Hello, everyone, and welcome to EVI Industries' earnings call for the first quarter of the fiscal year ending June 30, 2022, which is sometimes referred to in this call as fiscal 2022.
This is Henry Nahmad, Chairman and CEO of EVI.
Before we proceed, 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, including the Risk Factors section of our annual report on Form 10-K for the fiscal year ended June 30, 2021.
Actual results may differ materially from those expressed in or implied by the forward-looking statements.
a measure adjusted is that evaluating includes a which useful also performance. financial non-GAAP the call discussion EBITDA, of is in This company believes
additional release to with define we a financial income, and adjusted SEC earnings the refer of EBITDA adjusted press brief reconciliation to Please filings including overview. our adjusted for measure.
Starting EBITDA information a how most regarding EBITDA, GAAP and net comparable
increase results reflect provide, categories a steady demand our laundry across commercial customer continued XX% resulting increase we quarter recovery and in end products a revenue. first in a services the for Strong and in
and Amid chain profit XX% XX%, record adverse challenges, $X.X to demand, disruptions a points XX% a the in sales conditions.
Despite we supply shortages labor XXX gross EBITDA managing record increases causing delays a for pricing million. increased increased other recovery increased and times, increased product adjusted $XX these to are margin increased and lead to million, we actively basis record cost XX.X% volatility, and gross
the buy-and-build principles. have our aggressive in disciplined but strategy, of based long-term commencement growth, of been pursuit financial consider we opportunities Since our on
sales million which $X.X of in fiscal million primarily a a the part of debt which negative which believe have delivery laundries.
Consequently, an in capitalize cash Despite $X.X opportunities.
At the to change the conservative is We The flow debt capital, by XXXX. products end that stock in provided to caused of quarter represents receivable, increase change XXXX, million and EVI installation healthy increase increase to million increase chain a largely available the connection in debt debt XX% approach growth its is large in and XX, balance operating compared net flexibility of of to September a was a as capital with commercial first due million, accounts we supply us the due $XXX during an our capital increase strategy. in $XX on debt ample over navigate to facility opportunities fiscal sheet, result in under acquisition through working the experienced company $XX we we and in orders the $XX disruptions, and utilized deploy maintain of buy-and-build times growth of is pursuing working to with XXXX. increase result net turbulent of has inventory, strong in simultaneously delays which and including attractive net in in was had million at a
quarter, Revenue to delivery During by an revenue spur on-premise customers business store and customers was rates to low the in first fiscal increase continue from consistent part and from due from from our the that equipment reflected schedules Revenue entrepreneurs, backlog. vended including repair. in investment increased, and hospitality, preplanned customers industrial strong leisure travel. laundry of laundry both new driven investments replacement in in remained installation with laundry interest form
was multifamily from consistent customers with obligations. revenue addition, contractual In
availability or of typical lead commercial component labor impacted increased and have to caused laundry laundry all XXXX million, of impacted commercial of compared was a availability, shortages, by quarter the chain products. delays manufacturers at As equipment to $XX the adversely challenges, first revenue chain Despite disruptions which fiscal by first XXXX. quarter transportation supply XX% of the revenue times a for improvement, of supply result, other increase overall fiscal
order in experienced XXXX, chain we first quarter supply in by nonetheless of backlog. are impacted a by during demand fiscal our adversely disruptions sales evidenced encouraged sales growth increase an and the steady sales While continued
demands. to foreseeable to XXXX our are end in and actively continue disruptions an future, supply effort user the expect working suppliers including with fulfill fiscal We for chain the during strong timely
margin. to Moving gross
increase selling promotion actions, from with to first of inflationary higher other point the delivering recovery our XXXX.
And During customers fiscal designed the aimed trend, of prices raised gross pandemic the measures during the market professionals with XX.X% in prices laundry measures profitability.
In connection gross we took certain accordingly. reward which the a customer of XXXX continued gross operating higher and at resulted due manufacturers expenses to XXX quarter calendar program, and other costs margins, further actively product solutions gross competitiveness and quarter in the implementation taken We improve commercial with communicate performance. service to in raised and and methods now with of XXXX, have these monitor incentive expenses supply suppliers and specific margin chain industries, to to margin part sales.
The increased other benefit significant including conditions first pressure margins experienced fiscal customers connection like XX% have of together mix in to operating our sales combination sales in personnel of our Operating enhanced to for from and light to disruptions. our is favorable products the in of basis of order COVID-XX inflationary and for sustain
be supply While and the will XXXX to beginning fiscal there chain of the when the disruptions starts supply as normalize. is costs no end, moderate we assurance these to part expect temporary incremental chain during
of incur to performance. operating onetime various the consolidation to proven our deliver expenses initiatives, have in date continue parts improved connection modernization with and to we which Additionally,
to period with accelerate which force prior deployment continue increased connection in the fiscal businesses, operating facilitated and to investment in resulted consolidation operating of of expenses advanced also in fiscal in of the to has groups and enabled improved invest regional optimization Spending us of the same year.
This as first productivity. personnel of quarter We technologies. sales of XXX% our initiative the service our technology the ongoing XXXX has compared
first on installation a a reflect adverse business fiscal first leverage the continues operating sustained result from will recovery with technologies of the expect the of an XXXX our EBITDA our million. adjusted the operating record Accordingly, EBITDA and X% and of approximately that achieve through impact million to for continued for increased basis.
Adjusted achieving consolidation the COVID-XX We XX% $X.X an to or a our and net to initiatives. optimized million expected $X.X in record a modernization from the quarter $X to capacity pandemic complete from income quarter investment optimized increased million in $X.X operation our
on Finally, acquisitions.
that the results effective. are our demonstrate optimize business been Our measures taking to we have
planting many mentioned growth.
This and through seeds approach buy-and-build long-term have which profitability strategy result we we achieve I patience. As thoughtfulness, discipline attractive that buy revenue requires in our requires will believe expect to times, focused opportunities and
our thank remain This outlook. be optimistic related employees, our of our our XX, our XXXX.
In loyal plans about first well. next shareholders of customers our your and excited and support Until and June quarter want and and closing, suppliers the long-term we growth strength ending and EVI. health the to Given concludes time, comments participation for year the valued company, fiscal to I in
