MIAMI — Commercial laundry and drycleaning equipment distributor EnviroStar Inc. (EVI) completed its acquisitions of Industrial Laundry Services Inc. (ILS) and Scott Equipment Inc. earlier this month and then announced record year-end financial results.
ILS is a distributor of commercial laundry products and provider of commercial laundry installation and maintenance services to customers in the hospitality, healthcare, institutional and for-profit sectors in central Florida. EVI says the addition of ILS bolsters the service capabilities of EVI’s existing Florida operations, and that EVI intends to invest further in the growth of ILS’ service operations.
Houston-based Scott Equipment is a distributor of on-premises and vended laundry products and a provider of related installation and maintenance services. Scott’s addition to EVI’s existing Dallas operations significantly increases EVI’s market share in Texas, the company says, and it provides a base from which EVI intends to make investments in new product and service capabilities.
These two latest acquisitions brings to seven the number of businesses that EVI has acquired since it executed a buy-and-build growth strategy with the completion of fiscal year 2016.
EVI—which says it’s the only publicly traded distributor in the laundry industry—reported record results for its fiscal year ended June 30, 2018, including revenues of approximately $150 million. That’s an increase of 60% over the prior fiscal year and a record for the company.
EVI says its revenues increased “largely due to the acquisitions” of Tri-State Technical Services Inc., Aadvantage Laundry Systems Inc. and Sky-Rent LP during fiscal 2018.
Other highlights included gross margin increased from 22% to 24%, operating income increased 30% to a record $6.9 million, net income increased 25% to a record $4 million, adjusted EBITDA increased 59% to a record $10.1 million, and diluted earnings per share increased 6% to a record $0.33 per share.
EVI says it maintains a deep pipeline of potential “buy” opportunities of businesses of varying sizes and that meet its financial and strategic criteria. To support its “buy” efforts, EVI says it recently received a commitment letter for debt financing that, if consummated, would significantly increase its borrowing capacity.
“Our goal is to build a significant and sustainable enterprise that delivers substantial shareholder value. In that pursuit, the execution of our buy-and-build growth strategy requires time, patience and thoughtful execution,” says Henry M. Nahmad, chairman, CEO and president of EVI. “We believe that EVI represents a compelling opportunity for well-respected owners of high-quality businesses to achieve a new level of personal diversification, including investing in our high-growth enterprise, and to make meaningful contributions to our collective growth.”
RELATED STORIES:
EnviroStar to Acquire Industrial Laundry Services, Aug. 15, 2018
EnviroStar to Acquire Scott Equipment for $13 Million, July 2, 2018
EnviroStar to Acquire Aadvantage Laundry Systems, Dec. 18, 2017
EnviroStar to Acquire Tri-State Technical Services, Sept. 18, 2017
EnviroStar to Acquire Martin-Ray Laundry Systems, June 19, 2017
EnviroStar to Acquire Fellow Distributor Western State Design for $28 Million, Sept. 14, 2016
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