Exhibit 99.1


EVI Industries, Inc.

4500 Biscayne Boulevard, Suite 340

Miami, Florida 33137


Henry M. Nahmad, Chairman and CEO – (305) 402-9300

Sloan Bohlen, Investor Relations – info@evi-ind.com



EVI Sets Records for Fiscal Year 2020

Miami, FL – September 14, 2020 – EVI Industries, Inc. (NYSE American: EVI) (the “Company” or “EVI”) announced today results for the fourth quarter and fiscal year ended June 30, 2020. While the COVID-19 pandemic and accompanying economic disruption adversely impacted the Company’s performance, the Company achieved record revenue, gross profit, and operating cash flows for fiscal year 2020 and reduced net debt 50% compared to the prior year. This reflects the Company’s continued execution of its long-term focused buy-and-build growth strategy and the effectiveness of certain organic growth initiatives offset by continued investment towards the modernization and optimization of the Company and the impact of COVID-19. .


Earnings Conference Call

The Company has provided a pre-recorded earnings conference call including a business update, which can be accessed 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.


50% Decrease to Net Debt and Record Operating Cash Flows

At June 30, 2020, the Company had $18 million of net debt. This represents an $8 million, or a 31% decrease to net debt as compared to March 31, 2020 and an $18 million, or a 50% decrease to net debt as compared to June 30, 2019. The strengthening of the Company’s balance sheet was driven by a record $23 million of operating cash flow for the fiscal year ended June 30, 2020. This record accomplishment in operating cash flow represents a $32 million positive swing in operating cash flow over the prior year and is a function of attractive working capital dynamics and the successful implementation of an effective cash management program.


Fourth Quarter and Fiscal Year Operating Results

During the second half of fiscal 2020, government orders resulted in the unprecedented closure of businesses and restrictions that limited the Company’s access to customers’ facilities. This triggered a deceleration of revenue that started in March, continued into April, but started to rebound in May and continued to rebound through June. The deceleration in revenue resulted in a 16% decrease in revenue for the three months ended June 30, 2020 compared to the three months ended June 30, 2019; however, revenue increased 3% for the fiscal year ended June 30, 2020 to a record $236 million.


Henry M. Nahmad, Chairman and CEO commented: “While we were confronted with the turbulence and chaos caused by COVID-19 during fiscal 2020, we are pleased with the manner and speed in which we have been able to adapt. Revenue from industrial laundry customers was consistent with preplanned delivery and installation schedules and encouragingly, we accepted customer deposits for future planned industrial laundries. Revenue from on-premise laundry customers varied by end-user and geography. Revenue from vended laundry customers was strong due to factors that continue to spur investment from entrepreneurs and revenue from multi-family customers was consistent with contractual obligations.”


Gross margin for the fourth quarter increased from approximately 24% in fiscal 2019 to 25% in fiscal 2020 and gross margin for the fiscal year 2020 increased 30-basis points to 23.4% resulting in record gross profit for fiscal year 2020. Meanwhile, the decline in Adjusted EBITDA for the fourth fiscal quarter and fiscal 2020, principally reflect the impact of COVID-19. It also reflects expenses associated with operating fourteen independent businesses, inefficiencies related to outdated enterprise resource planning (ERP) software, and the Company’s ongoing investments to optimize and modernize its operations. Further, the Company’s operating results reflect continued investments made in pursuit of acquisition and strategic investments, and the retention of substantially all of its employees. Given the essential nature of its business, the Company’s employees were and remain integral to the success of its customers’ operations and, in turn, the Company.





Consistent with its buy-and-build strategy, during fiscal 2020, the Company completed three acquisitions. One expanded its footprint into the northeast and the other two increased its market share in the mid-Atlantic and the southeast. While the Company generally maintains a healthy pipeline of acquisition opportunities, COVID-19 has increased the number of acquisition opportunities the Company is pursuing at this time both in the commercial laundry industry and across its targeted complementary industries. To amplify its efforts, the Company allocated additional resources to these efforts, which given its reputation, entrepreneurial culture, and long-term growth plans, the Company believes will improve its ability to secure additional successful acquisitions for the Company.


