Core Insights - EVI Industries, Inc. announced its operating results for the fourth quarter and fiscal year ended June 30, 2025, highlighting its performance and strategic direction [1] - The company is focusing on a buy-and-build growth strategy, aiming to capitalize on growth opportunities and technology investments [1] - A special cash dividend was announced, indicating the company's commitment to returning value to shareholders [1] Financial Performance - The operating results for the fourth quarter and fiscal year were disclosed, showcasing the company's financial health and operational efficiency [1] Strategic Initiatives - EVI Industries has established itself as a leader in the North American commercial laundry distribution and service industry, leveraging its long-term execution strategy [1] - The company is actively pursuing growth opportunities within the fragmented market, indicating a robust approach to expansion [1] - Technology investments are a key focus area, suggesting a commitment to innovation and improving service delivery [1]

Customer Base and Market Position - The Company serves approximately 55,000 customers primarily in the United States, Canada, the Caribbean, and Latin America, with no single customer accounting for more than 10% of revenues for fiscal 2025 or 2024[37]. - The Company competes in a highly fragmented market with over 500 distributors in the United States, focusing on competitive pricing, reliable products, and comprehensive service offerings[50]. - The Company has established long-standing relationships with its suppliers, which provide competitive advantages, including exclusivity for certain products[46]. - The Company’s foreign sales are not significant, primarily involving sales to Canada, the Caribbean, and Latin America, with all transactions requiring payment in U.S. dollars[43]. - The Company’s foreign sales are primarily to Canada, the Caribbean, and Latin America, with all transactions requiring payment in U.S. dollars[192]. Growth Strategy - The Company's growth strategy includes organic growth initiatives and a "buy-and-build" strategy, focusing on acquisitions that complement existing business and enhance growth opportunities[24]. - The Company’s growth strategy includes organic growth initiatives and a "buy-and-build" strategy focusing on acquisitions and enhancing service operations[139]. - The Company acquired ALVF, Inc. and Signature Services Corporation during fiscal 2024 for a total consideration of $2.0 million in cash and 8,621 shares of common stock[144]. - The Company acquired multiple businesses in fiscal 2025 for a total consideration of $51.0 million, primarily in cash[145]. Financial Performance - Total revenues for fiscal 2025 increased by 10% compared to fiscal 2024, driven by revenues from acquired businesses and price increases across product lines[141]. - Net income for fiscal 2025 rose by 33% from fiscal 2024, primarily due to revenue growth and improved gross margin[142]. - Revenue for the year ended June 30, 2025, was $389,830,000, representing an increase of 10.2% from $353,563,000 in 2024[214]. - Gross profit for the year ended June 30, 2025, was $118,348,000, up from $105,253,000 in 2024, indicating a gross margin improvement[214]. - Net income for the year ended June 30, 2025, was $7,498,000, a 32.6% increase compared to $5,646,000 in 2024[214]. - Revenues for fiscal 2025 increased by approximately $36.3 million (10%) compared to fiscal 2024, attributed to acquisitions and price increases[162]. Operational Insights - The Company has not noted any significant seasonality in its business operations historically[39]. - The Company employs a robust network of qualified technicians and maintains optimized inventories to ensure timely delivery and customer satisfaction[51]. - The Company operates 36 warehousing and distribution facilities across 22 U.S. states, with a total of approximately 547,000 square feet of space[123]. - The Company primarily generates revenue from the sale of commercial and industrial laundry and dry cleaning equipment, with a significant portion of contracts being short-term and having a single performance obligation[174]. - Revenue is recognized when control of the product is transferred to the customer, typically upon shipment, with longer-term contracts recognized over time using the cost-to-cost method[177]. Financial Position and Debt - The Company has a syndicated credit agreement with a maximum principal amount of $150 million, with an accordion feature increasing it to $200 million[98]. - As of June 30, 2025, the Company had $53.0 million outstanding borrowings under the credit agreement[98]. - The Company's indebtedness may impact its financial condition and results of operations, with cash being used to satisfy debt service requirements[97]. - The Company is subject to financial covenants requiring compliance with maximum leverage ratios and minimum interest coverage ratios[100]. - Long-term debt increased significantly to $53,000,000 in 2025 from $12,903,000 in 2024, indicating a strategic shift in financing[211]. Employee Relations and Culture - The Company maintains a culture that rewards performance through various incentive programs, including stock-based equity plans designed to promote long-term performance and employee retention[25]. - The Company believes it has satisfactory relations with its employees and aims to create a diverse and innovative workplace[56]. - The Company utilizes various training methods, including in-person training and instructional videos, to educate its sales personnel[59]. - The Company’s equity compensation plan is designed to promote long-term performance and employee retention[58]. - As of August 1, 2025, the Company had 850 full and part-time employees, all based in the United States[55]. Risks and Compliance - The Company is subject to various risks, including potential adverse effects on business and financial condition due to acquisitions and strategic transactions[61]. - Labor shortages and increases in labor costs may materially impact the Company's business and results of operations[69]. - The Company faces risks related to uninsured losses from natural disasters and other catastrophic events[85]. - The Company is dependent on information and communication systems, with potential disruptions adversely affecting operations[87]. - Climate change and related legal measures could negatively impact the Company's business and supply chain[96]. - The Company is subject to compliance costs related to internal control over financial reporting, which may divert management's attention from operations[110]. Shareholder Information - The management controls approximately 57.4% of the issued and outstanding shares of the Company's common stock, potentially impacting shareholder interests[102]. - The Company is classified as a "smaller reporting company," allowing it to rely on reduced disclosure requirements[106]. - The concentration of ownership may result in limited trading volume, increasing price volatility of the Company's common stock[105]. - A special cash dividend of $0.33 per share was declared on September 11, 2025, totaling approximately $4.8 million, to be paid on October 6, 2025[132]. Cash Flow and Investments - Operating activities provided cash of approximately $21.3 million in fiscal 2025, down from $32.7 million in fiscal 2024[151]. - Investing activities used cash of approximately $51.8 million during fiscal 2025, a significant increase from $6.8 million in fiscal 2024[152]. - Financing activities provided cash of approximately $34.8 million in fiscal 2025, compared to cash used of $27.2 million in fiscal 2024[153]. - The company reported a net cash provided by operating activities of $21,265,000 for the year ended June 30, 2025, down from $32,652,000 in 2024[220]. - Capital expenditures for the year were $4,861,000, slightly down from $4,867,000 in 2024[220].

