EVI Industries (EVI) 10-Q9 Nov 232024 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Sep. 30, 2023	Nov. 06, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Information [Line Items]
Entity Registrant Name	EVI Industries, Inc.
Entity Central Index Key	0000065312
Entity File Number	001-14757
Entity Tax Identification Number	11-2014231
Entity Incorporation, State or Country Code	DE
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	4500 Biscayne Blvd
Entity Address, Address Line Two	Suite 340
Entity Address, City or Town	Miami
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33137
Entity Phone Fax Numbers [Line Items]
City Area Code	(305)
Local Phone Number	402-9300
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, $.025 par value
Trading Symbol	EVI
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		12,657,470

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenues	$ 88,074	$ 83,428
Cost of sales	62,382	58,923
Gross profit	25,692	24,505
Selling, general and administrative expenses	23,075	20,122
Operating income	2,617	4,383
Interest expense, net	770	377
Income before income taxes	1,847	4,006
Provision for income taxes	565	1,159
Net income	$ 1,282	$ 2,847
Net earnings per share – basic (in Dollars per share)	$ 0.09	$ 0.2
Net earnings per share – diluted (in Dollars per share)	$ 0.09	$ 0.2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Current assets
Cash	$ 4,189	$ 5,921
Accounts receivable, net of allowance for doubtful accounts of $2.0 million and $2.1 million, respectively	47,825	48,391
Inventories, net	57,693	59,167
Vendor deposits	2,461	2,291
Contract assets	2,079	1,181
Other current assets	7,623	8,547
Total current assets	121,870	125,498
Equipment and improvements, net	12,909	12,953
Operating lease assets	7,831	8,714
Intangible assets, net	23,601	24,128
Goodwill	74,155	73,388
Other assets	9,121	9,166
Total assets	249,487	253,847
Current liabilities
Accounts payable and accrued expenses	31,595	38,730
Accrued employee expenses	11,458	10,724
Customer deposits	24,327	23,296
Contract liabilities	545	668
Current portion of operating lease liabilities	2,790	3,027
Total current liabilities	70,715	76,445
Deferred tax liabilities, net	4,993	5,023
Long-term operating lease liabilities	5,892	6,554
Long-term debt, net	33,878	34,869
Total liabilities	115,478	122,891
Commitments and contingencies (Note 11)
Shareholders’ equity
Preferred stock, $1.00 par value; authorized shares – 200,000; none issued and outstanding
Common stock, $.025 par value; authorized shares - 20,000,000; 12,754,532 shares issued at September 30, 2023 and 12,711,558 shares issued at June 30, 2023, including shares held in treasury	319	318
Additional paid-in capital	103,309	101,225
Treasury stock, 146,826 shares at September 30, 2023 and 134,001 shares at June 30, 2023, at cost	(3,509)	(3,195)
Retained earnings	33,890	32,608
Total shareholders’ equity	134,009	130,956
Total liabilities and shareholders’ equity	$ 249,487	$ 253,847

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Statement of Financial Position [Abstract]
Accounts receivable, net of allowance for doubtful accounts (in Dollars)	$ 2,000	$ 2,100
Preferred stock, par value (in Dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value (in Dollars per share)	$ 0.025	$ 0.025
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	12,754,532	12,711,558
Treasury stock, shares	146,826	134,001

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Total
Balance at Jun. 30, 2022	$ 316	$ 97,544	$ (3,070)	$ 22,889	$ 117,679
Balance (in Shares) at Jun. 30, 2022	12,650,126		127,801
Stock compensation		680			680
Net income				2,847	2,847
Balance at Sep. 30, 2022	$ 316	98,224	$ (3,070)	25,736	121,206
Balance (in Shares) at Sep. 30, 2022	12,650,126		127,801
Balance at Jun. 30, 2023	$ 318	101,225	$ (3,195)	32,608	130,956
Balance (in Shares) at Jun. 30, 2023	12,711,558		134,001
Share repurchases			$ (314)		(314)
Share repurchases (in Shares)			12,825
Vesting of restricted shares	$ 1	(1)
Vesting of restricted shares (in Shares)	34,353				30,000
Issuances of shares in connection with acquisitions		229			$ 229
Issuances of shares in connection with acquisitions (in Shares)	8,621
Stock compensation		1,856			1,856
Net income				1,282	1,282
Balance at Sep. 30, 2023	$ 319	$ 103,309	$ (3,509)	$ 33,890	$ 134,009
Balance (in Shares) at Sep. 30, 2023	12,754,532		146,826

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities:
Net income	$ 1,282	$ 2,847
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization	1,546	1,446
Amortization of debt discount	9	3
Provision for bad debt expense	124	103
Non-cash lease expense	(16)	(14)
Stock compensation	1,856	680
Inventory reserve	174	(136)
(Benefit) provision for deferred income taxes	(30)	132
Other	25	(36)
(Increase) decrease in operating assets:
Accounts receivable	500	(1,239)
Inventories	1,772	(4,162)
Vendor deposits	(170)	(101)
Contract assets	(898)	(3,849)
Other assets	969	(609)
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses	(7,191)	113
Accrued employee expenses	734	776
Customer deposits	977	(1,652)
Contract liabilities	(123)	(507)
Net cash provided (used) by operating activities	1,540	(6,205)
Investing activities:
Capital expenditures	(971)	(771)
Cash paid for acquisitions, net of cash acquired	(987)	(1,224)
Net cash used by investing activities	(1,958)	(1,995)
Financing activities:
Proceeds from long-term debt	19,000	15,000
Debt repayments	(20,000)	(7,000)
Repurchases of common stock in satisfaction of employee tax withholding obligations	(314)
Net cash (used) provided by financing activities	(1,314)	8,000
Net decrease in cash	(1,732)	(200)
Cash at beginning of period	5,921	3,974
Cash at end of period	4,189	3,774
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	767	371
Cash paid during the period for income taxes	3,171	794
Supplemental disclosures of non-cash financing activities:
Issuances of common stock for acquisitions	$ 229

