Revenue and Profitability - Revenue for the three-month period increased by 11% to $93.5 million compared to $84.0 million, while revenue for the nine-month period increased by 6% to a record $280 million[3]. - Gross profit for the three-month period increased by 9% to a record $28.1 million, and for the nine-month period, it increased by 8% to a record $84.4 million[3]. - Adjusted EBITDA for the three-month period increased to $5.1 million, or 5.4%, and for the nine-month period, it increased to $17.8 million, or 6.4%[3]. - Revenues for the nine months ended March 31, 2025, increased to $279.874 million, up 6.0% from $263.417 million for the same period in 2024[18]. - Gross profit for the nine months ended March 31, 2025, was $84.432 million, representing a gross margin of 30.2%, compared to $77.884 million and a gross margin of 29.6% for the same period in 2024[18]. - Net income for the nine months ended March 31, 2025, was $5.401 million, a 50.7% increase from $3.579 million in the prior year[18]. - Adjusted EBITDA for the nine months ended March 31, 2025, was $17.816 million, compared to $16.424 million for the same period in 2024, reflecting an 8.5% increase[23]. - Operating income for the nine months ended March 31, 2025, was $9.654 million, a 21.1% increase from $7.976 million in the same period of 2024[18]. Cash Flow and Liquidity - Operating cash flow for the three-month period was $9.1 million, and for the nine-month period, it was $11.3 million[3][10]. - The company maintained over $175 million in available liquidity, with a revolving credit facility increased to $200 million[10]. - The company reported a net cash provided by operating activities of $11.325 million for the nine months ended March 31, 2025, down from $20.276 million in the prior year[20]. - Cash at the end of the period was $5.913 million, an increase from $4.558 million at the beginning of the period[20]. Acquisitions and Growth - The company completed three acquisitions, including Girbau North America, which is expected to significantly enhance revenue and operating profit[3][4]. - The company completed the acquisition of GNA on April 1, 2025, with pro forma information reflecting the acquisition as if completed on January 1, 2024[17]. - The company has established a compounded annual growth rate in revenue, net income, and adjusted EBITDA of 31%, 18%, and 28%, respectively, since 2016[2]. Expenses and Debt - Selling, General and Administrative expenses increased by 10% for the three-month period, driven by higher commissionable sales and integration costs from acquisitions[7]. - Long-term debt increased to $24.000 million as of March 31, 2025, compared to $12.903 million as of June 30, 2024, reflecting a significant rise in leverage[19]. Digital Transformation - EVI's digital transformation initiative includes the deployment of an advanced Field Service Management platform utilized by over 425 service professionals[8]. Assets - Total assets as of March 31, 2025, were $251.790 million, up from $230.659 million as of June 30, 2024, indicating a growth of 9.1%[19].

Financial Performance - Revenues for the nine and three-month periods ended March 31, 2025 increased by $16.5 million, or 6%, and $9.6 million, or 11%, respectively, compared to the same periods of the prior fiscal year [111]. - Gross profit for the nine and three-month periods ended March 31, 2025 increased by $6.5 million, or 8%, and $2.3 million, or 9%, respectively, compared to the same periods of the prior fiscal year [112]. - Operating expenses increased by $4.9 million, or 7%, and $2.4 million, or 10%, for the nine and three-month periods ended March 31, 2025, respectively, compared to the same periods of the prior fiscal year [113]. - Net income for the nine months ended March 31, 2025, increased to $5.4 million, up from $3.6 million for the same period in 2024, reflecting a growth of approximately 50% [116]. - Margins slightly increased from 29.6% for the nine-month period ended March 31, 2024 to 30.2% for the nine-month period ended March 31, 2025 [112]. Assets and Liabilities - Total assets rose from $230.7 million at June 30, 2024, to $251.8 million at March 31, 2025, an increase of about 9% [117]. - Total liabilities increased from $94.1 million to $111.6 million during the same period, representing an increase of approximately 18.5% [117]. - Working capital improved from $32.1 million at June 30, 2024, to $38.9 million at March 31, 