0x.
Year-To-Date 2024 Highlights (year-over-year, unless otherwise noted):
Gross sales1 of $3.0 billion, an increase of $55.4 million or 1.9%;Gross sales organic growth1 of 2.0% and gross profit organic growth1 of (1.0%);Revenue of $1.9 billion, a decrease of $142.8 million;Gross profit decreased 1.6% to $512.8 million, representing a gross margin of 26.8%;Adjusted EBITDA1 decreased 3.5% to $119.4 million;Net loss of $171.8 million, an increase in loss of $160.6 million, driven by the non-cash impairment charge on the Germany segment of $176.1 million;Returned $61.7 million of capital to shareholders1 as compared to $19.4 million return of capital to shareholders for the comparative period in prior year;Cash from operating activities was $212.4 million, an increase of $97.3 million, compared to $115.1 million for the comparative period in the prior year; andReduced net debt1 by $81.9 million to $127.8 million, from $209.8 million at Q4 2023.
“While adverse macroeconomic conditions led to delays in hardware spending that impacted our third quarter results, we have already closed about 25% of the deals contributing to our gross profit shortfall and expect to close the remainder in Q4 and 2025. Meanwhile, we continued to see double-digit growth in our strategic investment areas—AI, cloud, and cybersecurity, driving growth in software and managed services revenue in the third quarter of 2024,” said Greg Berard, CEO. “Our robust cash flow generation is a testament to our financial strength, and we are committed to executing a strategic and disciplined capital allocation approach to drive long-term value creation. This will be achieved through targeted, high-impact growth investments, while simultaneously returning a significant amount of capital to shareholders.”
Financial Summary
In $000s except per share amounts
3-month
Q3 2024
3-month
Q3 2023
9-month
Q3 2024
9-month
Q3 2023
Gross Sales1
945,006
1,036,760
3,014,662
2,959,258
Revenue
630,690
710,106
1,911,303
2,054,117
Gross profit (GP)
158,257
174,090
512,813
521,351
Gross profit (GP) %
25.1 %
24.5 %
26.8 %
25.4 %
Adjusted EBITDA1
32,114
41,258
119,430
123,789
Adjusted EBITDA as a % of GP1
20.3 %
23.7 %
23.3 %
23.7 %
Net loss
(3,309)
(3,316)
(171,812)
(11,174)
Adjusted net income1
23,237
20,622
84,703
70,187
Adjusted EPS1
0.12
0.10
0.42
0.34
Subsequent to Quarter-End
On November 11, 2024, the Board declared a quarterly dividend of $0.015 per common share to be paid on December 28, 2024 to shareholders of record at the close of business on December 10, 2024.
Financial Outlook
Converge is providing financial guidance for the three months ended December 31, 2024 and fiscal year ended December 31, 2024 as follows:
(expressed in millions of Canadian dollars)
Q4 2023 Actual
Q4 2024 Expected
FY 2023 Actual
FY 2024 Expected
Revenue
$651.1
$600 – $646
$2,705.2
$2,511 – $2,558
Gross profit
$181.5
$165 – $178
$702.9
$678 – $691
Adjusted EBITDA
$46.5
$36 – $47
$170.3
$155 – $166
Note: Q4 2023 Actual and FY 2023 Actual include results of Portage CyberTech Inc. (“Portage”) which has been deconsolidated on June 27, 2024.
Completion of Group CEO Transition
Converge is announcing today that the previously disclosed Group CEO transition plan has progressed ahead of schedule. As a result, the Board of Directors (the “Board”) has accepted Shaun Maine’s decision to step down as Group CEO and member of the Board, effective immediately. Greg Berard, currently CEO of Converge, has been appointed as a member to the Company’s Board of Directors.
“On behalf of the Board, I want to thank Shaun for his visionary leadership and the profound impact he’s had since co-founding the Company in 2017,” said Thomas Volk, Chair of the Board. “We are pleased to welcome Greg Berard as the newest member of the Board. Greg’s leadership as operational CEO has been a tremendous asset to the Company, and we look forward to the fresh perspectives and wealth of experience that he will bring to the Board.”