General

General	3 Months Ended
General	Sep. 30, 2023
General [Abstract]
General	Note (1) - General: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Article 10 of Regulation S-X related to interim period financial statements. Accordingly, the accompanying unaudited condensed consolidated financial statements do not include certain information and footnotes required by GAAP for complete financial statements. However, in management’s opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals and adjustments) which are necessary in order to state fairly the Company’s results of operations, financial position, shareholders’ equity and cash flows as of and for the periods presented. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year or any other future period. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes, including the Summary of Significant Accounting Policies, included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. The June 30, 2023 balance sheet information contained herein was derived from the Company’s audited consolidated financial statements as of that date included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The estimates and assumptions made may not prove to be correct, and actual results could differ from the estimates. The Company, through its wholly-owned subsidiaries, is a value-added distributor, and provides advisory and technical services. Through its 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 network of commercial laundry technicians, the Company provides its customers with installation, maintenance, and repair services. The Company’s customers include government, institutional, industrial, commercial and retail customers. Product purchases made by customers range from parts and accessories, to single or multiple units of equipment, to large complex systems. The Company also provides its customers with the services described above. The Company’s growth strategy includes organic growth initiatives and business acquisitions pursuant to the Company’s “buy-and-build” growth strategy.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2023
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note (2) – Summary of Significant Accounting Policies:

Recently Issued Accounting Guid

Recently Issued Accounting Guidance	3 Months Ended
Recently Issued Accounting Guidance	Sep. 30, 2023
Recently Issued Accounting Guidance [Abstract]
Recently Issued Accounting Guidance	Note (3) – Recently Issued Accounting Guidance Trade receivables as of September 30, 2023 were $47.8 million, net of an allowance of $2.0 million. The Company measures the allowance for credit losses on trade receivables on a collective (pool) basis when similar risk characteristics exist. Trade receivables are generally pooled based on the type of transaction generating the trade receivable. The Company establishes an estimate for the allowance for credit losses resulting from the failure of its clients to make required payments by applying an aging schedule to pools of assets. The Company generally monitors macroeconomic indicators to assess whether adjustments are necessary to reflect current conditions. Management does not believe that accounting standards and updates which have been issued but are not yet effective will have a material impact on the Company’s consolidated financial statements upon adoption.

Acquisitions

Acquisitions	3 Months Ended
Acquisitions	Sep. 30, 2023
Acquisitions [Abstract]
Acquisitions	Note (4) – Acquisitions: On September 1, 2023, the Company completed the acquisition of ALVF, Inc. (dba ALCO Washer Center) (“ALCO”), a Pennsylvania based distributor of commercial laundry products and a provider of related technical installation and maintenance services to the on-premise and vended laundry segments of the commercial laundry industry. The consideration paid by the Company in connection with the acquisition consisted of $987,000 in cash and 8,621 shares of the Company’s common stock, with an acquisition date fair value of approximately $229,000. Fees and expenses related to the acquisition, consisting primarily of legal and other professional fees, were not material and are classified as selling, general and administrative expenses in the Company’s consolidated statement of operations for the quarter ended September 30, 2023. The acquisition was treated for accounting purposes as a purchase of ALCO using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”), pursuant to which the consideration paid by the Company was allocated to the acquired assets and assumed liabilities, in each case, based on their respective fair values as of the closing date, with the excess of the consideration transferred over the fair value of the net assets acquired being allocated to goodwill. The Company allocated $792,000 to goodwill, which is expected to be amortized and deductible for tax purposes over 15 years. Goodwill is attributable primarily to the assembled workforce, as well as the expected benefits from the increased scale of the Company as a result of the acquisition. The financial position, including assets and liabilities, of ALCO is included in the Company’s consolidated balance sheet as of September 30, 2023 and the results of operations of ALCO since the September 1, 2023 closing date are included in the Company’s consolidated financial statements for the quarter ended September 30, 2023.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Sep. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Note (5) - Earnings Per Share: For the three months ended 2023 2022 Net income $ 1,282 $ 2,847 Less: distributed and undistributed income allocated to unvested restricted common stock 153 351 Net income allocated to EVI Industries, Inc. shareholders $ 1,129 $ 2,496 Weighted average shares outstanding used in basic earnings per share 12,581 12,522 Dilutive common share equivalents 624 4 Weighted average shares outstanding used in diluted earnings per share 13,205 12,526 Basic earnings per share $ 0.09 $ 0.20 Diluted earnings per share $ 0.09 $ 0.20 At September 30, 2023 and 2022, other than 216,203 shares and 1,758,733 shares, respectively, of common stock subject to unvested restricted stock awards or restricted stock units, there were no potentially dilutive securities outstanding.