2025, a growth of about 21% [119]. Cash Flow and Investments - Cash provided by operating activities decreased to $11.3 million for the nine months ended March 31, 2025, down from $20.3 million in 2024, a decline of approximately 44% [121]. - Net cash used in investing activities increased to $15.7 million for the nine months ended March 31, 2025, compared to $4.6 million in 2024, an increase of approximately 239% [122]. - Financing activities provided cash of $5.8 million for the nine months ended March 31, 2025, compared to cash used of $18.3 million in 2024, a turnaround of approximately $24.1 million [123]. Acquisitions - The Company acquired Florida-based Laundry Pro of Florida, Inc. for total consideration of $5.9 million in cash on July 1, 2024 [106]. - The Company acquired Indiana-based O'Dell Equipment & Supply, Inc. for total consideration of $4.6 million in cash on November 1, 2024 [106]. - The Company acquired Illinois-based Haiges Machinery, Inc. for total consideration of $2.0 million in cash on February 1, 2025 [106]. - The Company acquired Wisconsin-based Girbau North America, Inc. for total consideration of approximately $40.0 million in cash on April 1, 2025 [106]. Credit and Risk Management - The Company amended its Credit Agreement to increase the maximum borrowing capacity from $100 million to $150 million, with an accordion feature raising the total to $200 million [124]. - As of March 31, 2025, the Company had approximately $24.0 million of outstanding borrowings under the Credit Agreement with a weighted average interest rate of 5.68% [135]. - The Company believes its existing cash and anticipated cash from operations will be sufficient to fund operations and capital expenditures for at least the next twelve months [128]. - The Company's cash is maintained in bank accounts with prevailing interest rates [137]. - The Company does not currently believe it is exposed to significant credit risk due to the financial position of the banks [137]. - There have been adverse events related to the soundness of financial institutions, including smaller bank failures [137]. - The Company has exposure if cash balances exceed the current $250,000 in maximum FDIC coverage [137]. Revenue Drivers - The increase in revenues is primarily attributable to price increases across the Company's product lines and service offerings [111].

EVI Industries (EVI) Q3 2025 Earnings Call May 11, 2025 08:00 PM ET Speaker0 Hello, and welcome to EVI Industries Earnings Call for the Third Quarter of the Fiscal Year Ended 06/30/2025. I am Henry Nahmad, Chairman and CEO of EVI. Before we proceed, we would like to discuss our cautionary statement. This earnings call contains forward looking statements as defined by SEC rules and regulations. Forward looking statements are subject to a number of risks and uncertainties, including those set forth in our ear ...

Core Insights - EVI Industries, Inc. reported a decline in net earnings per share (EPS) to 7 cents for Q2 fiscal 2025, down from 9 cents in the same quarter last year, despite achieving record revenues of $92.7 million, a 1% year-over-year increase [2][3] - The company experienced a gross profit increase to $27.5 million, up 4% from the prior year, with gross margin expanding to 29.7% from 28.9% [2][3] - Operating income decreased to $2.4 million from $3 million, and net income fell to $1.1 million compared to $1.3 million in the previous year [3] Financial Performance - EVI's sales order backlog remains above $100 million, indicating steady demand across its segments, although delays in large industrial sales contracts have impacted revenue growth [4] - The company expanded its workforce, increasing its sales team by 3% and its service team by 10%, while deploying new field service technologies to over 70% of its service organization [5] - Cash flow from operations declined to $2.2 million in the first half of fiscal 2025, down from $10.9 million a year earlier, primarily due to working capital changes and acquisition-related expenses [8] Management Strategy - The CEO reaffirmed the company's long-term growth strategy, focusing on investments in personnel, technology, and operational efficiency, despite near-term cost pressures [6] - Management expects to benefit from order fulfillment in the coming quarters, despite the uneven timing of large industrial sales [6][10] - EVI completed two acquisitions in Florida and Indiana, enhancing its sales and service capabilities, and also entered the Midwest market with a commercial laundry distributor acquisition in Illinois [11] Market Outlook - Management remains optimistic about sustained demand in the commercial laundry sector and sees potential for long-term growth through acquisitions and organic expansion [10] - The company paid a record dividend of $4.6 million, reflecting confidence in its long-term growth outlook [11]

