EnviroStar(EVI) - 2026 Q1 - Quarterly Results

Financial Performance - Revenue increased 16% to a record $108 million compared to the first quarter of fiscal 2025[5] - Gross Profit increased 17% to a record $33.9 million, resulting in a gross margin of 31.3%[5] - Net Income for the quarter was $1.8 million, down from $3.2 million in the prior-year period, reflecting a net income margin of 1.7%[5] - Adjusted EBITDA was $6.8 million, or 6.2% of revenue, compared to 8.1% in the prior-year period[5] - Revenues for the three months ended September 30, 2025, increased to $108,269,000, up 15.6% from $93,625,000 for the same period in 2024[18] - Gross profit rose to $33,892,000, representing a 17.5% increase compared to $28,855,000 in the prior year[18] - Net income decreased to $1,847,000, down 42.8% from $3,231,000 year-over-year[18] - Adjusted EBITDA for the three months ended September 30, 2025, was $6,752,000, a decline of 11.2% from $7,606,000 in the same period last year[23] Acquisitions and Market Position - The Company completed four additional acquisitions, including the largest in its history, enhancing its market position[2] - The Company continues to explore qualified acquisition opportunities to capitalize on the fragmented commercial laundry market[8] Dividends and Financial Strength - The Company declared a $5.0 million special cash dividend, the largest in its history, reflecting confidence in its financial strength[6] Debt and Cash Flow - The Company’s net debt increased by $2.2 million to $46.3 million, primarily due to operating cash flow[9] - Cash at the end of the period was $4,658,000, down from $8,852,000 at the beginning of the period[20] - The company paid $1,041,000 in interest during the period, compared to $413,000 in the prior year[21] Assets and Liabilities - Total assets increased to $321,750,000 as of September 30, 2025, compared to $307,028,000 at June 30, 2025[19] - Current liabilities rose to $112,320,000, up 18.3% from $94,863,000 in the previous quarter[19] Capital Expenditures and Interest Expense - Capital expenditures for the three months ended September 30, 2025, were $1,913,000, compared to $1,253,000 in the prior year[20] - Interest expense increased to $916,000, up 90.1% from $482,000 in the same quarter last year[18] Service Capabilities - The field service platform supported approximately 9,000 appointments in September 2025, up from 1,000 a year ago, indicating significant growth in service capabilities[12]