Debt

Debt	3 Months Ended
Debt	Sep. 30, 2023
Debt [Abstract]
Debt	Note (6) – Debt: September 30, June 30, Revolving credit facility $ 34,000 $ 35,000 Less: unamortized discount and deferred financing costs (122 ) (131 ) Total long-term debt, net $ 33,878 $ 34,869 The Company is party, as borrower, to a syndicated credit agreement (the “Credit Agreement”) which allows for borrowings in the maximum aggregate principal amount of up to $100 million, with an accordion feature to increase the revolving credit facility by up to $40 million for a total of $140 million. A portion of the revolving credit facility is available for swingline loans of up to a sublimit of $5 million and for the issuance of standby letters of credit of up to a sublimit of $10 million. Borrowings (other than swingline loans) under the Credit Agreement bear interest, at a rate, at the Company’s election at the time of borrowing, equal to (a) the Bloomberg Short-Term Bank Yield Index rate (the “BSBY rate”) plus a margin that ranges between 1.25% and 1.75% depending on the Company’s consolidated leverage ratio, which is a ratio of consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (the “Consolidated Leverage Ratio”) or (b) the highest of (i) prime, (ii) the federal funds rate plus 50 basis points, and (iii) the BSBY rate plus 100 basis points (such highest rate, the “Base Rate”), plus a margin that ranges between 0.25% and 0.75% depending on the Consolidated Leverage Ratio. Swingline loans generally bear interest at the Base Rate plus a margin that ranges between 0.25% and 0.75% depending on the Consolidated Leverage Ratio. The maturity date of the Credit Agreement is May 6, 2027. The Credit Agreement contains certain covenants, including financial covenants requiring the Company to comply with maximum leverage ratios and minimum interest coverage ratios. The Credit Agreement also contains other provisions which may restrict the Company’s ability to, among other things, dispose of or acquire assets or businesses, incur additional indebtedness, make certain investments and capital expenditures, pay dividends, repurchase shares and enter into transactions with affiliates. At September 30, 2023, the Company was in compliance with its covenants under the Credit Agreement and $55.1 million was available to borrow under the revolving credit facility. The carrying value of the Company’s long-term debt reported in the condensed consolidated balance sheets herein approximates its fair value since it bears interest at variable rates approximating market rates. The obligations of the Company under the Credit Agreement are secured by substantially all of the assets of the Company and certain of its subsidiaries, and are guaranteed, jointly and severally, by certain of the Company’s subsidiaries.

Leases

Leases	3 Months Ended
Leases	Sep. 30, 2023
Leases [Abstract]
Leases	Note (7) - Leases: Company as Lessee As of September 30, 2023, the Company had 32 facilities, consisting of warehouse facilities and administrative offices, financed under operating leases with lease term expirations between 2023 and 2030. Operating lease cost consists of monthly rental payments under the terms of the Company’s lease agreements recognized on a straight-line basis. Short-term lease costs are not material. The following table provides details of the Company’s future minimum lease payments under operating lease liabilities recorded on the Company’s condensed consolidated balance sheet as of September 30, 2023. The table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown. Fiscal years ending June 30, Total Operating (in thousands) 2024 (remainder of) $ 2,347 2025 2,574 2026 1,904 2027 1,019 2028 637 Thereafter 804 Total minimum lease payments 9,285 Less: amounts representing interest 603 Present value of minimum lease payments 8,682 Less: current portion 2,790 Long-term portion $ 5,892 The table below presents additional information related to the Company’s operating leases (in thousands): Three months ended 2023 2022 Operating lease cost Operating lease cost (1) $ 1,001 $ 773 Variable lease cost (2) 1,076 18 Total lease cost $ 2,077 $ 791 (1) Expenses are classified as selling, general and administrative expenses in the Company’s condensed consolidated statements of operations. (2) Certain of the Company’s subsidiaries lease space at locations where (i) they install laundry equipment and customers pay for the use of equipment and (ii) the leased space is paid for as part of a revenue sharing arrangement. The Company did not report this variable lease cost in the quarter ended September 30, 2022 and does not believe the omission is material to the Company’s consolidated financial statements. These expenses are classified within cost of sales in the Company’s consolidated statements of operations. The table below presents lease-related terms and discount rates as of September 30, 2023: September 30, 2023 Weighted average remaining lease terms Operating leases 3.9 years Weighted average discount rate Operating leases 3.44 % The table below presents supplemental cash flow information related to the Company’s long-term operating lease liabilities for the three months ended September 30, 2023 and 2022 (in thousands): Three months ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: $ 1,001 $ 773 Operating lease right-of-use assets obtained in exchange for operating lease liabilities: $ 20 $ 300 Company as Lessor The Company derives a portion of its revenue from equipment leasing arrangements. Such arrangements provide for monthly payments covering the equipment provided, maintenance, and interest. These arrangements meet the criteria to be accounted for as sales type leases. Accordingly, revenue from the provision of the equipment is recognized upon delivery of the equipment and its acceptance by the customer. Upon the recognition of such revenue, an asset is established for the investment in sales type leases. Maintenance revenue and interest are recognized monthly over the lease term. The future minimum lease payments receivable for sales type leases are as follows (in thousands): Fiscal years ending June 30, Total Minimum Amortization Net Investment 2024 (remainder of) $ 3,557 $ 2,247 $ 1,310 2025 3,683 2,411 1,272 2026 3,051 1,807 1,244 2027 2,248 1,197 1,051 2028 1,222 591 632 Thereafter 1,207 566 641 $ 6,148 * * Excludes residual values of $2.9 million. The total net investments in sales type leases, including stated residual values, as of September 30, 2023 and June 30, 2023 was $9.1 million and $9.0 million, respectively. The current portion of $1.6 million is included in other current assets in the consolidated balance sheets as of September 30, 2023 and June 30, and the long term portion of $7.5 million and $7.4 million is included in other assets in the consolidated balance sheets as of September 30, 2023 and June 30, 2023, respectively.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Note (8) - Income Taxes: As of September 30, 2023 and June 30, 2023, the Company had net deferred tax liabilities of approximately $5.0 million. Consistent with the guidance of the FASB regarding accounting for income taxes, the Company regularly estimates its ability to recover deferred tax assets and establishes a valuation allowance against deferred tax assets to reduce the balance to amounts expected to be recoverable. This evaluation includes the consideration of several factors, including an estimate of the likelihood of generating sufficient taxable income in future periods over which temporary differences reverse, the expected reversal of deferred tax liabilities, past and projected taxable income, and available tax planning strategies. As of September 30, 2023, management believed that it was more-likely-than-not that the results of future operations will generate sufficient taxable income to realize the amount of the Company’s deferred tax assets over the periods during which temporary differences reverse. The Company follows ASC Topic 740-10-25, “Accounting for Uncertainty in Income Taxes” (“ASC 740”). ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company’s accounting for income taxes in accordance with this standard did not result in a material adjustment to the Company’s provision for income taxes during the three months ended September 30, 2023 or 2022. On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act includes the largest-ever U.S. investment committed to combat climate change, allocating $369 billion to energy security and clean energy programs over the next 10 years, including provisions incentivizing manufacturing of clean energy equipment. Starting on January 1, 2023, the IR Act imposed a 15% alternative minimum tax (AMT) on corporations with book income in excess of $1 billion and a 1% federal excise tax on certain stock repurchases. The Company is not expected to be subject to the new AMT requirements and the 1% federal excise tax imposed by the IR Act is not expected to have a significant impact on the Company’s financial statements. As of September 30, 2023, the Company was subject to potential federal and state tax examinations for the tax years including and subsequent to 2019.