Core Viewpoint - EVI Industries, Inc. has experienced significant stock price growth, outperforming the industry and key competitors, driven by strategic acquisitions and strong demand in the commercial laundry sector [1][11][12] Company Overview - EVI Industries is a value-added distributor of commercial laundry equipment and services, operating across the U.S., Canada, the Caribbean, and Latin America [3] - The company employs a "buy-and-build" strategy since 2015, focusing on acquiring complementary businesses to enhance growth and service offerings [3][4] Financial Performance - For the nine months ending March 31, 2025, EVI's revenues increased to $279.9 million from $263.4 million year-over-year, with net income rising over 50% to $5.4 million [5] - The company has improved its financial flexibility with an extended credit agreement maturing in 2030 and an expanded borrowing capacity of $200 million [6] Market Position and Demand - EVI benefits from steady demand in the commercial laundry sector, supported by a diversified customer base that includes institutional, industrial, and government clients [7] - The company's strategic acquisitions have enhanced its market position, allowing for deeper penetration and sustainable growth [4][11] Valuation - EVI Industries is currently undervalued, trading at 1.01X trailing 12-month EV/sales, significantly lower than the industry average of 7.8X and its peers [9][12] Challenges - The company faces challenges such as rising SG&A costs and the need for digital transformation to remain competitive [8] - Environmental compliance issues may pose reputational risks that could impact future growth [8]

Core Insights - EVI Industries, Inc. (EVI) shares have increased by 11.2% since the earnings report for the quarter ended March 31, 2025, outperforming the S&P 500's 4% rise during the same period, although EVI stock lagged behind the broader market over the past month with an 8.8% increase compared to the S&P 500's 11.2% gain [1] Financial Performance - For the fiscal third quarter ended March 31, 2025, EVI reported earnings per share of 7 cents, an increase from 6 cents in the prior-year quarter [2] - Revenues increased by 11% year-over-year to $93.5 million from $84 million, while gross profit rose 9% to a record $28.1 million from $25.8 million, although gross margin slightly decreased to 30% from 30.7% [2] - Net income was reported at $1 million, a modest increase from $0.96 million a year earlier, and adjusted EBITDA rose to $5.1 million from $4.9 million, with EBITDA margin dipping to 5.4% from 5.9% due to increased operating expenses [3] Operational Metrics - Selling, General and Administrative (SG&A) expenses rose 10% in the quarter to $25.8 million, driven by higher commissionable sales, recent acquisitions, and one-time charges related to the largest acquisition in EVI's history [4] - Cash flow from operations remained strong at $9.1 million, contributing to a $5.9 million, or 25%, reduction in net debt compared to the prior quarter [4] Strategic Initiatives - Management emphasized progress in EVI's digital transformation, including the rollout of field service technology and the development of a proprietary e-commerce platform and customer relationship management system, aimed at enhancing efficiency and customer experience [5] - The company maintains a growth-oriented culture supported by strategic investments while adhering to disciplined financial management [5] Revenue Drivers - Revenue growth was driven by steady unit sales across On-Premise Laundry (OPL) and Vended verticals, with an increase in average selling prices for Vended units, although average selling prices for OPL units declined [6] - Sales from large industrial projects constituted a smaller portion of the mix this quarter, but management indicated a healthy backlog of signed large projects, supporting future revenue visibility [6] Recent Developments - EVI completed its acquisition of Girbau North America, Inc. (GNA) on April 1, 2025, marking the largest acquisition in EVI's history, expected to materially increase both revenue and operating profit [7] - The acquisition of GNA, along with three other acquisitions during the nine-month period, expands EVI's geographic footprint and reinforces its buy-and-build strategy to become the market leader in North American commercial laundry distribution and service [7]

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].

