Core Insights - EVI Industries, Inc. (EVI) shares have declined 17.8% since the earnings report for the quarter ended September 30, 2025, underperforming the S&P 500 index, which gained 1.9% during the same period [1] - For Q1 fiscal 2026, EVI reported earnings per share of 11 cents, down from 21 cents year-over-year, while revenue increased by 16% to $108.3 million [2] - Gross profit reached a record $33.9 million, with a gross margin of 31.3%, attributed to the Continental acquisition [4] Financial Performance - Operating income fell to $3.6 million from $5 million a year ago, and net income dropped 43% to $1.8 million from $3.2 million [3] - Adjusted EBITDA decreased 11% to $6.8 million, indicating margin compression due to ongoing investments [3] - Selling, general and administrative (SG&A) expenses rose to $30.3 million from $23.9 million, impacting profitability metrics [6] Management Commentary - The CEO emphasized a long-term vision focused on acquisitions, technology upgrades, and process improvements to build a resilient business [7] - Management views current revenue gains and record gross margins as validation of its buy-and-build strategy, despite a dip in profitability [8] Business Metrics - EVI's gross margin improved to 31.3% from 30.8% year-over-year, primarily due to the Continental acquisition [4] - Adjusted EBITDA margin decreased to 6.2% from 8.1% in the comparable period, reflecting increased investments [5] Strategic Investments - The company made significant investments in consolidation and optimization, which pressured earnings, while participation in a major industry exposition elevated expenses [9] - Higher SG&A costs and increased interest expense (up to $0.9 million from $0.5 million) further squeezed profitability [10] Future Outlook - EVI reiterated confidence in sustaining gross margin improvements and pursuing additional acquisitions, supported by a robust balance sheet [11] - The company declared a special cash dividend of 33 cents per share, totaling $5 million, reflecting financial strength [12] Technological Advancements - EVI scaled its proprietary field service platform, handling approximately 9,000 service appointments in September 2025, up from 1,000 a year earlier [13] - Phase one of a new CRM system was rolled out at Continental, with plans for broader implementation to improve efficiency and sales effectiveness [13]

Financial Performance - Revenue increased 16% to a record $108 million compared to the first quarter of fiscal 2025[5] - Gross Profit increased 17% to a record $33.9 million, resulting in a gross margin of 31.3%[5] - Net Income for the quarter was $1.8 million, down from $3.2 million in the prior-year period, reflecting a net income margin of 1.7%[5] - Adjusted EBITDA was $6.8 million, or 6.2% of revenue, compared to 8.1% in the prior-year period[5] - Revenues for the three months ended September 30, 2025, increased to $108,269,000, up 15.6% from $93,625,000 for the same period in 2024[18] - Gross profit rose to $33,892,000, representing a 17.5% increase compared to $28,855,000 in the prior year[18] - Net income decreased to $1,847,000, down 42.8% from $3,231,000 year-over-year[18] - Adjusted EBITDA for the three months ended September 30, 2025, was $6,752,000, a decline of 11.2% from $7,606,000 in the same period last year[23] Acquisitions and Market Position - The Company completed four additional acquisitions, including the largest in its history, enhancing its market position[2] - The Company continues to explore qualified acquisition opportunities to capitalize on the fragmented commercial laundry market[8] Dividends and Financial Strength - The Company declared a $5.0 million special cash dividend, the largest in its history, reflecting confidence in its financial strength[6] Debt and Cash Flow - The Company’s net debt increased by $2.2 million to $46.3 million, primarily due to operating cash flow[9] - Cash at the end of the period was $4,658,000, down from $8,852,000 at the beginning of the period[20] - The company paid $1,041,000 in interest during the period, compared to $413,000 in the prior year[21] Assets and Liabilities - Total assets increased to $321,750,000 as of September 30, 2025, compared to $307,028,000 at June 30, 2025[19] - Current liabilities rose to $112,320,000, up 18.3% from $94,863,000 in the previous quarter[19] Capital Expenditures and Interest Expense - Capital expenditures for the three months ended September 30, 2025, were $1,913,000, compared to $1,253,000 in the prior year[20] - Interest expense increased to $916,000, up 90.1% from $482,000 in the same quarter last year[18] Service Capabilities - The field service platform supported approximately 9,000 appointments in September 2025, up from 1,000 a year ago, indicating significant growth in service capabilities[12]