Conference Call Details:
Date: Tuesday, November 12th, 2024
Time: 8:00 AM Eastern Standard Time
Participant Webcast Link:
Webcast Link – https://app.webinar.net/kPR1pwqzK50
Participant Dial-in Details with Operator Assistance:
Conference ID: 71060
Toronto: 1-416-945-7677
North American Toll Free: 1-888-699-1199
International Toll-Free Numbers:
Germany: 498005889782
Ireland: 35315251826
Spain: 34917918582
Switzerland: 41432107274
United Kingdom: 448002797040
You may register and enter your phone number to receive an instant automated call back via https://emportal.ink/3BJcbwy.
Recording Playback:
Webcast Link – https://app.webinar.net/kPR1pwqzK50
Toronto: 1-289-819-1450
North American Toll Free: 1-888-660-6345
Replay Code: 71060 #
Expiry Date: November 19th, 2024
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, artificial intelligence (AI), 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 Condensed Consolidated Interim Statements of Financial Position
(expressed in thousands of Canadian dollars) (unaudited)
September 30,
2024
$
December 31,
2023
$
Assets
Current
Cash
180,464
170,419
Trade and other receivables
775,026
803,652
Inventories
71,753
73,166
Prepaid expenses and other assets
34,111
26,528
1,061,354
1,073,765
Non-current
Investment in associates
27,909
–
Unbilled receivables and other assets
202,290
64,158
Property, equipment and right-of-use assets, net
66,621
75,488
Intangible assets, net
272,646
375,181
Goodwill
385,022
564,770
Total assets
2,015,842
2,153,362
Liabilities
Current
Trade and other payables
976,301
853,655
Other financial liabilities
43,799
54,095
Deferred revenue
61,872
59,325
Borrowings
25,754
1,664
Income taxes payable
–
9,286
1,107,726
978,025
Non-current
Accrued liabilities and other payables
180,704
60,339
Other financial liabilities
41,955
57,668
Borrowings
282,589
378,007
Deferred tax liabilities
43,396
67,168
Total liabilities
1,656,370
1,541,207
Shareholders’ equity
Common shares
557,292
599,434
Contributed surplus
15,347
10,970
Accumulated other comprehensive income
13,009
3,963
Deficit
(226,176)
(28,167)
Total equity attributable to shareholders of Converge
359,472
586,200
Non-controlling interest (“NCI”)
–
25,955
359,472
612,155
Total liabilities and shareholders’ equity
2,015,842
2,153,362
Summary of Condensed Consolidated Interim Statements of Income and Comprehensive Income
(expressed in thousands of Canadian dollars) (unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2024
2023
2024
2023
Revenue
Product
500,881
559,646
1,503,439
1,607,932
Service
129,809
150,460
407,864
446,185
Total revenue
630,690
710,106
1,911,303
2,054,117
Cost of sales
472,433
536,016
1,398,490
1,532,766
Gross profit
158,257
174,090
512,813
521,351
Selling, general and administrative expenses
129,042
134,935
400,878
403,667
Income before the following
29,215
39,155
111,935
117,684
Depreciation and amortization
19,961
29,456
69,382
82,239
Finance expense, net
7,126
10,867
22,881
30,870
Acquisition, integration, restructuring and other
2,236
2,601
10,692
10,969
Change in fair value of contingent consideration
1,016
–
4,289
9,209
Share-based compensation
2,761
774
4,673
2,738
Other expense (income), net
865
(170)
1,120
(4,230)
Loss on loss of control of Portage
–
–
117
–
Loss from investment in associates
1,968
–
1,968
–
Impairment loss – Germany segment
–
–
176,124
–
Loss before income taxes
(6,718)
(4,373)
(179,311)
(14,111)
Income tax recovery
(3,409)
(1,057)
(7,499)
(2,937)
Net loss
(3,309)
(3,316)
(171,812)
(11,174)
Net loss attributable to:
Shareholders of Converge
(3,309)
(1,802)
(168,539)
(7,309)
Non-controlling interest
–
(1,514)
(3,273)
(3,865)
(3,309)
(3,316)
(171,812)
(11,174)
Other comprehensive income (loss)
Item that may be reclassified subsequently to income (loss):
Exchange differences on translation of foreign operations
(2,988)
2,891
9,046
(10,661)
Comprehensive loss
(6,297)
(425)
(162,766)
(21,835)
Comprehensive loss attributable to:
