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]