Exhibit 99.1


EVI Industries Reports Third Quarter Results Including Record Cash Flows


Achieved Record Revenue and Gross Profits, and a Record $20M in Operating Cash Flows for the Nine-Month Period, Further Strengthened its Balance Sheet, and Increased Investments Across Key Technology Initiatives


Miami, Florida – May 9, 2024 – EVI Industries, Inc. (NYSE American: EVI) announced its operating results for the three- and nine-month periods ended March 31, 2024, including record revenue, gross profit, and operating cash flows for the nine-month period ended March 31, 2024, and record gross margin and operating cash flows for the three-month period ended March 31, 2024. The Company also provided commentary on its results of operations, cash flow and financial position, and investments in furtherance of its technology initiatives. Click here to listen to the Company’s recorded earnings call.


In 2016, EVI commenced the execution of a long-term growth strategy to build the undisputed leader in and around the commercial laundry industry and in doing so, produce attractive returns for its shareholders over the long-term. Since 2016, EVI has established itself as a leader in the highly fragmented North American commercial laundry distribution and service industry. The Company has grown from one business operating from a single location in the state of Florida with thirty-one employees, including ten sales personnel and four service personnel, to twenty-six businesses employing 750 employees, including over 190 sales professionals and over 400 technicians and service support personnel each contributing to the Company’s long-term goals. Since 2016 the thoughtful execution of the Company’s long-term growth strategy has resulted in a compounded annual growth rate in revenue, net income, and adjusted EBITDA of 34%, 16%, and 31%, respectively.


Henry M. Nahmad, EVI’s Chairman and CEO, commented: “We are a long-term focused company with ambitious growth plans. Our confidence is derived from early successes combined with financial strength and wherewithal, the reputation of a knowledgeable and high-quality buyer and builder of businesses, the future impact of promising technologies, and a heavily invested leadership team to guide the Company into the future.”


Nine-Month Results

§Revenue increased 1% to a record $263 million
§Gross profit increased 3% to a record $77.9 million
§Gross margin increased 40 basis-points to a record 29.6% compared to 29.2%
§Operating income was $8.0 million compared to $12.5 million
§Net income was $3.6 million, or 1.4%, compared to $7.8 million, or 3.0%
§Adjusted EBITDA was $16.4 million, or 6.2%, compared to $19.2 million, or 7.4%


Three-Month Results

§Revenue decreased 11% to $84.0 million
§Gross profit decreased 3% to $25.8 million
§Gross margin increased to a record 30.7% compared to 28.3%
§Operating income was $2.4 million compared to $4.5 million
§Net income was $1.0 million, or 1.1%, compared to $2.8 million, or 2.9%
§Adjusted EBITDA was $4.9 million, or 5.9%, compared to $6.7 million, or 7.2%


Other Company Achievements for the Nine-Month Period Ended March 31, 2024

§Record operating cash flows of $20 million for the nine-months, a $27 million increase over the prior year
§Net debt declined 36% to $18.6 million as of March 31, 2024
§New confirmed customer sales order contracts exceeded the value of those fulfilled during the period
§Completed one acquisition adding sales and service expertise to the Company’s Northeast Region
§Paid a $4.1 million dividend, the largest dividend since the inception of the Company’s buy-and-build strategy



Operating Results

Operating results for the three- and nine-month periods come against the backdrop of record-breaking performance in the comparable periods of the prior fiscal year. The 11% decline in revenue during the third fiscal quarter is primarily attributed to the irregular cadence of industrial revenue and in part to delays in the completion of certain large on-premise laundry customer sales order contracts. Specifically, the third quarter of prior fiscal year included a disproportionately greater amount of industrial revenues derived from a small number of large customer sales order contracts. While the Company generates a recurring base of industrial business, the timing of revenue related to industrial projects is subject to longer sales cycles and complex installations that from time to time are uneven as compared to revenue derived from other commercial laundry categories. It is important to note that excluding the impact of large industrial customer sales order contracts in each of the current and comparable prior year periods, during the third fiscal quarter equipment revenue increased 4.5%, parts revenue increased 5.1%, service revenue increased 13%, and gross margins were 30.7%. These results demonstrate the incremental positive impact derived from the Company’s investment in additional sales professionals and service technicians, which are core to the Company’s long-term market share strategy. Looking forward, the Company expects to benefit from the completion of confirmed sales order contracts contributing to its $100+ million equipment sales backlog.