Shareholders of Converge
(6,297)
1,089
(159,493)
(17,970)
Non-controlling interest
–
(1,514)
(3,273)
(3,865)
(6,297)
(425)
(162,766)
(21,835)
Adjusted EBITDA
32,114
41,258
119,430
123,789
Adjusted EBITDA as a % of Gross profit
20.3 %
23.7 %
23.3 %
23.7 %
Summary of Condensed Consolidated Interim Statements of Cash Flows
(expressed in thousands of Canadian dollars) (unaudited)
For the three months
ended September 30,
For the nine months
ended September 30,
2024
2023
2024
2023
Cash flows from operating activities
Net loss
(3,309)
(3,316)
(171,812)
(11,174)
Adjustments to reconcile net loss to net cash from operating activities
Depreciation and amortization
22,860
31,559
76,877
88,344
Unrealized foreign exchange loss (gain)
650
–
880
(2,818)
Share-based compensation
2,761
774
4,673
2,738
Finance expense, net
7,126
10,867
22,881
30,870
(Loss) gain on sale of property and equipment
4
–
73
(598)
Change in fair value of contingent consideration
1,016
–
4,289
9,209
Impairment loss – Germany segment
–
–
176,124
–
Loss on loss of control of Portage
–
–
117
–
Loss from investment in associates
1,968
–
1,968
–
Income tax recovery
(3,409)
(1,057)
(7,499)
(2,937)
29,667
38,827
108,571
113,634
Changes in non-cash working capital items
22,289
63,102
131,642
18,858
51,956
101,929
240,213
132,492
Income taxes paid
(3,097)
(5,987)
(27,805)
(17,433)
Cash from operating activities
48,859
95,942
212,408
115,059
Cash flows from (used in) investing activities
Purchase of (proceeds from) property, equipment and intangible assets
2,213
(1,593)
(1,648)
(5,041)
Payment of contingent consideration
–
(10,899)
(19,328)
(20,834)
Payment of deferred consideration
(508)
(14,095)
(12,375)
(43,815)
Payment of NCI liability
–
(973)
–
(30,967)
Cash from (used in) investing activities
1,705
(27,560)
(33,351)
(100,657)
Cash flows (used in) from financing activities
Transfers from restricted cash
–
(519)
–
2,068
Interest paid
(5,801)
(10,544)
(18,130)
(25,786)
Dividends paid
(2,922)
(2,047)
(7,925)
(4,114)
Payment of lease liabilities
(4,677)
(4,975)
(14,793)
(15,199)
Repurchase of common shares
(7,072)
(1,064)
(53,793)
(15,294)
Stock options exercised
–
–
875
–
Repayment of notes payable
–
(39)
(39)
(119)
Net repayment of borrowings
(23,874)
(21,977)
(78,346)
(10,593)
Cash used in financing activities
(44,346)
(41,165)
(172,151)
(69,037)
Net change in cash during the period
6,218
27,217
6,906
(54,635)
Effect of foreign exchange on cash
159
(439)
4,213
(34)
Cash derecongnized on loss of control of Portage
–
–
(1,074)
–
Cash, beginning of the period
174,087
78,443
170,419
159,890
Cash, end of the period
180,464
105,221
180,464
105,221
Non-IFRS Financial Measures
This press release refers to certain performance indicators including Adjusted EBITDA, gross sales, gross sales organic growth, net debt, return of capital, leverage ratio, adjusted net income (“Adjusted Net Income”) and adjusted earnings per share (“Adjusted EPS”) that do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management believes that these measures are useful to most shareholders, creditors, and other stakeholders in analyzing the Company’s operating results and can highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company also 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. These non-IFRS financial measures should not be considered as an alternative to the consolidated income (loss) or any other measure of performance under IFRS. Investors are encouraged to review the Company’s financial statements and disclosures in their entirety, are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures.
Please see “Non-IFRS Financial & Supplementary Financial Measures” and “Summary of Consolidated Financial Results” in the Company’s most recent Management’s Discussion and Analysis, which is available on the Company’s profile on SEDAR+ at www.sedarplus.ca, for further details on certain non-IFRS measures, which information is incorporated by reference herein.
