EVI Industries Reports Record First Quarter Results
EVI Industries reported record first quarter results for fiscal 2025, with revenue increasing 6% to $93.6 million and net income surging 152% to $3.2 million. The company achieved record figures across key metrics, including gross profit up 12% to $28.9 million and operating income at $5.0 million. Gross margin improved to 30.8% from 29.2%. During the quarter, EVI completed the acquisition of Laundry Pro of Florida and declared a special cash dividend of $0.31 per share. The company maintains a strong balance sheet with over $100 million in available liquidity, despite net debt increasing to $15.5 million.
EVI Industries ha riportato risultati record per il primo trimestre dell'esercizio 2025, con un aumento del fatturato del 6% a 93,6 milioni di dollari e un balzo dell'152% dell'utile netto a 3,2 milioni di dollari. L'azienda ha raggiunto cifre record in vari indicatori chiave, inclusi il profitto lordo in aumento del 12% a 28,9 milioni di dollari e l'utile operativo a 5,0 milioni di dollari. Il margine lordo è migliorato al 30,8% rispetto al 29,2%. Durante il trimestre, EVI ha completato l'acquisizione di Laundry Pro in Florida e ha dichiarato un dividendo speciale in contante di 0,31 dollari per azione. L'azienda mantiene un bilancio solido con oltre 100 milioni di dollari di liquidità disponibile, nonostante il debito netto sia aumentato a 15,5 milioni di dollari.
EVI Industries reportó resultados récord en el primer trimestre del año fiscal 2025, con ingresos que aumentaron un 6% a 93.6 millones de dólares y un incremento del 152% en las ganancias netas a 3.2 millones de dólares. La compañía logró cifras récord en métricas clave, incluyendo un aumento del 12% en las ganancias brutas a 28.9 millones de dólares y un ingreso operativo de 5.0 millones de dólares. El margen bruto mejoró al 30.8% desde el 29.2%. Durante el trimestre, EVI completó la adquisición de Laundry Pro en Florida y declaró un dividendo en efectivo especial de 0.31 dólares por acción. La empresa mantiene un balance sólido con más de 100 millones de dólares en liquidez disponible, a pesar de que la deuda neta aumentó a 15.5 millones de dólares.
EVI Industries는 2025 회계연도 첫 분기 결과를 보고하며, 수익이 6% 증가한 9360만 달러로, 순이익은 152% 급증한 320만 달러에 달했다고 전했습니다. 이 회사는 총 이익이 12% 증가한 2890만 달러, 운영 수익이 500만 달러로 주요 지표에서 기록적인 수치를 달성했습니다. 총 마진은 29.2%에서 30.8%로 향상되었습니다. 또한 이 분기 동안 EVI는 플로리다의 Laundry Pro 인수를 완료하고 주당 0.31달러의 특별 현금 배당금을 선언했습니다. 이 회사는 순부채가 1550만 달러로 증가했음에도 불구하고 1억 달러 이상의 유동성을 유지하는 견고한 대차대조표를 보유하고 있습니다.
EVI Industries a annoncé des résultats record pour le premier trimestre de l'exercice 2025, avec un chiffre d'affaires en hausse de 6 % à 93,6 millions de dollars et un bénéfice net en forte hausse de 152 % à 3,2 millions de dollars. L'entreprise a réalisé des chiffres record dans des indicateurs clés, y compris un bénéfice brut en hausse de 12 % à 28,9 millions de dollars et un revenu d'exploitation de 5,0 millions de dollars. La marge brute s'est améliorée à 30,8 % contre 29,2 %. Au cours du trimestre, EVI a finalisé l'acquisition de Laundry Pro en Floride et a déclaré un dividende en espèces spécial de 0,31 dollar par action. L'entreprise maintient un bilan solide avec plus de 100 millions de dollars de liquidités disponibles, malgré une augmentation de la dette nette à 15,5 millions de dollars.
