Hello, and welcome to EVI Industries' Earnings Call for the Second Quarter of the Fiscal Year ending June 30, 2024.
This is Henry Nahmad, Chairman and CEO of EVI.
Before we proceed, we would like to disclose 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, 2023.
materially statements. expressed differ by or may forward-looking the results from in those implied Actual
also a company call non-GAAP in This includes performance. financial is EBITDA, evaluating measure a which that the believes useful discussion is of adjusted
financial issued net Please information for most income definition adjusted and regarding press of reconciliation GAAP the additional EBITDA, including the today a refer measure. EBITDA, adjusted earnings to of our release adjusted EBITDA comparable to
'XX, and the goals. Today, fiscal I second operating in progress for summarize long-term will will quarter I connection our results our our share of with
those new plans, and and key For fundamentals of recorded October our you our to 'XX, of refer attributes to be that earnings growth the and to where long-term related our published values. describe on may X of our industry the principles call company please fiscal I
We businesses, manages As a flexibility. aimed ensure I've our with financial financial EVI and join long-term leaders as and where growth original that and profitability mindset operating the operations perspective. buying our respect We invests shared, and instill continuous discipline business. EVI highly the uphold culture promote a management improvement. teams to we an and seeks model maintain entrepreneurs a previously strength a a that the entrepreneurs family. local operate of entrepreneurial and decentralized We In
the market. we effective North distribution EVI achieve disciplined growth most entrepreneurial decisions a that through services that American have through trust our the buy-and-build laundry and for continuous It we fragmented in local and communications, as a Given strategy make approach, commercial and we to established thriving of leader this will them empower our culture highly execution collaborations and is strategies company.
and demonstrated long-term attractive industry factors currency sheet, leverage, invest steadfast compared that company also various strategic any a to been strategy. other allocations the of approach our equity growth of our and a component strong continuous across these financial on in to We cost our of execute in balance provides with believe consistently capital an connection a at We approach We size with capital combination participants. the of transactions has believe low with time. through company to growing significantly operations the lower buy-and-build merit been to the have wherewithal our
a result As adjusted approach and initiatives, at revenue, EBITDA compounded respectively. income various of annual XX%, have grown our of rate XXXX, since and growth XX% net and XX%, our
X operating profit December the EVI for flows achieved the months December record XX, XXXX. X cash and and revenue months X and XXXX, for gross ended record ended XX,
results quarter gross The 'XX, in million second million the or include of quarter fiscal second approximately record XX% a record gross compared to revenue, profit $XX of $XX a XX% an reflecting margin. increase and
to comparable the strong profit X% X-month comes margin in X-month customer XX. of XX%.
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to 'XX adjusted 'XX, EBITDA and the same X and 'XX, net to XXX% in compared XX XX compared net XX%, the and revenue, ended revenue, income XX%, during respectively, X same EBITDA months income adjusted during months ended December of XX% and fiscal Specifically, 'XX. respectively, XX%, grew of and the in by period December XX%, period the increased fiscal
in Lead strength industry. end fiscal times have each of date and more across resulting OEM fiscal market the in demand been continues in OEM process improved Last the driven 'XX fulfillment strong. demand, pent-up to laundry market year's be customer commercial shorter, sales to pricing speed order by increased performance contrast, moderate. and In was actions have end been pricing
with were our acquisition impacted investment describe facilities gross note detail our operations, to efficiency in new expenses and in required sales for and investments drive we technologies. our program, by related While X-month results and we're productivity our strong my continued profit later and pleased and additional revenue and I commentary. in growth heavy of to in investments to service the in in performance the investments future, plans, and which to with growth aim advanced deployment improve our and development investment efforts in that grow support will X- greater connection the These periods,
investments strength and 'XX, support equipment parts order during and a in needs sales primarily capital, financial customer liquidity in fiscal inventory perspective, fulfill to short-term and customer significant From working to we made contracts. required
reflecting cash quarter operating operating monetize investment, XX During the flows compared 'XX, to the we of inventory in continued million same year. of cash of the portion a a second increase million the $XX $XX flows 'XX, our fiscal fiscal to in period resulting X months December of of as ended prior for
follows share which operating we during the paid the cash $X.X a dividend second fiscal or level special payment of million, cash flows of record quarter. This of $X.XX per
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related network achieving value-added our laundry of each build America's North long-term technicians. the distributor commercial and goal of largest acquisition is to acquisitions, laundry most On products and commercial integral to dynamic
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professionals, Accordingly, ended of December compared operations a include period professionals 'XX. XX increase the results XX sales more 'XX of X-month XX to for representing December in XX% of sales
service future product revenues, and installation sales this We sales relationships, personnel on additional new in followed revenues. additional customer expect the and recurring parts returns routine of investment form in by
our is success after making on similar based leadership teams the years. experienced in investments expectation prior Our
working laundry order. in technicians and devoted that Service nearly are laundry in industry. service our installation ensuring single integral installations daily to largest to and remain personnel the opportunities, operation XXX operations With to our the service maintains completing customers' company good
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information that maximize improve access real-time efficiency utilization customer this optimization. availability, time-sensitive pricing future of technology efficiency, but technician product FSM our provide unrivaled will service and warranty to including to service an growth advanced and Our critical to detail, management provide aimed technicians not product will future and route for drive experience. support, inventory only Platform real-time the with technical We also operations, and parts field sales believe access
term. is it on resource be our XX that upon acquired our capable enterprise paramount family EVI's businesses long business systems the but of of these support the built All joined To sustaining growth EVI over initiatives, state systems planning at ERP investments we have our the regionalized over significant units modernize system. implement Therefore, business years, to operations to and ERP operational made our last efforts legacy their disruptions. X operations, end X without including successful
decisions systems to of legacy aimed end resource now Our strategic business make continuing system. are approximately new planning decisions in the management completion as this operations. state make with their units that initiatives to growth provide these transacting are point, previously units At to nearing XX% and business enterprise connection fine-tune on unavailable analytics uses
and around in the In mission is build commercial closing, to undisputed industry. leader our laundry the
remain our financial beginning, a to have we consistently we achieve Thus our and the value true delivered goals, and long-term As company. growth-focused we proposition far, to strengthened stated from businesses, growth. have are, good our stayed customer acquired principles,
have a conviction right. that committed, company opportunity acts such, with the company a As and earned is thoughtful for being reputation we a that is and when
strength, well strategic right. balance sheet, execute evidenced and as to financial positioned access growth our Given by to is we lower our growth objectives, time when on the remain opportunities and goals cost capital
optimistic this outlook. remain and during plans For long-term and our these we reasons, the growth about call, excited mentioned others earnings and
employees, In our Until closing, of I related suppliers loyal well. and and to our EVI. comments for customers concludes valued next be want fiscal to shareholders my This time, your quarter our in participation the support and thank 'XX. second