Looking Forward

While the Company pursues these long-term growth opportunities, its decentralized and entrepreneurial operating philosophy has generally remain unchanged. However, during the second half of fiscal 2020, the Company commenced an initiative to consolidate its operations into five primary subsidiaries with nine operating branches and to implement an ERP capable of supporting its future growth and its needs for business intelligence. Beyond the near-term benefits of realizing certain operating efficiencies, the Company believes that this technology will improve the effectiveness of future sales and marketing initiatives, will result in more efficient service operations, will facilitate predictive parts sales, will augment the future generation of sales and service professionals with intuitive selling and servicing solutions, will create a more connected and powerful experience with its customers, will be the foundation of its future e-commerce platform, and will enhance its competitive advantages. Additionally, the Company believes this plan will be instrumental in achieving a greater level of profitability from successive acquisitions earlier in its ownership than it has historically experienced. While this is a significant undertaking, the Company has worked diligently towards accomplishing these objectives without significant operating disruption or time delays. As of today, the Company successfully implemented its new ERP and related technologies at one of its five primary subsidiaries and has accelerated its Company-wide consolidation plan and corresponding technology implementations.


Mr. Nahmad commented: “We are still very early in our long-term growth goals. Our financial position remains strong with ample liquidity, well-managed working capital, and positive cash flows. Despite disruption and uncertainty resulting from COVID-19, we continue to believe that we have the right strategies to drive organic growth and to capture substantial growth through acquisitions and strategic investments in and around our industry. Further, we are confident that the benefit of such growth will be amplified by the continued modernization and optimization of the Company and that focusing on sustainable long-term business drivers will yield superior long-term performance and results for EVI and our shareholders.”


Fourth Quarter and Fiscal Year 2020 Operating Results

(compared to the same period of the prior fiscal year)


Fourth Quarter Results

§Revenue decreased 16% to $54 million,
§Gross profit decreased 15% to $13.5 million,
§Gross margin increased 30 basis points to 25%,
§Operating income was $0.34 million versus $2.4 million,
§Net loss of $(0.1) million versus $1.2 million of net income, and
§Adjusted EBITDA was $1.9 million versus $3.7 million.


Fiscal Year Results

§Revenue increased 3% to a record $236 million,
§Gross profit increased 5% to a record $55 million,



§Gross margin increased 30 basis points to 23.4%,
§Operating income was $2.8 million versus $7.0 million,
§Net income was $0.78 million versus $3.7 million,
§Adjusted EBITDA was $8.8 million versus $11.5 million, and
§Operating cash flow was a record $23.1 million, an increase of $32 million in cash provided by operations.


For additional information regarding the Company’s results for the fourth quarter and fiscal year ended June 30, 2020 and further discussion of the COVID-19 pandemic, including its impact on the Company’s results and measures taken by the Company in response to the pandemic, see the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020, 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 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. In addition, EVI’s definition of Adjusted EBITDA may not be comparable to definitions of Adjusted EBITDA or other similarly titled measures used by other companies.


