Financial Performance - Revenue increased 6% to a record $93.6 million compared to the first quarter of fiscal 2024[3] - Gross profit increased 12% to a record $28.9 million, with gross margin rising to 30.8% from 29.2%[3] - Operating income reached a record $5.0 million, up from $2.6 million, reflecting a 92% increase[3] - Net income surged 152% to a record $3.2 million, or 3.5% of revenue, compared to $1.3 million, or 1.5%[3] - Adjusted EBITDA was a record $7.6 million, representing 8.1% of revenue, up from $6.0 million, or 6.8%[3] - Revenues for the three months ended September 30, 2024, were $93,625,000, an increase of 6.4% compared to $88,074,000 for the same period in 2023[17] - Gross profit for the same period was $28,855,000, up from $25,692,000, reflecting a gross margin increase[17] - Operating income rose significantly to $4,989,000, compared to $2,617,000 in the prior year, marking an increase of 90.4%[17] - Net income for the quarter was $3,231,000, a substantial increase from $1,282,000, representing a growth of 152.5%[17] - Adjusted EBITDA for the three months ended 09/30/24 was $7,606,000, up from $6,019,000 in the prior year, reflecting a 26.4% growth[21] Dividends and Shareholder Returns - A special cash dividend of $4.6 million was declared, marking the largest dividend in the company's history[3] Acquisitions and Growth Strategy - The company completed one acquisition during the quarter, enhancing its Southeast Group's sales and service expertise[4] - The company is actively pursuing additional acquisition opportunities to enhance its growth strategy[5] - Common stock issued for acquisitions amounted to $4,593,000, compared to $229,000 in the previous year[20] - The company continues to focus on strategic acquisitions and enhancing its product offerings to drive future growth[21] Debt and Cash Flow - The company’s net debt increased from $8.3 million to $15.5 million, primarily due to cash paid for acquisitions[10] - Cash at the end of the period was $4,373,000, a slight decrease from $4,558,000 at the beginning of the period[19] - Net cash provided by operating activities was $207,000, down from $1,540,000 in the same quarter last year[19] - The company incurred $5,885,000 in cash paid for acquisitions during the quarter, compared to $987,000 in the prior year[19] - Cash paid for interest during the period decreased to $413,000 from $767,000 year-over-year, a reduction of 46.2%[20] - Cash paid for income taxes was $0 for the three months ended 09/30/24, compared to $3,171,000 in the same period last year[20] Tax and Expenses - Provision for income taxes increased to $1,276,000 from $565,000, indicating a 126.5% rise[21] - Interest expense, net, decreased to $482,000 from $770,000, a decline of 37.4%[21] - Depreciation and amortization remained relatively stable at $1,550,000 compared to $1,546,000 in the prior year[21] - Amortization of share-based compensation decreased to $1,067,000 from $1,856,000, a drop of 42.5%[21] Long-term Growth - Since 2016, the company has achieved a compounded annual growth rate in revenue, net income, and adjusted EBITDA of 32%, 20%, and 30%, respectively[2] - Total assets as of September 30, 2024, were $245,528,000, up from $230,659,000 as of June 30, 2024[18] - Current liabilities increased to $77,831,000 from $69,803,000, indicating a rise in short-term obligations[18] - Basic earnings per share increased to $0.22 from $0.09, while diluted earnings per share rose to $0.21 from $0.09[17]
EnviroStar(EVI) - 2025 Q1 - Quarterly Results