Converge Technology Solutions Reports Record Q4 and FY2022.

TORONTO and GATINEAU, QC: Converge Technology Solutions Corp. ("Converge" or "the Company") (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) is pleased to provide its financial results for the full fiscal year ("FY22") and three-month periods ended December 31, 2022 ("Q4-22"). All figures are in Canadian dollars unless otherwise stated.

FY 2022 Financial Highlights:

Gross revenue1 for FY22 of $3.09 billion compared to $1.97 billion in FY21; an increase of $1.12 billion or 57%

Gross Profit for FY22 was $550.8 million compared to $345.7 million in FY21; an increase of $205.1 million or 59%.

Organic gross revenue growth1 for FY22 was 8.6% and gross profit organic growth1 was 10.5%.

Adjusted EBITDA1 of $142.9 million compared to $94.0 million in FY21; an increase of 52%.

Net revenue for FY22 under existing reporting treatment was $2.52 billion, consistent with the Company's preliminary release, an increase of 64.7% over reported FY21 results. As a result of an IFRS 15 accounting policy change, reported net revenue was impacted by $356.8 million. See "software net-down change" below for a full description of the change in accounting policy and impact on reported FY22 and FY21 results. This IFRS based accounting policy change does not reflect any business or operational performance changes, and had a nil impact on reported gross profit, net income, and Adjusted EBITDA.

Cash on hand was $159.9 million at the end of 2022, and borrowings under the Company's global revolving credit facility (the "Global Credit Facility") was $420.4 million.

Product bookings backlog2 increased to $479.4 million at the end of Q4-2022. This represents growth of over $46.6 million compared to product bookings backlog in Q3-2022 of $432.8 million and is indicative of the impact of ongoing supply chain challenges.

Basic adjusted EPS1 of $0.50 per share for FY22, increasing from $0.35 per share in FY21.

On a run-rate basis, pro-forma Adjusted EBITDA1 is $167.6 million.

"In 2022, Converge grew faster than any comparable public provider globally, expanding gross profit by 59% year-over-year, translating to gross profit organic growth of 10.5%", said Shaun Maine, CEO of Converge. "And, we expect to continuously improve on these results in 2023, outpacing the market on growth by expanding on high-value solution areas such as data analytics, AI, cloud, and cybersecurity while simultaneously rolling out various managed services and continuing to expand our offerings into Europe."

___________...