Equity Plans and Dividends

Equity Plans and Dividends	3 Months Ended
Equity Plans and Dividends	Sep. 30, 2023
Equity Plans and Dividends [Abstract]
Equity Plans and Dividends	Note (9) – Equity Plans and Dividends: Equity Incentive Plan In November 2015, the Company’s stockholders approved the Company’s 2015 Equity Incentive Plan (the “Plan”). During December 2020, the Company’s stockholders approved an amendment to the Plan to increase the number of shares of the Company’s common stock authorized for issuance pursuant to awards granted under the Plan to 3,000,000 shares. The fair value of awards granted under the Plan is expensed on a straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations. During the three months ended September 30, 2023, there were no restricted stock awards or restricted stock units granted under the Plan. During the three months ended September 30, 2022, restricted stock awards of a total of 222,672 shares and 93,789 restricted stock units were granted under the Plan. There were no restricted stock awards forfeited during either the three months ended September 30, 2023 or 2022. There were 12,533 and 376 restricted stock units forfeited during the three months ended September 30, 2023 and 2022, respectively. For the three months ended September 30, 2023 and 2022, non-cash share-based compensation expense awards granted under the Plan totaled $1.9 million and $680,000, respectively. Included within the non-cash share-based compensation expense for the three months ended September 30, 2023 is an additional expense of $1.2 million related to an acceleration in the requisite vesting period of 120,851 restricted stock awards and 30,000 restricted stock units, in each case, pursuant to the terms of the applicable award agreement. As of September 30, 2023, the Company had $18.4 million and $9.9 million of total unrecognized compensation expense related to restricted stock awards and restricted stock units, respectively, granted under the Plan, which is expected to be recognized over the weighted-average period of 14.37 years and 10.31 years, respectively. The following is a summary of non-vested restricted stock activity as of, and for the three months ended, September 30, 2023: Restricted Stock Awards Restricted Stock Units Shares Weighted- Shares Weighted- Non-vested awards or units outstanding at June 30, 2023 1,227,882 $ 20.56 533,200 $ 24.20 Granted — — — — Vested (27,834 ) 16.30 (6,519 ) 16.30 Forfeited — — (12,533 ) 21.48 Non-vested awards or units outstanding at September 30, 2023 1,200,048 $ 20.66 514,148 $ 24.37 Employee Stock Purchase Plan During 2017, the Company’s stockholders approved the Company’s 2017 Employee Stock Purchase Plan (the “ESPP”). Subject to the terms and conditions thereof, the ESPP allows eligible employees the opportunity to purchase shares of the Company’s common stock at a 5% discount. The ESPP provides for six-month offering periods ending on December 31 and June 30 of each year. No shares were issued under the Company’s employee stock purchase plan during the three months ended September 30, 2023 or 2022. Dividends The declaration and payment of cash dividends with respect to the Company’s common stock is determined by the Company’s Board of Directors based on the Company’s financial condition and results, including, but not limited to, cash flow generated by operations and profitability, prospects and liquidity needs and other factors deemed relevant by the Company’s Board of Directors. The Company has not historically paid regular dividends on its common stock. However, the Company has from time to time paid special cash dividends on its common stock. The Company did not pay any dividends on its common stock during the three months ended September 30, 2023 or 2022. On October 4, 2023, the Company’s Board of Directors declared a special cash dividend on the Company’s common stock of $0.28 per share, which was paid on October 26, 2023 to stockholders of record at the close of business on October 16, 2023. Future dividends and changes in dividend rates are at the sole discretion of the Board of Directors and depend upon factors including, but not limited to, cash flow generated by operations, profitability, financial condition, cash requirements, and future prospects. The payment of dividends, if any, in the future will be in the discretion of the Company’s Board of Directors, as described above. The payment of dividends may also be subject to restrictions contained in the Company’s debt instruments. As described elsewhere in this Report, including under “Liquidity and Capital Resources” in Item 2 of this Report, the Company’s Credit Agreement contains certain covenants which may, among other things, restrict the Company’s ability to pay dividends, and any future facilities may contain similar or more stringent requirements.

