Junk Debt Laden Convergint Facing Coronavirus Crisis

By John Honovich, Published Apr 08, 2020, 08:58am EDT (Info+)

Convergint has $1+ billion in junk debt putting significant pressure on the company. While the rapid debt buildup enabled the company to go on an unprecedented acquisition spree, the company is now facing a coronavirus crisis.

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Inside this note, we examine:

  • Why Convergint had named themselves 'gopher sub'
  • What Convergint's debt rating is
  • Why the debt is so poorly rated, i.e., 'junk'
  • What mistakes the bond rater made that make the debt even risker
  • How coronavirus has impacted the company
  • Why Convergint has far more coronavirus risk than other integrators
  • How Convergint 'fun and laughter' contrasts with Convergint massive junk debt
  • What role Convergint's private equity owner can play in this crisis
  • What the future holds for Convergint

No ******** **** **********

********** *** *** ******* ** ****'* questions ** **** ******.

'Gopher ***' / ********** ******

*** ***** *** ** *** ********** the ****** *******, ********** ***, ** until ********, ********* ***** ****** *** 'Gopher *** ***', ** ********* ** this **** ******:

*** ****, ******* **, **** -- Moody's ********* ******* ("*****'*") *** ******** ratings ** ****** *** ***. (*** "Convergint")

*** ****** ***** **** ******* ***** ************** ********** ***** * ***** **** ** its **************.

****** *** ******** *****, *** ******* has ******* **** * ***** *** highly ****-****** ************.

Convergint **** ******

********** *** **** $* ******* ** debt, ********* ** * ******* **** Moody's ****** **** **** *********. *****'* licensing ********* ** **** ******* *** report *** **** *** ****** ** to ******* *** *******.

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*****'* *********, **** ****** ***********, **** Convergint ***:

********** *** **** **** *****'*-******** ****-**-****** leverage – *.* ***** ** ** September **, ****

'Junk' **** ******

******* ** *** **** **** ******, Moody's ***** ********** * **, ***** on *****'* ***** ** ********** '***********' and * '**** ****** ****'

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*****'* *********, *** *** ******* ** their ********* **** **********, ***** **** "non-investment *****". *** **** ****** ********** for '***-********** *****' ** '**** *****' ** '**** ****'.

**** **** * ********* **** * mortgage, *** ****** ***'* **** ** relative ** ***** ******, *** **** likely *** ****** **** ******* **** they **** ***** *** **, ** this ****, *************** ****** ******** ** ********.

**** ** ******* **** ****** ** many ********* ****** ** *** **** challenges *****, **** ******** ***** ***** to ** ****, ***** ** * major ******** ** * **** **** this, ******** ** ******.

Mistakes *****'* ******

*** **** ********* *** *********** ******* in *****'* ****** ** **** **** characterize ********** ** ****** '**-********* *******':

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*** *****'* ******* ********** **-********* ******* here:

* ******* ********** ***********, ** ***** innovation ** ********** *********** ****** ***** reducing ******** ******, ****** *** ******** upgrades *** *********, ********** ***re-occurring ****** ** **********'* ********.

***, ** *********** ****, ******** *********** has * *** ********** ** ******* from **** *********** *******, ** **** revenue ** **** ******** **** *** sensitive ** *** ***** ** ***-**** on ******** **********. ******, ************ ******** ******:

** *** ********* *** ******** ******* 75% ****** *** *** ** *** city-directed ********

* ******* **** * ****** *********** model ***** *** *** **** * catastrophic ********.

Convergint *********** ******

****** *** ******************* **** *** ***** ******* **** significantly*** ********** ** ** * ******** bad ******** *** ** *** ******* debt.

**** ******* ***** ** ** *** been ********, ** ** **** *** to *** ***** ***** *** ********* to ** ********** ******* ******** ****** in. ***, *** *** ******* ******** integrator **** ******* ****, **** **** need ** *** ****** ** *********** costs ** **** *****.

**** **********, *** ******** ** *** debt ***** ***** ** ** **** (i.e., ********** ****** "******" ***** ***********). And **** *** **** * *******-**** dollars ** **** *****, *** **** of **** ******** *** ** $** million ** $*** ******* *** ****. The *********** ** ********** ******* *** mandatory ******** ******* *** ******** *** Convergint.

Competitors *********** ** ********** ****

***** ********** *** ****** ***** *** recently ********* ********** **** *,*** *********, *** *** *** ** ********** is *********** *** ******* ** *** benefits, **********, ******* ***********, *.*.,*** *** / **** *********** *******.

