Shares of EVI Industries, Inc. (EVI) have gained 11.2% since the company reported its earnings for the quarter ended March 31, 2025, outpacing the S&P 500’s 4% rise during the same period. However, over the past month, EVI stock trailed the broader market, climbing 8.8% compared with the S&P 500’s 11.2% gain, reflecting some divergence in short-term sentiment despite solid quarterly results.For the fiscal third quarter ended March 31, 2025, EVI reported earnings per share of 7 cents, up from 6 cents in the ...

Revenue and Profitability - Revenue for the three-month period increased by 11% to $93.5 million compared to $84.0 million, while revenue for the nine-month period increased by 6% to a record $280 million[3]. - Gross profit for the three-month period increased by 9% to a record $28.1 million, and for the nine-month period, it increased by 8% to a record $84.4 million[3]. - Adjusted EBITDA for the three-month period increased to $5.1 million, or 5.4%, and for the nine-month period, it increased to $17.8 million, or 6.4%[3]. - Revenues for the nine months ended March 31, 2025, increased to $279.874 million, up 6.0% from $263.417 million for the same period in 2024[18]. - Gross profit for the nine months ended March 31, 2025, was $84.432 million, representing a gross margin of 30.2%, compared to $77.884 million and a gross margin of 29.6% for the same period in 2024[18]. - Net income for the nine months ended March 31, 2025, was $5.401 million, a 50.7% increase from $3.579 million in the prior year[18]. - Adjusted EBITDA for the nine months ended March 31, 2025, was $17.816 million, compared to $16.424 million for the same period in 2024, reflecting an 8.5% increase[23]. - Operating income for the nine months ended March 31, 2025, was $9.654 million, a 21.1% increase from $7.976 million in the same period of 2024[18]. Cash Flow and Liquidity - Operating cash flow for the three-month period was $9.1 million, and for the nine-month period, it was $11.3 million[3][10]. - The company maintained over $175 million in available liquidity, with a revolving credit facility increased to $200 million[10]. - The company reported a net cash provided by operating activities of $11.325 million for the nine months ended March 31, 2025, down from $20.276 million in the prior year[20]. - Cash at the end of the period was $5.913 million, an increase from $4.558 million at the beginning of the period[20]. Acquisitions and Growth - The company completed three acquisitions, including Girbau North America, which is expected to significantly enhance revenue and operating profit[3][4]. - The company completed the acquisition of GNA on April 1, 2025, with pro forma information reflecting the acquisition as if completed on January 1, 2024[17]. - The company has established a compounded annual growth rate in revenue, net income, and adjusted EBITDA of 31%, 18%, and 28%, respectively, since 2016[2]. Expenses and Debt - Selling, General and Administrative expenses increased by 10% for the three-month period, driven by higher commissionable sales and integration costs from acquisitions[7]. - Long-term debt increased to $24.000 million as of March 31, 2025, compared to $12.903 million as of June 30, 2024, reflecting a significant rise in leverage[19]. Digital Transformation - EVI's digital transformation initiative includes the deployment of an advanced Field Service Management platform utilized by over 425 service professionals[8]. Assets - Total assets as of March 31, 2025, were $251.790 million, up from $230.659 million as of June 30, 2024, indicating a growth of 9.1%[19].

