EVI Industries (EVI) 10-Q 12 Feb 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2015	Feb. 12, 2016
Document And Entity Information
Entity Registrant Name	EnviroStar, Inc.
Amendment Flag	false
Entity Central Index Key	65,312
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016
Entity Common Stock, Shares Outstanding		7,033,732

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Condensed Consolidated Statements of Operations [Abstract]
Net sales	$ 8,604,796	$ 6,758,533	$ 14,772,933	$ 15,803,038
Development fees, franchise and license fees, commission income and other revenue	21,105	166,612	90,168	205,801
Total revenues	8,625,901	6,925,145	14,863,101	16,008,839
Cost of sales, net of discounts	6,734,405	4,838,294	11,537,523	11,835,432
Selling, general and administrative expenses	1,283,693	1,310,071	2,465,981	2,653,628
Total operating expenses	8,018,098	6,148,365	14,003,504	14,489,060
Operating income	607,803	776,780	859,597	1,519,779
Interest income	681	1,115	1,310	2,172
Earnings before provision for income taxes	608,484	777,895	860,907	1,521,951
Provision for income taxes	229,311	293,483	324,702	573,578
Net earnings	$ 379,173	$ 484,412	$ 536,205	$ 948,373
Net earnings per share - basic and diluted	$ 0.05	$ 0.07	$ 0.08	$ 0.13
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 ($)	Dec. 31, 2015	Jun. 30, 2015
Current assets
Cash and cash equivalents	$ 4,595,858	$ 3,908,974
Accounts and trade notes receivable, net of allowance for doubtful accounts of $134,000, at both dates	1,235,491	1,924,517
Inventories, net	2,395,818	2,808,910
Refundable income tax	154,674	197,764
Deferred income taxes	104,203	109,261
Lease and mortgage receivables, net	14,423	15,277
Prepaid and other current assets	949,018	72,144
Total current assets	$ 9,449,485	9,036,847
Leases and mortgage receivables-due after one year		7,533
Equipment and improvements, net	$ 160,059	188,243
Franchise license, trademarks and other intangible assets, net	30,063	33,482
Deferred income taxes	5,113	16,667
Total assets	9,644,720	9,282,772
Current liabilities
Accounts payable and accrued expenses	1,232,652	1,403,583
Deferred income	10,956	20,464
Accrued employee expenses	337,705	623,671
Customer deposits	4,178,402	2,479,508
Total current liabilities	$ 5,759,715	$ 4,527,226
Commitments and contingencies
Shareholders' equity
Preferred stock, $1.00 par value; authorized shares - 200,000; none issued and outstanding
Common stock, $.025 par value; authorized shares - 15,000,000; 7,065,500 shares issued, including shares held in treasury	$ 176,638	$ 176,638
Additional paid-in capital	2,095,069	2,095,069
Retained earnings	1,617,236	2,487,777
Treasury stock, 31,768 shares at cost	(3,938)	(3,938)
Total shareholders' equity	3,885,005	4,755,546
Total liabilities and shareholders' equity	$ 9,644,720	$ 9,282,772

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2015	Jun. 30, 2014
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 134,000	$ 134,000
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	$ 0.025	$ 0.025
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	7,065,500	7,065,500
Treasury stock, shares	31,768	31,768

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net earnings	$ 536,205	$ 948,373
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation and amortization	33,166	29,578
(Recovery of) bad debt expense	(1,640)	5,255
Inventory reserve	8,365	3,409
Provision (benefit) for deferred income taxes	16,612	(15,414)
(Increase) decrease in operating assets
Accounts and trade notes receivables	690,666	201,891
Inventories	404,727	782,643
Refundable income taxes	43,090	39,993
Lease and mortgage receivables	8,387	6,420
Prepaid and other current assets	(876,874)	279,953
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses	(170,931)	(3,647,439)
Accrued employee expenses	(285,966)	$ (266,929)
Deferred income	(9,508)
Customer deposits	1,698,894	$ (752,268)
Net cash provided (used) by operating activities	2,095,193	(2,384,535)
Investing activities:
Capital expenditures	(1,563)	(52,500)
Net cash used by investing activities	(1,563)	(52,500)
Financing activities:
Dividends paid	(1,406,746)	(1,406,746)
Net cash used by financing activities	(1,406,746)	(1,406,746)
Net increase (decrease) in cash and cash equivalents	686,884	(3,843,781)
Cash and cash equivalents at beginning of period	3,908,974	9,224,340
Cash and cash equivalents at end of period	4,595,858	5,380,559
Supplemental information:
Cash paid during the period for income taxes	$ 265,000	$ 549,000