***** ***, **********'* *********** ***** *** seemingly ********* **** ******* *** ******** on ******* ***********, *** ***** *** very **** ******* *** ******* *********** that ******* **** ********** ******** *** who *** **** **** ** ****** than **********.

'Fun *** ********' ** **** **** ***** *******

***** ****************** '*** *** ********', ******* **** ***********, ** * crisis, ** ******** *** ****. *** Convergint ****** ** ********* *** ******** to **** ****** *** ***** ****** are ********* ** ****** **** *** company *** ******* * ******** ** maximum **** *******.

*** ******* ** **** **** ******* are **********'* ********** *** ********* ***, until ***, *** ** **** **** equity *** **** **** ********, ** the **** **** *********.

Owner ** **********, **** **********, ****

**********'* ************ ** **** **********, ** ********** **** **** ****** Convergint **** ******* ********** **** ** 2018.

*** **** **** *** ********** ** that**** *** **** $** ******* *********** *** ***** ** *********** ** invest. *** ********* ** ******* ***, on **** *****, **** **** ******* Convergint ** **** ******.

*** *****'*, **** **** * "*****, mid-teens ********" ** ****** *** ********** in ****. *********, ** *** ***** of *** ****, ********** ** ***** far ****. ** **** *** ** willing ** ******* ** ****** ******** but ****** ** * **** ***** price ***** ***** ******** **** ** wipe *** ********** *********'* ******. **** makes ** **** **** ********* *** Convergint ***** ** **** **% *** cuts.

Future *** **********

*******, **********'* ******, **** ********* ********, depends ** *** **** *** *** bad *** *********** ****** *****.

** ** **** ******* *** ****** resume ****** ******** ****, *** ****** will ** *********. *******, **** ** an ********** ********, ** ***** ** would ** ********* *** ********** ** resume *** *********** ******** ** ******* will ********* ** **** ************ *** demanding ** * ******* ******* *** such **** ****. ********** *** **** targeting $*+ ******* ****** ******* ** the **** *** *****, ***** ** now ********* **********.

*******, ** *** ******** ***** ****** or ******, ********** ***** ****** ***** long **** ****** ** *** *********'* wealth, *** *******'* ********** *** *******, putting *** *******'* ****** ** ****.

Vote / ****

Comments (47)

The choice of words is interesting and meaningful under these circumstances. If they used the word “recurring,” and it had substance to back it up, the situation might not be as dire. “Recurring revenue” and “reoccurring revenue” are as far apart as my drive is from Brooks Koepka’s for these gophers!

Reoccur and recur are verbs that share a common root word. While they are very close in meaning, they are not the same. Something that is recurring happens over and over again, possibly at regular intervals. In contrast, something that is reoccurring is simply happening again but not always repeatedly.

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Good feedback. If that's how Moody's meant it, it's meaningless because cars or shoes or even restaurants are 're-occurring' under that definition.

I genuinely don't understand why Moody's positioned it the way they did, clearly Convergint and every systems integrator faces this type of risk, in a downturn. That's the difference between contracted recurring / reoccuring revenue (like alarm monitoring) and integrating video systems for commercial clients.

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Hi John. I've worked with Convergint as a manufacturer in the past and have always been impressed by their management and culture. Having fun and laughing (and the whole Gopher thing) is only one of their values. The others are accountability, respect, etc that are more "standard" business values. I'd argue that trying to have a bit of fun occasionally is more important now than ever. I'm just saying that the goofy Caddyshack stuff doesn't mean that they are a goofy or badly run company.

Lots of businesses (and households) that were running very well Before Covid19 (BC) may struggle or fail in this crisis and the aftermath. I personally think that the economic tsunami is just starting and that it going to me massive. Governments will be making massive efforts to limit the number of businesses that fail. Interest rates will be ultra-low. These factors may help Convergint; I don't know.

Wishing everyone here the best and hoping I'm wrong about the almost universal economic hit I see as just getting started.

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Lots of businesses (and households) that were running very well Before Covid19

This is really the thing of debate. I think a lot of companies were running very precariously, but with no obvious outward signs of their risks. Convergint appears to be a company that was potentially operating in a way that required the economy to sustain itself in order for them to meet their projected valuation.

A company that was running "very well" would, IMO, be one that had some cash reserves or the ability to sustain an unanticipated downturn perhaps a little better.

