EVI Industries (EVI) 10-Q 15 May 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Mar. 31, 2015	Feb. 13, 2015
Document And Entity Information
Entity Registrant Name	EnviroStar, Inc.
Amendment Flag	FALSE
Entity Central Index Key	65312
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	31-Mar-15
Current Fiscal Year End Date	-24
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015
Entity Common Stock, Shares Outstanding		7,033,732

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Condensed Consolidated Statements of Operations [Abstract]
Net sales	$6,799,609	$6,489,625	$22,602,647	$24,554,425
Development fees, franchise and license fees, commission income and other revenue	189,859	59,868	395,660	323,711
Total revenues	6,989,468	6,549,493	22,998,307	24,878,136
Cost of sales, net	5,113,066	4,912,869	16,948,498	19,066,438
Selling, general and administrative expenses	1,184,791	1,132,287	3,838,419	3,859,162
Total operating expenses	6,297,857	6,045,156	20,786,917	22,925,600
Operating income	691,611	504,337	2,211,390	1,952,536
Interest income	1,251	1,581	3,423	4,872
Earnings before provision for income taxes	692,862	505,918	2,214,813	1,957,408
Provision for income taxes	260,901	191,241	834,479	739,654
Net earnings	$431,961	$314,677	$1,380,334	$1,217,754
Net earnings per share - basic and diluted	$0.06	$0.04	$0.20	$0.17
Weighted average number of basic and diluted common shares outstanding	7,033,732	7,033,732	7,033,732	7,033,732

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Jun. 30, 2014
Current assets
Cash and cash equivalents	$4,073,013	$9,224,340
Accounts and trade notes receivable, net of allowance for doubtful accounts of $134,000 and $140,000, respectively	2,230,694	923,788
Inventories, net	2,338,767	2,836,220
Refundable income taxes	87,550	62,880
Deferred income taxes	101,014	100,777
Leases and mortgages receivable, net	14,076	12,494
Other current assets	90,553	414,079
Total current assets	8,935,667	13,574,578
Leases and mortgages receivable-due after one year	11,059	14,033
Equipment and improvements, net	201,088	181,629
Franchise license, trademarks and other intangible assets, net	34,777	40,880
Deferred income taxes	16,580	6,967
Total assets	9,199,171	13,818,087
Current liabilities
Accounts payable and accrued expenses	1,496,213	4,750,266
Accrued employee expenses	516,331	906,381
Customer deposits	2,722,564	3,670,965
Total current liabilities	4,735,108	9,327,612
Total liabilities	4,735,108	9,327,612
Shareholders' equity
Preferred stock, $1.00 par value: authorized shares - 200,000; none issued and outstanding
Common stock, $0.025 par value: authorized shares - 15,000,000; 7,065,500, shares issued and outstanding, including shares held in treasury	176,638	176,638
Additional paid-in capital	2,095,069	2,095,069
Retained earnings	2,196,294	2,222,706
Treasury stock, 31,768 shares, at cost	-3,938	-3,938
Total shareholders' equity	4,464,063	4,490,475
Total liabilities and shareholders' equity	$9,199,171	$13,818,087

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$134,000	$140,000
Preferred stock, par value	$1	$1
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.03	$0.03
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	7,065,500	7,065,500
Common stock, shares outstanding	7,065,500	7,065,500
Treasury stock, shares	31,768	31,768

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities:
Net earnings	$1,380,334	$1,217,754
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation and amortization	44,666	42,908
Bad debt expense	7,907	4,069
Inventory reserve	3,409	-4,276
Provision for deferred income taxes	-9,850	5,632
(Increase) decrease in operating assets
Accounts and trade notes receivables	-1,314,813	935,769
Inventories	494,044	-230,991
Refundable income taxes	-24,670	-127,923
Lease and mortgage receivables	1,392	46,754
Other current assets	323,525	186,265
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses	-3,254,053	50,702
Accrued employee expenses	-390,050	-667,945
Income taxes payable		-166,250
Deferred income		-16,782
Customer deposits	-948,401	545,496
Net cash (used) provided by operating activities	-3,686,560	1,821,182
Investing activities:
Capital expenditures	-58,021	-17,997
Net cash used by investing activities	-58,021	-17,997
Financing activities:
Dividends paid	-1,406,746	-2,813,493
Net cash used by financing activities	-1,406,746	-2,813,493
Net (decrease) in cash and cash equivalents	-5,151,327	-1,010,308
Cash and cash equivalents at beginning of period	9,224,340	5,944,260
Cash and cash equivalents at end of period	4,073,013	4,933,952
Supplemental disclosure of cash flow information:
Cash paid during the period for: Income taxes	$869,000	$949,000

