EVI Industries Inc., headquartered in Miami, recently announced its results for the three months and six months ended December 31, 2021.
During that three-month period, the company achieved record operating results in certain performance measures, generated $9.4 million of cash from operating activities that further strengthened its already strong balance sheet, built up its backlog to more than $120 million, and continued to successfully implement its advanced operating technologies and experience incrementally greater operating leverage across its modernized business units.
In addition, EVI continues to execute on the buy component of its long-term growth strategy with the acquisition of its 17th commercial laundry distribution and service business, which was completed on February 7.
Here are the highlights of the three-month financial results, compared to the three months ended December 31, 2020:
- Revenue increased 6 percent to $61 million
- Gross profit increased 17 percent to a record $17 million
- Gross margin increased 250 basis points to a record 27.7 percent
- Net income increased from $0.46 million to $0.53 million
- Adjusted EBITDA increased 33 percent from $2.3 million to a record $3.1 million, or approximately 5 percent
Here are the highlights of the six-month financial results, compared to the six months ended December 31, 2020:
- Revenue increased 8 percent to a record $124 million
- Gross profit increased 24 percent to a record $34 million
- Gross margin increased 360 basis points to a record 27.7 percent
- Net income increased from $1 million to a record $2.5 million
- Adjusted EBITDA increased 56 percent from $4.8 million to a record $7.4 million, or approximately 6 percent
“We believe that these achievements are a function of the exceptional reputation our company has earned with owners of high-quality businesses, our disciplined financial management, our thoughtful and deliberate operational execution, and the entrepreneurial culture that we maintain and which promotes a collaborative environment yielding best practices and promising opportunities,” said Henry M. Nahmad, EVI chairman and CEO. “These achievements come despite supply chain challenges that we and our industry are experiencing, installation delays, and an inflationary environment resulting in increased operating expenses. While we expect these challenges to continue in the near term, our loyal suppliers are working to fulfill the significant and growing opportunities our company is creating for their products across North America.
“As we have stated from the beginning, we are a long-term growth-focused company that is thoughtful and committed, and that acts with conviction when the opportunity is right,” he continued. “We have stayed true to our financial principles, consistently acquired good businesses, strengthened our customer value proposition, and improved gross and operating margins.
“We also believe that we are just beginning to realize the benefits of our optimization initiatives. Supporting these efforts is a collection of dynamic, well-respected and entrepreneurial leaders from across the commercial laundry industry. Our approach and results have earned us a positive reputation in and around our industry, including among owners of quality businesses, which we may add to our growing EVI family, and among talented professionals who we may seek to hire. For these reasons and others, we remain excited and optimistic about our long-term growth and profitability outlook.”