Financial Performance - Revenues for the three-month period ended September 30, 2025 increased by $14.6 million, or 16%, compared to the same period of the prior fiscal year, primarily due to revenues from acquired businesses[107] - Gross profit for the same period increased by $5.0 million, or 17%, with gross margins rising from 30.8% to 31.3%[108] - Operating expenses increased by $6.5 million, or 27%, driven by expenses from acquired businesses and increased selling costs[109] - Net income for the three-month period was $1.8 million, down from $3.2 million, primarily due to increased operating expenses[112] Assets and Liabilities - Total assets increased from $307.0 million to $321.8 million, attributed to higher current assets and operating lease assets[113] - Total liabilities rose from $163.6 million to $181.0 million, largely due to increased accounts payable and customer deposits[113] - Working capital decreased from $50.6 million to $45.8 million, reflecting increases in accounts receivable and inventory[115] Cash Flow and Financing - For the three months ended September 30, 2025, operating activities provided cash of $1.0 million, an increase of $0.8 million compared to $0.2 million in the same period of 2024[117] - Investing activities used cash of $2.4 million for the three months ended September 30, 2025, a decrease of $4.7 million from $7.1 million used in the same period of 2024, primarily due to reduced cash paid for business acquisitions[118] - Financing activities used cash of $2.8 million for the three months ended September 30, 2025, compared to $6.7 million provided in the same period of 2024, reflecting a $9.5 million increase in cash used due to decreased net borrowings[119] - As of September 30, 2025, the Company had approximately $51.0 million of outstanding borrowings under its Credit Agreement, with a weighted average interest rate of 5.54%[121] - The Credit Agreement allows for borrowings up to $150 million, with an accordion feature to increase the facility by an additional $50 million, totaling $200 million[120] - The Company believes its existing cash, anticipated cash from operations, and funds available under the Credit Agreement will be sufficient to fund operations and capital expenditures for at least the next twelve months[124] - The Company is in compliance with its covenants under the Credit Agreement, with $48.0 million available to borrow under the revolving credit facility as of September 30, 2025[122] Special Events and Acquisitions - The company declared a special cash dividend of $0.33 per share, totaling $5.0 million, paid on October 6, 2025[113] - The company acquired ASN Laundry Group on August 1, 2025, which is expected to complement its existing business and provide growth opportunities[102] Economic Factors - Inflation did not significantly affect the Company's results during the reported periods, but risks related to inflation and price increases remain[125] - A hypothetical 1% increase in daily interest rates would increase the Company's annual interest expense by approximately $510,000 based on outstanding borrowings[130] Related Party Transactions - Payments under related party leases totaled approximately $63,000 and $57,000 for the three months ended September 30, 2025 and 2024, respectively[126]

Core Viewpoint - EVI Industries, Inc. will be presenting at the Baird Global Industrial Conference on November 12, 2025, with Chairman and CEO Henry M. Nahmad leading the presentation and hosting one-on-one meetings with registered investors [1] Company Information - EVI Industries, Inc. is actively engaging with investors through presentations and meetings at industry conferences, indicating a focus on investor relations and market presence [1]

Core Insights - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, but their Smid Cap Composite underperformed the Russell 2500 Growth Index, returning -1.1% net-of-fees compared to the index's +10.7% [1] Company Overview - EVI Industries, Inc. is a distributor and consolidator of commercial laundry and dry-cleaning equipment, parts, and related services across the United States [3] - The company has seen solid demand for its commercial laundry equipment and services, and it anticipates a meaningful improvement in margins following the acquisition of Girbau North America [3] Stock Performance - EVI Industries, Inc. experienced a one-month return of -20.21% but gained 42.64% over the last 52 weeks, with a closing stock price of $27.52 and a market capitalization of $346.233 million as of October 17, 2025 [2] Investor Sentiment - EVI Industries, Inc. is not among the 30 most popular stocks among hedge funds, with only 2 hedge fund portfolios holding the stock at the end of Q2 2025, down from 3 in the previous quarter [4] - Despite acknowledging EVI's potential, the company believes that certain AI stocks offer greater upside potential and less downside risk [4]

