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].
EnviroStar(EVI) - 2025 Q3 - Quarterly Report