EVI Industries Reflects on Strong Year-End Financials

EVI Industries Reflects on Strong Year-End Financials

EVI Industries, Inc. (NYSE American: EVI) recently shared its remarkable operating results for the fiscal year, underscoring a period of substantial financial growth and strategic expansion. With record cash flows of $33 million for the year, the company has solidified its position as a leader in the commercial laundry distribution sector. This achievement stands as a testament to EVI’s long-term growth strategy and unwavering commitment to excellence.

Since its inception, EVI has shown a dedicated focus on enhancing its revenue and income metrics. Over the past eight years, the company has reported a staggering compounded annual growth rate in revenue, net income, and adjusted EBITDA of 33%, 16%, and 30%, respectively. These numbers reflect the effective execution of EVI’s strategic goals and initiatives, including expansions and technology investments aimed at improving service delivery.

Henry M. Nahmad, Chairman and CEO of EVI Industries, expressed confidence in the company’s trajectory, stating, “Our ambitious growth plans are supported by robust financial health, early successes, and a strong leadership team. We believe the innovative technologies we are pursuing will contribute significantly to our future success.”

Fiscal Year Achievements

Highlights of the Fiscal Year Ended

During the fiscal year ending June 30, 2024, EVI achieved several notable milestones:

• Record operating cash flows of $33 million, up significantly from the prior year.
• A substantial reduction of net debt by 71%, achieving a total of $8.3 million.
• Positive sales momentum, with new customer orders surpassing those fulfilled during the year.
• Adoption of cutting-edge field service technology across various regional operations.
• Two successful acquisitions, enhancing sales and service capabilities in the Northeast and Central regions.
• Payment of a historic dividend of $4.1 million to shareholders.

Financial Performance Overview

In analyzing the complete fiscal year results, EVI reported:

• Total revenue of $353.6 million, a slight decline from the previous year's revenue of $354.2 million.
• Gross profit climbed 2% to reach a record $105.3 million, with a gross margin increase to 29.8%.
• Operating income and net income reflected challenges but remained significant at $11.6 million and $5.6 million, respectively.
• Adjusted EBITDA was reported at $22.6 million, or 6.4% of net revenue.

Fourth Quarter Performance Analysis

For the fourth quarter alone, the company demonstrated resilience despite external market pressures:

• Revenue totaled $90.1 million, down 4% year-over-year.
• Gross profit decreased by 2% to $27.4 million; however, the gross margin rose to an impressive 30.4%.
• Net income gained 10.5%, reflecting effective cost management and strategic resource allocation.

Strategic Growth Initiatives

EVI's growth strategy is defined by its commitment to ongoing investments aimed at scaling operations and driving innovation. With an experienced sales team exceeding 190 professionals and approximately 400 service technicians, the company is well-equipped to meet the increasing demand for its offerings. In fiscal 2024, EVI plans to continue leveraging technology to enhance customer satisfaction and operational efficacy.

Future Outlook and Conclusion

The company’s strategies include further investment in technology, acquisition opportunities, and expansion into new markets. As EVI looks to the future, the strong financial resources and positive cash flow will enable it to capitalize on new opportunities and continue its growth trajectory. With a solid track record and a clear vision, EVI Industries stands poised for sustained success in the commercial laundry industry.

Frequently Asked Questions

What recent financial achievements has EVI Industries reported?

EVI Industries has reported record operating cash flows of $33 million for the fiscal year, alongside substantial improvements in cash management and debt reduction.

How has EVI positioned itself in the market?

The company has established itself as a leader in the commercial laundry distribution sector, with a focused growth strategy yielding impressive revenue and income growth.

What technology initiatives are planned for the future?

EVI plans to continue investing in advanced technologies to enhance service efficiency and customer satisfaction across its operations.

How does EVI manage its acquisitions?

EVI's approach to acquisitions focuses on integrating complementary businesses to expand its market share and enhance operational capabilities.

What is EVI's future growth strategy?

Future growth for EVI will involve continued investment in technology, strategic acquisitions, and market expansion to maintain its competitive edge.

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