Amidst the tumult of the fiscal fourth quarter, EVI Industries, Inc. (EVI) managed to steer a steady course and post a notable uptick in earnings per share (EPS), rising to 14 cents from 13 cents year-over-year, representing a 7.7% surge.
Quarterly revenues clocked in at $90.1 million, a marginal 4% dip from the prior year’s $94 million. The context behind the drop lies in softer sales within the larger industrial projects domain, yet the show of strength in the core commercial laundry services segment hints at a resilient core.
Notably, within the ebbs and flows of the quarterly performance, EVI Industries shone in maintaining profitability as a testament to the robustness of its business model, especially underscored by the growth in its high-margin service and parts divisions.
Analysis of EVI Industries, Inc. Performance
Gross profit, reflective of the company’s fiscal fourth quarter, settled at $27.4 million, a slight decrement from the prior year’s $27.8 million. Nonetheless, the silver lining emerged in the form of an improved gross margin, transcending from 29.5% to a historic apex of 30.4%. This ascent was buoyed by a strategic emphasis on higher-margin parts and services, the pioneering force behind the milestone.
On the financial front, the voyage witnessed a reduction in selling, general, and administrative (SG&A) expenses, dipping to $23.7 million from $23.8 million in the comparable period. Operating income, while registering a marginal decline to $3.7 million from $4 million, underscored the company’s mettle in navigating the fiscal landscape.
Net income glided upwards by 10.5% to $2.1 million in a year-over-year comparison, buttressed by a decline in interest expenses and an uptick in operational efficiencies. Adjusted EBITDA closed at $6.2 million, a modest step down from the prior year’s $6.4 million, with the EBITDA margin holding firm at 6.8%.
The narrative of EVI Industries in the annals of financial history reveals an 8% compound annual growth rate in organic revenues stemming from the businesses under its wing for a minimum of four years.
EVI Industries, Inc. Fiscal 2024 Snapshot
As the curtain drew on fiscal 2024, the earnings per share (EPS) took a slight dip to 37 cents from 67 cents in the preceding fiscal canvas of 2023. In tandem, full-year revenues stood pat at $353.6 million, mirroring the previous year’s standing at $354.2 million.
The tale of gross profit unfolded to $105.3 million, a 2% ascent from fiscal 2023’s $103.7 million, heralding an improvement in the gross margin to 29.8%. Despite the gains, the operational income of the yearly narrative experienced a descent to $11.6 million from $16.5 million.
Strategic Acquisitions and Technological Leaps
During the fiscal odyssey of 2024, EVI Industries unfurled its wings with two acquisitions, bolstering its sales and service footprint within the Northeast and Central territories of the United States. The company’s strategic compass further guided it towards a third acquisition, a Florida-based commercial laundry distributor, where the ink finally dried on July 1, 2024. This strategic move is emblematic of EVI’s buy-and-build doctrine, set on amplifying its market presence and enriching customer service offerings in key geographies.
Besides the acquisitions, EVI Industries unfurled a special cash dividend, pegged at 31 cents per share on September 11, 2024. This token represented a 10% hike from the previous year, affirming the company’s solid track record of generating cash flows and its steadfast commitment to enhancing shareholder value.
Furthermore, the vistas of technological advancement unfurled as EVI Industries embarked on a voyage of modernization initiatives. The canvas saw an expansion in the application of field service technology and the inception of an e-commerce platform, palpable signals of progress that may have borne immediate costs but are poised to yield fruits of long-term growth and profitability.