Core Insights - EVI Industries is the only publicly traded company in the U.S. that specializes exclusively in commercial laundry equipment and services, indicating a unique market position that may soon face competition from Alliance Laundry Holdings [1] Company Overview - EVI Industries focuses on the commercial laundry sector, which is a niche market that may be overlooked by many investors, particularly in the small- to mid-cap range [1] Market Position - The unique positioning of EVI Industries in the commercial laundry equipment and services market may not last long due to potential competition from larger entities like Alliance Laundry Holdings [1]

Core Insights - EVI Industries, Inc. reported a 22% year-over-year revenue increase to a record $110 million for the quarter ended June 30, 2025, with a gross profit rise of 24% to $33.9 million, resulting in a gross margin of 30.8% [2][3] - The company achieved a fiscal 2025 revenue growth of 10% to $390 million, with net income increasing by 33% to $7.5 million and EPS rising to 49 cents, a 32% increase from the previous fiscal year [3][6] - EVI's operational strategy focused on long-term growth through acquisitions and organic growth, with a compounded annual growth rate of 7% in organic revenue over three years [4][9] Financial Performance - The company reported net income of $2.1 million for the quarter, a 1% increase year-over-year, despite a decline in operating cash flow to $21.3 million due to increased working capital investments [2][6] - EVI's gross profit margin expanded to 30.4% for fiscal 2025, with operating income advancing 18% to $13.8 million [3][4] Operational Highlights - EVI's ERP platform usage increased significantly, with 27 out of 31 business units utilizing it by June 2025, enhancing operational efficiency [4][5] - The company optimized field service operations, enabling over 8,500 service appointments in June 2025, which also served as sales touchpoints [5] Strategic Initiatives - EVI's acquisition of Girbau North America, rebranded as Continental Laundry Solutions, is expected to contribute approximately $50 million in annual revenues and enhance sourcing capabilities [14] - The company declared a special cash dividend of 33 cents per share, reflecting confidence in its financial health and ability to return value to shareholders [15] Market Positioning - EVI's strategic focus on essential commercial laundry services across sectors like healthcare and hospitality positions it favorably in a fragmented market [8][9] - The company is optimistic about future growth, supported by a solid backlog of customer orders and a robust acquisition pipeline [12][13]

Company Overview - EVI Industries, Inc. specializes in the distribution and service of commercial laundry and dry cleaning equipment, operating in a niche market that serves industries such as hospitality, healthcare, and education [1] Financial Performance - On September 10, 2025, EVI's Q4 2025 earnings call provided insights into the company's financial results and future plans, with CEO Henry Nahmad discussing strategic growth initiatives [2][5] - The current stock price of EVI is $27.99, reflecting a slight increase of 0.74% or $0.205, with a trading range today between $27.96 and $28.39 [3] - Over the past year, EVI's stock has fluctuated between a high of $29.29 and a low of $14.99, indicating volatility in market performance [3] Market Position and Outlook - Michael Shlisky from D.A. Davidson has set a price target of $33 for EVI, suggesting a potential increase of approximately 17.65% from its current price [2][5] - The market capitalization of EVI is approximately $357.18 million, highlighting its significant presence in the commercial laundry equipment sector [3] - The current trading volume for EVI is 1,409 shares, indicating relatively low trading activity, which may be attributed to the niche nature of the industry or investor caution following the recent earnings call [4]

