Hello, and welcome to EVI Industries Earnings Call for the Second Quarter of the Fiscal Year Ending June 30, 2023.
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, 2022.
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 to Please information for most net we adjusted income, regarding press reconciliation a GAAP how additional EBITDA including the today and refer measure. EBITDA, of earnings to define our release adjusted adjusted comparable EBITDA
XXXX. EVI X-month culture And year now on periods the people, our ambitious and comments and is for formula focused entrepreneurial a my of is bound on X- values winning. an of That success. collection fiscal by core
doing embarked over undisputed a around laundry and long so, XXXX, journey to returns in term. commercial on for our produced leader we the attractive shareholders in build the the In and long-term industry,
December established results EBITDA X-month gross the margin, operating new net profit, adjusted gross ended revenue, XXXX. records per and for and income, Today's share XX, X- earnings income, for periods
We our are of on growth pursuit but in to proud multibillion-dollar build and optimization enterprise. level continue results, a a higher achieving of goal of to the long-term be focused we
about our operating performance. now And
made our the fiscal results our record operating we begin into long-term through have to of Our company focused quarter buy-and-build investments reflect second benefits strategy.
quarter to and goals. our offset professionals believe will recruitment part the we in by The to sales greater be level in in performance was acquisition modernization operating critical achieving of fiscal resulted program, and record of second which our and a continued revenue This continue operating leverage long-term initiatives, businesses. across development our service investment
million $X record net of X.X% revenue revenue. million adjusted income quarter EBITDA fiscal of $XX approximately second approximately record million, reported of or of record and $X.X We
million Record December the $XX.X XX, reported million. adjusted X.X% revenue months $X.X X ended of of income EBITDA of million approximately of record or revenue. $XXX XXXX, net and record For we
have employ We new to the XXX force for stated with our company. of opportunities organization build in the experience priceless sales knowledge As industry secure backbone our they relationships our the and calls, in professionals single and business sales industry prior over that is customer largest I've company. quality sales use
employ also in technicians nearly and laundry of effectively operations. our completing with maintenance technicians, XXX of network and service single installation installations We support largest the services customers'
Combined and services, to with company capabilities of equipped the serve all growing our types commercial array laundries of sizes. support products our and with is
in record basis record and In to the profit XX%. the addition a XX% revenue, million, to increase points quarter $XX.X to significant XXX increased margin a in increased gross second gross
profit to For December months such administrative a of expenses record XXXX, in the businesses. $XX.X expenses to XXX in increases profit increase ended selling XX, XX% operating revenue and with general an offset and and expenses, connection gross gross a with The in X basis attributed increase increased margin points record acquired increased in million XX.X%. increase XX% gross to and
million record income a the XXX% or operating adjusted increased $X.X approximately increased a to to increased Net income XX% XXX% million, quarter of Ultimately, EBITDA and $X.X a to record second million. X.X% revenue. record $X.X in
approximately For to XX% income increased income net and to adjusted a and record or XX, $X.X million the a of months EBITDA increased record X.X% $X million revenue. to December operating a from ended million increased million XXXX, $XX.X X $X.X record XXX% XX%
are we While also better. getting our business is getting bigger,
company. culture decisions information collaborative deploy we leaders technologies from using resulting and advanced leadership by our and provided our continue across faster smarter Our making are to better the
our our as our and products to laundry commercial around we the scale business initiatives undertaken, Given in we operating provide effectiveness customers ability our in remain of greater we level of business. have confident to and a core up more the achieve services leverage
acquisitions. to now And
industry our long-term completion as of in of continued we commercial quarter, acquisition we the second year. our third completed the laundry the our acquisition among our During we growth execute the strategy is to the XXrd industry. of the buy-and-build independent distribution growth long-term The and buy strategy and entrepreneurs a component support positive our to the fiscal in testament service continued on reputation of our have industry across established
buy and in and financial flexibility, capitalize the to businesses, strength and growth, active very to and reputation appetite of the in and our continues pursuit with our significant our number industry. investments given of geographies of a around and our leaders existing We our the for industry. opportunities remain around business well positioned laundry commercial and Given and team regional collaborate unit in in additional pursuit additional other EVI great is on record growing opportunities
strategy many believe mentioned focus buy-and-build we growth. revenue through in I've which seeds will profitability will requires achieve attractive times, our buy significant that long-term we planting and opportunities result As
culture, Our nurturing of with high-quality a requires approach discipline, and thoughtfulness, the have these all patience businesses. which addition of we demonstrated
our in strength and robust opportunities about laundry of plans pipeline optimistic outlook. around commercial health and acquisition of and excited the we long-term growth remain and industry, and the the company our Given
sheet. balance our to now And
with Our a which serves as believe position, operating advantage and strategy, these we times. significant during a combined improving financial prudent solid continuously strong capital allocation competitive for performance provides
long-term well positioned but our of position in aggressive commencement growth. continued strategy, the to on our ample principles. growth disciplined been we Given based financial for and capital, opportunities access buy-and-build we've financial pursuit Since consider our of are
We on us times have a -- to utilized debt-conservative turbulent flexibility we utilized navigate debt growth with opportunities. capitalize believe provided simultaneously ample approach we to attractive has that have
compared the company's XX, capital million Net end is acquisitions the and million, to increase the the a the June continued months investment result XXXX. X the during $XX.X XX, net completed was debt at increase of December second debt of quarter in which The in working ended as reflects $X XXXX.
XXXX, as supply and in customer in chain and acquired increase laundries primarily million reflecting vended to XX, an needs. inventory, connection the reflects effort of support a continuation OPL increased better $XX The projects, industrial constraint pending short-term inventory in June inventory with compared equipment installation stock to
in of growth long-term increased remains position capital, leverage and Despite opportunities execute profitability low strong working objectives. ample company's investment and to financial liquidity the EVI's in the on investment with support
finally, on want build we over the and to I And in embarked industry doing long undisputed reiterate produced journey and attractive the to long-term commercial on strategy laundry XXXX, so, leader that for around term. shareholders in and the a in goals. long-term our returns our
long-term make a growth business mindset a Through flexibility, partners. this uphold with and financial entrepreneurial financial culture an teams instill principles continue with local to uphold have and EVI respect family, the will to business and ensure with and of invest perspective, manage establish guide strength to local management that journey, core and OEM we decisions, and and a the performance entrepreneurs discipline culture, the values promote operate participation, joined as strong decisions, our improvement, and equity relationships incentivize leaders continuous empower to reward our
build We're execute of successfully These of long-term guided us that to to our achieve will with success. disciplined can the EVI. foundation and conviction, to business culture with demonstrate encourage proud commitment and we to sustainable thoughtfulness, core contents investing
and reasons these growth call, others earnings For about excited the and plans. mentioned optimistic this we long-term our during remain
our your comments well. employees, participation time, customers for quarter closing, I our ended the my In XX, our related to valued second year support and concludes want EVI. be thank and in shareholders of XXXX. fiscal suppliers Until This to loyal June and next
