Converge Technology Solutions Corp.

Thank you for standing by. This is the conference operator. Welcome to the Converge earnings call for the fourth quarter in fiscal year 2023. 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. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Lauren Gorber, Converge Investor Relations. Please go ahead.

Thank you, Laura, and good morning. Joining me to discuss Converge's Q4 and fiscal 2023 results are Sean Main, Group CEO, Greg Berard, Converge Chief Executive Officer, and Abjit Kamboj, Chief Financial Officer. This call is being recorded live at 8 a.m. Eastern Time on March 6, 2024. The press release we issued earlier this morning is available for download along with our Q4 and 2023 MD&A financial statements and accompanying notes, all of which have been filed and available for view on CDAR+. Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied, and Converge disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The complete safe harbor statement is available in both our MD&A and press release, as well as on Converge.com. We encourage our investors to read it in its entirety. We are reporting our financial results in accordance with International Financial Reporting Standards, or IFRS. We will also discuss non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each one used in our reporting. All the dollar figures expressed on this call are Canadian, unless otherwise noted. I'll turn it over to Sean to begin with a high-level overview on the past year. Greg will then expand to some operations highlights, including client examples, Abhijit will dive deeper into our Q4 and fiscal 2023 financial details, as well as our Q1 and 2024 outlook, before Sean wraps up and we take your questions. So with that, Sean.

Thank you, Lauren. Good morning and welcome to our fourth quarter and fiscal year 2023 results call, and good afternoon to those of you listening overseas. I am pleased and proud to reflect on the significant growth Converge has achieved once again this past year. It's remarkable to see the dedication and hard work of our team continue to translate into results, the highlights of which include delivering gross sales of $4 billion and corresponding gross profit of over $700 million in 2023. Each of these key metrics have doubled from only two years ago, positioning us extremely well for our next phase of growth. As many of you will recall, our initial strategy was to build out our footprint across every NFL city, where our targeted customers are often located, and then to build a hybrid IT model on the existing local skill sets, analytics, cybersecurity, cloud, managed services, allowing us to provide unparalleled user experience to our customers, thanks to our deep technical expertise in the solution areas customers most require. The 35 acquisitions made to date have enabled us to achieve these goals in North America, and now we can shift our focus to growing organically as this footprint and integrated set of solutions give us the ability to act as a strategic advisor to our customers as we assist them through workshops and advisory services, implementing these solutions, and then managing them on their behalf. We have a very diversified, healthy mid-market customer base which for us means customers between 500 and 10,000 users. But the interesting development we started to see last year and are seeing more this year is larger customers coming to us for help with their high performance clusters and AI workloads due to the uncommon and new skill sets of our technical teams. Greg will provide examples and the fact that we are growing organically faster than our peers is attributable to these teams and solutions. One of the reasons many investors are attracted to the IT services industry is the combination of growth and cash generation, and our results emphasize this. In Q4, Converge reported its second consecutive billion-dollar quarter, with gross sales growing by 12% year-over-year to $1.08 billion. At the same time, primarily due to post-COVID inventory normalization and a focus on process, which Amjeet will expand upon, Converge generated $114.5 million of cash from operating activities in Q4 and generated over $229 million of cash in 2023. This cash generation has strengthened our already strong balance sheet, and we exit 2023 with a net debt to EBITDA ratio of 1.23. When you consider this growth in the full-year context, The 2023 fiscal financial results demonstrated a robust demand for Converge's full suite of capabilities, reporting record gross sales exceeding $4 billion in 2023, representing an increase of 30.6%, and gross sales organic growth increasing by 10.9% year-over-year, well above industry peers. Gross profit increased by 27.6% to $702.9 million, up from $550.8 million in 2022, with gross profit organic growth of 8.1% and adjusted EBITDA of $170.3 million, up $27.4 million, or 19.2% year-over-year. With supply chains still normalizing, we have a very healthy North American product backlog of $412 million entering Q1. With that, I would like to turn the call to Greg Berard to dive into our operational highlights.