Given the Company’s long-term objectives and as mentioned in prior releases, the Company is investing heavily in key areas aimed to drive future growth and profitability. Operating results include the total cost and only partial benefit of twenty-one new and additional sales professionals integral to the Company’s sales growth goals. Operating results also include the total cost of thirty-nine new and additional service-related personnel as compared to the same period of prior fiscal year. Finally, operating results include increased investment across key areas of the Company’s technology strategy. While the combination of these investments adversely impacted operating results in the current periods, the Company is incrementally benefiting from these investments in the form of greater sales and service penetration and a 4.0% reduction in support personnel as compared to the prior year periods and expects to benefit more as the Company’s scalable technologies are deployed.


Technology Strategy

In 2020 the Company initiated a comprehensive modernization initiative to transform EVI into a modern, data-driven company capable of continuous outperformance in the digital era. Since 2020, EVI’s technology group has grown significantly, various third-party technology professionals have been retained, and multiple technology initiatives were undertaken to strengthen the Company’s leadership position, accelerate sales and profit growth, increase the speed, convenience and efficiency in serving customers, extend EVI’s reach into new geographies and sales channels, and create scalable operating processes.


EVI’s growing team of technology focused professionals is leading efforts to consolidate business units into end-state Enterprise Resource Planning (ERP) Systems, configuring multiple software, enriching numerous data sets, and building master databases. These initiatives are prerequisites to the efficient utilization of internal applications and to the launch of customer facing technologies aimed to transform the customer experience. While the aggregate cost and expense associated with these, and other modernization initiatives adversely impacts EVI’s financial performance in the near-term, the Company believes these technological capabilities will be a catalyst to achieving the Company’s long-term growth and profitability goals.


Examples of benefits expected to be derived from implemented technologies include:

§Business intelligence and data analytics that enable insightful decision-making by managers across the Company.
§Digital mobile sales quoting application that empowers sales professionals to deliver instant customer sales order proposals with the benefit of real-time costing, product availability, lead times, installation scheduling, and more.
§Streamlined operating processes designed to improve the speed and reduce the cost of doing business.
§CRM capabilities designed to improve customer prospecting and communications and increase close rates.




Cash Flows and Financial Strength

Operating cash flow for the nine-month period was a record $20.3 million (a $27 million increase over prior year) and for the third quarter was a record $9.4 million. Strong operating cash flows for the three- and nine-month periods contributed to a 36% decrease in net debt from $28.9 million as of June 30, 2023, to $18.6 million as of March 31, 2024. The Company’s low leverage profile provides more than $120 million of available cash for deployment in connection with the Company’s long-term growth strategy.


This record level of operating cash flows follows the payment of a special cash dividend on the Company’s common stock of $0.28 per share, or $4.1 million in the aggregate, paid during the second quarter of fiscal 2024. EVI aims to uphold its philosophy of sharing increasing amounts of cash flow through higher dividends while maintaining a conservative financial position. Future dividends and increases, if any, will be considered in light of investment opportunities, cash flow, general economic conditions and the Company’s overall financial condition.



During the nine months ended March 31, 2024, the Company completed the acquisition of ALCO Washer Center, a commercial laundry distributor and service provider. The acquisition strengthens EVI’s leading market share position in the northeast region of the United States.


Mr. Nahmad commented: “We continue to pursue opportunities in connection with the ‘buy’ component of our long-term strategy. We have a financial and strategic team that understands the value of each opportunity, leadership teams with a proven record of achieving growth across acquired businesses, technology teams propelling acquired businesses into the digital era, and functional support teams paving the roads to optimization. As such, we are continuously working to harvest opportunities that we believe will create value across our growing enterprise.”


Important Fundamentals and Growth Drivers

The Company believes that the essential nature of commercial laundry products and continuous demand and growth across all end customer markets of the commercial laundry industry are catalysts for a growing installed base of commercial laundry systems across North America. These systems require advanced planning, thoughtful design, knowledgeable installation, and continuous post-installation services, including the replacement of equipment, parts, and accessories and the performance of maintenance and repair services. EVI’s large and growing sales and service network represents and services a broad range of products sourced from various domestic and international suppliers to support industrial, on-premise, vended, and multi-family customers serving a wide array of end-user categories. The Company believes its fundamentals, financial strength, market strategy, entrepreneurial culture, technology initiatives, and strong supplier relations are important competitive advantages that support the Company’s ability to grow and capture more profitable market share going forward.


