EVI Industries Files Q3 2024 10-Q Report

TL;DR

EVI Industries filed its 10-Q for Q3 2024. Check financials.

AI Summary

EVI Industries, Inc. filed its 10-Q report for the quarterly period ended September 30, 2024. The company, formerly known as EnviroStar, Inc., is incorporated in Delaware and headquartered in Miami, Florida. This filing covers its financial performance and operational status during the specified period.

Why It Matters

This report provides investors and stakeholders with an update on EVI Industries' financial health and operational progress for the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Players & Entities

• EVI Industries, Inc. (company) — Registrant
• September 30, 2024 (date) — Quarterly period end date
• 001-14757 (other) — Commission file number
• EnviroStar, Inc. (company) — Former company name
• Miami, FL (location) — Principal executive offices location

FAQ

Filing Documents

• evi-20240930.htm (10-Q) — 431KB
• ex31-01.htm (EX-31.01) — 9KB
• ex31-02.htm (EX-31.02) — 9KB
• ex32-01.htm (EX-32.01) — 4KB
• ex32-02.htm (EX-32.02) — 4KB
• 0001174947-24-001248.txt ( ) — 3354KB
• evi-20240930.xsd (EX-101.SCH) — 31KB
• evi-20240930_cal.xml (EX-101.CAL) — 45KB
• evi-20240930_def.xml (EX-101.DEF) — 158KB
• evi-20240930_lab.xml (EX-101.LAB) — 316KB
• evi-20240930_pre.xml (EX-101.PRE) — 169KB
• evi-20240930_htm.xml (XML) — 255KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Statements of Operations (Unaudited) for the three months ended September 30, 2024 and 2023 3 Condensed Consolidated Balance Sheets at September 30, 2024 (Unaudited) and June 30, 2024 4 Condensed Consolidated Statements of Shareholders' Equity (Unaudited) for the three months ended September 30, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended September 30, 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 27

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 28 Item 1A.

Risk Factors

Risk Factors 28 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 5. Other Information 29 Item 6. Exhibits 30

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. EVI Industries, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) For the three months ended September 30, 2024 2023 Revenues $ 93,625 $ 88,074 Cost of sales 64,770 62,382 Gross profit 28,855 25,692 Selling, general and administrative expenses 23,866 23,075 Operating income 4,989 2,617 Interest expense, net 482 770 Income before income taxes 4,507 1,847 Provision for income taxes 1,276 565 Net income $ 3,231 $ 1,282 Net earnings per share – basic $ 0.22 $ 0.09 Net earnings per share – diluted $ 0.21 $ 0.09 See Notes to Condensed Consolidated Financial Statements 3 EVI Industries, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except as otherwise noted) ASSETS September 30, 2024 (Unaudited) June 30, 2024 Current assets Cash $ 4,373 $ 4,558 Accounts receivable, net of allowance for expected credit losses of $ 2.0 million and $ 2.1 million, respectively 45,446 40,932 Inventories, net 50,860 47,901 Vendor deposits 2,148 1,657 Contract assets 362 1,222 Other current assets 9,152 5,671 Total current assets 112,341 101,941 Equipment and improvements, net 14,582 13,950 Operating lease assets 8,622 8,078 Intangible assets, net 22,943 22,022 Goodwill 77,597 75,102 Other assets 9,443 9,566 Total assets $ 245,528 $ 230,659 See Notes to Condensed Consolidated Financial Statements 4 EVI Industries, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except share and per share data) LIABILITIES AND SHAREHOLDERS' EQUITY September 30, 2024 (Unaudited) June 30, 2024 Current liabilities Accounts payable and accrued expenses $ 39,946 $ 30,904 Accrued employee expenses 11,504 11,370 Customer deposits 22,828 24,419 Contract liabilities 223 — Current portion of operating lease liabilities 3,3

financial statements upon adoption, other than as described above

financial statements upon adoption, other than as described above. Note (4) – Acquisitions: On July 1, 2024, the Company completed the acquisition of Laundry Pro of Florida, Inc. ("LPF"), a Florida based distributor of commercial laundry products and a provider of related technical installation and maintenance services to the on-premise and vended laundry segments of the commercial laundry industry. The consideration paid by the Company in connection with the acquisition consisted of $ 5.9 million in cash. The Company funded the acquisition with borrowings under its credit facility. Fees and expenses related to the acquisition of LPF, consisting primarily of legal and other professional fees, were not material and are classified as selling, general and administrative expenses in the Company's consolidated The acquisition was treated for accounting purposes as a purchase of LPF using the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), pursuant to which the consideration paid by the Company was allocated to the acquired assets and assumed liabilities, in each case, based on their respective fair values as of the closing date, with the excess of the consideration transferred over the fair value of the net assets acquired being allocated to goodwill. The computation of the purchase price consideration and the preliminary allocation of the consideration to the net assets acquired are presented in the following table (in thousands): 10 EVI Industries, Inc. and Subsidiaries NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (Unaudited) Allocation of purchase price consideration: Inventories $ 1,672 Other assets 145 Equipment and improvements 380 Intangible assets 1,470 Accounts payable and accrued expenses ( 16 ) Customer deposits ( 156 ) Total identifiable net assets 3,4

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View this 10-Q filing on SEC EDGAR