EVI Industries announced its operating results for the fiscal year and the quarter ending June 30, 2024, highlighting record achievements in gross profit, gross margin, and operating cash flows. The company also discussed its financial position, cash flow, and technology investments. A recorded earnings call is available here.
Since 2016, EVI has become a leader in North America’s commercial laundry distribution and service industry. The company’s strategic growth approach has led to a compounded annual growth rate of 33% in revenue, 16% in net income, and 30% in adjusted EBITDA.
Henry M. Nahmad, EVI’s Chairman and CEO, stated, “Our long-term focus and growth ambitions are supported by early successes, strong financials, our reputation as a knowledgeable buyer, promising technologies, and a committed leadership team.”
Key Achievements for Fiscal Year Ended June 30, 2024:
- Record operating cash flows of $33 million, up $32 million from the previous year.
- Net debt reduced by 71% to $8.3 million.
- New customer sales orders exceeded fulfilled contracts.
- Implemented field service technology in select regions.
- Completed two acquisitions and a third in Florida on July 1, 2024.
- Paid a historic $4.1 million dividend.
Fiscal Year 2024 Financial Highlights:
- Revenue: $353.6 million (down from $354.2 million)
- Gross Profit: $105.3 million (up 2%)
- Gross Margin: 29.8% (up from 29.3%)
- Operating Income: $11.6 million (down from $16.5 million)
- Net Income: $5.6 million (1.6% margin) compared to $9.7 million (2.7% margin)
- Adjusted EBITDA: $22.6 million (6.4% margin) compared to $25.6 million (7.2% margin)
Fourth Quarter Results:
- Revenue: $90.1 million (down 4%)
- Gross Profit: $27.4 million (down 2%)
- Gross Margin: 30.4% (up from 29.5%)
- Operating Income: $3.7 million (down from $4.0 million)
- Net Income: $2.1 million (up 10.5%)
- Adjusted EBITDA: $6.2 million (6.8% margin)
Operational Insights:
- Fiscal 2024 revenue was flat year-over-year, reflecting record results in the prior year. Organic revenue growth over three years for long-held businesses was 8.0%.
- Equipment revenue was flat, while parts and service revenue grew by 6.6% and 7.8%, respectively.
- Gross profit and margin reached new records, driven by a shift towards higher-margin parts and services and solution selling.
Investments and Cash Flow:
- Record operating cash flows of $33 million for the fiscal year and $12 million for the fourth quarter.
- Net debt reduced by 71% to $8.3 million.
- The Board declared a special cash dividend of $0.31 per share, a 10% increase from the previous year.
Acquisitions:
- Acquired two distributors in Pennsylvania and Texas, and completed a purchase in Florida.
- Each acquisition added experienced professionals and expanded market opportunities.
Buy-and-Build Success:
- EVI’s strategic acquisitions have led to significant revenue and profitability growth, exemplified by a unit that increased revenue by 160% and operating income by 280% over three years.
Technology Investments:
- Ongoing technology initiatives include consolidating systems, implementing field service technology, and developing an e-commerce site. These investments are expected to drive long-term growth despite short-term financial impacts.
Core Principles:
- EVI’s core values include long-term investment, financial discipline, respect for entrepreneurs, and promoting an entrepreneurial culture.
Additional Information:
- For more details, access the pre-recorded earnings call and the Annual Report on Form 10-K here.