Financial Performance - Revenues for the nine and three-month periods ended March 31, 2025 increased by $16.5 million, or 6%, and $9.6 million, or 11%, respectively, compared to the same periods of the prior fiscal year [111]. - Gross profit for the nine and three-month periods ended March 31, 2025 increased by $6.5 million, or 8%, and $2.3 million, or 9%, respectively, compared to the same periods of the prior fiscal year [112]. - Operating expenses increased by $4.9 million, or 7%, and $2.4 million, or 10%, for the nine and three-month periods ended March 31, 2025, respectively, compared to the same periods of the prior fiscal year [113]. - Net income for the nine months ended March 31, 2025, increased to $5.4 million, up from $3.6 million for the same period in 2024, reflecting a growth of approximately 50% [116]. - Margins slightly increased from 29.6% for the nine-month period ended March 31, 2024 to 30.2% for the nine-month period ended March 31, 2025 [112]. Assets and Liabilities - Total assets rose from $230.7 million at June 30, 2024, to $251.8 million at March 31, 2025, an increase of about 9% [117]. - Total liabilities increased from $94.1 million to $111.6 million during the same period, representing an increase of approximately 18.5% [117]. - Working capital improved from $32.1 million at June 30, 2024, to $38.9 million at March 31, 2025, a growth of about 21% [119]. Cash Flow and Investments - Cash provided by operating activities decreased to $11.3 million for the nine months ended March 31, 2025, down from $20.3 million in 2024, a decline of approximately 44% [121]. - Net cash used in investing activities increased to $15.7 million for the nine months ended March 31, 2025, compared to $4.6 million in 2024, an increase of approximately 239% [122]. - Financing activities provided cash of $5.8 million for the nine months ended March 31, 2025, compared to cash used of $18.3 million in 2024, a turnaround of approximately $24.1 million [123]. Acquisitions - The Company acquired Florida-based Laundry Pro of Florida, Inc. for total consideration of $5.9 million in cash on July 1, 2024 [106]. - The Company acquired Indiana-based O'Dell Equipment & Supply, Inc. for total consideration of $4.6 million in cash on November 1, 2024 [106]. - The Company acquired Illinois-based Haiges Machinery, Inc. for total consideration of $2.0 million in cash on February 1, 2025 [106]. - The Company acquired Wisconsin-based Girbau North America, Inc. for total consideration of approximately $40.0 million in cash on April 1, 2025 [106]. Credit and Risk Management - The Company amended its Credit Agreement to increase the maximum borrowing capacity from $100 million to $150 million, with an accordion feature raising the total to $200 million [124]. - As of March 31, 2025, the Company had approximately $24.0 million of outstanding borrowings under the Credit Agreement with a weighted average interest rate of 5.68% [135]. - The Company believes its existing cash and anticipated cash from operations will be sufficient to fund operations and capital expenditures for at least the next twelve months [128]. - The Company's cash is maintained in bank accounts with prevailing interest rates [137]. - The Company does not currently believe it is exposed to significant credit risk due to the financial position of the banks [137]. - There have been adverse events related to the soundness of financial institutions, including smaller bank failures [137]. - The Company has exposure if cash balances exceed the current $250,000 in maximum FDIC coverage [137]. Revenue Drivers - The increase in revenues is primarily attributable to price increases across the Company's product lines and service offerings [111].

EVI Industries (EVI) Q3 2025 Earnings Call May 11, 2025 08:00 PM ET Company Participants Henry Nahmad - Chairman, CEO & President Henry Nahmad Hello, and welcome to EVI Industries Earnings Call for the Third Quarter of the Fiscal Year Ended 06/30/2025. I am Henry Nahmad, Chairman and CEO of EVI. Before we proceed, we would like to discuss our cautionary statement. This earnings call contains forward looking statements as defined by SEC rules and regulations. Forward looking statements are subject to a numbe ...

EVI Industries (EVI) Q3 2025 Earnings Call May 11, 2025 08:00 PM ET Company Participants Henry Nahmad - Chairman, CEO & President Henry Nahmad Hello, and welcome to EVI Industries Earnings Call for the Third Quarter of the Fiscal Year Ended 06/30/2025. I am Henry Nahmad, Chairman and CEO of EVI. Before we proceed, we would like to discuss our cautionary statement. This earnings call contains forward looking statements as defined by SEC rules and regulations. Forward looking statements are subject to a numbe ...

EVI Industries (EVI) Q3 2025 Earnings Call May 11, 2025 08:00 PM ET Speaker0 Hello, and welcome to EVI Industries Earnings Call for the Third Quarter of the Fiscal Year Ended 06/30/2025. I am Henry Nahmad, Chairman and CEO of EVI. Before we proceed, we would like to discuss our cautionary statement. This earnings call contains forward looking statements as defined by SEC rules and regulations. Forward looking statements are subject to a number of risks and uncertainties, including those set forth in our ear ...

