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]

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]

Financial Data and Key Metrics Changes - The company reported record revenues of $93 million for the three-month period and $186 million for the six-month period, representing a 1% and 4% increase respectively compared to the same period last year [4][5] - Gross profit reached $28 million for the quarter and $56 million for the six months, with a gross margin of 30% for the six-month period [4][8] - Adjusted EBITDA for the six-month period was $12.7 million, reflecting a compounded annual growth rate of 28% since 2016 [4][10] Business Line Data and Key Metrics Changes - The modest revenue increases were attributed to irregular industrial revenue and delays in large sales order contracts, despite a recurring base of industrial business [6][7] - The company achieved record gross profits, partly due to a shift towards higher-margin parts and services [8] Market Data and Key Metrics Changes - The company has a backlog of over $100 million in equipment sales, indicating strong future revenue potential [7] - The company completed two acquisitions during the six-month period and a third acquisition shortly after, expanding its presence in the Southeast and Midwest regions of the United States [11][12] Company Strategy and Development Direction - The long-term growth strategy focuses on becoming a leader in the commercial laundry industry, with a compounded annual growth rate in revenue, net income, and adjusted EBITDA of 31%, 19%, and 28% respectively since 2016 [3][4] - The company emphasizes a "buy and build" strategy, acquiring family-owned businesses while preserving their culture and legacy [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth prospects, citing a strong financial position and ongoing investments in technology and acquisitions [10][14] - The company aims to leverage its technology initiatives to enhance sales and operational efficiency, despite short-term financial impacts [9][10] Other Important Information - A special cash dividend of $4.6 million was declared, marking the largest dividend in the company's history [5][10] - The company has increased its net debt from $8.3 million to $24 million due to acquisitions and working capital investments [11] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.