EVI Industries meldete für das erste Quartal des Geschäftsjahres 2025 Rekordzahlen, mit einem Umsatzanstieg von 6% auf 93,6 Millionen US-Dollar und einem Anstieg des Nettogewinns um 152% auf 3,2 Millionen US-Dollar. Das Unternehmen erreichte Rekordwerte bei wichtigen Kennzahlen, darunter ein Bruttogewinn, der um 12% auf 28,9 Millionen US-Dollar stieg, sowie ein Betriebsergebnis von 5,0 Millionen US-Dollar. Die Bruttomarge verbesserte sich von 29,2% auf 30,8%. Im Laufe des Quartals schloss EVI die Übernahme von Laundry Pro in Florida ab und erklärte eine Sonderdividende in bar von 0,31 US-Dollar pro Aktie. Das Unternehmen weist trotz eines Anstiegs der Nettoverschuldung auf 15,5 Millionen US-Dollar eine starke Bilanz mit über 100 Millionen US-Dollar an verfügbaren liquiden Mitteln auf.
- Revenue growth of 6% to record $93.6 million
- Net income increased 152% to record $3.2 million
- Gross profit up 12% to record $28.9 million
- Operating income nearly doubled to $5.0 million from $2.6 million
- Gross margin improved to 30.8% from 29.2%
- Strong liquidity position with over $100 million available
- Net debt increased from $8.3 million to $15.5 million
- Operating cash flow decreased to $0.2 million from $1.5 million
Insights
The Q1 FY2025 results demonstrate robust financial performance with several notable achievements. Revenue grew 6% to
The company's strategic acquisitions and technology investments are yielding positive results, evidenced by the record
The increase in net debt to
EVI's transformation from a single-location business to a network of 29 businesses with 800 associates represents successful execution of its consolidation strategy in the fragmented commercial laundry industry. The
The company's technology investments, while impacting near-term profits, position it well for future market leadership. The expansion of their service network to over 400 technicians creates significant competitive advantages and recurring revenue opportunities. The successful integration of acquired businesses and preservation of local entrepreneurial cultures has created a scalable growth model.
The strong order backlog and increasing contract values suggest healthy market demand and pricing power. The emphasis on modernization through e-commerce and field service technology indicates a forward-thinking approach to market evolution.
Achieved Records for Revenue, Gross Profit, Operating Profit, and Net Income. Completed One Acquisition, Invested Across Long-Term Growth and Efficiency Initiatives, Declared Special Cash Dividend, and Sustained a Strong Balance Sheet
In 2016, EVI commenced the execution of a long-term growth strategy to build the undisputed leader in and around the commercial laundry industry. Since 2016, the Company has grown from one business operating from a single location in the state of
Henry M. Nahmad, EVI’s Chairman and CEO, commented: “Record operating performance in all key financial metrics is a testament to the well-synchronized efforts of our over 750 associates dedicated to serving our customers while executing on a series of initiatives in pursuit of our long-term performance goals. Our confidence in the long-term possibilities for our Company and our ability to achieve our performance goals is derived from early successes combined with financial strength and wherewithal, our reputation as a knowledgeable and high-quality buyer and builder of businesses, the expected future impact of promising technologies, and leadership team invested in guiding the Company into the future.”
Fiscal First Quarter Highlights (compared to the first quarter of fiscal 2024)
-
Revenue increased
6% to record$93.6 million -
Gross profit increased
12% to a record$28.9 million -
Gross margin increased to a record
30.8% compared to29.2% -
Operating income was a record
compared to$5.0 million $2.6 million -
Net income increased
152% to a record , or$3.2 million 3.5% , compared to , or$1.3 million 1.5% -
Adjusted EBITDA was a record
, or a record$7.6 million 8.1% , compared to , or$6.0 million 6.8%
Achievements During the Three-Month Period Ended September 30, 2024
- Completed one acquisition adding sales and service expertise to the Company’s Southeast Group
- New confirmed customer sales order contracts exceeded the value of those fulfilled during the quarter
- Implemented the Company’s field service technology at additional business units in two regional groups
-
Declared a
special cash dividend, the largest dividend in EVI’s history$4.6 million - Sustained a strong balance sheet despite the dividend and investments in working capital and technologies
Acquisitions
During the first fiscal quarter, the Company completed the acquisition of
Mr. Nahmad commented: “A cornerstone of our long-term growth strategy is the acquisition of long-standing, often family-owned, businesses. Since 2016, we have acquired twenty-eight businesses. Our strategy includes the preservation of the people, unique culture and legacies of the acquired businesses, with a goal of forming the single largest, most cohesive, and entrepreneurial organization in the North American commercial laundry distribution and service industry. Given our success, we believe that our entrepreneurial culture, growing technology advantage, strong financial position and other unique factors provide an attractive home for great businesses, and we are actively pursuing opportunities that meet our financial, strategic, and cultural criteria.”