Revenue and Profit - Revenue for the three-month period ended December 31, 2024, reached a record of $92.7 million, a 1% increase compared to the same period in 2023[4] - Gross profit for the same three-month period increased by 4% to a record of $27.5 million, with gross margin rising to 29.7% from 28.9%[4] - For the six-month period, revenue increased by 4% to a record of $186.3 million, while gross profit rose by 8% to $56.4 million, achieving a gross margin of 30.3%[4] - Revenues for the six months ended December 31, 2024, increased to $186,336,000, up from $179,438,000 for the same period in 2023, representing a growth of 4.9%[19] - Gross profit for the six months ended December 31, 2024, was $56,377,000, compared to $52,098,000 in 2023, reflecting an increase of 8.7%[19] - Net income for the six months ended December 31, 2024, rose to $4,360,000, a significant increase from $2,623,000 in the prior year, marking a growth of 66.3%[19] - Adjusted EBITDA for the six-month period increased to a record of $12.7 million, or 6.8%, compared to $11.5 million, or 6.4% in the previous year[4] - Adjusted EBITDA for the six months ended December 31, 2024, was $12,749,000, compared to $11,492,000 in 2023, indicating an increase of 10.9%[24] Operating Income and Cash Flow - Operating income for the three-month period was $2.4 million, down from $3.0 million in the prior year, while net income was $1.1 million, or 1.2%[4] - Operating activities generated cash of $2.2 million during the six-month period, a decrease of $8.7 million compared to the same period in 2023[10] - The company reported a net cash provided by operating activities of $2,176,000 for the six months ended December 31, 2024, a decrease from $10,858,000 in the same period of 2023[21] Dividends and Capital Expenditures - The company paid a dividend of $4.6 million, marking the largest dividend in its history[4] - The company paid dividends totaling $4,593,000 during the six months ended December 31, 2024, compared to $4,071,000 in the same period of 2023, an increase of 12.9%[21] - Capital expenditures for the six months ended December 31, 2024, were $2,124,000, slightly down from $2,376,000 in the prior year[21] Assets and Liabilities - Total assets as of December 31, 2024, were $248,802,000, up from $230,659,000 as of June 30, 2024, representing an increase of 7.8%[20] - Long-term debt increased to $27,920,000 as of December 31, 2024, compared to $12,903,000 as of June 30, 2024, reflecting a significant rise of 116.5%[20] - Cash at the end of the period decreased to $3,905,000 from $4,558,000 at the beginning of the period, a decline of 14.3%[21] Acquisitions and Workforce Growth - The company completed two acquisitions during the six-month period, enhancing its sales and service expertise in the Southeast region[4] - The sales team grew by 3% to over 190 professionals, while the service team increased by 10% to over 425 professionals, supporting expansion efforts[8] - The company has a backlog of over $100 million in confirmed customer sales orders, indicating strong future revenue potential[5]

Financial Performance - Revenues for the six-month period ended December 31, 2024 increased by $6.9 million, or 4%, compared to the same period in the prior fiscal year[95] - Gross profit for the six-month period ended December 31, 2024 increased by $4.3 million, or 8%, with gross margins rising from 29.0% to 30.3%[96] - Operating expenses increased by $2.5 million, or 5%, for the six-month period ended December 31, 2024, primarily due to expenses from acquired businesses and increased selling costs[97] - Interest expense decreased to $1.2 million for the six-month period ended December 31, 2024, down from $1.6 million in the same period of the prior year[98] - The effective tax rate decreased to 30.0% for the six-month period ended December 31, 2024, compared to 34.0% for the same period in the prior year[100] - Net income for the six-month period ended December 31, 2024 was $4.4 million, an increase from $2.6 million