Q2 2024 Converge Technology Solutions Corp Earnings Call Transcript
Key Points
- Converge Technology Solutions Corp (CTSDF) reported over $1 billion in gross sales for the fourth consecutive quarter, showcasing strong market performance.
- The company achieved a gross sales organic growth increase of 11.1% year-over-year, indicating robust demand for its solutions.
- Converge Technology Solutions Corp (CTSDF) demonstrated strong cash generation, producing $52.4 million in cash from operating activities, a significant increase from the previous year.
- The company reduced its net debt by $194 million year-over-year, improving its net debt-to-EBITDA ratio to 0.9 from 2.25.
- Converge Technology Solutions Corp (CTSDF) received multiple industry recognitions, including being named to CRN's 2024 Solution Provider 500 list and receiving Partner of the Year awards from Arctic Wolf, Alteryx, and HPE.
- The company took a significant non-cash impairment charge against its German operations, leading to a reported GAAP net loss for the quarter.
- Converge Technology Solutions Corp (CTSDF) experienced a decline in professional and managed services sales by 17.6%, impacting overall revenue.
- The German business segment faced challenges, with gross profit declining by 8.4% year-over-year, and recovery is not expected in the second half of the year.
- The company revised its full-year guidance due to market conditions, including a lack of recovery in Germany and a slower-than-expected end-user device refresh cycle.
- Converge Technology Solutions Corp (CTSDF) paused M&A activities to focus on integration and cash generation, which may limit growth opportunities in the short term.
Thank you for standing by. This is the conference operator. Welcome to the Converge Earnings Call for the second quarter of 2024. (Operator Instructions) I would now like to turn the conference over to Avjit Kamboj, Converge Chief Financial Officer. Please go ahead.
Thank you, and good morning everyone. Before we begin, I would like to take a moment to acknowledge the passing of our dear friend and colleague, Lorne Gorber, our Investor Relations at Converge. Loren was a true legend in the PR profession, and we will miss his coming presence, great storytelling and wisdom. His teachings will forever remain with me. Our hearts go out to his family and friends. I would like to welcome and introduce Dennis Fong, who will be assisting me with the Investor Relations going forward. I will now turn the call over to Dennis.
Thank you, Avjit, and good morning. Also on the call today to
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