Technology Investments
In 2020, the Company commenced a comprehensive technology initiative to transform EVI into a modern, data-driven company. Since that time, EVI’s technology group has grown significantly, various third-party technology professionals have been retained, and multiple technology initiatives were undertaken with a goal to accelerate sales and profit growth, increase the speed, convenience and efficiency in serving customers, extend our reach into new geographies and sales channels, and create scalable operating processes.
During the first fiscal quarter, the Company’s technology team successfully led efforts to consolidate business units into end-state enterprise resource planning systems, implemented EVI’s field service technology at business units in certain regional groups, and launched the configuration and implementation of our planned e-commerce site. While the costs and expenses associated with these and other modernization initiatives adversely impacted EVI’s financial performance in the near-term, the Company believes that these technological capabilities will be a catalyst to achieving its long-term growth and profitability goals.
Operating Results
First quarter revenue performance reflects steady fulfillment of customer sales orders from the Company’s backlog and appropriately stocked inventory, installations in connection with equipment sales, the sale of parts and accessories, and the performance of maintenance and repair services. These factors contributed to a
Mr. Nahmad commented: “We have undertaken various initiatives to drive growth and profitability, and to transform the technological infrastructure and capabilities of our Company. As a result of these initiatives, we are realizing steady growth in key operating performance metrics, including a greater level of operating leverage. As we continue our efforts to grow, implement best operating practices, and deploy advanced technologies, we expect to continue to achieve a greater level of operating performance.”
Cash Flow, Financial Strength, and Special Cash Dividend
During the first fiscal quarter, operating activities provided cash of
Given the Company’s growth and profitability prospects, historically solid cash flows, and strong balance sheet with over
EVI’s Core Principles
EVI upholds specific core values and principles for its business, including:
- Invest and manage with a long-term perspective
- Uphold financial discipline with a view towards ensuring financial strength and flexibility
- Respect the entrepreneurs and management teams that join the EVI family
- Operate each business as a local business and empower its leaders to make local decisions
- Promote an entrepreneurial culture
- Instill a growth mindset and culture of continuous improvement
- Incentivize and reward performance with equity participation
- Establish strong relationships with our OEM partners
Earnings Call and Additional Information
The Company has provided a pre-recorded earnings conference call, including a business update, which can be accessed under “Financial Info” in the “Investors” section of the Company’s website at www.evi-ind.com or by visiting https://ir.evi-ind.com/message-from-the-ceo. For additional information regarding the Company’s results for the quarter ended September 30, 2024, please see the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, as filed with the Securities and Exchange Commission on or about the date hereof.
Use of Non-GAAP Financial Information
In this press release, EVI discloses the non-GAAP financial measure of adjusted EBITDA, which EVI defines as earnings before interest, taxes, depreciation, amortization, and amortization of share-based compensation. Adjusted EBITDA is determined by adding interest expense, income taxes, depreciation, amortization, and amortization of share-based compensation to net income, as shown in the attached statement of Condensed Consolidated Earnings before Interest, Taxes, Depreciation, Amortization, and Amortization of Share-based Compensation. EVI considers adjusted EBITDA to be an important indicator of its operating performance. Adjusted EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings, and the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. Adjusted EBITDA should not be considered as an alternative to net income or any other measure of financial performance or liquidity, including cash flow, derived in accordance with GAAP, or to any other method of analyzing EVI’s results as reported under GAAP.
