MIAMI — While the COVID-19 pandemic and accompanying economic disruption adversely impacted performance, commercial laundry equipment distributor EVI Industries Inc. reports it achieved record revenue, gross profit and operating cash flows for fiscal year 2020 and reduced net debt 50% compared to the prior year.
Its financial results for the fourth quarter and fiscal year ended June 30 reflects its long-term focused buy-and-build growth strategy and the effectiveness of growth initiatives, offset by modernization and optimization investment and the COVID-19 impact, the company says in a press release.
At fiscal year’s end, EVI had $18 million of net debt, a 31% decrease as compared to March 31 and a 50% decrease as compared to June 30, 2019. Strengthening of the EVI balance sheet was driven by a record $23 million of operating cash flow.
During the second half of fiscal 2020, government orders resulting in restrictions and business closures limited EVI’s access to customers’ facilities. A deceleration of revenue started in March and continued in April before rebounding in May and June. This resulted in a 16% decrease for the three months ended June 30 compared to the same quarter the prior year. But revenue increased 3% for the fiscal year to a record $236 million.
“While we were confronted with the turbulence and chaos caused by COVID-19 during fiscal 2020, we are pleased with the manner and speed in which we have been able to adapt,” says EVI Chairman and CEO Henry M. Nahmad. “Revenue from vended laundry customers was strong due to factors that continue to spur investment from entrepreneurs and revenue from multi-family customers was consistent with contractual obligations.”
In fiscal year 2020, EVI acquired substantially all of the assets of New York-based Commercial Laundry Products Inc., Professional Systems of PA Inc. and Professional Laundry Systems West Inc.
EVI also owns Washington Automated, Skyline Equipment, Worldwide Laundry, Industrial Laundry Services, Scott Equipment, Aadvantage Laundry Systems, Tri-State Technical Services, Martin-Ray Laundry Systems and Western State Design, all distributor acquisitions made since 2016.
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].