Transactions with Related Parti

Transactions with Related Parties	3 Months Ended
Transactions with Related Parties	Sep. 30, 2023
Transactions with Related Parties [Abstract]
Transactions with Related Parties	Note (10) – Transactions with Related Parties: On October 10, 2016, the Company’s wholly-owned subsidiary, Western State Design, entered into a lease agreement pursuant to which it leases 17,600 square feet of warehouse and office space from an affiliate of Dennis Mack, a director and Executive Vice President, Corporate Strategy of the Company, and Tom Marks, Executive Vice President, Business Development and President of the West Region of the Company. The lease had an initial term of five years and provides for two successive three On October 31, 2017, the Company’s wholly-owned subsidiary, Tri-State Technical Services, entered into lease agreements pursuant to which it leases a total of 81,000 square feet of warehouse and office space from an affiliate of Matt Stephenson, President of Tri-State. Monthly base rental payments total $21,000 during the initial terms of the leases. Each lease had an initial term of five years and provides for two successive three-year renewal terms at the option of the Company. The Company exercised its option to renew the leases for the first three-year renewal term. Base rent for the first renewal term is $25,000. In addition to such leases, since May 1, 2023, Tri-State Technical Services has also leased an additional 50,000 square feet of space from Mr. Stephenson. Monthly base rental payments for the additional space total $15,000. The term of this lease will expire upon the expiration of the other leases with Mr. Stephenson described above. In addition to base rent, Tri-State is responsible under the leases for costs related to real estate taxes, utilities, maintenance, repairs and insurance. Payments under these leases totaled approximately $119,000 and $63,000 during the three months ended September 30, 2023 and 2022, respectively. On November 1, 2018, the Company’s wholly-owned subsidiary, AAdvantage Laundry Systems, entered into a lease agreement pursuant to which it leases warehouse and office space from an affiliate of Mike Zuffinetti, former Chief Executive Officer of AAdvantage. Monthly base rental payments under this lease were $26,000 initially. Pursuant to the lease agreement, on January 1, 2019, the lease expanded to cover additional warehouse space and, in connection therewith, monthly base rental payments under this lease increased to $36,000. In addition to base rent, AAdvantage is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. The lease had an initial term of five years and provides for two successive three-year renewal terms at the option of the Company. The Company expects to exercise its option to renew this lease for the first three On November 3, 2020, the Company’s wholly-owned subsidiary, Yankee Equipment Systems, entered into a lease agreement pursuant to which it leases a total of 12,500 square feet of warehouse and office space from an affiliate of Peter Limoncelli, President of Yankee Equipment Systems. Monthly base rental payments were $11,000 during the initial term of the lease. In addition to base rent, Yankee Equipment Systems is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. The lease had an initial term of three years and provides for three successive three-year renewal terms at the option of the Company. The Company has exercised its option to renew this lease for the first three-year renewal term. Base rent for the first year of the renewal term is $12,500 per month. Payments under this lease totaled approximately $38,000 and $36,000 during the three months ended September 30, 2023 and 2022, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note (11) – Commitments and Contingencies The Company may from time to time become subject to litigation and other legal proceedings. Litigation and other legal proceedings may require the Company to incur significant expenses, including those relating to legal and other professional fees, as well as damages or other payments. Litigation and other legal proceedings are inherently uncertain, and adverse outcomes in litigation or other legal proceedings could adversely affect the Company’s financial condition, cash flows, and operating results.

Goodwill

Goodwill	3 Months Ended
Goodwill	Sep. 30, 2023
Goodwill [Abstract]
Goodwill	Note (12) – Goodwill Balance at June 30, 2023 $ 73,388 Goodwill from acquisitions (1) 792 Working capital adjustments (2) (25 ) Balance at September 30, 2023 $ 74,155 (1) Relates to the acquisition of ALCO, which was consummated during the three months ended September 30, 2023, as described in Note 4, “Acquisitions.” (2) Represents working capital adjustments related to business acquisitions consummated by the Company during the fiscal year ended June 30, 2023.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 1,282	$ 2,847

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings Per Share	Basic and diluted earnings per share for the three months ended September 30, 2023 and 2022 are computed as follows (in thousands, except per share data): For the three months ended 2023 2022 Net income $ 1,282 $ 2,847 Less: distributed and undistributed income allocated to unvested restricted common stock 153 351 Net income allocated to EVI Industries, Inc. shareholders $ 1,129 $ 2,496 Weighted average shares outstanding used in basic earnings per share 12,581 12,522 Dilutive common share equivalents 624 4 Weighted average shares outstanding used in diluted earnings per share 13,205 12,526 Basic earnings per share $ 0.09 $ 0.20 Diluted earnings per share $ 0.09 $ 0.20

Debt (Tables)

