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.