Loading...
•
Dec 31, 2020
Evi Industries Q2 2021 Earnings Report
Announced its financial results for the three- and six-month periods ended December 31, 2020.
Key Takeaways
EVI Industries reported a decline in revenue for the three and six-month periods ended December 31, 2020, but experienced record gross profit and increased gross margins during the second fiscal quarter. The company continued to execute its long-term growth strategy through acquisitions and operational optimization.
Acquired Yankee Equipment Systems and Eastern Laundry Systems, expanding operations in the New England region.
Net debt decreased by 1.0% from June 30, 2020, despite deploying $4.5 million for the acquisition of Yankee.
Gross margin during the second fiscal quarter increased from 21% to 25%, resulting in record gross profit for the quarter.
Continued to pursue operational optimization, including consolidating operations and implementing advanced technology systems.
Evi Industries
Evi Industries
Forward Guidance
EVI Industries expects the circumstances caused by COVID-19 to continue into calendar 2021, but believes it has the right leaders, initiatives, and financial position to manage through the environment and execute on growth opportunities.
Positive Outlook
- The company has the right leaders to effectively manage through the current business environment.
- Initiatives underway are expected to result in a more profitable operation.
- The company is in a strong financial position to execute on attractive growth opportunities ahead.
- The company's business principles continue to prove valuable.
- The company has a track record of being a knowledgeable, efficient, and trustworthy acquirer.
Challenges Ahead
- Circumstances caused by COVID-19 are expected to run fairly deeply into calendar 2021.
- Extension of local, state, and federal orders related to COVID-19 continues to restrict the normal course of business.
- Revenue derived from industrial laundry products was adversely impacted due to delays in delivery and installation.
- Revenue from on-premise laundry products continued to vary by geography and by the speed of recovery of specific end-user customers.
- The impact of COVID-19 on revenue combined with the ongoing investments offset record gross profit and improved gross margins.