Converge Technology Solutions Corp.

Good morning. Welcome to the Converge Technology Solutions Corp first quarter 2023 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star then number one on your telephone keypad. If you would like to withdraw your question, simply press star then number two. Before we begin, I am required to provide the forward-looking statement respecting forward-looking information which is made on behalf of Converge and all of its representatives that are on this call. All statements made on this call will contain forward-looking information. The actual results could differ materially from conclusion, forecast, or production in the forward-looking information. Certain material factors or assumptions are applied in drawing a conclusion or making a forecast or a projection as reflected in the forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast, or projection in the forward-looking information and material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information are contained in CONVERGE filings with the Canadian Provincial Securities Regulators. CONVERGE does not undertake to update any forward-looking statements. Such statements only speak as of date made. Today's discussion may also refer to gross revenue, adjusted EBITDA, organic growth and adjusted free cash flow and adjusted free cash flow conversion, which are non-IFRS measures and has no standardized meaning. Please refer to the converged filing of Canadian Provincial Securities Regulators for an explanation and reconciliation to IFRS measures. And I would like to turn the meeting over to Sean Main, Group CEO. Please go ahead, sir.

Thank you, Sylvie. Good morning, everyone, and good afternoon to those listening overseas. Thank you for attending today's Q1 earnings call. For those of you who recently participated on the 2022 full year financial results call, we discussed being well positioned for a strong Q1 that would be comparable to Q4, despite typically being 20 to 25% sequentially lighter seasonally than Q4, which is traditionally our strongest quarter of the year. We are now pleased to deliver these record first quarter results to you today, where we achieved gross sales of $965.3 million gross profits of $171.6 million, growing by $8.5 million and $3.4 million, respectively, from our reported Q4 numbers. We also demonstrated very strong cash from operations, generating $28.8 million from operations compared to using $30.2 million last year, a change of $59 million, and pointing to very strong cash generation in 2023. Despite current macroeconomic uncertainties and recent disruptions in the market that some believe may point to declining IT spend in certain sectors, our Q1 performance demonstrates the resiliency of our business model and the continued strong demand we are witnessing from our mid-market customers. We are confident that Converge continues to be well positioned to navigate current market conditions, and we generally expect to outpace market growth rates for hardware, software, and services powered by our cross-sell strategy and strengthened breadth of our practice areas and capabilities. Before I continue expanding on the quarter and outlining the remaining roadmap of our 2023 corporate objectives, I'd like to pass the call to Thomas Wohl to make a statement on behalf of the Board of Directors.

Thank you, Sean. Good morning, everybody. Over the recent six months, the dedicated special committee has been working deliberately through the different strategic alternatives for the company. While there was no shortage of interest, all different alternatives were reviewed and several transaction opportunities were evaluated. Finally, the special committee concluded none of these alternatives offered a valuation for the company which reflects our true potential. In cooperation with the financial advisors, the special committee recommended to the board to have the company continue to execute the business plan Demonstrating the operating leverage afforded by the full integration of all acquisitions. Prioritizing organic growth. Improving our cash generating ability. Based on this recommendation, the Board endorsed the conclusion of the Special Committee and approved determination of the strategic review process and hence dissolved the Special Committee. The Board of Directors is fully supportive and confident in management's ability to deliver this plan successfully for the benefit of the company and its shareholders. I will now pass back the call to Sean Main.