Q1 Marks Third Consecutive Billion Dollar Gross Sales1 Quarter TORONTO, and GATINEAU, QC, May 9, 2024 /CNW/ - Converge Technology Solutions Corp. ("Converge" or "the Company") (TSX:CTS) (FSE:0ZB) (OTCQX:CTSDF) is pleased to provide its financial results for the three month period ended March 31, 2024. All figures are in Canadian dollars unless otherwise stated. First Quarter 2024 Highlights (year-over-year, unless otherwise noted): Gross sales1 of $1.01 billion, an increase of $40.7 million or 4.2%; Gross sales organic growth1 of 4.2% and gross profit organic growth1 of 2.1%; Revenue of $628.8 million, a decrease of $49.4 million; Gross profit increased 2.1% to $175.3 million, representing a gross margin of 27.9%; Adjusted EBITDA1 increased 2.9% to $42.2 million; Net loss of $3.5 million, an increase in loss of $0.1 million; Cash from operating activities was $110.9 million, an increase of $82.2 million, compared to $28.8 million for the comparative period in the prior year; and Reduced net debt1 by $190 million year-over-year and by $79 million compared to Q4 FY23 to $130.8 million, compared to $321.2 million as at Q1 FY23 and $209.8 million as at Q4 FY23. "With our 3rd consecutive quarter of Billion-dollar sales and strong cash generation, we continue to demonstrate our position as a leading IT Service Provider," said Shaun Maine, Group CEO. "Our Advise, Implement and Manage go-to-market strategy continues to drive our cross-sell efforts towards higher margin solutions and offerings across our key practice areas, demonstrated by our strong software sales during the quarter. In addition, the tailwinds of AI infrastructure spending, high-performance compute and cyber solutions are helping to offset generalized device weakness which is expected to turn as we enter a new refresh cycle towards the later part of this year." Financial Summary for the Three Months Ended March 31,  In $000s except per share amount 2024 $ 2023 $ Gross Sales 1,005,989 965,258 Revenue 628,766 678,198 Gross profit (GP) 175,272 171,588 Gross profit (GP) % 27.9 % 25.3 % Adjusted EBITDA 42,209 41,004 Adjusted EBITDA as a % of GP 24.1 % 23.9 % Net loss (3,540) (3,361) Adjusted net income[1] 22,707 24,441 Adjusted Earnings per Share[1] 0.11 0.12 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 definitions, uses and a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures.   Subsequent to Quarter-End On May 8, 2024, the Board declared a quarterly dividend of $0.015 per common share to be paid on June 6, 2024 to shareholders of record at the close of business on May 23, 2024. Financial Outlook Converge is providing financial guidance for the three months ended June 30, 2024 as follows: Q2 2023 Actual Q2 2024 Expected Gross profit $171.6 million $175 million - $182 million Adjusted EBITDA $41.2 million $43 million - $46 million Conference Call Details: Date: Thursday, May 9th, 2024Time: 8:00 AM Eastern Standard Time Participant Webcast Link: Webcast Link – https://app.webinar.net/1A08yeayG6V Participant Dial-in Details with Operator Assistance:Conference ID: 01139Toronto: 1-289-819-1350North American Toll Free: 1-800-836-8184 International Toll-Free Numbers:Germany: 498005889782Ireland: 35315251826Spain: 34917918582Switzerland: 41432107274United Kingdom: 448002797040 You may register and enter your phone number to receive an instant automated call back via https://emportal.ink/3U6LCs8 Recording Playback:Webcast Link - https://app.webinar.net/1A08yeayG6VToronto: 1-289-819-1450North American Toll Free:  1-888-660-6345Replay Code: 01139 #Expiry Date: May 16, 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) March 31, 2024 $ December 31, 2023 $ Assets Current  Cash 158,056 169,872  Restricted cash 559 547  Trade and other receivables 820,584 814,231  Inventories 86,051 73,166  Prepaid expenses and other assets 26,608 26,528 1,091,858 1,084,344 Non-current Other assets 51,235 53,579 Property, equipment and right-of-use assets, net 76,840 75,488 Intangible assets, net 361,510 375,181 Goodwill 572,725 564,770  Total assets 2,154,168 2,153,362 Liabilities Current Trade and other payables 1,015,537 913,994 Other financial liabilities 64,036 54,095 Deferred revenue 61,061 59,325 Borrowings 16,304 1,664 Income taxes payable 16,282 9,286 1,173,220 1,038,364 Non-current Other financial liabilities 57,789 57,668 Borrowings 272,518 378,007 Deferred tax liabilities 64,103 67,168  Total liabilities 1,567,630 1,541,207 Shareholders' equity Common shares 575,507 599,434 Contributed surplus 11,742 10,970