Executive Summary
EVI Industries posted QQ4 2024 results (period ended 2024-06-30) with a revenue decline versus the prior year but a solid sequential improvement. Revenue came in at $90.15 million, down 4.14% year over year (YoY) yet up 7.34% quarter over quarter (QoQ). The company delivered a gross margin of 30.36%, and a positive operating margin of 4.05% with net income of $2.07 million and earnings per share (EPS) of $0.14. EBITDA stood at $5.14 million, underscoring a cash-flow-friendly profile even as scale remains modest.
Operating cash flow was robust at $12.38 million for the quarter, contributing to free cash flow of $11.16 million. The balance sheet shows a lean leverage profile with total debt of $21.86 million and net debt of $17.30 million, and a cash balance of $4.56 million at period end. The company generated solid cash returns to shareholders via dividends (~$8.14 million) and a modest share repurchase (~$1.24 million) in the quarter, supporting an annualized cash-flow-focused model. Profitability metrics held steady despite the revenue headwinds: gross margin of ~30.4%, operating margin of ~4.05%, and net margin of ~2.29%.
Management commentary was not captured in the provided transcript data, but the QQ4 results imply disciplined cost control and a focus on cash generation, with ongoing potential to optimize working capital and leverage operating leverage as volumes stabilize. On a relative basis, EVI’s current valuation indicators (P/S ~2.49, P/E ~27.2) imply a premium to some industrial distributors but reflect a modestly higher-margin, cash-generative profile versus peers. Investors should monitor working capital dynamics, the sustainability of margins, and any potential M&A or strategic initiatives that could alter the growth trajectory going into 2025.
Key Performance Indicators
Key Insights
Revenue: $90.15M in QQ4 2024, down 4.14% YoY, up 7.34% QoQ. Gross Profit: $27.37M, margin 30.36% (down 1.51% YoY, up 12.66% QoQ). Operating Income: $3.65M, margin 4.05% (YoY margin -9.02%, QoQ +51.66%). Net Income: $2.07M, margin 2.29% (YoY +8.90%, QoQ +116.21%). EPS: $0.14, YoY +7.69%, QoQ +112.44%. EBITDA: $5.14M, EBITDA margin 5.71%.
Margins and profitability: Gross margin 30.36%; Operating margin 4.05%; Pretax margin 3.52%; Net margin 2.29%; Interest coverage ~7.67x. Cash flow: Operating ca...
Financial Highlights
Revenue: $90.15M in QQ4 2024, down 4.14% YoY, up 7.34% QoQ. Gross Profit: $27.37M, margin 30.36% (down 1.51% YoY, up 12.66% QoQ). Operating Income: $3.65M, margin 4.05% (YoY margin -9.02%, QoQ +51.66%). Net Income: $2.07M, margin 2.29% (YoY +8.90%, QoQ +116.21%). EPS: $0.14, YoY +7.69%, QoQ +112.44%. EBITDA: $5.14M, EBITDA margin 5.71%.
Margins and profitability: Gross margin 30.36%; Operating margin 4.05%; Pretax margin 3.52%; Net margin 2.29%; Interest coverage ~7.67x. Cash flow: Operating cash flow $12.38M; Capex $1.21M; Free cash flow $11.16M. Liquidity and leverage: Cash balance $4.56M; Total debt $21.86M; Net debt $17.30M; Current ratio 1.46; Quick ratio 0.77; Cash conversion cycle ~80 days; Interest coverage ~7.67x. Shareholder returns: Dividends paid ~$8.14M; Share repurchases ~$1.24M.
Valuation and leverage: P/E ~27.2x; P/S ~2.49x; P/B ~1.65x; Dividend yield ~3.62%; Debt to capitalization ~13.8%; Debt ratio ~9.48%; ROE ~1.51%; ROA ~0.90%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
90.15M |
-4.14% |
7.34% |
| Gross Profit |
27.37M |
-1.51% |
12.66% |
| Operating Income |
3.65M |
-9.02% |
51.66% |
| Net Income |
2.07M |
8.90% |
116.21% |
| EPS |
0.14 |
7.69% |
112.44% |
Key Financial Ratios
operatingProfitMargin
4.05%
operatingCashFlowPerShare
$0.98
freeCashFlowPerShare
$0.88
Management Commentary
Note: The earnings transcript data provided for QQ4 2024 is empty. As a result, there are no management quotes or themes to quote or group by. If/when a transcript is provided, this section should summarize themes such as strategy execution, cost containment, market conditions, and operational improvements with direct quotes and attribution.
Forward Guidance
No formal forward guidance was included in the provided data. Given the quarter’s cash-generative profile and modest revenue headwinds, a prudent view is that EVI may aim to sustain mid-single-digit revenue stability in 2025 with continued emphasis on operating efficiency and working capital management. Management commentary (if issued in subsequent filings or calls) would likely emphasize leverage of the service, parts, and rental streams to support margins, potential gross-margin expansion through mix and pricing, and disciplined capital allocation (maintaining a solid FCF yield). Investors should monitor: (1) trajectory of revenue given industrial distribution cycles, (2) working capital dynamics affecting cash conversion, (3) maintenance of debt levels and interest coverage, and (4) any strategic actions such as acquisitions or divestitures that could alter the growth profile.