MIAMI - EVI Industries, Inc. (NYSE American: EVI), a distributor and service provider in the commercial laundry industry, has announced an increase in its special cash dividend. The company's Board of Directors approved a dividend of $0.31 per share, marking a 10% increase from the previous special dividend paid in October 2023. This new dividend is set to be distributed on October 7, 2024, to shareholders of record as of September 26, 2024.
The Chairman and CEO of EVI, Henry M. Nahmad, expressed that the company's solid cash flows and growth prospects for fiscal 2024 have enabled this increase. He stated that the raised dividend is a way to reward investors who believe in the company's long-term strategy. Nahmad also mentioned the company's strong balance sheet as a sign of confidence in their business outlook.
EVI Industries has indicated that it will continue to evaluate the distribution of dividends, balancing the sharing of cash flow with shareholders and maintaining a conservative financial stance. The Board of Directors will consider future dividends in relation to investment opportunities, liquidity needs, general economic conditions, and the company's financial health, including its cash position.
The company, through its subsidiaries, specializes in the distribution and provision of advisory and technical services for commercial laundry operations. EVI Industries offers a range of products and services, including equipment sales and leasing, as well as maintenance and repair services, catering to a diverse customer base that spans retail, commercial, industrial, institutional, and government sectors.
While the announcement reflects a positive outlook for the company, EVI Industries also cautions investors about forward-looking statements. These statements are subject to various risks and uncertainties, and there is no guarantee that future dividends will be declared. Factors such as the terms of the company's debt and other economic and competitive risks could influence future financial decisions and performance.
The increase in the dividend is based on the company's current financial position and is not necessarily indicative of future results. This information is sourced from a press release statement by EVI Industries.
InvestingPro Insights
EVI Industries' commitment to shareholder returns is underscored by its recent dividend increase, a move that aligns with the company's solid cash flows and optimistic growth outlook for the coming fiscal year. The company's financial health is further evidenced by key metrics from InvestingPro. Over the last twelve months as of Q3 2024, EVI has achieved a revenue of $357.46 million, reflecting a growth of 4.23%. Despite a dip in quarterly revenue growth by -10.72%, the company's gross profit margin remains robust at 29.56%, indicating efficient cost management and a strong market position.
InvestingPro Tips suggest that EVI operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, which provides financial flexibility and stability. Additionally, while the price of EVI stock has seen a significant decline over the past three months, with a -18.4% return, and a -25.84% return over the past six months, the company has been profitable over the last twelve months. This illustrates a potential opportunity for investors looking at the long-term prospects of the company, especially considering EVI's high return over the last decade. It's worth noting, for those interested in income-generating investments, that EVI does not pay a regular dividend to shareholders.
For a more comprehensive analysis and additional InvestingPro Tips related to EVI Industries, investors can visit https://www.investing.com/pro/EVI. There, investors will find a total of 7 InvestingPro Tips that could help them make more informed investment decisions.
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