Core Insights - EVI Industries, Inc. reported an earnings per share (EPS) of $0.14, slightly below the expected $0.15, but exceeded revenue expectations with approximately $110 million compared to the estimated $109.5 million [1][5] - The company's price-to-earnings (P/E) ratio of 48.35 indicates a premium valuation, reflecting investor confidence in future growth [2][5] - EVI's financial metrics, including a debt-to-equity ratio of 0.24 and a current ratio of 1.51, suggest a strong financial foundation and market confidence despite the minor EPS miss [4][5] Financial Performance - The enterprise value to sales ratio of 1.05 indicates a balanced market perception of the company's valuation relative to its sales [3] - The enterprise value to operating cash flow ratio of 16.42 suggests that investors are paying a significant amount for each dollar of cash flow from operations, indicating operational efficiency [3] - The earnings yield of 2.07% provides a modest return on investment for shareholders, reflecting stable financial health [3] Market Position - EVI operates in a competitive market focused on the distribution and service of commercial laundry and dry cleaning equipment, catering to industries such as hospitality and healthcare [1] - The price-to-sales ratio of 0.98 shows that the market values EVI close to its annual sales, indicating strong sales performance [2]

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) This section provides an overview of EVI Industries' record fiscal 2025 financial performance and its profile as a leading commercial laundry distribution and service provider [Fiscal 2025 Highlights](index=1&type=section&id=Fiscal%202025%20Highlights) EVI Industries reported record financial results for fiscal year 2025, driven by strategic acquisitions, organic growth, and technological advancements. The company achieved significant increases in revenue, gross profit, operating income, net income, and Adjusted EBITDA, alongside a 7% compounded annual organic revenue growth rate over three years - Fiscal 2025 was a defining year, delivering record financial results, completing the largest acquisition, and making meaningful progress on the technology roadmap[3](index=3&type=chunk) Fiscal Year 2025 Key Financial Highlights (YoY Growth) | Metric | Value (FY25) | Growth (YoY) | | :---------------- | :----------- | :----------- | | Revenue | $390 million | 10% | | Gross Profit | $118 million | 12% | | Operating Income | $13.8 million | 18% | | Net Income | $7.5 million | 33% | | Adjusted EBITDA | $25.0 million | 11% | | Organic Revenue CAGR (3-year) | 7% | N/A | [Company Profile](index=4&type=section&id=Company%20Profile) EVI Industries, Inc. is a leading value-added distributor and provider of advisory and technical services in the North American commercial laundry distribution and service industry. The company offers planning, design, consulting, sales, leasing, and installation, maintenance, and repair services for commercial laundry equipment, parts, and accessories to a diverse customer base - EVI Industries is a value-added distributor and provider of advisory and technical services in the commercial laundry sector, offering equipment, parts, and comprehensive services[20](index=20&type=chunk) - The company serves retail, commercial, industrial, institutional, and government customers, providing solutions from individual parts to complex systems and services[20](index=20&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) This section details EVI Industries' financial results for fiscal year 2025 and the fourth quarter, including GAAP and non-GAAP measures [Full Fiscal Year 2025 Results](index=1&type=section&id=Full%20Fiscal%20Year%202025%20Results) For the fiscal year ended June 30, 2025, EVI Industries achieved record revenues of $389.8 million, a 10% increase year-over-year. Gross profit rose 12% to $118.3 million, with the gross profit margin expanding to 30.4%. Net income saw a substantial 33% increase to $7.5 million, and diluted EPS grew from $0.37 to $0.49 Fiscal Year Ended June 30, 2025 vs. 2024 (in thousands, except per share data) | Metric | FY25 | FY24 | Change ($) | Change (%) | | :-------------------------- | :------- | :------- | :--------- | :--------- | | Revenues | $389,830 | $353,563 | $36,267 | 10.3% | | Cost of Sales | $271,482 | $248,310 | $23,172 | 9.3% | | Gross Profit | $118,348 | $105,253 | $13,095 | 12.4% | | SG&A | $104,580 | $93,625 | $10,955 | 11.7% | | Operating Income | $13,768 | $11,628 | $2,140 | 18.4% | | Interest Expense, net | $2,743 | $2,744 | $(1) | -0.0% | | Income before Income Taxes | $11,025 | $8,884 | $2,141 | 24.1% | | Provision for Income Taxes | $3,527 | $3,238 | $289 | 8.9% | | Net Income | $7,498 | $5,646 | $1,852 | 32.8% | | Net Earnings per Share - Basic | $0.50 | $0.39 | $0.11 | 28.2% | | Net Earnings per Share - Diluted | $0.49 | $0.37 | $0.12 | 32.4% | | Weighted Average Shares Outstanding - Basic | 12,734 | 12,650 | 84 | 0.7% | | Weighted Average Shares Outstanding - Diluted | 13,159 | 13,218 | (59) | -0.4% | [Fourth Quarter 2025 Results](index=1&type=section&id=Fourth%20Quarter%202025%20Results) In the fourth quarter of fiscal 2025, EVI Industries reported a 22% increase in revenue to $110.0 million. Gross profit grew 24% to $33.9 million, achieving a record gross margin