in the same period of the prior year[101] - Gross profit for the three-month period ended December 31, 2024 increased by $1.1 million, or 4%, compared to the same period in the prior fiscal year[96] Acquisitions and Growth Strategy - The Company acquired Laundry Pro of Florida, Inc. for $5.9 million in cash on July 1, 2024, and O'Dell Equipment & Supply, Inc. for $4.6 million in cash on November 1, 2024[89] - The Company implemented a "buy-and-build" growth strategy, focusing on acquisitions and optimizing operations at acquired businesses[89] - The Company aims to increase market share through various strategies, which may lead to lower gross margins in the short term but strengthen customer relationships in the long term[91] Assets and Liabilities - Total assets increased from $230.7 million at June 30, 2024 to $248.8 million at December 31, 2024, primarily due to increases in current assets and intangible assets from acquisitions[102] - Total liabilities rose from $94.1 million at June 30, 2024 to $110.8 million at December 31, 2024, mainly driven by an increase in long-term debt[102] - Working capital increased from $32.1 million at June 30, 2024 to $41.4 million at December 31, 2024, reflecting higher accounts receivable and inventory[104] Cash Flow and Financing - Cash provided by operating activities decreased to $2.2 million for the six months ended December 31, 2024, down from $10.9 million in the same period of 2023[107] - Net cash used in investing activities increased to $12.6 million for the six months ended December 31, 2024, compared to $3.4 million in 2023, with cash paid for acquisitions rising by $9.5 million[108] - Financing activities provided cash of $9.8 million for the six months ended December 31, 2024, compared to cash used of $9.2 million in 2023, primarily due to increased debt borrowings[109] - As of December 31, 2024, the Company had approximately $28.0 million of outstanding borrowings under its Credit Agreement with a weighted average interest rate of 5.88%[120] - The Credit Agreement allows for borrowings up to $100 million, with an accordion feature to increase by up to $40 million, and the maturity date is May 6, 2027[110] Economic Factors - Inflation did not significantly affect the Company's results, but there are risks related to the current inflationary trend impacting product pricing[114] - The Company believes existing cash and anticipated cash from operations will be sufficient to fund operations and capital expenditures for at least the next twelve months[113]

Core Insights - EVI Industries, Inc. reported record financial results for the first fiscal quarter ending September 30, 2024, with net earnings per share increasing to 21 cents from 9 cents year-over-year, and revenues rising 6% to $93.6 million [2][3] Financial Performance - Gross profit reached a record $28.9 million, up 12% from the previous year, with gross margin improving to 30.8% from 29.2% [3] - Operating income surged 92% to $5 million, while net income more than doubled to $3.2 million, representing 3.5% of revenue compared to 1.5% the previous year [3] - Adjusted EBITDA also set a record at $7.6 million, reflecting a 27% increase from last year's $6 million [3] Business Metrics - EVI secured new customer contracts exceeding the volume of fulfilled orders, indicating strong demand and potential future revenue streams [5] - The company achieved notable gains in gross and operating margins due to operational efficiencies [5] Management Commentary - CEO Henry M. Nahmad attributed the record performance to the workforce and emphasized the company's strategic focus on acquisition-driven expansion, operational efficiencies, and technological investments [6] Factors Influencing Performance - EVI's performance was supported by steady order fulfillment, strategic investments in operational efficiencies, and enhancements to technology infrastructure [7] - The focus on advanced field service technology and enterprise resource planning contributed to improved operational metrics [7] Financial Position - Cash flow from operating activities decreased to $0.2 million from $1.5 million a year earlier, primarily due to working capital changes [8] - Net debt increased from $8.3 million to $15.5 million, largely due to acquisition-related expenses [8] Other Developments - EVI completed the acquisition of Laundry Pro of Florida and expanded further with the acquisition of O'Dell Equipment and Supply [8] - The company declared a special cash dividend of 31 cents per share, the largest in its history, reinforcing its commitment to shareholder returns [8]