Debt (Tables)	3 Months Ended
Debt (Tables)	Sep. 30, 2023
Debt [Abstract]
Schedule of long-term debt	September 30, June 30, Revolving credit facility $ 34,000 $ 35,000 Less: unamortized discount and deferred financing costs (122 ) (131 ) Total long-term debt, net $ 33,878 $ 34,869

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Sep. 30, 2023
Leases [Abstract]
Schedule of operating lease liabilities	The table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown. Fiscal years ending June 30, Total Operating (in thousands) 2024 (remainder of) $ 2,347 2025 2,574 2026 1,904 2027 1,019 2028 637 Thereafter 804 Total minimum lease payments 9,285 Less: amounts representing interest 603 Present value of minimum lease payments 8,682 Less: current portion 2,790 Long-term portion $ 5,892
Schedule of Operating Leases	The table below presents additional information related to the Company’s operating leases (in thousands): Three months ended 2023 2022 Operating lease cost Operating lease cost (1) $ 1,001 $ 773 Variable lease cost (2) 1,076 18 Total lease cost $ 2,077 $ 791 (1) Expenses are classified as selling, general and administrative expenses in the Company’s condensed consolidated statements of operations. (2) Certain of the Company’s subsidiaries lease space at locations where (i) they install laundry equipment and customers pay for the use of equipment and (ii) the leased space is paid for as part of a revenue sharing arrangement. The Company did not report this variable lease cost in the quarter ended September 30, 2022 and does not believe the omission is material to the Company’s consolidated financial statements. These expenses are classified within cost of sales in the Company’s consolidated statements of operations. September 30, 2023 Weighted average remaining lease terms Operating leases 3.9 years Weighted average discount rate Operating leases 3.44 %
Schedule of Supplemental Cash Flow Information Related to Company's Long-Term Operating Lease Liabilities	The table below presents supplemental cash flow information related to the Company’s long-term operating lease liabilities for the three months ended September 30, 2023 and 2022 (in thousands): Three months ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: $ 1,001 $ 773 Operating lease right-of-use assets obtained in exchange for operating lease liabilities: $ 20 $ 300
Schedule of Minimum Lease Payments Receivable	The future minimum lease payments receivable for sales type leases are as follows (in thousands): Fiscal years ending June 30, Total Minimum Amortization Net Investment 2024 (remainder of) $ 3,557 $ 2,247 $ 1,310 2025 3,683 2,411 1,272 2026 3,051 1,807 1,244 2027 2,248 1,197 1,051 2028 1,222 591 632 Thereafter 1,207 566 641 $ 6,148 * * Excludes residual values of $2.9 million.

Equity Plans and Dividends (Tab

Equity Plans and Dividends (Tables)	3 Months Ended
Equity Plans and Dividends (Tables)	Sep. 30, 2023
Equity Plans and Dividends [Abstract]
Schedule of Non-vested Restricted Stock Activity	The following is a summary of non-vested restricted stock activity as of, and for the three months ended, September 30, 2023: Restricted Stock Awards Restricted Stock Units Shares Weighted- Shares Weighted- Non-vested awards or units outstanding at June 30, 2023 1,227,882 $ 20.56 533,200 $ 24.20 Granted — — — — Vested (27,834 ) 16.30 (6,519 ) 16.30 Forfeited — — (12,533 ) 21.48 Non-vested awards or units outstanding at September 30, 2023 1,200,048 $ 20.66 514,148 $ 24.37

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
Goodwill (Tables)	Sep. 30, 2023
Goodwill [Abstract]
Schedule of Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are as follows (in thousands): Balance at June 30, 2023 $ 73,388 Goodwill from acquisitions (1) 792 Working capital adjustments (2) (25 ) Balance at September 30, 2023 $ 74,155 (1) Relates to the acquisition of ALCO, which was consummated during the three months ended September 30, 2023, as described in Note 4, “Acquisitions.” (2) Represents working capital adjustments related to business acquisitions consummated by the Company during the fiscal year ended June 30, 2023.

Recently Issued Accounting Gu_2

Recently Issued Accounting Guidance (Details) $ in Millions	Sep. 30, 2023 USD ($)
Recently Issued Accounting Guidance [Abstract]
Trade receivables	$ 47.8
Net of allowance	$ 2

Acquisitions (Details)

Acquisitions (Details)	Sep. 01, 2023 USD ($) shares
Acquisitions (Details) [Line Items]
Goodwill	$ 792,000
Goodwill for tax purposes amortizable period	15 years
ALVF, Inc. [Member]
Acquisitions (Details) [Line Items]
Cash Paid	$ 987,000
Issuances of shares in connection with acquisitions, shares (in Shares) \| shares	8,621
Fair value consideration	$ 229,000

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended
Earnings Per Share (Details) - shares	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Dilutive securities outstanding	216,203	1,758,733

Earnings Per Share (Details) -

Earnings Per Share (Details) - Schedule of Basic and Diluted Earnings Per Share - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Schedule of Basic and Diluted Earnings Per Share [Line Items]
Net income	$ 1,282	$ 2,847
Less: distributed and undistributed income allocated to unvested restricted common stock	153	351
Net income allocated to EVI Industries, Inc. shareholders	$ 1,129	$ 2,496
Weighted average shares outstanding used in basic earnings per share	12,581,000	12,522,000
Dilutive common share equivalents	624,000	4,000
Weighted average shares outstanding used in diluted earnings per share	13,205,000	12,526,000
Basic earnings per share	$ 0.09	$ 0.2
Diluted earnings per share	$ 0.09	$ 0.2

Debt (Details)