of 30.8%. Operating income increased 13% to $4.1 million, and net income saw a modest 1% rise to $2.1 million, with diluted EPS remaining flat at $0.14 Fourth Quarter Ended June 30, 2025 vs. 2024 (in thousands, except per share data) | Metric | Q4 FY25 | Q4 FY24 | Change ($) | Change (%) | | :-------------------------- | :-------- | :-------- | :--------- | :--------- | | Revenues | $109,956 | $90,146 | $19,810 | 22.0% | | Cost of Sales | $76,040 | $62,777 | $13,263 | 21.1% | | Gross Profit | $33,916 | $27,369 | $6,547 | 23.9% | | SG&A | $29,802 | $23,717 | $6,085 | 25.6% | | Operating Income | $4,114 | $3,652 | $462 | 12.6% | | Interest Expense, net | $1,026 | $476 | $550 | 115.5% | | Income before Income Taxes | $3,088 | $3,176 | $(88) | -2.8% | | Provision for Income Taxes | $991 | $1,109 | $(118) | -10.6% | | Net Income | $2,097 | $2,067 | $30 | 1.5% | | Net Earnings per Share - Basic | $0.14 | $0.14 | $0.00 | 0.0% | | Net Earnings per Share - Diluted | $0.14 | $0.14 | $0.00 | 0.0% | | Weighted Average Shares Outstanding - Basic | 12,758 | 12,681 | 77 | 0.6% | | Weighted Average Shares Outstanding - Diluted | 13,192 | 13,127 | 65 | 0.5% | [Non-GAAP Financial Measures (Adjusted EBITDA)](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%28Adjusted%20EBITDA%29) EVI Industries utilizes Adjusted EBITDA as a key non-GAAP financial measure to assess operating performance, defining it as earnings before interest, taxes, depreciation, amortization, and amortization of stock-based compensation. For fiscal year 2025, Adjusted EBITDA increased 11% to $25.0 million, and for the fourth quarter, it grew 17% to $7.2 million - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, and amortization of stock-based compensation, serving as an important indicator of operating performance[19](index=19&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | FY25 | FY24 | Q4 FY25 | Q4 FY24 | | :----------------------------------- | :------- | :------- | :-------- | :-------- | | Net Income | $7,498 | $5,646 | $2,097 | $2,067 | | Provision for Income Taxes | $3,527 | $3,238 | $991 | $1,109 | | Interest Expense, Net | $2,743 | $2,744 | $1,026 | $476 | | Depreciation and Amortization | $6,692 | $5,983 | $1,958 | $1,491 | | Amortization of Stock-based Compensation | $4,558 | $4,974 | $1,130 | $1,018 | | **Adjusted EBITDA** | **$25,018** | **$22,585** | **$7,202** | **$6,161** | **Adjusted EBITDA Growth:** * **FY25 YoY Growth:** 10.8% ($25,018k vs $22,585k) * **Q4 FY25 YoY Growth:** 16.9% ($7,202k vs $6,161k) [Strategic Growth Initiatives](index=2&type=section&id=Strategic%20Growth%20Initiatives) This section outlines EVI Industries' key strategies for growth, including acquisitions and technological advancements [Buy-and-Build Strategy & Acquisitions](index=2&type=section&id=Buy-and-Build%20Strategy%20%26%20Acquisitions) EVI Industries continued its 'buy-and-build' growth strategy in fiscal 2025 by completing four acquisitions, including the largest in company history, Girbau North America (now Continental Laundry Solutions). This acquisition is expected to add approximately $50 million in annual revenue and establish a new strategic channel for growth by leveraging Continental as a master distributor and sourcing division - EVI completed four acquisitions in fiscal 2025, including the largest in company history, Girbau North America (now Continental Laundry Solutions)[6](index=6&type=chunk) - The Continental acquisition is expected to add approximately **$50 million in annual revenue** and will be leveraged as a master distributor and strategic sourcing division to enhance purchasing power and product availability[7](index=7&type=chunk) - EVI's acquisition success is built on valuing people, culture, and trust, earning a reputation as the acquirer of choice in the commercial laundry industry[8](index=8&type=chunk) [Innovation and Technology Advancements](index=2&type=section&id=Innovation%20and%20Technology%20Advancements) EVI made significant technological strides in fiscal 2025, focusing on modernizing operations and enhancing customer experience through its field service platform, enterprise-wide business intelligence tools, and a planned e-commerce platform [Field Service Platform](index=2&type=section&id=Field%20Service%20Platform) - The field service platform equips technicians with tools to optimize scheduling, streamline dispatch, provide real-time updates, and generate valuable data for improved efficiency and customer experience[9](index=9&type=chunk) - Technicians identify preventative maintenance needs and equipment replacement opportunities, generating qualified leads for the sales team and driving revenue growth[9](index=9&type=chunk) - Platform adoption rapidly expanded from 2 business units completing ~1,000 appointments in July 2024 to 27 business units completing over 8,500 appointments in June 2025[10](index=10&type=chunk) [Business Intelligence & ERP](index=3&type=section&id=Business%20Intelligence%20%26%20ERP) - By the end of fiscal 2025, 28 of 31 business units were operating on the Company's end-state ERP platform, combined with enterprise-wide business intelligence (BI) tools[11](index=11&type=chunk) - These initiatives provide real-time, data-driven insights for faster decision-making, aiming to optimize inventory, improve job costing, enhance service operations, and strengthen working capital efficiency[11](index=11&type=chunk)[12](index=12&type=chunk) [Planned E-Commerce Platform](index=3&type=section&id=Planned%20E-Commerce%20Platform) - EVI is developing an e-commerce platform, expected to launch in fiscal 2026, to deliver a seamless, data-driven, and service-integrated digital experience[12](index=12&type=chunk) - The platform will offer 24/7 ordering, real-time access to product information, inventory, pricing, and service capabilities, along with personalized recommendations and online service scheduling[12](index=12&type=chunk) - Supported by the industry's largest inventory and broadest product portfolio, this platform aims to enhance customer satisfaction, loyalty, and efficiency while lowering the cost to serve[13](index=13&type=chunk) [Financial Health & Capital Allocation](index=3&type=section&id=Financial%20Health%20%26%20Capital%20Allocation) This section examines EVI Industries' cash flow, liquidity, and capital allocation decisions, including special dividends [Cash Flow and Liquidity](index=3&type=section&id=Cash%20Flow%20and%20Liquidity) EVI Industries generated $21.3 million in operating cash flow in fiscal 2025, a decrease from the prior year primarily due to increased investment in working capital, specifically higher inventory and accounts receivable balances. Net debt increased to $44.1 million as of June 30, 2025, reflecting ongoing investments in acquisitions, technology, and working capital - EVI generated **$21.3 million in operating cash flow** in fiscal 2025, lower than the prior year due to increased investment in working capital[15](index=15&type=chunk) - Working capital investment included higher inventory (**$66.1 million**) and accounts receivable (**$60.5 million**) balances as of June 30, 2025[15](index=15&type=chunk) - Net debt increased from **$8.3 million** (June 30, 2024) to **$44.1 million** (June 30, 2025), reflecting **$46.9 million** deployed for strategic acquisitions and other growth initiatives[15](index=15&type=chunk) [Special Cash Dividend](index=4&type=section&id=Special%20Cash%20Dividend) EVI's Board of Directors declared a special cash dividend of $0.33 per share, payable on October 6, 2025, to shareholders of record as of September 25, 2025. This dividend, totaling approximately $4.9 million, reflects the company's strong fiscal 2025 results and disciplined capital structure, marking an increase from the previous year's $0.31 per share dividend - A special cash dividend of **$0.33 per share** was declared on September 11, 2025[16](index=16&type=chunk) - The dividend is payable on October 6, 2025, to shareholders of record as of September 25, 2025, with an aggregate amount of approximately **$4.9 million**[16](index=16&type=chunk) - This dividend reflects strong fiscal 2025 results and an increase from the prior year's special dividend of $0.31 per share[16](index=16&type=chunk) [Operational Context & Outlook](index=4&type=section&id=Operational%20Context%20%26%20Outlook) This section discusses external factors like tariff impacts and the company's future strategic direction [Tariff Impacts](index=4&type=section&id=Tariff%20Impacts) EVI Industries continues to monitor tariff developments and has responded to higher costs by adjusting pricing, diversifying sourcing, and collaborating with suppliers on cost strategies. Despite trade policy uncertainty, the company's focus on essential equipment and replacement parts across diverse markets provides a strong foundation for sustained performance - EVI monitors tariff developments and has adjusted pricing, diversified sourcing, and collaborated with suppliers to mitigate higher costs[17](index=17&type=chunk) - The company's focus on essential equipment and replacement parts across diverse markets provides a strong foundation for sustained performance despite trade policy uncertainty[17](index=17&type=chunk) [Future Outlook](index=4&type=section&id=Future%20Outlook) EVI Industries remains committed to executing its long-term strategy, focusing on growth, innovation, and achieving operating leverage. The company plans to build on its strong foundation and proven model to deliver sustained