EVI Industries Q4 Earnings Rise Y/Y on Strong Parts and Services Growth

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$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$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]