Adjusted EBITDA
Adjusted EBITDA represents net income or loss adjusted to exclude amortization, depreciation, net finance expense, foreign exchange gains and losses, other expenses and income, share-based compensation expense, income tax expense or recovery, change in fair value of contingent consideration, impairment loss, gain or loss on loss of control of subsidiary, income or loss from investment in associates and acquisition, integration, restructuring and other expenses. Acquisition and transaction related costs primarily consists of acquisition-related compensation tied to continued employment of pre-existing shareholders of the acquiree not included in the total purchase consideration and professional fees. Integration costs primarily consist of professional fees incurred related to integration of acquisitions completed. Restructuring costs mainly represent employee exit costs as a result of synergies created from acquisitions and organizational changes.
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.
The IFRS measure most directly comparable to Adjusted EBITDA presented in the Company’s financial statements is net (loss) income before taxes.
The Company has reconciled Adjusted EBITDA to the most comparable IFRS financial measure as follows:
For the three months
ended September 30,
For the nine months
ended September 30,
2024
2023
2024
2023
Net loss before taxes
(6,718)
(4,373)
(179,311)
(14,111)
Depreciation and amortization
19,961
29,456
69,382
82,239
Depreciation included in cost of sales
2,899
2,103
7,495
6,105
Finance expense, net
7,126
10,867
22,881
30,870
Acquisition, integration, restructuring and other
2,236
2,601
10,692
10,969
Change in fair value of contingent consideration
1,016
–
4,289
9,209
Share-based compensation
2,761
774
4,673
2,738
Other expense (income), net
865
(170)
1,120
(4,230)
Loss on loss of control on Portage
–
–
117
–
Loss from investment in associates
1,968
–
1,968
–
Impairment loss – Germany segment
–
–
176,124
–
Adjusted EBITDA
32,114
41,258
119,430
123,789
Adjusted EBITDA as a % of Gross Profit
The Company believes that Adjusted EBITDA as a % of gross profit is a useful measure of the Company’s operating efficiency and profitability. This is calculated by dividing Adjusted EBITDA by gross profit.
Adjusted Net Income and Adjusted EPS
Adjusted Net Income represents net income or loss adjusted to exclude acquisition, integration, restructuring and other expenses, change in fair value of contingent consideration, impairment loss, gain or loss on loss of control of subsidiary, income or loss from investment in associates, amortization of acquired intangible assets, unrealized foreign exchange gain or loss, and share-based compensation. The Company believes that Adjusted Net Income is a more useful measure than net income as it excludes the impact of one-time, non-cash and/or non-recurring items that are not reflective of Converge’s underlying business performance. Adjusted EPS is calculated by dividing Adjusted Net Income by the total weighted average shares outstanding on a basic and diluted basis. The IFRS measure most directly comparable to Adjusted Net Income presented in the Company’s financial statements is net income (loss) and net income (loss) per share.
The Company has provided a reconciliation to the most comparable IFRS financial measure as follows:
For the three months
For the nine months
ended September 30,
ended September 30,
2024
2023
2024
2023
Net loss
(3,309)
(3,316)
(171,812)
(11,174)
Acquisition, integration, restructuring and other
2,236
2,601
10,692
10,969
Change in fair value of contingent consideration
1,016
–
4,289
9,209
Amortization on intangibles
17,915
21,056
57,772
62,793
Foreign exchange loss (gain)
650
(493)
880
(4,348)
Share-based compensation
2,761
774
4,673
2,738
Loss on loss of control or Portage
–
–
117
–
Loss from investment in associates
1,968
–
1,968
–
Impairment loss- Germany segment
–
–
176,124
–
Adjusted Net Income
23,237
20,622
84,703
70,187
Adjusted EPS – Basic
0.12
0.10
0.42
0.34
Return of capital
The Company calculates return of capital to shareholders as the total of cash used in dividend payments and share repurchases.
Net Debt
The Company calculates net debt1 as current and non-current borrowings) less cash.
Leverage Ratio
The Company defines leverage ratio as net debt (current and non-current borrowings less cash) divided by trailing twelve months Adjusted EBITDA.
Gross sales and gross sales organic growth
Gross sales, which is a non-IFRS measure, reflects the gross amount billed to customers, adjusted for amounts deferred or accrued. The Company believes gross sales is a useful alternative financial metric to net revenue, the IFRS measure, as it better reflects volume fluctuations as compared to net revenue. Under the applicable IFRS 15 ‘principal vs agent’ guidance, the principal records revenue on a gross basis and the agent records commission on a net basis. In transactions where Converge is acting as an agent between the customer and the vendor, net revenue is calculated by reducing gross sales by the cost of sale amount.