Basis of Presentation

Basis of Presentation	6 Months Ended
	Dec. 31, 2015
Basis of Presentation [Abstract]
Basis of Presentation	Note (1) – Basis of Presentation: 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, the unaudited condensed consolidated financial statements do not include certain information and footnotes required by GAAP for complete financial statements. However, in management's opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals and adjustments) which are necessary in order to present fairly the Company's results of operations, financial position and cash flows as of and for the periods presented. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year or any other future period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes, including the Summary of Significant Accounting Policies, included in the Company's Annual Report on Form 10-K for the year ended June 30, 2015. The June 30, 2015 balance sheet information contained herein was derived from the audited consolidated financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended June 30, 2015. The preparation of the unaudited 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. The estimates and assumptions made may not prove to be correct, and actual results could differ from the estimates.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share	Note (2) - Earnings Per Share: For the six months ended For the three months ended 2015 2014 2015 2014 Net earnings $ 536,205 $ 948,373 $ 379,173 $ 484,412 Weighted average shares outstanding 7,033,732 7,033,732 7,033,732 7,033,732 Basic and fully diluted earnings per $ .08 $ .13 $ .05 $ .07 no

Leases and Mortgage Receivables

Leases and Mortgage Receivables	6 Months Ended
	Dec. 31, 2015
Lease and Mortgage Receivables [Abstract]
Lease and Mortgage Receivables	Note (3) - Lease and Mortgage Receivables: 1,262 14,423 2,564 22,810

Revolving Credit Line

Revolving Credit Line	6 Months Ended
	Dec. 31, 2015
Revolving Credit Line [Abstract]
Revolving Credit Line	Note (4) - Revolving Credit Line: The Company has a revolving line of credit facility pursuant to which the Company may borrow up to $ 2,250,000 2.50 November 1, 2015 November 1, 2016 No

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
Income Taxes	Note ( 5 34 As of December 31, 2015 and June 30, 2015, the Company had deferred tax assets of $ 109,316 125,928 The Company follows 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 six months ended December 31, 2015, the Company's accounting for income taxes in accordance with this standard did not result in any adjustment to the Company's provision for income taxes. As of December 31, 2015, the Company was subject to potential federal and state tax examinations for the tax years 2012 through 2015.

Cash Dividends

Cash Dividends	6 Months Ended
	Dec. 31, 2015
Cash Dividends [Abstract]
Cash Dividends	Note (6) – Cash Dividends November 13, 2015 .20 1,406,746 December 18, 2015 December 4, 2015

Equity Incentive Plan

Equity Incentive Plan	6 Months Ended
	Dec. 31, 2015
Equity Incentive Plan [Abstract]
Equity Incentive Plan	Note (7) – Equity Incentive Plan: 1,500,000

Segment Information

Segment Information	6 Months Ended
	Dec. 31, 2015
Segment Information [Abstract]
Segment Information	Note (8) - Segment Information: two 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 Financial information for the Company's business segments is as follows: For the six months ended For the three months ended 2015 2014 2015 2014 (Unaudited) (Unaudited) Revenues: Commercial and industrial laundry and $ 14,850,856 $ 15,911,337 $ 8,621,279 $ 6,863,823 License and franchise operations 12,245 97,502 4,622 61,322 Total revenues $ 14,863,101 $ 16,008,839 $ 8,625,901 $ 6,925,145 Operating income (loss): Commercial and industrial laundry and $ 1,121,203 $ 1,695,672 $ 733,582 $ 838,554 License and franchise operations (12,202 ) 27,819 4,164 31,755 Corporate (249,404 ) (203,712 ) (129,943 ) (93,529 ) Total operating income $ 859,597 $ 1,519,779 $ 607,803 $ 776,780 As of December 31, 2015 As of June 30, (Unaudited) 2015 Identifiable assets: Commercial and industrial laundry and dry cleaning equipment and $ 9,126,720 $ 8,392,268 License and franchise operations 144,129 556,331 Corporate 373,871 334,173 Total assets $ 9,644,720 $ 9,282,772 The information provided for segment reporting is based on internal reports utilized by management. The presentation and allocation of assets and results of operations may not reflect the actual economic costs of the segments as standalone businesses. If a different basis of allocation were utilized, the relative contributions of the segments might differ but the relative trends in the segments' operating results would, in management's view, likely not be impacted.

Transactions with Related Parti

Transactions with Related Parties	6 Months Ended
	Dec. 31, 2015
Transactions with Related Parties [Abstract]
Transactions with Related Parties	Note (9) – Transactions with Related Parties: 27,000 November 1, 2014 three 10,275 10,580 10,900 66,600 64,700

Recently Issued Accounting Guid

Recently Issued Accounting Guidance	6 Months Ended
	Dec. 31, 2015
Recently Issued Accounting Guidance [Abstract]
Recently Issued Accounting Guidance	Note (10) – Recently Issued Accounting Guidance In December 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The amendments in ASU 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and In December 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The standard is effective for our annual period beginning July 1, 2017. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Management is evaluating the impact of applying this standard to its financial statements. Management believes the impact of other issued accounting 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.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation: 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, the unaudited condensed consolidated financial statements do not include certain information and footnotes required by GAAP for complete financial statements. However, in management's opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals and adjustments) which are necessary in order to present fairly the Company's results of operations, financial position and cash flows as of and for the periods presented. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year or any other future period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes, including the Summary of Significant Accounting Policies, included in the Company's Annual Report on Form 10-K for the year ended June 30, 2015. The June 30, 2015 balance sheet information contained herein was derived from the audited consolidated financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended June 30, 2015. The preparation of the unaudited 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. The estimates and assumptions made may not prove to be correct, and actual results could differ from the estimates.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share	For the six months ended For the three months ended 2015 2014 2015 2014 Net earnings $ 536,205 $ 948,373 $ 379,173 $ 484,412 Weighted average shares outstanding 7,033,732 7,033,732 7,033,732 7,033,732 Basic and fully diluted earnings per $ .08 $ .13 $ .05 $ .07