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I've worked with Convergint as a manufacturer in the past and have always been impressed by their management and culture. ... The others are accountability

Did they reveal to you that this was all based on a massive amount of junk bonds? It's high risk (literally as Moody's rating denotes). My point is that it's easy to promote a happy culture when you are funding it with massive amounts of debt. College kids can throw better parties by maxing out their credit cards too...

Interest rates will be ultra-low.

Interest rates were already very low before this. The problem is that junk yields have spiked as lenders have become risk-averse (obviously):

Maybe the US government will start bailing out companies like Convergint. It's certainly possible, given everything else the US government is doing.

I'm just saying that the goofy Caddyshack stuff doesn't mean that they are a goofy or badly run company.

Totally agree with you about this. What makes them badly run is that they took on a massive amount of junk debt. And even to say 'badly run' is less appropriate than super high risk. They gambled that they would be able to exit with $2+ billion revenue before a major recession. They lost.

What I find so fascinating about the Caddyshack references is the combination of that and the massive junk bonds. One or the other individually is 'ordinary' at some level, but the combo is rare. Does that make sense?

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They gambled that they would be able to exit with $2+ billion revenue before a major recession. They lost.

Hey John. Agreed, that gamble looks like a loss right now. My point is just that the decision to fund aggressive growth with debt was working very well until 1 month ago. Many things that were working well 1 month ago are now in financial distress. Cruise lines, airlines... Things may end up working out for Convergint; or not. Based on the culture they've built, I give them a better chance than most.

There is nothing funny about the situation we all find ourselves in right now. This applies to Convergint as well. I just don't see how the "have fun occasionally" part of their culture is deserving of criticism. It's easy right now to use hindsight to criticize decisions made before this storm hit.

I personally am just trying to hold it together. I try to remind myself that many others are in the same situation and to be as kind and compassionate as possible in all of my interactions. All the best to everyone and thank you for building this valuable forum for discussions like this.

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Agreed, that gamble looks like a loss right now. My point is just that the decision to fund aggressive growth with debt was working very well until 1 month ago

Disagree. It was always a gamble. Indeed, I dismissed the idea about Convergint having such debt even though people privately had mentioned it to me for some time. It was so obviously a bad idea that I thought they had to be mistaken.

Any business that depends largely on projects is highly susceptible to interruptions that makes high debt levels very risky.

I just don't see how the "have fun occasionally" part of their culture is deserving of criticism.

Not what I said. I will repeat it because I believe I was pretty clear:

What I find so fascinating about the Caddyshack references is the combination of that and the massive junk bonds. One or the other individually is 'ordinary' at some level, but the combo is rare. Does that make sense?

Put another way, if you want fun and laughter, fine, just don't load your company up with junk bonds.

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Indeed, I dismissed the idea about Convergint having such debt even though people privately had mentioned it to me for some time. It was so obviously a bad idea that I thought they had to be mistaken.

Sounds like you have more information than I do. I really don't know anything about Convergint's finances and am not defending their strategy.

Just saying that almost everyone is worse off financially in this mess. From the outside, Convergint seemed to be doing well financially while promoting an admirable culture. I guess your whole point is that their success wasn't what it seemed.

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"College kids can throw better parties by maxing out their credit cards too..."

John, I enjoy your writing and it's unflinching look at things. Your not always right, like I am, but I will always be in the audience.

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I loved working with them also. Say a little prayer.

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I'm interested in how/when end users will feel ready to spend money again on security.

I predict for the USA, we won't be in the clear (as in free to go out again) until July. End users won't feel good about spending money until January (sound about right?).

This will put significant squeeze not only on Convergint, but the whole security industry.

Security industry jobs will be cut in half. Only the strong survive.

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I believe this pandemic will cause the larger end-users to re-think their planning process as it relates to "All Hazard" event response policies and procedures. As we have seen in past critical incident, outcomes have been impacted by the level of preparation for the particular event. Those impacts have been both positive and negative. Security technology can play a significant role when responding to rapidly evolving "incidents" if the technology is factored in to the emergency operations and continuity of operation plan. History shows we do not rise to the occasion we fall to our level of training and preparation.

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Why the disagrees here? I'm curious to your thoughts?

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I for one don't believe that half of the security jobs will be lost, hence my 'disagree' vote. I still believe we are an essential business, and while I may agree that the strong will survive better than the weak financially, even if some fail, I still believe the job loss will be minimal, once this is over and we are 'back to normal, whatever that will mean.

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I just don't think companies can sustain payroll or keep shareholders happy for the next 6-9 months without cutting jobs unfortunately. The economy won't be back until next year.