Financial Performance - Revenue increased 6% to a record $93.6 million compared to the first quarter of fiscal 2024[3] - Gross profit increased 12% to a record $28.9 million, with gross margin rising to 30.8% from 29.2%[3] - Operating income reached a record $5.0 million, up from $2.6 million, reflecting a 92% increase[3] - Net income surged 152% to a record $3.2 million, or 3.5% of revenue, compared to $1.3 million, or 1.5%[3] - Adjusted EBITDA was a record $7.6 million, representing 8.1% of revenue, up from $6.0 million, or 6.8%[3] - Revenues for the three months ended September 30, 2024, were $93,625,000, an increase of 6.4% compared to $88,074,000 for the same period in 2023[17] - Gross profit for the same period was $28,855,000, up from $25,692,000, reflecting a gross margin increase[17] - Operating income rose significantly to $4,989,000, compared to $2,617,000 in the prior year, marking an increase of 90.4%[17] - Net income for the quarter was $3,231,000, a substantial increase from $1,282,000, representing a growth of 152.5%[17] - Adjusted EBITDA for the three months ended 09/30/24 was $7,606,000, up from $6,019,000 in the prior year, reflecting a 26.4% growth[21] Dividends and Shareholder Returns - A special cash dividend of $4.6 million was declared, marking the largest dividend in the company's history[3] Acquisitions and Growth Strategy - The company completed one acquisition during the quarter, enhancing its Southeast Group's sales and service expertise[4] - The company is actively pursuing additional acquisition opportunities to enhance its growth strategy[5] - Common stock issued for acquisitions amounted to $4,593,000, compared to $229,000 in the previous year[20] - The company continues to focus on strategic acquisitions and enhancing its product offerings to drive future growth[21] Debt and Cash Flow - The company’s net debt increased from $8.3 million to $15.5 million, primarily due to cash paid for acquisitions[10] - Cash at the end of the period was $4,373,000, a slight decrease from $4,558,000 at the beginning of the period[19] - Net cash provided by operating activities was $207,000, down from $1,540,000 in the same quarter last year[19] - The company incurred $5,885,000 in cash paid for acquisitions during the quarter, compared to $987,000 in the prior year[19] - Cash paid for interest during the period decreased to $413,000 from $767,000 year-over-year, a reduction of 46.2%[20] - Cash paid for income taxes was $0 for the three months ended 09/30/24, compared to $3,171,000 in the same period last year[20] Tax and Expenses - Provision for income taxes increased to $1,276,000 from $565,000, indicating a 126.5% rise[21] - Interest expense, net, decreased to $482,000 from $770,000, a decline of 37.4%[21] - Depreciation and amortization remained relatively stable at $1,550,000 compared to $1,546,000 in the prior year[21] - Amortization of share-based compensation decreased to $1,067,000 from $1,856,000, a drop of 42.5%[21] Long-term Growth - Since 2016, the company has achieved a compounded annual growth rate in revenue, net income, and adjusted EBITDA of 32%, 20%, and 30%, respectively[2] - Total assets as of September 30, 2024, were $245,528,000, up from $230,659,000 as of June 30, 2024[18] - Current liabilities increased to $77,831,000 from $69,803,000, indicating a rise in short-term obligations[18] - Basic earnings per share increased to $0.22 from $0.09, while diluted earnings per share rose to $0.21 from $0.09[17]

Financial Performance - Revenues for the three-month period ended September 30, 2024 increased by $5.6 million, or 6%, compared to the same period of the prior fiscal year[82]. - Gross profit for the three-month period ended September 30, 2024 increased by $3.2 million, or 12%, with gross margins rising from 29.2% to 30.8%[83]. - Net income for the three months ended September 30, 2024 was $3.2 million, an increase from $1.3 million in the same period of the prior fiscal year[86]. - Interest expense decreased to $482,000 for the three-month period ended September 30, 2024, down from $770,000 in the same period of the prior fiscal year[85]. - The effective tax rate decreased to 28.3% for the three-month period ended September 30, 2024, compared to 30.6% for the same period of the prior fiscal