EVI’s Core Principles

EVI upholds specific core values and principles for its business, including:


§Invest and manage with a long-term perspective
§Uphold financial discipline with a view towards ensuring financial strength and flexibility
§Respect the entrepreneurs and management teams that join the EVI family
§Operate each business as a local business and empower its leaders to make local decisions
§Promote an entrepreneurial culture
§Instill a growth mindset and culture of continuous improvement
§Incentivize and reward performance with equity participation
§Establish strong relationships with our OEM partners



Earnings Call and Additional Information

The Company has provided a pre-recorded earnings conference call, including a business update, which can be accessed under “Financial Info” in the “Investors” section of the Company’s website at www.evi-ind.com or by visiting https://ir.evi-ind.com/message-from-the-ceo. For additional information regarding the Company’s results for the three and nine months ended March 31, 2024, please see the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on or about the date hereof.


Use of Non-GAAP Financial Information

In this press release, EVI discloses the non-GAAP financial measure of adjusted EBITDA, which EVI defines as earnings before interest, taxes, depreciation, amortization, and amortization of share-based compensation. Adjusted EBITDA is determined by adding interest expense, income taxes, depreciation, amortization, and amortization of share-based compensation to net income, as shown in the attached statement of Condensed Consolidated Earnings before Interest, Taxes, Depreciation, Amortization, and Amortization of Share-based Compensation. EVI considers adjusted EBITDA to be an important indicator of its operating performance. Adjusted EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings, and the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. Adjusted EBITDA should not be considered as an alternative to net income or any other measure of financial performance or liquidity, including cash flow, derived in accordance with GAAP, or to any other method of analyzing EVI’s results as reported under GAAP.


About EVI Industries

EVI Industries, Inc., through its wholly owned subsidiaries, is a value-added distributor and a provider of advisory and technical services. Through its vast sales organization, the Company provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells and/or leases its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories. Additionally, through the Company’s robust network of commercial laundry technicians, the Company provides its customers with installation, maintenance, and repair services. The Company’s customers include retail, commercial, industrial, institutional, and government customers. Purchases made by customers range from parts and accessories to single or multiple units of equipment, to large complex systems as well as the purchase of the Company’s installation, maintenance, and repair services.