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I will tell you that the vast majority of our projects are still proceeding in the field, and we are heavily in new construction. We're even seeing new projects being bid and awarded.

Will some jobs be lost? Absolutely. Will some furloughs happen to scale the business? Absolutely, but when things start back up, those furloughs will be cancelled and those folks will be back at work. Could it be 6-9 months? Who knows. I just don't believe that 'security jobs will be cut in half'. Can't see that happening.

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Hey UI4. I wouldn't take the "disagrees" personally. You could definitely be right but I think a lot of people are trying to stay positive and optimistic at the moment. The economic impact of this is going to be massive; I completely agree. But security has tended to fare better than most sectors in times like this. Stay health and safe. We're closer to the end of this mess than we were a week ago; so we got that going for us!

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UM2 thank you for your thoughts. I'm not taking anything personally. Like I said, I'm sincerely interested in why/what the disagrees.

Do you think the before or after shelter at home ends in July?

Our customers wont be ready to spend until before/after January?

Payroll cannot be sustained for 6-9 months with this economy, thus tons of layoffs?

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I agree with Manufacturer #2. We also have worked with Convergint and are equally impressed by their management, sales and technical teams and company culture. Undoubtedly, they rolled the dice when they decided to carry so much debt and, to use it as aggressive as they have in the acquisitions space. That's a great plan during a booming economy, if you have access to the obtain the funds as they did.

Any unexpected event however, can have serious consequences for companies who have taken financial risk. The same thing happened immediately after 9-11 when many companies could not survive the temporary economic shut-down and shock that ran through nearly every industry. Confidence, projects were halted and lost and many in our industry took a hit they didn't survive.

But like the 1929 stock market crash that had people jumping out of windows to their death, many simply panic, run or... jump. We shouldn't as our industry will always be a great industry!

We remain cautiously optimistic. The economic shutdown is having and will have a significant impact but, how significant and for how long..., no one knows for sure. Remember, historically, 90% of the things we worry about never happens!

On the bright side, we have some integrator partners that are just now being awarded PO's and major projects, during the pandemic. We have others with major end-users customers (granted mostly Government) that are conducting online planning meetings for projects they want to have quoted and completed before their FYE. Others are preparing RFI's in order to submit their budgets for the next FY 2021. They believe there will be life after this challenge and plan on continuing with new security projects, life-cycle upgrades and more...

In many areas of the country, commercial construction is continuing! Just ask those in the trade! They believe we will emerge, sooner rather than later!

These companies are not quitting. They are figuring out how to stay relevant and be here for what is going to be bigger, better and brighter days just ahead!

I didn't intend to run off topic but we believe in the old saying; "Tough Times never last, Tough People Do!"

We sincerely hope that Convergint and all others in our industry who face challenges, emerge from this global event, stronger than they were before!

For your physical health - Stay Safe.

For your mental health - Stay Positive!

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But like the 1929 stock market crash that had people jumping out of windows to their death, many simply panic, run or... jump. We shouldn't as our industry will always be a great industry!

Perhaps your optimism is further reinforced by questioning the lore of people jumping from widows in 1929:

THE JUMPERS OF '29, Washington Post, October 25, 1987:

"So goes the legend. What are the facts? How many people jumped in 1929? From "Black Thursday," Oct. 24, until the end of the year, 100 suicides and attempted suicides were reported in The New York Times, including cases around the country and overseas. Eight of these people had jumped from building, bridge, boat or airplane. Half of these plunges were attributed to losses suffered in the Crash. The number of suicide leaps in Wall Street during this period was a mere two."

1929 Stock Market Crash: Did Panicked Investors Really Jump From Windows? History.com

"On what became known as “Black Thursday,” false reports crackled around Wall Street that distraught bankers and investors were leaping out of high-rise windows and plummeting as quickly as the stock market itself. “If half the suicides which were reported to ‘TRADER’ yesterday had proved true, Wall Street would be a deserted village this morning,” the New York Daily News reported the day after Black Thursday."

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and that was before they were all working with a net to catch them if they fall.

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John,

I don't know where we could get that through and objective picture of our industry as you just gave. The indepth financing I always go to school on.

Thanks.

