Q3 2024 Converge Technology Solutions Corp Earnings Call Transcript
Key Points
- Converge Technology Solutions Corp (CTSDF) reported a 152% cash conversion from adjusted EBITDA to operating cash flow in Q3 2024.
- The company generated $48.9 million in cash from operating activities and $32.1 million in adjusted EBITDA during the quarter.
- Year-to-date, Converge Technology Solutions Corp (CTSDF) has generated $212 million in cash from operating activities, marking an 85% year-over-year increase.
- The company has reduced its net debt position by $82 million since the beginning of the year and $180 million since Q3 of 2023.
- Converge Technology Solutions Corp (CTSDF) has returned $61.7 million in capital to shareholders through dividends and share buybacks year-to-date.
- Q3 2024 financial results were affected by lower demand in North America due to macroeconomic factors, leading to results below guidance range.
- Gross sales declined by 8.9% year-over-year, with product sales, managed and professional services, and maintenance, support, and cloud all experiencing declines.
- Adjusted EBITDA decreased by 22.2% year-over-year, with a decline in adjusted EBITDA as a percentage of gross profit from 23.7% to 20.3%.
- The company experienced elongated customer decision-making and delays in projects, impacting deal velocity across the data center and device business.
- Converge Technology Solutions Corp (CTSDF) reported a net loss of $3.3 million in Q3 2024, including a $2 million loss from its portion of Portage's net loss.
(audio in progress)
Thank you for standing by. This is the conference operator. Welcome to the Converge earnings call for the third quarter of 2024. As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the call, there will be an opportunity to ask questions. (Operator Instructions)
I would now like to turn the conference over to Dennis Fong, Converge Investor Relations. Please go ahead.
Thank you, operator, and good morning. Joining me on the call today to discuss ConvergeĆ¢s Q3 2024 results are Greg Berard, Chief Executive Officer; and Avjit Kamboj, Chief Financial Officer. This call is being recorded live at 8:00 AM Eastern Time on November 12, 2024. The press release we issued earlier this morning is available for download along with our Q3 MD&A, financial statements, and accompanying notes, all of which have been filed and are available for view on SEDAR+.
Please note that some statements made on this call may
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