MIAMI — The latest batch of financial results from EVI Industries Inc. is record-setting in a lot of ways.
The commercial laundry and drycleaning equipment distributor reported record fiscal fourth-quarter and fiscal year ended June 30, 2021, operating results, establishing new fiscal fourth-quarter records for gross profit and net income and fiscal year records for revenue, gross profit and net income, which includes a gain on the forgiveness of debt in connection with the forgiveness of PPP Loans.
For the quarter, revenue increased 19% to $65 million, gross profit increased 22% to a record $16.4 million, gross margin increased 70 basis points to 25%, net income increased to $6.8 million from a net loss of $0.1 million, and adjusted EBITDA increased 49% from $1.9 million to $2.9 million, or approximately 4.5% of revenue.
For the fiscal year, revenue increased 3% to a record $242 million, gross profit increased 8% to a record $60 million, gross margin increased 130 basis points to 25%, net income increased 982% from $0.8 million to $8.4 million, and adjusted EBITDA increased 21% from $8.8 million to $10.6 million.
“Strong fourth-quarter results reflect a steady recovery across certain of our end customer categories, resulting in a significant increase in demand for the commercial laundry products and service solutions we provide,” says Henry M. Nahmad, chairman and CEO. “Amid the recovery and increased demand, we are actively managing through supply chain disruptions and labor shortages causing delays in product lead times, pricing volatility, cost increases, and other adverse conditions.
“Ultimately, we believe we are a stronger company today than at any time in the past and consequently are better positioned to execute on our long-term growth objectives.”
Given the health and strength of EVI’s balance sheet, including a significant amount of liquidity and other available resources, the distributor is “well-positioned to deploy cash in connection with attractive buy and build opportunities we are actively pursuing,” Nahmad adds.
The company acquired Yankee Equipment Systems and Eastern Laundry Systems in fiscal 2021, bringing the number of commercial laundry businesses that EVI has purchased in the last five years to 16.