The Company has provided a reconciliation of gross sales to revenue, which is the most comparable IFRS financial measure, as follows:
For the three months
For the nine months
ended September 30,
ended September 30,
2024
2023
2024
2023
Product
668,057
721,871
2,086,201
2,027,198
Managed services and professional services
119,128
129,382
353,407
384,826
Maintenance, support and cloud solutions
157,821
185,507
575,054
547,234
Gross sales
945,006
1,036,760
3,014,662
2,959,258
Less: adjustment for sales transacted as agent
314,316
326,654
1,103,359
905,141
Revenue
630,690
710,106
1,911,303
2,054,117
Organic Growth
The Company measures organic growth at the gross sales and gross profit levels, and includes the contributions under Converge ownership in the current and comparative period(s). In calculating organic growth, the Company therefore deducts gross sales and gross profit generated from all corresponding prior comparable pre-acquisition period(s) from the current reporting period(s) included in the consolidated results.
Organic growth calculations for the three and nine-months ended September 30, 2024, deduct gross sales and gross profits from Portage for the three months ended September 30, 2023 due to deconsolidation of Portage on June 27, 2024.
Gross sales organic growth is calculated by deducting prior period gross sales, from current period gross sales for the same portfolio of companies. Gross sales organic growth percentage is calculated by dividing organic growth by prior period reported gross sales.
For the three months
For the nine months
ended September 30,
ended September 30,
2024
2023
2024
2023
Gross sales
945,006
1,036,760
3,014,662
2,959,258
Less: gross sales from companies not owned in comparative period
–
133,891
–
593,758
Gross sales of companies owned in comparative period
945,006
902,869
3,014,662
2,365,500
Less: prior period gross sales(i)
1,031,779
730,571
2,954,277
2,134,178
Organic Growth – $
(86,773)
172,298
60,385
231,322
Organic Growth – %
(8.4 %)
23.6 %
2.0 %
10.8 %
(i)
For the three and nine months ended September 30, 2024, Portage prior period gross sales of $4,981 is excluded
Gross profit organic growth is calculated by deducting prior period gross profit, from current period gross profit for the same portfolio of companies. Gross profit organic growth percentage is calculated by dividing organic growth by prior period reported gross profit.
For the three months
For the nine months
ended September 30,
ended September 30,
2024
2023
2024
2023
Gross profit
158,257
174,090
512,813
521,351
Less: gross profit from companies not owned in comparative period
–
20,375
–
104,212
Gross profit of companies owned in comparative period
158,257
153,715
512,813
417,139
Less: Prior period gross profit(ii)
170,639
139,654
517,900
381,851
Organic Growth – $
(12,382)
14,061
(5,087)
35,288
Organic Growth – %
(7.3 %)
10.1 %
(1.0 %)
9.2 %
(ii)
For the three and nine months ended September 30, 2024, Portage prior period gross profits of $3,451 is excluded
________________________________
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 press release for definition, uses and a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures.
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.
Specifically, statements regarding Converge’s forecast on revenue, gross profit and Adjusted EBITDA, expectations of future results, performance, prospects, the markets in which it operates or about any future intention with regard to its business and acquisition strategies are considered forward-looking information. The foregoing demonstrates Converge’s objectives, which are not forecasts or estimates of its financial position, but are based on the implementation of its strategic goals, growth prospects, and growth initiatives. The forward-looking information, including management’s assessments of, and outlook for, gross profit and Adjusted EBITDA, are based on management’s opinions, estimates and assumptions, including, but not limited to: (i) Converge’s results of operations will continue as expected, (ii) the Company will continue to effectively execute against its key strategic growth priorities, (iii) the Company will continue to retain and grow its existing customer base and market share, (iv) the Company will be able to take advantage of future prospects and opportunities, and realize on synergies, including with respect of acquisitions, (v) there will be no changes in legislative or regulatory matters that negatively impact the Company’s business, (vi) current tax laws will remain in effect and will not be materially changed, (vii) economic conditions will remain relatively stable throughout the period, (vii) the industries Converge operates in will continue to grow consistent with past experience, and (ix) those assumptions described under the heading “About Forward-Looking Information” in the Company’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2024. While these opinions, estimates and assumptions are considered by the Company to be appropriate and reasonable in the circumstances as of the date of this press release, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information.
