MIAMI — Commercial laundry and drycleaning equipment distributor EVI Industries Inc. reports it achieved record revenue, gross profit, gross margin, operating profit, net income, and Adjusted EBITDA for the first quarter of fiscal 2022.
EVI, a publicly traded company, says its operating results for the three months ended Sept. 30 reflect continued strong demand for products/services, growth from continuing operations and recent acquisitions, and the realization of certain benefits connected to optimization while continuing the recovery from the COVID-19 pandemic.
When compared to the first quarter of fiscal 2021, EVI revenue increased 10% to $64 million, gross profit rose 32% to $18 million, gross margin increased by 470 basis points to 27.7%, net income increased from $.52 million to $2.0 million, and Adjusted EBITDA surged 78% from $2.5 million to $4.4 million.
“Our record operating results … reflect continued recovery across our end customer categories and the success of our efforts to overcome product shortages, shipping challenges, and rapidly rising product costs to take advantage of the solid demand for commercial laundry products and services,” says Henry M. Nahmad, EVI chairman and CEO.
“With ongoing positive market trends, steady improvement in our capabilities, and acquisition and strategic transaction opportunities, we are confident in our ability to continue to build our business and deliver superior results during fiscal 2022 and beyond,” he adds.
EVI raised sale prices and took other measures during the quarter to improve gross margins in response to “significant inflationary pressures.”
Equipment manufacturers have experienced supply chain disruptions caused by component availability, labor shortages, transportation delays or other challenges, EVI says, all of which have impacted typical lead times and overall availability of commercial laundry products. While these disruptions adversely impacted its quarterly sales, EVI nonetheless experienced an increase in sales and is encouraged by steady demand evidenced by continued growth in its sales order backlog, the company reports.
EVI expects the supply chain disruptions to continue for the foreseeable future, including during fiscal 2022, and is working with suppliers in an effort to fulfill strong end-user demand in a timely fashion.
Operating expenses increased during the first quarter of fiscal 2022 due in part to higher personnel costs and other operating expenses in connection with measures taken to service customers in light of supply chain disruptions.
EVI continues to invest in deploying advanced operating technologies. The initiative has enabled the company to accelerate consolidation of its regional groups of businesses, eliminating redundant functions, realizing operating efficiencies, and incrementally optimizing operating performance.
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.
“Given our success, we continue to pursue acquisition and other strategic opportunities in the commercial laundry industry and across other product and service categories that meet our financial and strategic criteria, which takes time, patience, and thoughtful execution,” says Nahmad. “While we are pleased with our operating performance, we remain steadfast in our pursuit of significant growth and the execution of our long-term buy and build growth strategy.”
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