Debt (Details) $ in Millions	3 Months Ended
Debt (Details) $ in Millions	Sep. 30, 2023 USD ($)
Debt (Details) [Line Items]
Amount available for borrowing under the revolving line of credit facility	$ 55.1
Maximum [Member]
Debt (Details) [Line Items]
Consolidated leverage ratio	1.25%
Bear interest percentage	0.25%
Maximum [Member] \| Base Rate [Member]
Debt (Details) [Line Items]
Consolidated leverage ratio	0.25%
Minimum [Member]
Debt (Details) [Line Items]
Consolidated leverage ratio	1.75%
Bear interest percentage	0.75%
Minimum [Member] \| Base Rate [Member]
Debt (Details) [Line Items]
Consolidated leverage ratio	0.75%
Standby Letters Of Credit Member [Member]
Debt (Details) [Line Items]
Amount available for borrowing under the revolving line of credit facility	$ 10
Revolving Credit Facility [Member]
Debt (Details) [Line Items]
Aggregate principal amount	100
Revolving line of credit facility amount outstanding	$ 40
Maturity date	May 06, 2027
Revolving Credit Facility [Member] \| Maximum [Member]
Debt (Details) [Line Items]
Revolving line of credit facility amount outstanding	$ 140
Swingline Loans [Member]
Debt (Details) [Line Items]
Amount available for borrowing under the revolving line of credit facility	$ 5

Debt (Details) - Schedule of lo

Debt (Details) - Schedule of long-term debt - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2022
Schedule of long-term debt [Abstract]
Revolving credit facility	$ 34,000	$ 35,000
Less: unamortized discount and deferred financing costs	(122)	(131)
Total long-term debt, net	$ 33,878	$ 34,869

Leases (Details)

Leases (Details) - USD ($) $ in Millions	3 Months Ended
Leases (Details) - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023
Leases [Abstract]
Lease term expirations, description	lease term expirations between 2023 and 2030.
Residual value	$ 2.9
Total net investment in sales type leases	9.1	$ 9
Current portion sales type leases	1.6
Long term portion sales type leases	$ 7.5	$ 7.4

Leases (Details) - Schedule of

Leases (Details) - Schedule of Operating lease liabilities - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Schedule of operating lease liabilities [Abstract]
2024 (remainder of)	$ 2,347
2025	2,574
2026	1,904
2027	1,019
2028	637
Thereafter	804
Total minimum lease payments	9,285
Less: amounts representing interest	603
Present value of minimum lease payments	8,682
Less: current portion	2,790	$ 3,027
Long-term portion	$ 5,892	$ 6,554

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of Operating Leases - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2023	Sep. 30, 2022
Operating lease cost
Operating lease cost	[1]	$ 1,001	$ 773
Variable lease cost	[2]	1,076	18
Total lease cost		$ 2,077	$ 791
Weighted average remaining lease terms
Operating leases		3 years 10 months 24 days
Weighted average discount rate
Operating leases		3.44%

[1]Expenses are classified as selling, general and administrative expenses in the Company’s condensed consolidated statements of operations.[2]Certain of the Company’s subsidiaries lease space at locations where (i) they install laundry equipment and customers pay for the use of equipment and (ii) the leased space is paid for as part of a revenue sharing arrangement. The Company did not report this variable lease cost in the quarter ended September 30, 2022 and does not believe the omission is material to the Company’s consolidated financial statements. These expenses are classified within cost of sales in the Company’s consolidated statements of operations.

Leases (Details) - Schedule o_3

Leases (Details) - Schedule of Supplemental Cash Flow Information Related to Company's Long-Term Operating Lease Liabilities - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Schedule of Supplemental Cash Flow Information Related to Company's Long-Term Operating Lease Liabilities [Abstract]]
Cash paid for amounts included in the measurement of lease liabilities:	$ 1,001	$ 773
Operating lease right-of-use assets obtained in exchange for operating lease liabilities:	$ 20	$ 300

Leases (Details) - Schedule o_4

Leases (Details) - Schedule of Minimum Lease Payments Receivable $ in Thousands	Sep. 30, 2023 USD ($)
Total Minimum Lease Payments Receivable [Member]
Leases (Details) - Schedule of Minimum Lease Payments Receivable [Line Items]
2024 (remainder of)	$ 3,557
2025	3,683
2026	3,051
2027	2,248
2028	1,222
Thereafter	1,207
Amortization of Unearned Income [Member]
Leases (Details) - Schedule of Minimum Lease Payments Receivable [Line Items]
2024 (remainder of)	2,247
2025	2,411
2026	1,807
2027	1,197
2028	591
Thereafter	566
Net Investment in Sales Type Leases [Member]
Leases (Details) - Schedule of Minimum Lease Payments Receivable [Line Items]
2024 (remainder of)	1,310
2025	1,272
2026	1,244
2027	1,051
2028	632
Thereafter	641
Future minimum lease payments receivable	$ 6,148	[1]

[1]Excludes residual values of $2.9 million.