General

General	9 Months Ended
	Mar. 31, 2015
General [Abstract]
General	Note (1) - General: The accompanying unaudited condensed consolidated financial statements include the accounts of EnviroStar, Inc. and its subsidiaries (the “Company”). All material intercompany balances and transactions have been eliminated in consolidation.
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Article 10 of Regulation S-X related to interim period financial statements. Accordingly, these condensed consolidated financial statements do not include certain information and footnotes required by GAAP for complete financial statements. However, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary in order to make the financial statements not misleading. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The condensed consolidated financial statements should be read in conjunction with the Summary of Significant Accounting Policies and other footnotes included in the Company's Annual Report on Form 10-K for the year ended June 30, 2014. The June 30, 2014 balance sheet information contained herein was derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K as of that date.
	The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Earnings_Per_Share

Earnings Per Share	9 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share	Note (2) - Earnings Per Share: Basic earnings per share for the nine and three months ended March 31, 2015 and 2014 are computed as follows:
		For the nine months ended				For the three months ended
		March 31,				March 31,
		2015		2014		2015		2014
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
	Net earnings	$	1,380,334	$	1,217,754	$	431,961	$	314,677
	Weighted average shares outstanding		7,033,732		7,033,732		7,033,732		7,033,732
	Basic and fully diluted earnings per share	$	0.2	$	0.17	$	0.06	$	0.04
	At March 31, 2015 and 2014, the Company had no outstanding options to purchase shares of the Company's common stock or other dilutive securities.

Leases_and_Mortgage_Receivable

Leases and Mortgage Receivables	9 Months Ended
	Mar. 31, 2015
Lease and Mortgage Receivables [Abstract]
Lease and Mortgage Receivables	Note (3) - Lease and Mortgage Receivables: Lease and mortgage receivables result from customer leases of equipment under arrangements which qualify as sales type leases. At March 31, 2015, future lease payments, net of deferred interest ($3,441 at March 31, 2015), due under these leases were $25,135. At June 30 2014, future lease payments, net of deferred interest ($4,952 at June 30, 2014), due under these leases were $26,527.

Revolving_Credit_Line

Revolving Credit Line	9 Months Ended
	Mar. 31, 2015
Revolving Credit Line [Abstract]
Revolving Credit Line	Note (4) - Revolving Credit Line: Effective November 1, 2014, the Company's existing $2,250,000 revolving line of credit facility was extended to November 1, 2015. The Company's obligations under the credit facility are guaranteed by the Company's subsidiaries and collateralized by substantially all of the Company's assets. No amounts were outstanding under this facility at March 31, 2015 or June 30, 2014, nor were there any amounts outstanding at any time during fiscal 2014 or the first nine months of fiscal 2015. The loan agreement requires maintenance of certain debt service coverage and leverage ratios and contained other restrictive covenants, including limitations on the extent to which the Company and its subsidiaries could incur additional indebtedness, change of control, pay dividends, guarantee indebtedness of others, grant liens, sell assets and make investments. The Company was in compliance or received a waiver of these covenants at March 31, 2015 and June 30, 2014.

Income_Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2015
Income Taxes [Abstract]
Income Taxes	Note (5) - Income Taxes: Income tax expense varies from the federal corporate income tax rate of 34%, primarily due to state income taxes, net of federal income tax effect, and permanent differences.
	As of March 31, 2015 and June 30, 2014, the Company had deferred tax assets of $117,594 and $107,744, respectively. Consistent with the guidance of the Financial Accounting Standards Board (“FASB”) regarding accounting for income taxes, the Company regularly estimates its ability to recover deferred tax assets and establishes a valuation allowance against deferred tax assets to reduce the balance to amounts expected to be recoverable. This evaluation considers several factors, including an estimate of the likelihood of generating sufficient taxable income in future periods over which temporary differences reverse, the expected reversal of deferred tax liabilities, past and projected taxable income and available tax planning strategies. As of March 31, 2015 and June 30, 2014, management believes that it is more-likely-than not that the results of future operations will generate sufficient taxable income to realize the net amount of the Company's deferred tax assets over the periods during which temporary differences reverse.
	The Company follows FASB Accounting Standards Codification (“ASC”) Topic 740-10-25, “Accounting for Uncertainty in Income Taxes” (“ASC 740”). ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. During the nine and three months ended March 31, 2015, this standard did not result in any adjustment to the Company's provision for income taxes.
	As of March 31, 2015, the Company was subject to potential Federal and State tax examinations for the tax years 2011 through 2014.

