EVI Industries Inc. recently reported record results in key financial metrics for the fourth fiscal quarter and the fiscal year ended June 30, 2023.
The company also announced that its board of directors has declared a special cash dividend on the company’s common stock of 28 cents per share, which was paid on October 26 to stockholders of record at the close of business on October 16.
Since 2016, EVI has completed 25 acquisitions, expanded into new geographies, retained and invested in additional sales and service personnel, broadened its OEM representations, and implemented advanced operating technologies. As a result, since 2016, the company’s revenue, net income, and adjusted EBITDA have grown at compounded annual growth rates (CAGRs) of 39 percent, 28 percent, and 37 percent, respectively. Additionally, over that period, EVI has experienced a 7 percent organic revenue CAGR for businesses it has owned for at least three years.
Here’s a summary of the company’s Fiscal 2023 achievements:
- Record results in key financial metrics, including a 32 percent increase in revenue year over year.
- Maintained a strong customer sales order backlog as of June 30, despite record revenues.
- Sustained a healthy balance sheet with $29 million of net debt as of June 30.
- Generated $7.6 million in cash flow from operations during the fourth fiscal quarter.
“Our achievements to date are the product of our entrepreneurial leadership team that is thoughtful, collaborative, and committed in the pursuit of our goals,” said Henry M. Nahmad, EVI’s chairman and CEO. “While we are still early in our long-term growth plans, the strength of our team and their successes as demonstrated by our company’s consistent growth, performance, and financial strength provide great confidence in our ability to achieve our long-term growth and profitability goals.”
For the fiscal fourth quarter, as compared to the fourth quarter of Fiscal 2022, EVI’s revenue increased 14 percent to a record $94.0 million, gross profit increased 25 percent to a record $27.8 million, and gross margin increased 270 basis points to a record 29.5 percent.
Moreover, for FY 2023, as compared to Fiscal 2022, revenue increased 32 percent to a record $354.2 million, gross profit increased 41 percent to a record $103.7 million, and gross margin improved 170 basis points to a record 29.3 percent.
During Fiscal 2023, EVI also completed the acquisition of four commercial laundry distributors – K&B Laundry Service, Aldrich Clean-Tech Equipment, Wholesale Commercial Laundry Equipment, and Express Parts and Services. In each case, the company added experienced sales professionals and knowledgeable service technicians.
“We continue to identify and pursue many acquisitions and strategic transactions in the commercial laundry industry and across a wide range of exciting and available opportunities in related industries,” Nahmad added. “We believe that our expansion through acquisitions and other strategic transactions is integral to our ability to achieve our long-term growth goals.”