Safe Harbor Statement

Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements may relate to, among other things, events, conditions, and trends that may affect the future plans, operations, business, strategies, operating results, financial position and prospects of the Company. Forward looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results, trends, performance or achievements of the Company, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward looking statements. These risks and uncertainties include, among others, those associated with: general economic and business conditions in the United States and other countries where the Company operates or where the Company’s customers and suppliers are located; industry conditions and trends; credit market volatility; risks related to supply chain delays and disruptions and their impact on the Company’s business and results, including the Company’s ability to deliver products and provide services to its customers on a timely basis; risks relating to inflation, including the current inflationary trend, and the impact of inflation on the Company’s costs and its ability to increase the price of its products and services to offset such costs, and on the market for the Company’s products and services; risks related to labor shortages and increases in the costs of labor, and the impact thereof on the Company, including its ability to deliver products, provide services or otherwise meet customers’ expectations; risks associated with international relations and international hostilities and the impact thereof on economic conditions, including supply chain constraints and inflationary trends; risks relating to rising interest rates, including the impact thereof on the cost of the Company’s indebtedness and the Company’s ability to raise capital if deemed necessary or advisable; risks related to the Company’s ability to implement its business and growth strategies and plans, including changes thereto, and the risk that the Company may not be successful in achieving its goals; risks and uncertainties associated with the Company’s ”buy-and-build” growth strategy, including, without limitation, that the Company may not be successful in identifying or consummating, or have the liquidity to or otherwise be financially positioned or able to consummate, acquisitions or other strategic transactions, integration risks, risks related to indebtedness incurred by the Company in connection with the financing of acquisitions, dilution experienced by the Company’s existing stockholders as a result of the issuance of shares of the Company’s common stock in connection with acquisitions, risks related to the business, operations and prospects of acquired businesses, risks that suppliers of the acquired business may not consent to the transaction or otherwise continue its relationship with the acquired business following the transaction and the impact that the loss of any such supplier may have on the results of the Company and the acquired business, risks that the Company’s goals or expectations with respect to acquisitions and other strategic transactions may not be met, and risks related to the accounting for acquisitions; risks related to organic growth initiatives, including that they may not result in the benefits anticipated; risks that the Company’s investments, including in sales and service personnel, technology investments, including in respect of the enterprise resource planning system and field service platform, and investments, in acquired businesses or otherwise in support of growth, and initiatives in furtherance thereof may not result in the benefits anticipated and may result in disruptions to the Company’s operations, expenses in connection with these investments and initiatives may be more costly than anticipated and the implementation of these initiatives may not be completed when expected; the risk that the Company may not successfully launch an e-commerce platform and that any such platform, if launched, may not positively impact the Company or its operating results or financial condition; the risk that the performance of the large industrial contracts delayed during the quarter may not be completed when expected; technology changes; the risk that the Company may not achieve growth consistent with historical levels, at the level expected, or at all; risks relating to the Company’s relationships with its principal suppliers and customers, including concentration risks and the impact of the loss of any such relationship; risks related to the Company’s indebtedness, including that amounts available for borrowing under the Company’s credit facility are subject to the terms and conditions of the facility and, accordingly, the amount of liquidity available to the Company may be less than the amount set forth herein; the availability, terms and deployment of debt and equity capital if needed for expansion or otherwise; the availability and cost of inventory purchased by the Company, and the risk that the sales of inventory subject to purchase orders may not be completed as or when expected, or at all; risks relating to the recognition of revenue, including the amount and timing thereof (including potential delays resulting from, among other circumstances, delays in installation); risks related to the material weakness in the Company’s internal control over financial reporting, the Company’s ability to remediate such weakness in the anticipated timeframe, and the costs incurred in connection therewith; the risk that dividends may not be paid in the future, whether in increasing amounts or at all; risks of cybersecurity threats or incidents, including the potential misappropriation or use of assets or confidential information, corruption of data or operational disruptions; and other economic, competitive, governmental, technological and other risks and factors discussed elsewhere in the Company’s filings with the SEC, including, without limitation, in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. Many of these risks and factors are beyond the Company’s control. Further, past performance and perceived trends may not be indicative of future results. The Company cautions that the foregoing factors are not exclusive. The reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The Company does not undertake to, and specifically disclaims any obligation to, update, revise or supplement any forward-looking statement, whether as a result of changes in circumstances, new information, subsequent events or otherwise, except as may be required by law.




EVI Industries, Inc.

Condensed Consolidated Results of Operations (in thousands, except per share data)


   Unaudited   Unaudited   Unaudited   Unaudited 
   03/31/24   03/31/23   03/31/24   03/31/23 
Revenues  $263,417   $260,132   $83,979   $94,066 
Cost of Sales   185,533    184,237    58,193    67,488 
Gross Profit   77,884    75,895    25,786    26,578 
SG&A   69,908    63,403    23,378    22,113 
Operating Income   7,976    12,492    2,408    4,465 
Interest Expense, net   2,268    1,719    675    717 
Income before Income Taxes   5,708    10,773    1,733    3,748 
Provision for Income Taxes   2,129    2,952    777    998 
Net Income  $3,579   $7,821   $956   $2,750 
Net Earnings per Share                    
Basic  $0.25   $0.55   $0.07   $0.19 
Diluted  $0.24   $0.54   $0.06   $0.19 
Weighted Average Shares Outstanding                    
Basic   12,639    12,545    12,677    12,570 
Diluted   13,231    12,753    13,153    12,950 





EVI Industries, Inc.