Core Insights - EVI Industries, Inc. reported a decline in net earnings per share (EPS) to 7 cents for Q2 fiscal 2025, down from 9 cents in the same quarter last year, despite achieving record revenues of $92.7 million, a 1% year-over-year increase [2][3] - The company experienced a gross profit increase to $27.5 million, up 4% from the prior year, with gross margin expanding to 29.7% from 28.9% [2][3] - Operating income decreased to $2.4 million from $3 million, and net income fell to $1.1 million compared to $1.3 million in the previous year [3] Financial Performance - EVI's sales order backlog remains above $100 million, indicating steady demand across its segments, although delays in large industrial sales contracts have impacted revenue growth [4] - The company expanded its workforce, increasing its sales team by 3% and its service team by 10%, while deploying new field service technologies to over 70% of its service organization [5] - Cash flow from operations declined to $2.2 million in the first half of fiscal 2025, down from $10.9 million a year earlier, primarily due to working capital changes and acquisition-related expenses [8] Management Strategy - The CEO reaffirmed the company's long-term growth strategy, focusing on investments in personnel, technology, and operational efficiency, despite near-term cost pressures [6] - Management expects to benefit from order fulfillment in the coming quarters, despite the uneven timing of large industrial sales [6][10] - EVI completed two acquisitions in Florida and Indiana, enhancing its sales and service capabilities, and also entered the Midwest market with a commercial laundry distributor acquisition in Illinois [11] Market Outlook - Management remains optimistic about sustained demand in the commercial laundry sector and sees potential for long-term growth through acquisitions and organic expansion [10] - The company paid a record dividend of $4.6 million, reflecting confidence in its long-term growth outlook [11]

Revenue and Profit - Revenue for the three-month period ended December 31, 2024, reached a record of $92.7 million, a 1% increase compared to the same period in 2023[4] - Gross profit for the same three-month period increased by 4% to a record of $27.5 million, with gross margin rising to 29.7% from 28.9%[4] - For the six-month period, revenue increased by 4% to a record of $186.3 million, while gross profit rose by 8% to $56.4 million, achieving a gross margin of 30.3%[4] - Revenues for the six months ended December 31, 2024, increased to $186,336,000, up from $179,438,000 for the same period in 2023, representing a growth of 4.9%[19] - Gross profit for the six months ended December 31, 2024, was $56,377,000, compared to $52,098,000 in 2023, reflecting an increase of 8.7%[19] - Net income for the six months ended December 31, 2024, rose to $4,360,000, a significant increase from $2,623,000 in the prior year, marking a growth of 66.3%[19] - Adjusted EBITDA for the six-month period increased to a record of $12.7 million, or 6.8%, compared to $11.5 million, or 6.4% in the previous year[4] - Adjusted EBITDA for the six months ended December 31, 2024, was $12,749,000, compared to $11,492,000 in 2023, indicating an increase of 10.9%[24] Operating Income and Cash Flow - Operating income for the three-month period was $2.4 million, down from $3.0 million in the prior year, while net income was $1.1 million, or 1.2%[4] - Operating activities generated cash of $2.2 million during the six-month period, a decrease of $8.7 million compared to the same period in 2023[10] - The company reported a net cash provided by operating activities of $2,176,000 for the six months ended December 31, 2024, a decrease from $10,858,000 in the same period of 2023[21] Dividends and Capital Expenditures - The company paid a dividend of $4.6 million, marking the largest dividend in its history[4] - The company paid dividends totaling $4,593,000 during the six months ended December 31, 2024, compared to $4,071,000 in the same period of 2023, an increase of 12.9%[21] - Capital expenditures for the six months ended December 31, 2024, were $2,124,000, slightly down from $2,376,000 in the prior year[21] Assets and Liabilities - Total assets as of December 31, 2024, were $248,802,000, up from $230,659,000 as of June 30, 2024, representing an increase of 7.8%[20] - Long-term debt increased to $27,920,000 as of December 31, 2024, compared to $12,903,000 as of June 30, 2024, reflecting a significant rise of 116.5%[20] - Cash at the end of the period decreased to $3,905,000 from $4,558,000 at the beginning of the period, a decline of 14.3%[21] Acquisitions and Workforce Growth - The company completed two acquisitions during the six-month period, enhancing its sales and service expertise in the Southeast region[4] - The sales team grew by 3% to over 190 professionals, while the service team increased by 10% to over 425 professionals, supporting expansion efforts[8] - The company has a backlog of over $100 million in confirmed customer sales orders, indicating strong future revenue potential[5]