The forward looking information, including the achievement of target revenue, gross profit and Adjusted EBITDA set out above, are subject to significant risks including, without limitation: that the Company will be unable to effectively execute against its key strategic growth priorities, including in respect of acquisitions; the Company will be unable to continue to retain and grow its existing customer base and market share; risks related to the Company’s business and financial position; that the Company may not be able to accurately predict its rate of growth and profitability; risks related to economic and political uncertainty; income tax related risks; and those risk factors discussed in greater detail under the “Risk Factors” section of the Company’s most recent annual information form and under the heading “Risks and Uncertainties” in the Company’s most recent Management’s Discussion and Analysis, which are each available under the Company’s profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company’s control.
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.
Although the Company bases these forward-looking statements on assumptions that it believes are reasonable when made, the Company cautions investors that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which it operates are consistent with the forward-looking statements contained in this press release, those results of developments may not be indicative of results or developments in subsequent periods.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents the company’s expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information or to publicly announce the results of any revisions to any of those statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
For further information contact: Converge Technology Solutions Corp., Email: investors@convergetp.com, Phone: 416-360-1495
View original content:https://www.prnewswire.co.uk/news-releases/converge-reports-third-quarter-2024-results-302302399.html
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Technology
Huawei Cloud in France: Building an AI-Native Cloud to Amplify Intelligence on the Tech Stage
Published
6 minutes agoon
November 14, 2024By
PARIS, Nov. 14, 2024 /PRNewswire/ — HUAWEI CONNECT 2024 PARIS commenced today, featuring the first Huawei Cloud Summit France. Huawei Cloud is building an AI-native cloud through systematic innovation and service reshaping. Moving forward, Huawei Cloud will continue to drive innovation in both the “AI for Cloud” and “Cloud for AI” directions, accelerating the intelligent transformation across industries in France.
Jacqueline Shi, President of Huawei Cloud Global Marketing and Sales Service, delivered a welcome speech in her digital presence built using Huawei Cloud MetaStudio. She stated, “Innovation is the heart of our success, our competitiveness, and our growth. That’s why we invest heavily in R&D to bring you the most secure and reliable cloud services possible, including cloud native, AI, and big data. In Europe, Huawei Cloud has collaborated with over 500 local partners to deliver a wide range of industry-specific solutions and proven expertise, enabling European businesses to expedite their cloud adoption, leverage global resources, and achieve leapfrog growth.”
In his keynote speech, William Dong, President of Huawei Cloud Marketing, highlighted the importance of AI in building economic moats. To this end, Huawei Cloud launches Pangu models to enable intelligent upgrades across industries, with over 400 use cases in 30 industries now benefiting from Huawei Cloud’s AI-native cloud infrastructure that extends cutting-edge technologies and premium experiences to European customers. On the tech stage, Huawei Cloud is set to amplify intelligence.
Huawei Cloud’s AI-native strategy has been a cornerstone of the company’s innovation. This strategy is twofold: AI for Cloud and Cloud for AI, marking significant advancements in Huawei Cloud’s capabilities. “AI for Cloud” means integrating Pangu models with cloud services for product R&D, data governance, security, and O&M to make them more intelligent and efficient.
With full-stack systemic innovations, “Cloud for AI” covers data centers, cloud platform architectures, and infrastructure services, enabling efficient and high-performance data preparation, training, inference, and application of foundation models. The distributed cloud database GaussDB features high performance, high intelligence, and easy migration. Huawei Cloud Stack 8.5 provides more than 120 locally deployed cloud services and 50 industry-specific solutions, building the optimal hybrid cloud for intelligent transformation.
At this summit, Huawei Cloud officially released the Flexus cloud services for small- and medium-sized enterprises (SMEs) in France. Flexus feature flexible specifications, AI-driven high speed, 6x burst speed, compute hot upgrade, and ultimate experience.
Presently, Huawei Cloud has more than 500 customers, partners, and developers in France. Song Wanying, President of Huawei Cloud France, shared insights on fostering business growth through cloud innovation and introduced new media & entertainment, e-commerce, and retail solutions for the French market, furthering intelligent initiatives.