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As former manufacturer had the "opportunity" to work with ALL the nationals. In the industry Convergint is the most consistent culture you'll encounter. overall the morale of most offices is good, and you dont run into as many "miserable national integrator techs, or sales people", who are either asking you for a job, complaining, etc. Convergint is high energy, motivated, and their upper leadership is HANDS ON with strategic projects. We had a major national brand project that really needed internal leadership, and their leaders stepped in and righted the ship. Convergint has been bold, hard charging and aggressive. I think they will weather this, based on their financial backers.

Things are tough all over

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I didn't read the article as attacking their culture. I read it as a commentary on the facts that are before them.

So I'm not sure I understand these responses about their culture.

My guess is that they'll be bailed out by some combination of ownership and government.

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I didn't read the article as attacking their culture. I read it as a commentary on the facts that are before them.

A lot of senior industry people think very highly of Convergint and I don't doubt them. I think the responses you are hearing are from people who are fairly responding with their positive experiences of the company.

And I don't think that should be discounted. But if I am Convergint staff member who took a 20% paycut while Convergint touts its values and beliefs about 'communicate, communicate, communicate', management owes an explanation about how that billion-plus dollars in debt will affect the employees.

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But if I am Convergint staff member who took a 20% paycut while Convergint touts its values and beliefs about 'communicate, communicate, communicate'...

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Per Moody's, Ares paid a "steep, mid-teens multiple" on EBITDA for Convergint in 2018.

Wow. Nice valuation. Sign me up. :)

Especially when you consider an ESOP ownership plan where the government's valuation is restricted to around 3x EBITDA.

Thanks for the excellent and informative information. I always find it interesting to re-discover the reality that "Big Companies" have the same challenges as smaller companies.....they are simply bigger. A highly leveraged "small" company with lots of debt will have even more trouble than Convergint, however, because they are unlikely to find an equity Devil/Angel to rescue them.

We too have seen a frightening decrease in business, but as a smaller company with ZERO debt and true re-curring monthly revenue, we are well-prepared to weather the storm and re-emerge to tackle new opportunities.

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Federal Reserve will start buying "junk" status bonds: Link

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#7, thanks for sharing. Note, Convergint does not qualify for the plan referenced there. The Federal Reserve has a document on this, key excerpt here:

The Fed says a minimum of Baa3 but Convergint is much lower at B3, you can compare in the excerpted chart below:

And, as for junk bonds, it's only for 'fallen angels', i.e. previously prime bonds like Baa3 that only fell to junk in the last 2.5weeks (i.e., after March 22nd).

Thanks for bringing it up, worth clarifying.

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perhaps they plan to bail themselves out:

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A Convergint executive has responded:

My response on LinkedIn was:

what about the decision to take over a billion dollars in junk debt? How would you describe that decision? Do you see that Convergint executive's debt decision has made the global crisis much worse for Convergint?

If she or anyone else at Convergint responds on this, I will update here.

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Leverage is great in an up market, but there is a price in a down market... and the price is losing good employees because debt always takes a front seat. Smaller integrators will surely be hiring the best of the laid off Convergent employees as we all come out of this crisis. The PPP loans the government is currently providing to help retain great employees will give smaller integrators an even better chance to show prospects, customers and manufacturers that Convergent may only be “fun” when money is cheap, and not so fun for the balance of 2020.

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Two new responses from Convergint employees, One:

My response:

The top brass, unlike you, overwhelmingly make their money from stock / equity packages; if they run short of cash now, they will need to raise new equity at much worse terms which will significantly harm their stock / equity. So you all taking 20% pay cuts helps significantly to protect their stock / equity packages, does that make sense?

That the Chairman, CEO, and President are forgoing their wages is great signalling and a smart tactic but little sacrifice when understood in the context of how billion-dollar company executives profit.

Another Convergint employee told me that Convergint employees will disrespect me for this report. I don't doubt that. I do doubt that those Convergint employees understand the ramifications of loading up on so much debt. They should also ask Convergint executives why they did not 'communicate, communicate, communicate' about all the debt they were loading up. Will they now? Will they fairly explain the risks of having this much junk debt in a crisis?

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I hope they weather this crisis. Yes, they might have overleveraged themselves in order to fund their extremely aggressive growth, but many reasonable analysts would have said that they were betting with their heads, not over it. Over the past couple of years, they snatched up all the best players in my area, buying companies with strong leadership, excellent technical and engineering expertise, well-run service departments, and, most importantly, profitable ongoing relationships with large end users. I deal with all the nationals in my area, and I was always impressed by Convergint's business development and installation- they definitely require less hand-holding that some of my other customers.

Everybody predicted that 2020 was going to be a huge year for the security industry, and then we had two black swan events occur almost simultaneously. That isn't Convergint's fault.