Condensed Consolidated Balance Sheets (in thousands, except per share data)


   03/31/24   06/30/23 
Current assets          
Cash and cash equivalents  $3,304   $5,921 
Accounts receivable, net   44,848    48,391 
Inventories, net   52,870    59,167 
Vendor deposits   2,186    2,291 
Contract assets   998    1,181 
Other current assets   6,228    8,547 
Total current assets   110,434    125,498 
Equipment and improvements, net   13,699    12,953 
Operating lease assets   8,886    8,714 
Intangible assets, net   22,548    24,128 
Goodwill   74,156    73,388 
Other assets   9,586    9,166 
Total assets  $239,309   $253,847 
Liabilities and Shareholders’ Equity          
Current liabilities          
Accounts payable and accrued expenses  $29,203   $38,730 
Accrued employee expenses   10,567    10,724 
Customer deposits   29,219    23,296 
Contract liabilities   —      668 
Current portion of operating lease liabilities   3,272    3,027 
Total current liabilities   72,261    76,445 
Deferred income taxes, net   5,153    5,023 
Long-term operating lease liabilities   6,532    6,554 
Long-term debt, net   21,895    34,869 
Total liabilities   105,841    122,891 
Shareholders' equity          
Preferred stock, $1.00 par value   —      —   
Common stock, $.025 par value   322    318 
Additional paid-in capital   105,469    101,225 
Treasury stock   (4,439)   (3,195)
Retained earnings   32,116    32,608 
Total shareholders' equity   133,468    130,956 
Total liabilities and shareholders' equity  $239,309   $253,847 




EVI Industries, Inc.

Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)


   For the nine months ended 
   03/31/24   03/31/23 
Operating activities:          
Net income  $3,579   $7,821 
Adjustments to reconcile net income to net cash provided (used) by operating activities:          
Depreciation and amortization   4,492    4,409 
Amortization of debt discount   26    21 
Provision for bad debt expense   493    523 
Non-cash lease expense   51    95 
Stock compensation   3,956    2,267 
Inventory reserve   257    (723)
Provision for deferred income taxes   130    224 
Other   25    (183)
(Increase) decrease in operating assets:          
Accounts receivable   3,107    (12,759)
Inventories   6,512    (11,561)
Vendor deposits   105    (429)
Contract assets   183    610 
Other assets   1,899    (1,845)
(Decrease) increase in operating liabilities:          
Accounts payable and accrued expenses   (9,583)   1,893 
Accrued employee expenses   (157)   878 
Customer deposits   5,869    1,950 
Contract liabilities   (668)   161 
Net cash provided (used) by operating activities   20,276    (6,648)
Investing activities:          
Capital expenditures   (3,654)   (2,291)
Cash paid for acquisitions, net of cash acquired   (987)   (1,947)
Net cash used by investing activities   (4,641)   (4,238)
Financing activities:          
Dividends paid   (4,071)   —   
Proceeds from borrowings   49,500    62,000 
Debt repayments   (62,500)   (51,000)
Repurchases of common stock in satisfaction of employee tax withholding obligations   (1,244)   (125)
Issuances of common stock under employee stock purchase plan   63    59 
Net cash (used) provided by financing activities   (18,252)   10,934 
Net (decrease) increase in cash   (2,617)   48 
Cash at beginning of period   5,921    3,974 
Cash at end of period  $3,304   $4,022 




EVI Industries, Inc.

Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)


   For the nine months ended 
   03/31/24   03/31/23 
Supplemental disclosures of cash flow information:          
Cash paid for interest  $2,275   $1,670 
Cash paid for income taxes  $4,662   $1,622 
Supplemental disclosures of non-cash financing activities:          
Common stock issued for acquisitions  $229   $503 




The following table reconciles net income, the most comparable GAAP financial measure, to Adjusted EBITDA.


EVI Industries, Inc.

Condensed Consolidated Earnings before Interest, Taxes, Depreciation, Amortization, and Amortization of Share-based Compensation (in thousands)


   Unaudited   Unaudited   Unaudited   Unaudited 
   03/31/24   03/31/23   03/31/24   03/31/23 
Net Income  $3,579   $7,821   $956   $2,750 
Provision for Income Taxes   2,129    2,952    777    998 
Interest Expense, Net   2,268    1,719    675    717 
Depreciation and Amortization   4,492    4,409    1,492    1,497 
Amortization of Share-based Compensation   3,956    2,267    1,032    785 
 Adjusted EBITDA  $16,424   $19,168   $4,932   $6,747 


EVI Industries, Inc.

4500 Biscayne Blvd., Suite 340

Miami, Florida 33137

(305) 402-9300


Henry M. Nahmad

Chairman and CEO

(305) 402-9300


Craig Ettelman

Director of Finance and Investor Relations

(305) 402-9300