About EVI Industries
EVI Industries, Inc., through its wholly owned subsidiaries, is a value-added distributor and a provider of advisory and technical services. Through its vast sales organization, the Company provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells and/or leases its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories. Additionally, through the Company’s robust network of commercial laundry technicians, the Company provides its customers with installation, maintenance, and repair services. The Company’s customers include retail, commercial, industrial, institutional, and government customers. Purchases made by customers range from parts and accessories to single or multiple units of equipment, to large complex systems as well as the purchase of the Company’s installation, maintenance, and repair services.
Safe Harbor Statement
Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “could,” “seek,” “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “strategy” and similar expressions are intended to identify forward looking statements. Forward looking statements may relate to, among other things, events, conditions, and trends that may affect the future plans, operations, business, strategies, operating results, financial position and prospects of the Company. Forward looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results, trends, performance or achievements of the Company, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward looking statements. These risks and uncertainties include, among others, those associated with: general economic and business conditions in
EVI Industries, Inc. |
|
|
|
|
Condensed Consolidated Results of Operations (in thousands, except per share data) |
||||
|
|
|||
|
|
|
Unaudited |
Unaudited |
|
|
|
3-Months Ended |
3-Months Ended |
|
|
09/30/24 |
09/30/23 |
|
|
|
|||
Revenues |
|
|
|
|
Cost of Sales |
|
|
64,770 |
62,382 |
Gross Profit |
|
|
28,855 |
25,692 |
SG&A |
|
|
23,866 |
23,075 |
Operating Income |
|
|
4,989 |
2,617 |
Interest Expense, net |
|
|
482 |
770 |
Income before Income Taxes |
|
|
4,507 |
1,847 |
Provision for Income Taxes |
|
|
1,276 |
565 |
Net Income |
|
|
|
|
|
|
|||
Net Earnings per Share |
|
|
||
Basic |
|
|
|
|
Diluted |
|
|
|
|
|
|
|
||
Weighted Average Shares Outstanding |
|
|
|
|
Basic |
|
|
12,685 |
12,581 |
Diluted |
|
|
13,047 |
13,205 |
|
|
|
|
|
EVI Industries, Inc. |
|
|
|
|
Condensed Consolidated Balance Sheets (in thousands, except per share data) |
||||
|
|
Unaudited |
|
|
|
|
|
09/30/24 |
06/30/24 |
Assets |
|
|
||
Current assets |
|
|
|
|
Cash |
|
|
|
|
Accounts receivable, net |
|
|
45,446 |
40,932 |
Inventories, net |
|
|
50,860 |
47,901 |
Vendor deposits |
|
|
2,148 |
1,657 |
Contract assets |
|
|
362 |
1,222 |
Other current assets |
|
|
9,152 |
5,671 |
Total current assets |
|
|
112,341 |
101,941 |
Equipment and improvements, net |
|
|
14,582 |
13,950 |
Operating lease assets |
|
|
8,622 |
8,078 |
Intangible assets, net |
|
|
22,943 |
22,022 |
Goodwill |
|
|
77,597 |
75,102 |
Other assets |
|
|
9,443 |
9,566 |
Total assets |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable and accrued expenses |
|
|
|
|
Accrued employee expenses |
|
|
11,504 |
11,370 |
Customer deposits |
|
|
22,828 |
24,419 |
Contract liabilities |
|
|
223 |
- |
Current portion of operating lease liabilities |
|
|
3,330 |
3,110 |
Total current liabilities |
|
|
77,831 |
69,803 |
Deferred income taxes, net |
|
|
5,533 |
5,498 |
Long-term operating lease liabilities |
|
|
6,195 |
5,849 |
Long-term debt, net |
|
|
19,912 |
12,903 |
Total liabilities |
|
|
109,471 |
94,053 |
|
|
|
|
|
Shareholders' equity |
|
|
|
|
