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Dec 31, 2021
Evi Industries Q2 2022 Earnings Report
Achieved record operating results and increased revenue despite supply chain challenges.
Key Takeaways
EVI Industries reported a 6% increase in revenue to $61 million and record gross margins of 28% for the second quarter of fiscal 2022. The company also achieved a record Adjusted EBITDA of $3.1 million, a 33% increase compared to the previous year, despite supply chain disruptions and inflationary pressures.
Revenue increased to $61 million, a 6% increase compared to the second quarter of fiscal 2021.
Gross margins increased to a record 28% for the three months ended December 31, 2021.
Adjusted EBITDA increased 33% to a record $3.1 million, or approximately 5.0%.
Backlog built up to over $120 million, indicating strong demand.
Evi Industries
Evi Industries
Forward Guidance
The company expects supply chain disruptions and delays to installation schedules to continue in the near term, but remains optimistic about its long-term growth and profitability outlook.
Positive Outlook
- Company has stayed true to its financial principles.
- Company has consistently acquired good businesses.
- Company has strengthened its customer value proposition.
- Company has improved gross and operating margins.
- Company is beginning to realize the benefits of its optimization initiatives.
Challenges Ahead
- Supply chain challenges are expected to continue in the near term.
- Installation delays are expected to continue in the near term.
- Inflationary environment resulting in increased operating expenses.
- Supply chain disruptions at manufacturers of commercial laundry equipment caused by limited component availability.
- Transportation delays and third-party labor shortages slowing delivery and installation process.