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Jun 30, 2024
Evi Industries Q4 2024 Earnings Report
Reported record gross margin and record operating cash flows.
Key Takeaways
EVI Industries reported flat revenue for fiscal 2024 compared to fiscal 2023, but achieved record gross profit, record gross margin, and record operating cash flow for the year. The company generated record operating cash flow during the fourth quarter and increased investments across key initiatives.
Generated a record $12 million in operating cash flow during the fourth quarter of fiscal 2024, a $4.8 million increase compared to the same period of the prior fiscal year.
Revenue growth rate for businesses the Company has owned for at least four years is 8.0%.
Net debt reduced to $8.3 million at June 30, 2024, a 71% decrease compared to June 30, 2023.
The Board of Directors declared a special cash dividend on the Company’s common stock of $0.31 per share, a 10% increase over the special cash dividend declared in October 2023.
Evi Industries
Evi Industries
Forward Guidance
The Company expects that investments in its sales team, service team and field service technologies will yield positive returns in the forthcoming periods. The Company believes technological capabilities will be a catalyst to achieving its long-term growth and profitability goals.
Positive Outlook
- Continued profitability
- Decline in working capital resulting from active inventory management.
- Strong financial position and access to capital provides a competitive advantage
- Investments in acquisitions, organic growth, working capital, and technological innovations
- Solid cash flows
Challenges Ahead
- Expenses incurred in connection with investments that adversely impacted the Company’s fiscal 2024 operating profits
- Costs and expenses associated with modernization initiatives has adversely impacted EVI’s financial performance in the near-term
- Supply chain delays and disruptions
- Inflationary trend impact on the Company’s costs and its ability to increase the price of its products and services to offset such costs
- Labor shortages and increases in the costs of labor