Amidst a tumultuous fiscal landscape highlighted by a 4% dip in overall revenues totaling $90.1 million for EVI Industries, Inc. in the fourth quarter of fiscal 2024, a ray of sunshine was found in the 7.7% year-over-year increase in earnings per share (EPS) to 14 cents from 13 cents in the prior-year quarter. The company’s core commercial laundry services stood tall, shielding it from the impact of weakened sales in larger industrial projects.
Earnings Report Insights
Even with the decline in revenues, EVI Industries showcased its resilience by maintaining profitability. This performance underscored the company’s robust business model, shining a spotlight on the strength of its higher-margin service and parts segments.
EVI Industries’ Financial Metrics
Gross profit saw a marginal drop to $27.4 million but with a notable improvement in gross margin from 29.5% to a record-high of 30.4%. The strategic pivot towards higher-margin parts and services proved fruitful. Despite a slight decrease in adjusted EBITDA to $6.2 million and a resultant stable EBITDA margin of 6.8%, net income soared by 10.5% to $2.1 million. This success was fueled by lower interest expenses and operational efficiencies.
In a testament to its consistent growth trajectory, EVI Industries reported an impressive compounded annual growth rate of 8% in organic revenues.
EVI Industries’ Financial Position
As of June 30, 2024, EVI Industries boasted financial stability with $4.6 million in cash reserves. Despite a slight decrease in total assets to $230.7 million, the company demonstrated a substantial reduction in long-term debt to $12.9 million alongside an enhanced stockholders’ equity of $136.6 million, up from $131 million.
Cash Flow and Strategic Management
The fiscal year 2024 bore witness to EVI Industries’ record-breaking operating cash flows of $33 million, a remarkable surge from the previous year. Riding high on this financial wave, the company slashed its net debt by 71% to $8.3 million, aligning with its strategic focus on bolstering liquidity while nurturing growth initiatives.
Highlights of Fiscal 2024 and Future Outlook
Although EPS for the full fiscal year experienced a decline to 37 cents from 67 cents in fiscal 2023, full-year revenues remained relatively stable at $353.6 million, marking a slight drop from $354.2 million in the previous year. Gross profit ascended to $105.3 million, up 2% year-over-year, accentuated by an improved gross margin of 29.8%. Operating income for the fiscal year tapered to $11.6 million from $16.5 million in 2023.
Furthermore, EVI Industries embarked on a series of strategic acquisitions during fiscal 2024 to bolster its sales and service capabilities in key regions, emphasizing market expansion and customer service enhancement.
Notably, the company’s tech-savvy approach in modernization initiatives shone through with an expanded use of field service technology and the commencement of an e-commerce platform implementation aimed at long-term growth and profitability.
The company also rewarded its shareholders with a 10% increase in a special cash dividend to 31 cents per share as a tribute to its strong cash flow position.