value for customers and shareholders - EVI will continue to execute its long-term strategy, focusing on growth, innovation, and achieving operating leverage[18](index=18&type=chunk) - The company is committed to disciplined execution, building on its strong foundation to deliver sustained value for customers and shareholders[18](index=18&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the condensed consolidated financial statements, including results of operations, balance sheets, and cash flows [Condensed Consolidated Results of Operations](index=6&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) The condensed consolidated results of operations provide a detailed breakdown of EVI Industries' financial performance for the twelve and three months ended June 30, 2025, compared to the same periods in 2024, showing significant growth across key revenue and profit metrics Condensed Consolidated Results of Operations | | | | For the twelve months ended | | | Unaudited | | Unaudited | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 12-Months | | 12-Months | | 3-Months | | 3-Months | | | | Ended | | Ended | | Ended | | Ended | | | | 6/30/25 | | 6/30/24 | | 6/30/25 | | 6/30/24 | | Revenues | $ | 389,830 | $ | 353,563 | $ | 109,956 | $ | 90,146 | | Cost of Sales | | 271,482 | | 248,310 | | 76,040 | | 62,777 | | Gross Profit | | 118,348 | | 105,253 | | 33,916 | | 27,369 | | SG&A | | 104,580 | | 93,625 | | 29,802 | | 23,717 | | Operating Income | | 13,768 | | 11,628 | | 4,114 | | 3,652 | | Interest Expense, net | | 2,743 | | 2,744 | | 1,026 | | 476 | | Income before Income Taxes | | 11,025 | | 8,884 | | 3,088 | | 3,176 | | Provision for Income Taxes | | 3,527 | | 3,238 | | 991 | | 1,109 | | Net Income | $ | 7,498 | $ | 5,646 | $ | 2,097 | $ | 2,067 | | Net Earnings per Share | | | | | | | | | | Basic | $ | 0.50 | $ | 0.39 | $ | 0.14 | $ | 0.14 | | Diluted | $ | 0.49 | $ | 0.37 | $ | 0.14 | $ | 0.14 | | Weighted Average Shares Outstanding | | | | | | | | | | Basic | | 12,734 | | 12,650 | | 12,758 | | 12,681 | | Diluted | | 13,159 | | 13,218 | | 13,192 | | 13,127 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets as of June 30, 2025, and 2024, show an increase in total assets to $307.0 million, primarily driven by growth in current assets like accounts receivable and inventories, as well as increases in intangible assets and goodwill due to acquisitions. Total liabilities also increased significantly, mainly due to long-term debt Condensed Consolidated Balance Sheets | | | 6/30/25 | | 6/30/24 | | --- | --- | --- | --- | --- | | Assets | | | | | | Current assets | | | | | | Cash | $ | 8,852 | $ | 4,558 | | Accounts receivable, net | | 60,494 | | 40,932 | | Inventories, net | | 66,059 | | 47,901 | | Vendor deposits | | 1,396 | | 1,657 | | Contract assets | | 289 | | 1,222 | | Other current assets | | 8,346 | | 5,671 | | Total current assets | | 145,436 | | 101,941 | | Equipment and improvements, net | | 17,772 | | 13,950 | | Operating lease assets | | 10,751 | | 8,078 | | Intangible assets, net | | 30,875 | | 22,022 | | Goodwill | | 91,667 | | 75,102 | | Other assets | | 10,527 | | 9,566 | | Total assets | $ | 307,028 | $ | 230,659 | | Liabilities and Shareholders' Equity | | | | | | Current liabilities | | | | | | Accounts payable and accrued expenses | $ | 50,963 | $ | 30,904 | | Accrued employee expenses | | 15,398 | | 11,370 | | Customer deposits | | 24,316 | | 24,419 | | Contract liabilities | | 408 | | — | | Current portion of operating lease liabilities | | 3,778 | | 3,110 | | Total current liabilities | | 94,863 | | 69,803 | | Deferred income taxes, net | | 7,691 | | 5,498 | | Long-term operating lease liabilities | | 7,997 | | 5,849 | | Long-term debt, net | | 53,000 | | 12,903 | | Total liabilities | | 163,551 | | 94,053 | | Shareholders' equity | | | | | | Preferred stock, $1.00 par value | | — | | — | | Common stock, $.025 par value | | 325 | | 322 | | Additional paid-in capital | | 111,219 | | 106,540 | | Treasury stock | | (5,155) | | (4,439) | | Retained earnings | | 37,088 | | 34,183 | | Total shareholders' equity | | 143,477 | | 136,606 | | Total liabilities and shareholders' equity | $ | 307,028 | $ | 230,659 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows highlight EVI Industries' cash movements for the twelve months ended June 30, 2025. Net cash provided by operating activities decreased to $21.3 million, while net cash used by investing activities significantly increased to $51.8 million, primarily due to cash paid for acquisitions. Financing activities provided $34.8 million, leading to a net increase in cash of $4.3 million Condensed Consolidated Statements of Cash Flows | | | | For the twelve months ended | | | --- | --- | --- | --- | --- | | | | 6/30/25 | | 6/30/24 | | Operating activities: | | | | | | Net income | $ | 7,498 | $ | 5,646 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | Depreciation and amortization | | 6,692 | | 5,983 | | Amortization of debt discount | | 54 | | 34 | | Provision for expected credit losses | | 1,052 | | 688 | | Non-cash lease expense | | 143 | | 14 | | Stock compensation | | 4,558 | | 4,974 | | Inventory reserve | | 182 | | 54 | | (Benefit) provision for deferred income taxes | | (821) | | 475 | | Other | | (87) | | 25 | | (Increase) decrease in operating assets: | | | | | | Accounts receivable | | (11,058) | | 7,028 | | Inventories | | 211 | | 11,901 | | Vendor deposits | | 261 | | 634 | | Contract assets | | 1,157 | | (41) | | Other assets | | (735) | | 2,476 | | (Decrease) increase in operating liabilities: | | | | | | Accounts payable and accrued expenses | | 10,272 | | (8,234) | | Accrued employee expenses | | 2,220 | | 646 | | Customer deposits | | (742) | | 1,017 | | Contract liabilities | | 408 | | (668) | | Net cash provided by operating activities | | 21,265 | | 32,652 | | Investing activities: | | | | | | Capital expenditures | | (4,861) | | (4,867) | | Cash paid for acquisitions, net of cash acquired | | (46,925) | | (1,949) | | Net cash used by investing activities | | (51,786) | | (6,816) | | Financing activities: | | | | | | Dividends paid | | (4,593) | | (4,071) | | Proceeds from borrowings | | 106,000 | | 62,500 | | Debt repayments | | (66,000) | | (84,500) | | Repurchases of common stock in satisfaction of employee tax withholding obligations | | (716) | | (1,244) | | Issuances of common stock under employee stock purchase plan | | 124 | | 116 | | Net cash provided (used) by financing activities | | 34,815 | | (27,199) | | Net increase (decrease) in cash | | 4,294 | | (1,363) | | Cash at beginning of period | | 4,558 | | 5,921 | | Cash at end of period | $ | 8,852 | $ | 4,558 | Supplemental Disclosures of Cash Flow Information (in thousands) | Metric | FY25 | FY24 | | :------------------------------------ | :------- | :------- | | Cash paid during the period for interest | $2,500 | $2,783 | | Cash paid during the period for income taxes | $2,976 | $4,575 | Supplemental Disclosures of Non-Cash Financing Activities (in thousands) | Metric | FY25 | FY24 | | :------------------------------------ | :------- | :------- | | Issuances of common stock for acquisitions | $— | $229 | Supplemental Disclosures of Non-Cash Investing Activities (in thousands) | Metric | FY25 | FY24 | | :------------------------------------ | :------- | :------- | | Amounts owed to sellers in connection with acquisitions | $4,181 | $— | [Adjusted EBITDA Reconciliation](index=10&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section provides a reconciliation of net income, the most comparable GAAP financial measure, to Adjusted EBITDA for the twelve and three months ended June 30, 2025, and 2024, illustrating the calculation of this non-GAAP metric Adjusted EBITDA Reconciliation | | | | | | | Unaudited | | Unaudited | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 12-Months | | 12-Months | | 3-Months | | 3-Months | | | | Ended | | Ended | | Ended | | Ended | | | | 6/30/25 | | 6/30/24 | | 6/30/25 | | 6/30/24 | | Net Income | $ | 7,498 | $ | 5,646 | $ | 2,097 | $ | 2,067 | | Provision for Income Taxes | | 3,527 | | 3,238 | | 991 | | 1,109 | | Interest Expense, Net | | 2,743 | | 2,744 | | 1,026 | | 476 | | Depreciation and Amortization | | 6,692 | | 5,983 | | 1,958 | | 1,491 | | Amortization of Stock-based Compensation | | 4,558 | | 4,974 | | 1,130 | | 1,018 | | Adjusted EBITDA | $ | 25,018 | $ | 22,585 | $ | 7,202 | $ | 6,161 | [Legal & Disclosures](index=5&type=section&id=Legal%20%26%20Disclosures) This section provides important legal disclosures, including the safe harbor statement regarding forward-looking information [Safe Harbor Statement](index=5&type=section&id=Safe%20Harbor%20Statement) The Safe Harbor Statement outlines that the press release contains forward-looking statements subject to various known and unknown risks and uncertainties. These risks, detailed in the company's SEC filings, could cause actual results to differ materially from projections, and the company disclaims any obligation to update these statements - Statements in the press release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[21](index=21&type=chunk) - Forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including economic conditions, tariffs, supply chain issues, inflation, interest rates, and acquisition integration risks[21](index=21&type=chunk) - The company cautions against undue reliance on forward-looking statements and disclaims any obligation to update them, except as required by law[21](index=21&type=chunk)