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Dec. 31, 2015
Segment Information [Abstract]
Segment Information	For the six months ended For the three months ended 2015 2014 2015 2014 (Unaudited) (Unaudited) Revenues: Commercial and industrial laundry and $ 14,850,856 $ 15,911,337 $ 8,621,279 $ 6,863,823 License and franchise operations 12,245 97,502 4,622 61,322 Total revenues $ 14,863,101 $ 16,008,839 $ 8,625,901 $ 6,925,145 Operating income (loss): Commercial and industrial laundry and $ 1,121,203 $ 1,695,672 $ 733,582 $ 838,554 License and franchise operations (12,202 ) 27,819 4,164 31,755 Corporate (249,404 ) (203,712 ) (129,943 ) (93,529 ) Total operating income $ 859,597 $ 1,519,779 $ 607,803 $ 776,780 As of December 31, 2015 As of June 30, (Unaudited) 2015 Identifiable assets: Commercial and industrial laundry and dry cleaning equipment and $ 9,126,720 $ 8,392,268 License and franchise operations 144,129 556,331 Corporate 373,871 334,173 Total assets $ 9,644,720 $ 9,282,772

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Earnings per share, basic and diluted:
Net earnings	$ 379,173	$ 484,412	$ 536,205	$ 948,373
Weighted average shares outstanding	7,033,732	7,033,732	7,033,732	7,033,732
Basic and fully diluted earnings per share	$ 0.05	$ 0.07	$ 0.08	$ 0.13
Options outstanding

Leases and Mortgages Receivable

Leases and Mortgages Receivable (Details) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Lease and Mortgage Receivables [Abstract]
Future lease payments, net of deferred interest	$ 14,423	$ 22,810
Deferred interest	$ 1,262	$ 2,564

Revolving Credit Line (Details)

Revolving Credit Line (Details)	6 Months Ended
	Dec. 31, 2015USD ($)
Revolving Credit Line [Line Items]
Expiration date	Nov. 1, 2016
Revolving line of credit facility, amount outstanding
Revolving line of credit facility, maximum borrowing capacity	$ 2,250,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	6 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Income Taxes [Abstract]
Deferred tax assets	$ 109,316	$ 125,928
Federal statutory tax rate	34.00%

Cash Dividends (Details)

Cash Dividends (Details) - USD ($)	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Dividends [Abstract]
Dividend amount per share	$ 0.20
Dividends, date declared	Nov. 13, 2015
Dividends, date of record	Dec. 4, 2015
Dividends, date paid	Dec. 18, 2015
Dividends paid	$ 1,406,746	$ 1,406,746

Equity Incentive Plan (Details)

Equity Incentive Plan (Details)	Dec. 31, 2015shares
2015 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under the plan	1,500,000

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Financial information for the Company's business segments:
Revenues:	$ 8,625,901	$ 6,925,145	$ 14,863,101	$ 16,008,839
Operating income (loss):	607,803	776,780	859,597	1,519,779
Identifiable assets:	9,644,720		9,644,720		$ 9,282,772
Commercial and industrial laundry, dry cleaning equipment and boilers
Financial information for the Company's business segments:
Revenues:	8,621,279	6,863,823	14,850,856	15,911,337
Operating income (loss):	733,582	838,554	1,121,203	1,695,672
Identifiable assets:	9,126,720		9,126,720		8,392,268
License and franchise operations
Financial information for the Company's business segments:
Revenues:	4,622	61,322	12,245	97,502
Operating income (loss):	4,164	31,755	(12,202)	27,819
Identifiable assets:	144,129		144,129		556,331
Corporate
Financial information for the Company's business segments:
Operating income (loss):	(129,943)	$ (93,529)	(249,404)	$ (203,712)
Identifiable assets:	$ 373,871		$ 373,871		$ 334,173

Transactions with Related Par26

Transactions with Related Parties (Details) - Michael S. Steiner, Executive Vice President and Chief Operating Officer [Member]	6 Months Ended
	Dec. 31, 2015USD ($)ft²	Dec. 31, 2014USD ($)
Related Party Transaction [Line Items]
Lease area | ft²	27,000
Lease term	3 years
Lease effective date	Nov. 1, 2014
Payment under the lease	$ 66,600	$ 64,700
Rental payment, first year	10,275
Rental payment, second year	10,580
Rental payment, third year	$ 10,900