Financial Data and Key Metrics Changes - The company reported record revenues of $280 million and record gross profit of $84 million for the fiscal year to date, with revenues of $94 million and record gross profits of $28 million for the third quarter, indicating strong customer demand and operational execution [3] - Operating cash flow for the fiscal year to date was $11 million, while for the third quarter it was $9 million, highlighting the quality of earnings and efficiency of the business model [3][8] - Despite an increase in SG&A expenses, this was attributed to intentional investments in strategic areas, particularly in digital infrastructure and integration of acquired businesses [3] Business Line Data and Key Metrics Changes - The acquisition of Gerbau North America is viewed as a transformational deal, marking the largest acquisition in the company's history, enhancing operating scale, logistics infrastructure, and customer reach [4][5] - The integration of Gerbau's operations has begun, with positive early responses from customers and employees, indicating alignment in cultures and systems [5] Market Data and Key Metrics Changes - The acquisition significantly strengthens the company's presence in key growth markets and creates substantial cross-sell opportunities within the existing customer base [5] Company Strategy and Development Direction - The long-term strategy focuses on expanding the customer base through acquisitions and organic growth, digitizing and modernizing the operating platform, and delivering exceptional service at scale while maintaining financial strength [9] - The company aims to execute a buy and build strategy sustainably and responsibly, with a focus on scaling with strength and growing both top and bottom lines [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to accelerate growth and create lasting value for customers, employees, and shareholders, emphasizing a solid business foundation and consistent growth over the years [9] - The company has over $175 million in liquidity following a credit facility amendment, positioning it well to navigate changing market conditions [8] Other Important Information - The company highlighted the importance of strong and consistent cash flow generation, which allows for funding accretive acquisitions without overreliance on equity or excess leverage [8] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company reported record revenues of $280 million and record gross profit of $84 million for the fiscal year to date, with third-quarter revenues of $94 million and gross profits of $28 million, indicating strong customer demand and operational execution [3] - Operating cash flow for the fiscal year to date was $11 million, with $9 million generated in the third quarter, highlighting the quality of earnings and business model efficiency [3][7] - Despite an increase in SG&A expenses, this was attributed to strategic investments in digital infrastructure and integration of acquired businesses [3] Business Line Data and Key Metrics Changes - The acquisition of Gerbau North America is viewed as a transformational deal, enhancing operating scale, logistics infrastructure, and customer reach, while also creating cross-sell opportunities within the existing customer base [4][5] - The integration of Gerbau's operations has begun, with positive early responses from customers and employees [5] Market Data and Key Metrics Changes - The acquisition strengthens the company's presence in key growth markets and is expected to drive cost and revenue synergies, operational leverage, and improved service capabilities [5][6] Company Strategy and Development Direction - The long-term strategy focuses on expanding the customer base through acquisitions and organic growth, digitizing and modernizing the operating platform, and delivering exceptional service at scale while maintaining financial strength [9] - The company aims to be aggressive in pursuing long-term growth while being conservative in financing, allowing for sustainable execution of the buy and build strategy [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to accelerate growth and create lasting value for customers, employees, and shareholders, particularly with the addition of Gerbau and ongoing technology momentum [9] - The company has over $175 million in liquidity following a credit facility amendment, positioning it well to navigate changing market conditions [8] Other Important Information - The company emphasized the importance of its nearly 900 employees as its most valuable asset, attributing consistent progress towards long-term growth goals to their dedication [2] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company reported record revenues of $280 million and record gross profit of $84 million for the fiscal year to date, with third-quarter revenues of $94 million and gross profits of $28 million, indicating strong customer demand and operational execution [3] - Operating cash flow for the fiscal year to date was $11 million, with $9 million generated in the third quarter, highlighting the quality of earnings and business model efficiency [3][7] - SG&A expenses increased due to intentional investments in strategic areas, particularly in digital infrastructure and integration of acquired businesses [3] Business Line Data and Key Metrics Changes - The acquisition of Gerbau North America is viewed as a transformational deal, enhancing operating scale, logistics infrastructure, and customer reach, while creating substantial cross-sell opportunities [4][5] - The integration of Gerbau's operations has begun, with positive early responses from customers and employees [5] Market Data and Key Metrics Changes - The acquisition strengthens the company's presence in key growth markets and enhances value for customers through improved product availability and faster delivery [5] Company Strategy and Development Direction - The long-term strategy focuses on expanding the customer base through acquisitions and organic growth, digitizing and modernizing the operating platform, and delivering exceptional service at scale [9] - The company aims to maintain financial strength while pursuing aggressive long-term growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to accelerate growth and create lasting value for customers, employees, and shareholders following the acquisition of Gerbau [9] - The company has over $175 million in liquidity, allowing for sustainable execution of the buy and build strategy [8] Other Important Information - The acquisition of Gerbau North America marks the largest acquisition in the company's history and reflects the effectiveness of its buy and build strategy [4][6] Q&A Session Summary - No specific questions and answers were provided in the content.

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]