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 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 are subject to a number of known and unknown risks and uncertainties that may cause actual results, trends, performance or achievements of EVI, or industry trends and results, to differ from the future results, trends, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, among others, , the risks related to EVI’s business, results, financial condition, prospects, and growth strategy and plans; general economic and business conditions in the United States and other countries where EVI operates or where its customers and suppliers are located; industry conditions and trends; risks relating to the COVID-19 pandemic and the rapidly changing effects thereof and developments with respect thereto, including the impact of the COVID-19 pandemic on EVI and its business, liquidity and results and the business, liquidity, financial condition of EVI’s suppliers and customers, the length and severity of the COVID-19 pandemic and the pace of recovery following the COVID-19 pandemic, the success of actions taken or which may be taken by EVI in response to the COVID-19 pandemic, volatility in the economy, including in the credit markets, supply chain disruptions, reduced demand for products and services, business restrictions, worker absenteeism, quarantines and other health-related restrictions, governmental and agency orders, mandates and guidance in response to the COVID-19 pandemic, including stay-at home orders, risks related to the previously-disclosed loans received by the Company and certain of its subsidiaries under the Paycheck Protection Program established under the Coronavirus Aid, Relief, and Economic Security Act, including that there is no assurance that any or all of the loans will be forgiven and that, while the Company believes that the certifications made by it in connection with the loan applications are accurate, the applications will be reviewed and may subject the Company to potential liability if determined to be inaccurate; risks associated with EVI’s buy-and-build growth strategy, including that EVI may not be successful in identifying or consummating acquisitions or other strategic opportunities, that acquisition and other strategic opportunities may not be available to EVI to the extent anticipated or at all, that the potential benefits of transactions may not be realized to the extent anticipated or at all, integration risks, risks related to indebtedness incurred in connection with transactions, dilution experienced by EVI’s stockholders as a result of shares issued in connection with transactions, risks related to the business, operations and prospects of acquired businesses, their ability to achieve growth and EVI’s ability to support growth efforts, risks related to EVI’s and its acquired businesses’ relationships with principal suppliers and customers, including EVI’s ability to expand or maintain such relationships, and the impact that the loss of any principal supplier or customer could have on EVI’s results and financial condition; risks related to organic growth initiatives, market share and other growth strategies, and modernization, optimization and other initiatives (including the Company’s recently implemented consolidation initiative), including the costs associated with such initiatives and the risk that they may not be implemented when or as expected and may not result in the benefits, including long-term growth or superior performance or results; competition, including the Company’s ability to compete effectively; risks relating to the Company’s ability to enter into and compete effectively in new industries, as well as risks and trends related to those industries and the costs and timing of the Company’s efforts with respect thereto; and other economic, competitive, governmental, technological and other risks and factors discussed elsewhere in the Company’s filings with the Securities and Exchange Commission, , 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, 2020. Further, past performance of EVI and its acquired businesses and trends may not be indicative of future results. EVI 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. EVI does not undertake to, and specifically disclaims any obligation to, update 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 
   06/30/20   06/30/19   06/30/20   06/30/19 
Revenues  $235,802   $228,318   $54,423   $64,882 
Cost of Sales   180,595    175,620    40,955    49,005 
Gross Profit   55,207    52,698    13,468    15,877 
SG&A   52,427    45,693    13,125    13,513 
Operating Income   2,780    7,005    343    2,364 
Interest Expense, net   1,432    1,389    234    447 
Income before Income Taxes   1,348    5,616    109    1,917 
Provision for Income Taxes   573    1,873    165    701 
Net Income (Loss)  $775   $3,743   $(56)  $1,216 
Net Income (Loss) per Share                    
Basic  $0.06   $0.30   $(0.01)  $0.10 
Diluted (1)  $0.06   $0.29   $(0.01)  $0.09 
Weighted Average Shares Outstanding                    
Basic   11,841    11,533    11,921    11,741 
Diluted (1)   12,171    12,022    11,921    12,209 


(1) For the three-month period ended June 30, 2020 potential common shares under the treasury stock method were anti-dilutive because the Company reported a net loss in the period.




