Envirostar Inc. (EVI)

[Goat_1]

EVI Industries Sets Records for Fourth Quarter and Fiscal Year 2019

EVI Industries, Inc. (NYSE American: EVI) announced today record results for the fiscal year and three-months ended June 30, 2019. The record results for both the fiscal year and three-months ended June 30, 2019, reflect the Company’s consistent execution of its buy-and-build growth strategy.

Earnings Conference Call

The Company has provided a pre-recorded earnings conference call and business update in the “Investors” section of the Company’s website at www.evi-ind.com or by clicking here https://ir.evi-ind.com/message-from-the-ceo.

Financial Performance

(compared to the same period of the prior fiscal year)

Fourth Quarter Results

Revenue increased 47% to a record $65 million,
Gross profit increased 43% to a record $16 million,
Operating income increased 27% to a record $2.4 million,
Net income increased 61% to $1.2 million, and
Adjusted EBITDA increased 30% to a record $3.7 million.
Fiscal Year 2019 Results

Revenue increased 52% to a record $228 million,
Gross profit increased 44% to a record $53 million,
Operating income was $7.0 million compared to $6.9 million,
Net income was $3.7 million compared to 3.9 million, and
Adjusted EBITDA increased 14% to a record $11.5 million.
Highlights to Financial Performance

EVI’s record results for the fourth quarter and fiscal year 2019 reflect the Company’s consistent execution of its buy-and-build growth strategy. The record performance, however, only includes twelve months of results of six of the Company’s thirteen businesses. The Company continues to seek attractive investments across its businesses in the pursuit of future growth and does not believe that it has begun to reap the full benefits of its growing size.

Acquisitions

During the fiscal year 2019, EVI completed a record six acquisitions and continues to execute its long-term growth strategy.

Revenue

For the fiscal year and three-months ended June 30, 2019, revenues increased $78.3 million, or 52%, to a record $228 million and increased $20.9 million, or 47%, to a record $65 million, compared to the fiscal year and three months ended June 30, 2018, respectively. The increase in revenue was primarily due to the results of operations of acquired businesses that were not consolidated into the Company’s financial statements for all or part of the prior periods.

Gross Profit and Gross Margin

For the fiscal year and three-months ended June 30, 2019, gross profit increased $16.2 million, or 44%, to a record $53 million and increased $4.8 million, or 43%, to a record $16 million, compared to the fiscal year and three months ended June 30, 2018, respectively. For the fiscal year and three-months ended June 30, 2019, gross margin decreased from 24.3% to 23.1% and from 25.3% to 24.5%, compared to the fiscal year and three months ended June 30, 2018, respectively. The decrease in gross margin was primarily due to EVI’s increased engagement in longer-term federal government contracts. Excluding these longer-term federal government contracts, gross margins for the fiscal year and three months ended June 30, 2019 would have been 25.2% and 24.8%, respectively.

Operating Expenses

Operating expenses increased $16.1 million, or 55%, and $4.3 million, or 46%, for the fiscal year and three-months ended June 30, 2019, compared to the fiscal year and three months ended June 30, 2018, respectively. The increase in operating expenses was largely attributable to expenses incurred by the Company in connection with its growth strategy, including: (1) additional operating expenses associated with acquired businesses not reflected in prior fiscal year or period operating expenses, (2) additional operating expenses at the acquired businesses in pursuit of future growth and in support of the Company’s growing operations, (3) increases in operating expenses in connection with the Company’s growth, including greater accounting fees, legal fees, and insurance costs, (4) the addition of sales, service, and operations support professionals and related costs, as total personnel at June 30, 2019 increased by 71% compared to total personnel at June 30, 2018, with 76% of such increase attributable to sales and service related personnel, (5) increased investments in sales, service, and operations related technologies in support of the Company’s buy-and-build growth strategy, and (6) an increase in non-cash amortization expense related to the intangible assets the Company acquired in connection with its acquisitions and an increase in non-cash share-based compensation. EVI believes these investments, initiatives and expenses will have a positive impact on the Company’s ability to achieve its long-term growth goals.

Henry M. Nahmad, Chairman and CEO commented: “We are pleased with the execution of our growth strategy. The records we continue to set have created a reputation for our Company that we believe will continue to encourage successful business owners, loyal suppliers, and valued customers to invest in and do business with EVI. We intend to continue to execute our growth strategy and build upon our growth record by pursuing available opportunities for growth in our and related industries.”

EVI to Attend Baird’s 2019 Industrials Conference on November 5-7, 2019

The Company will attend and host one-on-one meetings with investors during the conference dates.................

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