Cash_Dividends

Cash Dividends	9 Months Ended
	Mar. 31, 2015
Cash Dividends [Abstract]
Cash Dividends	Note (6) – Cash Dividends: On November 14, 2014, the Company's Board of Directors declared a $.20 per share cash dividend (an aggregate of $1,406,746), which was paid on December 19, 2014 to shareholders of record at the close of business on December 5, 2014.

Segment_Information

Segment Information	9 Months Ended
	Mar. 31, 2015
Segment Information [Abstract]
Segment Information	Note (7) - Segment Information: The Company's reportable segments are strategic businesses that offer different products and services. They are managed separately because each business requires different marketing strategies. The Company primarily evaluates the operating performance of its segments based on the categories noted in the table below. The Company has no sales between segments. Financial information for the Company's business segments is as follows:
		For the nine months ended						For the three months ended
		March 31,						March 31,
		2015			2014			2015			2014
		(Unaudited)						(Unaudited)
	Revenues:
	Commercial and industrial laundry and dry cleaning equipment and boilers	$	22,870,646		$	24,674,874		$	6,959,309		$	6,493,607
	License and franchise operations		127,661			203,262			30,159			55,886
	Total revenues	$	22,998,307		$	24,878,136		$	6,989,468		$	6,549,493
	Operating income (loss):
	Commercial and industrial laundry and dry cleaning equipment and boilers	$	2,502,274		$	2,149,139		$	806,602		$	580,237
	License and franchise operations		31,621			83,984			3,802			11,376
	Corporate		(322,505	)		(280,587	)		(118,793	)		(87,276	)
	Total operating income	$	2,211,390		$	1,952,536		$	691,611		$	504,337
		March 31, 2015			30-Jun-14
		(Unaudited)			(Audited)
	Identifiable assets:
	Commercial and industrial laundry and dry cleaning equipment and boilers	$	8,846,026		$	13,067,091
	License and franchise operations		142,520			576,891
	Corporate		210,625			174,105
	Total assets	$	9,199,171		$	13,818,087

Recently_Issued_Accounting_Gui

Recently Issued Accounting Guidance	9 Months Ended
	Mar. 31, 2015
Recently Issued Accounting Guidance [Abstract]
Recently Issued Accounting Guidance	Note (8) – Recently Issued Accounting Guidance: In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. We do not expect this standard to have a material effect on our financial statements.
	Management believes the impact of other issued standards and updates, which are not yet effective, will not have a material impact on the Company's consolidated financial position, results of operations or cash flows upon adoption.

Subsequent_Events

Subsequent Events	9 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Note (9) – Subsequent Events: The Company received a waiver of an event of default under its existing revolving line of credit agreement resulting from the change in control of the Company that occurred on March 9, 2015.

General_Policies

General (Policies)	9 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
General	General: The accompanying unaudited condensed consolidated financial statements include the accounts of EnviroStar, Inc. and its subsidiaries (the “Company”). All material intercompany balances and transactions have been eliminated in consolidation.
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Article 10 of Regulation S-X related to interim period financial statements. Accordingly, these condensed consolidated financial statements do not include certain information and footnotes required by GAAP for complete financial statements. However, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary in order to make the financial statements not misleading. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The condensed consolidated financial statements should be read in conjunction with the Summary of Significant Accounting Policies and other footnotes included in the Company's Annual Report on Form 10-K for the year ended June 30, 2014. The June 30, 2014 balance sheet information contained herein was derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K as of that date.
	The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	9 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share
		For the nine months ended				For the three months ended
		March 31,				March 31,
		2015		2014		2015		2014
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
	Net earnings	$	1,380,334	$	1,217,754	$	431,961	$	314,677
	Weighted average shares outstanding		7,033,732		7,033,732		7,033,732		7,033,732
	Basic and fully diluted earnings per share	$	0.2	$	0.17	$	0.06	$	0.04

