Q3 2024 EVI Industries Inc Earnings Call (Pre-recorded) Transcript
Key Points
- EVI Industries Inc has successfully established itself as a leader in the North American commercial laundry distribution and service industry, growing from a single business to 26 businesses with 750 employees.
- The company has demonstrated a strong compounded annual growth rate in revenue, net income, and adjusted EBITDA of 34%, 16%, and 31% respectively since 2016.
- EVI Industries Inc reported a record $263 million in revenue for the nine-month period, indicating a 1% increase compared to the previous year.
- The company has a robust technology strategy in place, which includes multiple programs aimed at strengthening its leadership position and accelerating growth.
- EVI Industries Inc has maintained strong financial health with a record operating cash flow of $20.3 million for the nine-month period and a significant decrease in net debt.
- EVI Industries Inc experienced an 11% decrease in revenue during the third quarter compared to the same period of the previous fiscal year, primarily due to irregular industrial revenue and delays in large customer sales contracts.
- The investments in new sales and service personnel, while part of a long-term strategy, have resulted in increased costs that have adversely impacted operating results in the current period.
- The company's modernization initiatives, including technology investments, have also contributed to increased expenses that negatively affect financial performance in the near term.
- Revenue fluctuations and the complexity of large industrial projects introduce challenges in maintaining consistent revenue streams.
- Despite the overall increase in revenue for the nine-month period, the third quarter's performance shows vulnerability to external factors and project delays.
Hello, and welcome to EVI Industries earnings call for the third quarter of the fiscal year ending June 30, 2024 (sic - "March 31, 2024") This is Henry Nahmad, Chairman and CEO of EVI.
Before we proceed, we'd like to disclose our cautionary statement. This earnings call contains forward-looking statements as defined by SEC laws and regulations. Forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our earnings press release issued today and in our SEC filings.
This call also includes a discussion of adjusted EBITDA, which is a non-GAAP financial measure that the company believes is useful in evaluating performance. Please refer to our earnings press release issued today for additional information, on adjusted EBITDA, including how we define adjusted EBITDA, and a reconciliation of adjusted EBITDA to net income, the most comparable GAAP financial measure.
Today, I will summarize our operating results for the third quarter of fiscal '24,
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