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]
EVI Industries' Q2 Earnings Fall Y/Y on Higher Costs, Stock Down 10%