year[85]. Expenses and Liabilities - Operating expenses increased by $0.8 million, or 3%, primarily due to operating expenses of acquired businesses and increases in selling costs[84]. - Total liabilities rose from $94.1 million at June 30, 2024 to $109.5 million at September 30, 2024, mainly due to increased accounts payable and long-term debt[87]. Acquisitions and Growth Strategy - The Company acquired Laundry Pro of Florida, Inc. for $5.9 million in cash on July 1, 2024, and O'Dell Equipment & Supply, Inc. for $4.6 million in cash on November 1, 2024[76]. - The "buy-and-build" growth strategy includes pursuing acquisitions and implementing a growth culture at acquired businesses[76][77]. - The Company aims to increase market share through various strategies, which may lead to lower gross margins but strengthen customer relationships[78]. Assets and Working Capital - Total assets increased from $230.7 million at June 30, 2024 to $245.5 million at September 30, 2024, primarily due to increases in current assets and goodwill from the acquisition of Laundry Pro of Florida[87]. - Working capital increased from $32.1 million at June 30, 2024 to $34.5 million at September 30, 2024, reflecting increases in accounts receivable and inventory[89]. Cash Flow and Financing - Cash provided by operating activities was $0.2 million for the three months ended September 30, 2024, down from $1.5 million in the same period of 2023, a decrease of $1.3 million[92]. - Investing activities used cash of $7.1 million for the three months ended September 30, 2024, compared to $2.0 million in the same period of 2023, an increase of $5.1 million primarily due to business acquisitions[93]. - Financing activities provided cash of $6.7 million for the three months ended September 30, 2024, compared to cash used of $1.3 million in the same period of 2023, an increase of $8.0 million[94]. - As of September 30, 2024, the Company had approximately $20 million of outstanding borrowings under its Credit Agreement with a weighted average interest rate of 6.40%[106]. Dividends and Future Outlook - The Company declared a special cash dividend of $0.31 per share, totaling $4.6 million, on September 11, 2024, payable on October 7, 2024[87]. - The Company believes existing cash and anticipated cash from operations will be sufficient to fund operations and capital expenditures for at least the next twelve months[99]. Inflation Impact - Inflation did not significantly affect the Company's results, but there are risks related to the current inflationary trend impacting product pricing[100].

Core Insights - EVI Industries, Inc. reported a 7.7% increase in earnings per share (EPS) to 14 cents in Q4 fiscal 2024, despite a 4% decline in revenues to $90.1 million [1][2] - The company demonstrated resilience in its core commercial laundry services, even as larger industrial project sales weakened [1][2] Financial Performance - Gross profit for Q4 was $27.4 million, slightly down from $27.8 million, but gross margin improved to 30.4%, the highest in company history [3] - Net income increased by 10.5% year over year to $2.1 million, aided by lower interest expenses and improved operating efficiencies [4] - Adjusted EBITDA was $6.2 million, down from $6.4 million, with an EBITDA margin of 6.8% [4] Balance Sheet and Cash Flow - As of June 30, 2024, EVI had $4.6 million in cash, total assets of $230.7 million, and long-term debt reduced to $12.9 million from $34.9 million [5] - The company generated record operating cash flows of $33 million for fiscal 2024, leading to a 71% reduction in net debt to $8.3 million [6] Annual Overview - For the full fiscal year, EPS declined to 37 cents from 67 cents, with revenues relatively flat at $353.6 million [7] - Gross profit for the year was $105.3 million, a 2% increase, while operating income fell to $11.6 million from $16.5 million [7] Strategic Developments - EVI completed two acquisitions in fiscal 2024 and executed a third purchase agreement for a Florida-based commercial laundry distributor, aligning with its buy-and-build strategy [7] - The company declared a special cash dividend of 31 cents per share, a 10% increase from the previous year, reflecting strong cash flow generation [8] Technological Advancements - EVI expanded its use of field service technology and began implementing an e-commerce platform, which is expected to contribute to long-term growth despite short-term cost increases [9]