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jan. 01, 2023	Aug. 16, 2022	Sep. 30, 2023	Jun. 30, 2023
Income Taxes (Details) [Line Items]
Investment		$ 369,000
Energy security		10 years
Alternative minimum tax	15%
Federal excise tax amount	$ 1,000
Federal excise tax	1%		1%
Income Taxes [Member]
Income Taxes (Details) [Line Items]
Deferred tax liabilities			$ 5	$ 5

Equity Plans and Dividends (Det

Equity Plans and Dividends (Details) - USD ($)	3 Months Ended
Equity Plans and Dividends (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Oct. 04, 2023	Dec. 31, 2020
Equity Plans and Dividends (Details) [Line Items]
Number of shares authorized under 2015 Equity Incentive Plan				3,000,000
Number of shares granted		93,789
Non-cash share-based compensation expense (in Dollars)	$ 1,900,000	$ 680,000
Additional expense (in Dollars)	$ 1,200,000
Restricted stock units	30,000
Unrecognized restricted stock (in Dollars)	$ 9,900,000
Weighted-average period	10 years 3 months 21 days
Common stock discount percentage	5%
Cash dividend per share (in Dollars per share)			$ 0.28
Restricted Stock Awards [Member]
Equity Plans and Dividends (Details) [Line Items]
Number of shares granted		222,672
Restricted stock units	120,851
Unrecognized restricted stock (in Dollars)	$ 18,400,000
Restricted Stock Units [Member]
Equity Plans and Dividends (Details) [Line Items]
Number of stock Forfeited	12,533	376
Weighted-average period	14 years 4 months 13 days

Equity Plans and Dividends (D_2

Equity Plans and Dividends (Details) - Schedule of Non-vested Restricted Stock Activity	3 Months Ended
	Sep. 30, 2023 $ / shares shares
Restricted Stock Awards [Member]
Equity Plans and Dividends (Details) - Schedule of Non-vested Restricted Stock Activity [Line Items]
Non-vested awards or units outstanding, Beginning balance \| shares	1,227,882
Weighted-Average Grant Date Fair Value, Beginning balance \| $ / shares	$ 20.56
Restricted Stock Awards, Granted \| shares
Restricted Stock Units, Granted \| $ / shares
Restricted Stock Awards, Vested \| shares	(27,834)
Restricted Stock Units, Vested \| $ / shares	$ 16.3
Restricted Stock Awards, Forfeited \| shares
Restricted Stock Units, Forfeited \| $ / shares
Non-vested awards or units outstanding, Ending balance \| shares	1,200,048
Weighted-Average Grant Date Fair Value, Ending balance \| $ / shares	$ 20.66
Restricted Stock Units [Member]
Equity Plans and Dividends (Details) - Schedule of Non-vested Restricted Stock Activity [Line Items]
Non-vested awards or units outstanding, Beginning balance \| shares	533,200
Weighted-Average Grant Date Fair Value, Beginning balance \| $ / shares	$ 24.2
Restricted Stock Awards, Granted \| shares
Restricted Stock Units, Granted \| $ / shares
Restricted Stock Awards, Vested \| shares	(6,519)
Restricted Stock Units, Vested \| $ / shares	$ 16.3
Restricted Stock Awards, Forfeited \| shares	(12,533)
Restricted Stock Units, Forfeited \| $ / shares	$ 21.48
Non-vested awards or units outstanding, Ending balance \| shares	514,148
Weighted-Average Grant Date Fair Value, Ending balance \| $ / shares	$ 24.37

Transactions with Related Par_2

Transactions with Related Parties (Details)						3 Months Ended
Transactions with Related Parties (Details)	Nov. 03, 2020 USD ($) ft²	Jan. 01, 2019 USD ($)	Nov. 01, 2018 USD ($)	Oct. 31, 2017 USD ($) ft²	Oct. 10, 2016 USD ($) ft²	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	May 01, 2023 USD ($) ft²
Transactions with Related Parties (Details) [Line Items]
Additional square feet (in Square Feet) \| ft²								50,000
Dennis Mack and Tom Marks [Member]
Transactions with Related Parties (Details) [Line Items]
Lease agreement (in Square Feet) \| ft²					17,600
Renewal terms					3 years
Rental payments					$ 12,000
Base rent					$ 19,000
Mike Zuffinetti [Member]
Transactions with Related Parties (Details) [Line Items]
Renewal terms		3 years
Lease totaled		$ 36,000	$ 26,000			$ 57,000	$ 57,000
Matt Stephenson [Member]
Transactions with Related Parties (Details) [Line Items]
Lease agreement (in Square Feet) \| ft²				81,000
Rental payments				$ 21,000
Base rent				$ 25,000
Frank Costabile [Member]
Transactions with Related Parties (Details) [Line Items]
Rental payments								$ 15,000
Scott Martin [Member]
Transactions with Related Parties (Details) [Line Items]
Lease totaled						119,000	63,000
Peter Limoncelli [Member]
Transactions with Related Parties (Details) [Line Items]
Lease agreement (in Square Feet) \| ft²	12,500
Rental payments	$ 11,000
Base rent	12,500
Lease totaled	$ 38,000					$ 108,000	36,000
AAdvantage [Member]
Transactions with Related Parties (Details) [Line Items]
Lease totaled							$ 108,000

Goodwill (Details) - Schedule o

Goodwill (Details) - Schedule of Carrying Amount of Goodwill $ in Thousands	3 Months Ended
	Sep. 30, 2023 USD ($)
Schedule of Carrying Amount of Goodwill [Abstract]
Balance, beginning	$ 73,388
Goodwill from acquisitions	792	[1]
Working capital adjustments	(25)	[2]
Balance, ending	$ 74,155

[1]Relates to the acquisition of ALCO, which was consummated during the three months ended September 30, 2023, as described in Note 4, “Acquisitions.”[2]Represents working capital adjustments related to business acquisitions consummated by the Company during the fiscal year ended June 30, 2023.