Huawei Cloud has upgraded media services in a 3E approach: efficiency, experience, and evolution. For instance, AIGC for virtual humans can significantly reduce the time required for short video production from days to mere minutes. In terms of experience, Huawei Cloud leverages its self-developed RTP protocol to minimize latency to 500 ms and reduce frame freezing to 10%. For business model evolution, Huawei Cloud offers virtual human technology to facilitate efficient video production, leading to new business opportunities and growth.
In retail and e-commerce, Huawei Cloud has developed the B.R.A.N.D. model to assist retailers in driving innovation and growth. Through professional services, deterministic operations, security, reliability, and 16 sub-scenario solutions, B.R.A.N.D. enables retailers to build agile, efficient, and secure business systems.
In terms of ecosystem expansion, Huawei Cloud has partnered with Station F, the world’s largest startup incubator, to launch a sustainability-themed incubation program. This program aims to provide comprehensive support for startups, including cloud resources, investment opportunities, and dedicated office spaces. Additionally, Huawei Cloud and 20 ecosystem partners have unveiled the Industry Partner Innovation Program at the summit.
This two-day event features a packed agenda, including the partner forum and the Cloud Native Elite Club (CNEC) roundtable. At this year’s HUAWEI CONNECT Europe, CNEC returned to Europe and invited its first members to join this technical community built for European technology pioneers.
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View original content:https://www.prnewswire.co.uk/news-releases/huawei-cloud-in-france-building-an-ai-native-cloud-to-amplify-intelligence-on-the-tech-stage-302306351.html
Technology
ALBERT GAHFI, NEWCO CAPITAL GROUP CEO, NOMINATED FOR THE U.S. FINTECH AWARDS’ INNOVATOR OF THE YEAR
Published
6 minutes agoon
November 14, 2024By
NEW YORK, Nov. 14, 2024 /PRNewswire/ — NewCo Capital Group is proud to announce that Albert Gahfi, CEO of NewCo Capital Group and Co-Founder and Director of Bizcap, has been nominated for the prestigious Innovator of the Year Award by the U.S. FinTech Awards. This recognition highlights Albert’s groundbreaking contributions to the FinTech sector and his dedication to founding companies that empower small businesses with forward-thinking capital solutions.
As a proven enterprise-building founder and CEO, Albert co-founded Kings Cash Group and oversaw its merger with a large FinTech consortium that included an SEC-registered fund. As the Co-Founder and CEO of NewCo Capital Group, Capytal.com, and NewCo Canada, as well as the co-founder of Melbourne-based BizCap, Albert’s global expansion strategy has led to the opening of offices in New Zealand, the United Kingdom, and a recently announced strategic initiative in Asia via Singapore.
The nomination for Innovator of the Year underscores NewCo’s commitment to reshaping how small-to-medium businesses and enterprise companies access financing. Since its founding, NewCo has remained at the forefront of Specialty Finance within the FinTech sector, continually creating custom capital solutions that leverage advanced technology, nuanced underwriting, and a deep understanding of client needs.
Bruce Gurvitsch, Chief Revenue Officer for NewCo Capital Group and Capytal.com, commended the nomination, stating, “Albert’s nomination for Innovator of the Year reflects his unwavering pursuit of excellence—a drive that defines our mission at NewCo. We’re committed to pushing the boundaries of what’s possible in FinTech, ensuring that SMBs have access to the capital they need for growth, job creation, and long-term success.”
NewCo and its affiliate companies have transformed traditional financing models, making it easier, faster, and more efficient for businesses to secure funding. With over $1.8 billion deployed across 40,000+ businesses globally, NewCo continues to lead the charge in specialized financing and working capital.
Reflecting on the nomination, Gahfi remarked, ‘This recognition from the U.S. FinTech Awards validates our efforts and inspires us to continue delivering the most innovative solutions to the market.’ He emphasized NewCo’s long-term vision, adding, ‘We are focused on what’s next—continuing to build the tools and services that will drive the future of FinTech. Our mission has always been to empower small businesses globally.’
For more information about NewCo Capital Group, visit www.NewCoCapitalGroup.com or email Info@NewCoCapitalGroup.com.
