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Jun 30, 2020
Evi Industries Q4 2020 Earnings Report
EVI Industries reported a decrease in revenue for the fourth quarter due to the COVID-19 pandemic, but achieved record revenue, gross profit, and operating cash flows for the fiscal year 2020.
Key Takeaways
EVI Industries faced challenges in Q4 2020 due to the COVID-19 pandemic, experiencing a 16% revenue decrease compared to the previous year. However, the company achieved record revenue for the full fiscal year, driven by its buy-and-build growth strategy and organic growth initiatives. The company also reduced net debt by 50% and generated record operating cash flow.
Revenue decreased by 16% for the three months ended June 30, 2020, compared to the same period in 2019 due to COVID-19.
Revenue increased by 3% for the fiscal year ended June 30, 2020, reaching a record $236 million.
Gross margin for the fourth quarter increased from approximately 24% in fiscal 2019 to 25% in fiscal 2020.
Net debt decreased by $8 million, or 31%, compared to March 31, 2020, and $18 million, or 50%, compared to June 30, 2019.
Forward Guidance
EVI Industries is focused on long-term growth through organic initiatives, acquisitions, and strategic investments, amplified by the modernization and optimization of the company.
Positive Outlook
- Company has right strategies to drive organic growth.
- Company can capture substantial growth through acquisitions and strategic investments.
- Modernization and optimization of the Company will amplify growth.
- Focus on sustainable long-term business drivers.
- Strong financial position with ample liquidity, well-managed working capital, and positive cash flows.
Challenges Ahead
- Disruption and uncertainty resulting from COVID-19.
- Operating fourteen independent businesses creates inefficiencies.
- Outdated enterprise resource planning (ERP) software creates inefficiencies.
- Continued investments to optimize and modernize operations impact results.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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