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Over the past couple of years, they snatched up all the best players in my area, buying companies with strong leadership, excellent technical and engineering expertise, well-run service departments, and, most importantly, profitable ongoing relationships with large end users

I believe that. One of Convergint's biggest questions is how well do they retain that talent? That's always a question for acquisitions long-term when it is so heavily people dependent and even more so given these circumstances.

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Good question, and all I have to offer is anecdotal evidence, but they seemed pretty good at retaining most of their non-stupid employees in critical conditions. They mainly seemed happy to me, too, with less of the whining about company politics and furtive inquiries about changing jobs that I get from, for example, JCI or ADT employees. They seemed less concerned with retaining interchangeable admin folks, but even they seemed fairly happy where they were. They definitely didn't have the same turnover you would expect to see when a Red Hawk or somebody gobbled up a large local company.

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I believe it. The question is now that money and debt has become tighter, how does Convergint manage that?

Are JCI or ADT just really badly run regardless? Or how much of the moves they make a result of not having the financing tactics that Convergint has had? I don't know but we will see now. If in a year, Convergint is powering ahead, then it speaks volumes for the strength of the culture, independent of financial strategy.

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8 Convergint employees have now commented on LinkedIn responding to this report. None can provide any coherent counter to the evidence and analysis provided here.

The funniest goes to the salesperson who responded with the following:

It is revealing that neither Convergint executives nor their employees have proved capable of arguing the facts of the matter.

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related, from the archive:

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It seems like 1 of 2 things is likely:

1) Multiple Convergint employees simply cannot process the facts outlined here and are unable to step back and take an unbiased look at Convergint's financial situation.

2) Convergint management has sent out some internal communications on this trying to downplay the significance of the situation.

Case #1 is disappointing, case #2 is deceitful. Neither really makes the company look any stronger or more stable.

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UPDATE: After we published this report, Moody's released a new report downgrading Convergint's outlook from stable to negative.

We have asked Convergint for comment and will be releasing a follow up post covering this.

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Roughly 1bil in debt.. 75mm in cash after tapping out their revolver. 1.2b in revs. Looks like if things get too bad for too long this one is going to circle the drain. I think if nothing else Convergint will be out of the acquisition game for awhile trying to digest growth and get their rating up. With the shape ADT is in I see the big winner here being JCI/Tyco.

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There are now over a dozen Convergint employee comments on LinkedIn. This new one is something else:

These posts are a good example of why companies have social media policies. Or maybe that is a fair reflection of Convergint culture? The "we are the best" and anyone who challenges us even with a financial report is just jealous...

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So I worked for Simplex, before Tyco and for some years after Tyco took over. Also worked for some small local players over the past 11 years. For the last 12 years I have worked on a team that administers security systems, VMS, PSIM, other support functions to our GSOC and I can say that I have worked with all the big companies, many small companies, across the US, UK, and EU, and Convergint has been the most consistent when it comes to providing service and support. We are actively working on several projects right now, to get a jump of cabling and device installation, since the work force is now working from home. As an end user (owner-grator) I sure hope that they can retain their talent and raise their compensation back to where it should be. The local leadership is a mix of new talent from JCI and some experienced Convergint folks. I sure hope the higher up executive leadership sees this downturn as an opportunity to prioritize their debt and not just kick the can down the road.

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Update: In a new Convergint CEO video, he says that Convergint's revenue is up 2% for the first 5 months of 2020, year over year. Since Convergint previously said Q1 was strong, that implies that last 2 month's revenue was significantly negative (range of negative 15-20%). However, Convergint's CEO says the last 2 months were not as bad as they feared.

Now, they are aiming for H1 2020 to be flat year over year, which implies projected June revenue of -10% yoy, given the first 5 months were net +2%.

For the rest of the year, Convergint's aim is for small growth, with the CEO saying:

a path for us to go to grow in 2020. small though it may be i think that would be an incredible achievement

If Convergint is truly doing so well, it will be interesting to see when they rescind the 20% pay cuts for their employees.

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Pay cuts will be rescinded and reimbursed starting in July, along with those who earned a raise that year that usually take effect in March or April.

Furloughed employees are supposed to be able to come back if they haven't found another job else where.

Work is steady in most areas, they are trying to save some areas but most likely will be cut as work demand is non-existent for various reason from the corona virus to protests.

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#14, thanks for sharing. I reached out to Convergint to get official confirmation and will update if / when I receive.

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