Preferred stock, |
|
|
- |
- |
Common stock, |
|
|
323 |
322 |
Additional paid-in capital |
|
|
107,606 |
106,540 |
Treasury stock |
|
|
(4,693) |
(4,439) |
Retained earnings |
|
|
32,821 |
34,183 |
Total shareholders' equity |
|
|
136,057 |
136,606 |
Total liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
EVI Industries, Inc. |
|
|
|
|
Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
||||
|
|
For the three months ended |
||
|
|
|
09/30/24 |
09/30/23 |
Operating activities: |
|
|
||
Net income |
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
1,550 |
1,546 |
Amortization of debt discount |
|
|
9 |
9 |
Provision for bad debt expense |
|
|
352 |
124 |
Non-cash lease expense |
|
|
22 |
(16) |
Stock compensation |
|
|
1,067 |
1,856 |
Inventory reserve |
|
|
251 |
174 |
Provision (benefit) for deferred income taxes |
|
|
35 |
(30) |
Other |
|
|
(105) |
25 |
(Increase) decrease in operating assets: |
|
|
|
|
Accounts receivable |
|
|
(4,894) |
500 |
Inventories |
|
|
(1,538) |
1,772 |
Vendor deposits |
|
|
(491) |
(170) |
Contract assets |
|
|
860 |
(898) |
Other assets |
|
|
(3,213) |
969 |
(Decrease) increase in operating liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
|
|
4,461 |
(7,191) |
Accrued employee expenses |
|
|
134 |
734 |
Customer deposits |
|
|
(1,747) |
977 |
Contract liabilities |
|
|
223 |
(123) |
Net cash provided by operating activities |
|
|
207 |
1,540 |
|
|
|
|
|
Investing activities: |
|
|
|
|
Capital expenditures |
|
|
(1,253) |
(971) |
Cash paid for acquisitions, net of cash acquired |
|
|
(5,885) |
(987) |
Net cash used by investing activities |
|
|
(7,138) |
(1,958) |
|
|
|
|
|
Financing activities: |
|
|
|
|
Proceeds from borrowings |
|
|
19,000 |
19,000 |
Debt repayments |
|
|
(12,000) |
(20,000) |
Repurchases of common stock in satisfaction of employee tax withholding obligations |
|
|
(254) |
(314) |
Net cash provided (used) by financing activities |
|
|
6,746 |
(1,314) |
Net decrease in cash |
|
|
(185) |
(1,732) |
Cash at beginning of period |
|
|
4,558 |
5,921 |
Cash at end of period |
|
|
|
|
|
|
|
EVI Industries, Inc. |
|
|
|
|
Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
||||
|
|
|
For the three months ended |
|
|
|
|
09/30/24 |
09/30/23 |
Supplemental disclosures of cash flow information: |
|
|
|
|
Cash paid during the period for interest |
|
|
|
|
Cash paid during the period for income taxes |
|
|
- |
|
|
|
|
|
|
Supplemental disclosures of non-cash financing activities: |
|
|
|
|
Common stock issued for acquisitions |
|
|
- |
|
Dividends Payables |
|
|
|
- |
|
|
The following table reconciles net income, the most comparable GAAP financial measure, to Adjusted EBITDA.
EVI Industries, Inc. |
|
|
||
Condensed Consolidated Earnings before Interest, Taxes, Depreciation, Amortization, and Amortization of Share-based Compensation (in thousands) |
||||
|
|
|||
|
|
|
Unaudited |
Unaudited |
|
|
|
3-Months Ended |
3-Months Ended |
|
|
09/30/24 |
09/30/23 |
|
|
|
|||
Net Income |
|
|
|
|
Provision for Income Taxes |
|
|
1,276 |
565 |
Interest Expense, Net |
|
|
482 |
770 |
Depreciation and Amortization |
|
|
1,550 |
1,546 |
Amortization of Share-based Compensation |
|
|
1,067 |
1,856 |
Adjusted EBITDA |
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241111865329/en/
EVI Industries, Inc.
4500 Biscayne Blvd., Suite 340
(305) 402-9300
Henry M. Nahmad
Chairman and CEO
(305) 402-9300
Craig Ettelman
Director of Finance and Investor Relations
(305) 402-9300
info@evi-ind.com
Source: EVI Industries, Inc.
FAQ
What was EVI Industries' revenue growth in Q1 2025?
How much did EVI's net income increase in Q1 2025?
What was EVI's special dividend amount in Q1 2025?