Segment_Information_Tables

Segment Information (Tables)	9 Months Ended
	Mar. 31, 2015
Segment Information [Abstract]
Segment Information
		For the nine months ended						For the three months ended
		March 31,						March 31,
		2015			2014			2015			2014
		(Unaudited)						(Unaudited)
	Revenues:
	Commercial and industrial laundry and dry cleaning equipment and boilers	$	22,870,646		$	24,674,874		$	6,959,309		$	6,493,607
	License and franchise operations		127,661			203,262			30,159			55,886
	Total revenues	$	22,998,307		$	24,878,136		$	6,989,468		$	6,549,493
	Operating income (loss):
	Commercial and industrial laundry and dry cleaning equipment and boilers	$	2,502,274		$	2,149,139		$	806,602		$	580,237
	License and franchise operations		31,621			83,984			3,802			11,376
	Corporate		(322,505	)		(280,587	)		(118,793	)		(87,276	)
	Total operating income	$	2,211,390		$	1,952,536		$	691,611		$	504,337
		31-Mar-15			30-Jun-14
		(Unaudited)			(Audited)
	Identifiable assets:
	Commercial and industrial laundry and dry cleaning equipment and boilers	$	8,846,026		$	13,067,091
	License and franchise operations		142,520			576,891
	Corporate		210,625			174,105
	Total assets	$	9,199,171		$	13,818,087

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Earnings per share, basic and diluted:
Net earnings	$431,961	$314,677	$1,380,334	$1,217,754
Weighted average shares outstanding	7,033,732	7,033,732	7,033,732	7,033,732
Basic and fully diluted earnings per share	$0.06	$0.04	$0.20	$0.17
Options outstanding

Leases_and_Mortgages_Receivabl

Leases and Mortgages Receivable (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Lease and Mortgage Receivables [Abstract]
Future lease payments, net of deferred interest	$25,135	$26,527
Deferred interest	$3,441	$4,952

Revolving_Credit_Line_Details

Revolving Credit Line (Details) (USD $)	9 Months Ended	12 Months Ended
	Mar. 31, 2015	Jun. 30, 2014
Revolving Credit Line [Abstract]
Expiration date	1-Nov-15
Revolving line of credit facility, maximum borrowing capacity	$2,250,000
Revolving line of credit facility, amount outstanding

Income_Taxes_Details

Income Taxes (Details) (USD $)	9 Months Ended
	Mar. 31, 2015	Jun. 30, 2014
Income Taxes [Abstract]
Deferred tax assets	$117,594	$107,744
Federal statutory tax rate	34.00%

Cash_Dividends_Details

Cash Dividends (Details) (Dividend Paid [Member], USD $)	9 Months Ended
	Mar. 31, 2015
Dividend Paid [Member]
Dividends Payable [Line Items]
Dividends, date declared	14-Nov-14
Dividends, date of record	5-Dec-14
Dividends, date paid	19-Dec-14
Dividend amount per share	$0.20
Dividend aggregate amount	$1,406,746

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2014
Financial information for the Company's business segments:
Revenues:	$6,989,468	$6,549,493	$22,998,307	$24,878,136
Operating income (loss):	691,611	504,337	2,211,390	1,952,536
Identifiable assets:	9,199,171		9,199,171		13,818,087
Commercial and industrial laundry, dry cleaning equipment and boilers
Financial information for the Company's business segments:
Revenues:	6,959,309	6,493,607	22,870,646	24,674,874
Operating income (loss):	806,602	580,237	2,502,274	2,149,139
Identifiable assets:	8,846,026		8,846,026		13,067,091
License and franchise operations
Financial information for the Company's business segments:
Revenues:	30,159	55,886	127,661	203,262
Operating income (loss):	3,802	11,376	31,621	83,984
Identifiable assets:	142,520		142,520		576,891
Corporate
Financial information for the Company's business segments:
Operating income (loss):	-118,793	-87,276	-322,505	-280,587
Identifiable assets:	$210,625		$210,625		$174,105