Financial Performance - Revenues for the six-month period ended December 31, 2024 increased by $6.9 million, or 4%, compared to the same period in the prior fiscal year[95] - Gross profit for the six-month period ended December 31, 2024 increased by $4.3 million, or 8%, with gross margins rising from 29.0% to 30.3%[96] - Operating expenses increased by $2.5 million, or 5%, for the six-month period ended December 31, 2024, primarily due to expenses from acquired businesses and increased selling costs[97] - Interest expense decreased to $1.2 million for the six-month period ended December 31, 2024, down from $1.6 million in the same period of the prior year[98] - The effective tax rate decreased to 30.0% for the six-month period ended December 31, 2024, compared to 34.0% for the same period in the prior year[100] - Net income for the six-month period ended December 31, 2024 was $4.4 million, an increase from $2.6 million in the same period of the prior year[101] - Gross profit for the three-month period ended December 31, 2024 increased by $1.1 million, or 4%, compared to the same period in the prior fiscal year[96] Acquisitions and Growth Strategy - The Company acquired Laundry Pro of Florida, Inc. for $5.9 million in cash on July 1, 2024, and O'Dell Equipment & Supply, Inc. for $4.6 million in cash on November 1, 2024[89] - The Company implemented a "buy-and-build" growth strategy, focusing on acquisitions and optimizing operations at acquired businesses[89] - The Company aims to increase market share through various strategies, which may lead to lower gross margins in the short term but strengthen customer relationships in the long term[91] Assets and Liabilities - Total assets increased from $230.7 million at June 30, 2024 to $248.8 million at December 31, 2024, primarily due to increases in current assets and intangible assets from acquisitions[102] - Total liabilities rose from $94.1 million at June 30, 2024 to $110.8 million at December 31, 2024, mainly driven by an increase in long-term debt[102] - Working capital increased from $32.1 million at June 30, 2024 to $41.4 million at December 31, 2024, reflecting higher accounts receivable and inventory[104] Cash Flow and Financing - Cash provided by operating activities decreased to $2.2 million for the six months ended December 31, 2024, down from $10.9 million in the same period of 2023[107] - Net cash used in investing activities increased to $12.6 million for the six months ended December 31, 2024, compared to $3.4 million in 2023, with cash paid for acquisitions rising by $9.5 million[108] - Financing activities provided cash of $9.8 million for the six months ended December 31, 2024, compared to cash used of $9.2 million in 2023, primarily due to increased debt borrowings[109] - As of December 31, 2024, the Company had approximately $28.0 million of outstanding borrowings under its Credit Agreement with a weighted average interest rate of 5.88%[120] - The Credit Agreement allows for borrowings up to $100 million, with an accordion feature to increase by up to $40 million, and the maturity date is May 6, 2027[110] Economic Factors - Inflation did not significantly affect the Company's results, but there are risks related to the current inflationary trend impacting product pricing[114] - The Company believes existing cash and anticipated cash from operations will be sufficient to fund operations and capital expenditures for at least the next twelve months[113]

EVI Industries (EVI) Q2 2025 Earnings Call February 10, 2025 12:30 PM ET Company Participants Henry Nahmad - Chairman, CEO & President Henry Nahmad Hello, and welcome to EVI Industries' Earnings Call for the Second Quarter of the Fiscal Year Ended 06/30/2025. I am Henry Nammid, Chairman and CEO of EVI. Before we proceed, we would like to disclose our cautionary statement. This earnings call contains forward looking statements as defined by SEC rules and regulations. Forward looking statements are subject to ...