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EnviroStar(EVI) - 2025 Q1 - Quarterly Results
EVIEnviroStar(EVI)2024-11-12 13:03

Financial Performance - Revenue increased 6% to a record 93.6millioncomparedtothefirstquarteroffiscal2024[3]−Grossprofitincreased1293.6 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 5.0million,upfrom5.0 million, up from 2.6 million, reflecting a 92% increase[3] - Net income surged 152% to a record 3.2million,or3.53.2 million, or 3.5% of revenue, compared to 1.3 million, or 1.5%[3] - Adjusted EBITDA was a record 7.6million,representing8.17.6 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,anincreaseof6.493,625,000, 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,upfrom28,855,000, up from 25,692,000, reflecting a gross margin increase[17] - Operating income rose significantly to 4,989,000,comparedto4,989,000, 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,asubstantialincreasefrom3,231,000, 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,upfrom7,606,000, up from 6,019,000 in the prior year, reflecting a 26.4% growth[21] Dividends and Shareholder Returns - A special cash dividend of 4.6millionwasdeclared,markingthelargestdividendinthecompany′shistory[3]AcquisitionsandGrowthStrategy−Thecompanycompletedoneacquisitionduringthequarter,enhancingitsSoutheastGroup′ssalesandserviceexpertise[4]−Thecompanyisactivelypursuingadditionalacquisitionopportunitiestoenhanceitsgrowthstrategy[5]−Commonstockissuedforacquisitionsamountedto4.6 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 229,000inthepreviousyear[20]−Thecompanycontinuestofocusonstrategicacquisitionsandenhancingitsproductofferingstodrivefuturegrowth[21]DebtandCashFlow−Thecompany’snetdebtincreasedfrom229,000 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 15.5million,primarilyduetocashpaidforacquisitions[10]−Cashattheendoftheperiodwas15.5 million, primarily due to cash paid for acquisitions[10] - Cash at the end of the period was 4,373,000, a slight decrease from 4,558,000atthebeginningoftheperiod[19]−Netcashprovidedbyoperatingactivitieswas4,558,000 at the beginning of the period[19] - Net cash provided by operating activities was 207,000, down from 1,540,000inthesamequarterlastyear[19]−Thecompanyincurred1,540,000 in the same quarter last year[19] - The company incurred 5,885,000 in cash paid for acquisitions during the quarter, compared to 987,000intheprioryear[19]−Cashpaidforinterestduringtheperioddecreasedto987,000 in the prior year[19] - Cash paid for interest during the period decreased to 413,000 from 767,000year−over−year,areductionof46.2767,000 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 3,171,000inthesameperiodlastyear[20]TaxandExpenses−Provisionforincometaxesincreasedto3,171,000 in the same period last year[20] Tax and Expenses - Provision for income taxes increased to 1,276,000 from 565,000,indicatinga126.5565,000, indicating a 126.5% rise[21] - Interest expense, net, decreased to 482,000 from 770,000,adeclineof37.4770,000, a decline of 37.4%[21] - Depreciation and amortization remained relatively stable at 1,550,000 compared to 1,546,000intheprioryear[21]−Amortizationofshare−basedcompensationdecreasedto1,546,000 in the prior year[21] - Amortization of share-based compensation decreased to 1,067,000 from 1,856,000,adropof42.51,856,000, 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 230,659,000asofJune30,2024[18]−Currentliabilitiesincreasedto230,659,000 as of June 30, 2024[18] - Current liabilities increased to 77,831,000 from 69,803,000,indicatingariseinshort−termobligations[18]−Basicearningspershareincreasedto69,803,000, indicating a rise in short-term obligations[18] - Basic earnings per share increased to 0.22 from 0.09,whiledilutedearningspershareroseto0.09, while diluted earnings per share rose to 0.21 from $0.09[17]