EVI Industries Inc (EVI, Financial) released its 8-K filing on November 12, 2024, announcing record results for the first quarter of its fiscal year ending June 30, 2025. The company achieved unprecedented levels in revenue, gross profit, operating profit, and net income, alongside completing a strategic acquisition and declaring a special cash dividend.
Company Overview
EVI Industries Inc, through its subsidiaries, is a leading distributor of commercial, industrial, and vended laundry and dry cleaning equipment, as well as steam and hot water boilers. The company also provides installation and maintenance services across the United States, Canada, the Caribbean, and Latin America. EVI's comprehensive service offerings cater to a diverse clientele, including commercial, industrial, institutional, government, and retail customers.
Performance Highlights
In the first quarter, EVI Industries Inc reported a 6% increase in revenue to $93.6 million compared to the same period last year. Gross profit surged by 12% to a record $29 million, with a gross margin of 30.8%. Operating income nearly doubled, rising 92% to $5 million, while net income soared 152% to $3.2 million. Adjusted EBITDA also saw a significant increase of 27%, reaching $7.6 million.
Henry M. Nahmad, EVI’s Chairman and CEO, stated, “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.”
Strategic Acquisitions and Investments
During the quarter, EVI completed the acquisition of Laundry Pro of Florida, enhancing its distribution and service capabilities. Post-quarter, the company acquired O’Dell Equipment and Supply, further expanding its footprint. These acquisitions align with EVI's long-term growth strategy, which focuses on acquiring family-owned businesses to build a cohesive and entrepreneurial organization in the North American commercial laundry industry.
Mr. Nahmad commented, “A cornerstone of our long-term growth strategy is the acquisition of long-standing, often family-owned, businesses. Our strategy includes the preservation of the people, unique culture, and legacies of the acquired businesses.”
Financial Position and Cash Flow
EVI Industries Inc maintained a strong balance sheet with total assets of $245.5 million and shareholders' equity of $136.1 million. Despite a decrease in cash provided by operating activities to $0.2 million, the company declared a special cash dividend of $0.31 per share, reflecting its solid cash flow and growth prospects. The company's net debt increased to $15.5 million, primarily due to acquisition-related expenditures.
Technological Advancements
EVI continued to invest in technology to modernize its operations, aiming to enhance sales growth, operational efficiency, and customer service. These initiatives, although impacting short-term financial performance, are expected to drive long-term growth and profitability.
Conclusion
EVI Industries Inc's record-breaking first quarter results underscore its successful execution of strategic initiatives and robust financial management. The company's focus on acquisitions, technological advancements, and maintaining a strong financial position positions it well for sustained growth in the competitive industrial distribution sector.
Explore the complete 8-K earnings release (here) from EVI Industries Inc for further details.