About NewCo Capital Group & Capytal.com
Founded in 2020, NewCo Capital Group and its affiliate companies empower SMBs globally with fast, accessible financing and funding. The companies have successfully deployed $1.8 billion to over 40,000 SMBs while maintaining a 4.9/5 Trustpilot rating.
View original content to download multimedia:https://www.prnewswire.com/news-releases/albert-gahfi-newco-capital-group-ceo-nominated-for-the-us-fintech-awards-innovator-of-the-year-302306356.html
SOURCE NewCo Capital Group
Technology
Enrollsy Unveils Brand Refresh and New Website to Enhance Enrollment Experience for Schools, Camps, Nonprofits, and More
Published
6 minutes agoon
November 14, 2024By
LEHI, Utah, Nov. 14, 2024 /PRNewswire/ — Enrollsy, the platform dedicated to making enrollment simple and accessible for organizations of all sizes, is thrilled to announce its brand refresh and launch of a new website at www.enrollsy.com. With a renewed focus on simplifying enrollment processes and delivering unparalleled support, Enrollsy’s brand refresh reinforces its commitment to empowering non-technical professionals with a seamless, user-friendly experience.
The name “Enrollsy” reflects the platform’s mission: combining “enroll” and “easy” to describe a solution that effortlessly manages the enrollment process—from sign-up to payments and communications—without requiring technical expertise or IT support. Enrollsy’s customizable platform is designed to solve enrollment challenges and make life easier for administrators everywhere.
Empowering Purpose, Mission, Vision, and Values
Driven by a purpose to create an exceptional experience from the first interaction to ongoing support, Enrollsy ensures every aspect of its service is tailored to customer needs. Enrollsy’s mission—to provide an amazing enrollment experience to 10 million people in a single year—drives the platform to innovate, simplify, and perfect enrollment solutions for organizations managing data, payments, and communications.
Enrollsy envisions a world where education, enrichment, and connection drive better outcomes, helping organizations fulfill their missions. As a trusted partner, Enrollsy shares its values with customers by prioritizing consistency, honoring commitments, and maintaining clear, actionable communication.
Unmatched Customer Experiences
Enrollsy’s brand refresh also highlights its commitment to delivering value through real-life customer success stories. Elizabeth Fizer, owner of Fizer Fine Art, shares, “Enrollsy transformed our registration process from an absolute nightmare to easily manageable. Their unmatched customer service and ability to tailor the software to meet our specific needs allowed us to offer flexible schedules and simplified invoicing—enabling me to focus on my family during a busy registration period. Parents found it easy and intuitive, which only enhanced our customer experience.”
Similarly, Matthew Vinson from Common Ground on the Hill, a nonprofit, noted, “Enrollsy exceeded our expectations by listening to our unique needs and creating a system that integrates with our existing applications seamlessly. They understood our operations and provided features we needed, making the registration process efficient and stress-free.”
Visit the New Enrollsy Website
Enrollsy’s reimagined website offers a refreshed look at how the platform simplifies enrollment, billing, and communication for education, enrichment, and nonprofit organizations across the U.S., Australia, and Canada. Visitors are invited to explore www.enrollsy.com to discover how Enrollsy’s solutions are transforming the enrollment experience and simplifying administrative processes.
About Enrollsy Enrollsy provides a complete, easy-to-use solution for managing enrollments, payments, and participant communications. Designed for non-technical professionals, Enrollsy’s mission is to simplify enrollment for organizations while delivering unmatched support and flexibility. Visit www.enrollsy.com to learn more about how Enrollsy is shaping the future of enrollment.
View original content to download multimedia:https://www.prnewswire.com/news-releases/enrollsy-unveils-brand-refresh-and-new-website-to-enhance-enrollment-experience-for-schools-camps-nonprofits-and-more-302306358.html
SOURCE Enrollsy, Inc.
Huawei Cloud in France: Building an AI-Native Cloud to Amplify Intelligence on the Tech Stage
ALBERT GAHFI, NEWCO CAPITAL GROUP CEO, NOMINATED FOR THE U.S. FINTECH AWARDS’ INNOVATOR OF THE YEAR
Enrollsy Unveils Brand Refresh and New Website to Enhance Enrollment Experience for Schools, Camps, Nonprofits, and More
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