EVI Industries, Inc.        
Condensed Consolidated Balance Sheets (in thousands, except per share data)
   06/30/20   06/30/19 
Current assets          
Cash and cash equivalents  $9,789   $5,038 
Accounts receivable, net   23,042    30,557 
Inventories, net   24,063    26,445 
Vendor deposits   1,276    403 
Contract assets   3,443    2,487 
Other current assets   3,041    2,938 
Total current assets   64,654    67,868 
Equipment and improvements, net   7,992    5,865 
Operating lease assets   5,311     
Intangible assets, net   21,754    22,351 
Goodwill   56,678    54,501 
Other assets   4,329    3,900 
Total assets  $160,718   $154,485 
Liabilities and Shareholders’ Equity          
Current liabilities          
Accounts payable and accrued expenses  $24,292   $17,508 
Accrued employee expenses   4,764    5,187 
Customer deposits   8,511    7,163 
Contract liabilities   558    854 
Current portion of long-term debt   2,680     
Current portion of operating lease liabilities   1,672     
Total current liabilities   42,477    30,712 
Deferred tax liabilities, net   1,728    1,708 
Long-term operating lease liabilities   3,657     
Long-term debt, net   25,030    40,563 
Total liabilities   72,892    72,983 
Common stock related to acquiree's Employee Stock Ownership Plan ("ESOP")       4,240 
Shareholders' equity          
Preferred stock, $1.00 par value        
Common stock, $.025 par value   301    296 
Additional paid-in capital   79,127    73,010 
Retained earnings   10,410    9,635 
Treasury stock   (2,012)   (1,439)
Common stock related to acquiree's ESOP       (4,240)
Total shareholders' equity   87,826    77,262 
Total liabilities and shareholders' equity  $160,718   $154,485 




EVI Industries, Inc.        
Condensed Consolidated Statements of Cash Flows (in thousands)
   For the twelve months ended 
   06/30/20   06/30/19 
Operating activities:          
Net income  $775   $3,743 
Adjustments to reconcile net income to net cash provided (used) by operating activities:          
Depreciation and amortization   3,696    2,743 
Amortization of debt discount   55    95 
Provision for bad debt expense   497    283 
Non-cash lease expense   18     
Share-based compensation   2,302    1,740 
Inventory reserve   49    86 
(Benefit) provision for deferred income taxes   (178)   861 
Other   (109)    
(Increase) decrease in operating assets:          
Accounts receivable   8,121    (8,934)
Inventories   3,969    (4,335)
Vendor deposits   (873)   203 
Contract assets   (956)   (1,475)
Other assets   (356)   (988)
Increase (decrease) in operating liabilities:          
Accounts payable and accrued expenses   5,568    2,381 
Accrued employee expenses   (474)   241 
Customer deposits   1,258    (5,964)
Contract liabilities   (296)   595 
Net cash provided (used) by operating activities   23,066    (8,725)
Investing activities:          
Capital expenditures   (3,375)   (2,979)
Cash paid for acquisitions; net of cash acquired   (1,379)   (12,542)
Net cash used by investing activities   (4,754)   (15,521)
Financing activities:          
Dividends paid       (1,619)
Proceeds from borrowings   24,892    112,963 
Debt repayments   (37,930)   (82,435)
Payment of debt issuance costs       (272)
Repurchases of common stock in satisfaction of employee tax withholding obligations   (573)   (728)
Issuances of common stock under employee stock purchase plan   50    45 
Net cash (used) provided by financing activities   (13,561)   27,954 
Net increase in cash and cash equivalents   4,751    3,708 
Cash and cash equivalents at beginning of period   5,038    1,330 
Cash and cash equivalents at end of period  $9,789   $5,038 




EVI Industries, Inc.        
Condensed Consolidated Statements of Cash Flows (in thousands)
   For the twelve months ended 
    06/30/20    06/30/19 
Supplemental disclosures of cash flow information:          
Cash paid during the period for interest  $1,475   $1,231 
Cash paid during the period for income taxes  $345   $1,737 
Supplemental disclosure of non-cash financing activities          
Common stock issued for acquisitions  $3,770   $21,290 







The following table reconciles net income (loss), 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 
   06/30/20   06/30/19   06/30/20   06/30/19 
Net Income (loss)  $775   $3,743   $(56)  $1,216 
Provision for Income Taxes   573    1,873    165    701 
Interest Expense   1,432    1,389    234    447 
Depreciation and Amortization   3,696    2,743    1,004    849 
Amortization of Share-based Compensation   2,302    1,740    578    453 
Adjusted EBITDA  $8,778   $11,488   $1,925   $3,666