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EVI Industries Sets Records for Revenue and Gross Profit During the Third Quarter

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MIAMI–(BUSINESS WIRE)–EVI Industries, Inc. (NYSE American: EVI) announced today its results
for the nine and three-month periods ended March 31, 2019. The results,
including record revenue and gross profit for both the nine and
three-month periods ended March 31, 2019, and record Adjusted EBITDA for
the nine-month period ended March 31, 2019, reflect the Company’s
consistent execution of its buy-and-build growth strategy.

Financial Performance

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

Three Month Results

  • Revenue increased 36% to a record $59 million,
  • Gross profit increased 20% to a record $13 million,
  • Operating income was $1.1 million compared to $1.9 million,
  • Net income was $0.5 million compared to $1.1 million, and
  • Adjusted EBITDA was $2.3 million compared to $2.8 million.

Nine Month Results

  • Revenue increased 54% to a record $163 million,
  • Gross profit increased 45% to a record $37 million,
  • Operating income was $4.6 million compared to $5.1 million,
  • Net income was $2.5 million compared to $3.2 million, and
  • Adjusted EBITDA increased 8.0% to a record $8 million.

Long-Term Growth Strategy

EVI is focused on long-term growth and increasing shareholder value over
time. In furtherance of these goals, EVI continues to thoughtfully
execute its growth strategy, including pursuing investments with respect
to: (1) the acquisition of quality and complementary businesses, (2)
organic growth opportunities, and (3) the realization of improved
efficiency and productivity through investments in advanced technologies.

Henry M. Nahmad, EVI’s CEO, said: “The strength of our Company is the
depth of experience and success among our leaders. Our financial
performance reflects our continued execution of our buy-and-build growth
strategy and the deployment of capital across wide-ranging growth
initiatives undertaken by the entrepreneurs that lead our businesses. We
believe these investments will have a positive impact on achieving our
long-term growth and shareholder value goals.”

Revenues

For the nine and three-month periods ended March 31, 2019, revenues
increased $57.4 million, or 54%, to a record $163 million and increased
$15.6 million, or 36%, to a record $59 million, respectively. The
increase in revenue was primarily due to the results of operations of
acquired businesses that were not consolidated into the Company’s
financial statements for all or part of the prior periods.

Gross Profit and Gross Margin

For the nine and three-month periods ended March 31, 2019, gross profit
increased $11.4 million, or 45%, to a record $37 million and increased
$2.3 million, or 20%, to a record $13 million, respectively. For the
nine and three-month periods ended March 31, 2019, gross margin
decreased from 24.0% to 22.5% and from 25.6% to 22.6%, respectively.

Given EVI’s goal of long-term growth and its investments and initiatives
in furtherance of that goal, the Company believes that its increase in
equipment sales provides a strong foundation for the Company to further
strengthen its customer relationships, including that they should in the
future result in higher gross margin opportunities from the sale of
parts, accessories, supplies, and technical services related to the
equipment. It is important to note, however, that from time to time the
Company enters into longer-term contracts to fulfill large complex
laundry projects for divisions of the federal government where the
nature and structure of such contracts may result in a lower gross
margin as compared to other equipment sales. Despite the potential for a
lower gross margin from such longer-term contracts, the Company believes
that the long-term benefit from the increase in its installed equipment
will outweigh the possible short-term impact to gross margin. As such,
the decrease in gross margin described above was primarily due to the
Company’s increased engagement in longer-term federal government
contracts during the current period. Excluding these longer-term federal
government contracts, gross margin for the nine and three-month periods
ended March 31, 2019 decreased 0.8% to 25.4% and 1.9% to 25.0%,
respectively. This remaining decrease in gross margin is attributable to
typical changes in product mix. Despite these decreases, the Company
generated record gross profit dollars during the current periods.

Operating Expenses

Operating expenses increased $11.9 million, or 58.4%, and $3.0 million,
or 32.6%, for the nine and three-month periods ended March 31, 2019,
respectively. For the current periods, the increase in operating
expenses is largely attributed to expenses incurred by the Company in
connection with its growth strategy: (1) operating expenses related to
the six businesses acquired during the current fiscal year, (2)
additional operating expenses at each of those acquired businesses aimed
to support future growth, (3) an increase in total headcount of 178, of
which 78% were planned increases in sales and service related
professionals, and (4) a 64% increase in operating expenses directly
related to the Company’s growth and acquisition efforts. EVI believes
these expenses will have a positive impact on achieving the Company’s
long-term growth goals.

Acquisition Growth

During the nine-month period ended March 31, 2019, the Company continued
the execution of its long-term buy-and-build growth strategy with the
acquisition of six businesses in the commercial laundry industry. The
acquired businesses increased the Company’s presence and market share in
Florida (2 businesses), Texas (2 businesses), and the Northwest (1
business). Additionally, EVI expanded into the Northeast with the
acquisition of PAC Industries during the three-month period ended March
31, 2019. PAC is a distributor and service provider to the commercial,
industrial, and vended laundry industry based in Harrisburg,
Pennsylvania. PAC employs 60 professionals, of which 44 are dedicated to
sales and service functions serving thousands of customers by offering a
comprehensive suite of products as well as installation and maintenance
services.

Mr. Nahmad commented: “PAC has a longstanding history of providing
world-class laundry solutions and we are honored to be a part of their
family. Their success is the result of quality relationships, a broad
product range, and great service. Consistent with our approach to
maintain business continuity, PAC will operate as a subsidiary of EVI
under its present name and leadership team, while we will provide them
the human, financial, and technological resources to assist them in
achieving their growth plans.”

Special Cash Dividend

During the three-month period ended March 31, 2019, the Company paid a
special cash dividend of $0.13 per share on EVI’s common stock, an 8.3%
increase over EVI’s special cash dividend paid in January 2018. The
dividend was paid on January 8, 2019 to stockholders of record at the
close of business on December 26, 2018.

EVI to Attend Baird 2019 Global Consumer, Technology, and Services
Conference on June 4-6, 2019

The Company will attend and host one-on-one meetings with interested
investors during the conference dates. Conference participation is by
invitation only and registration is mandatory. Additional information
will be provided.

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
distributor that generates revenues by selling, leasing or renting,
through its extensive sales organization, commercial, industrial and
vended laundry, dry-cleaning, and material handling equipment, steam and
hot water boilers, water reuse and filtration systems, and related
replacement parts and accessories. Additionally, the Company designs,
plans, and installs turn-key laundry, dry cleaning, boiler, and water
filtration systems and provides maintenance services through its robust
technical service organization.

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 and
maintenance services. The Company believes that the increase in
equipment sales provides a strong foundation for the Company to further
strengthen its customer relationships, including that they may in the
future result in higher gross margin opportunities from the sale of
parts, accessories, supplies, and technical services related to the
equipment.

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 (including revenues, gross profit, gross margin and
operating expenses), financial condition, prospects, and growth strategy
and plans, 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 where or when expected, or
at all, 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 and the impact that
the loss of any principal supplier or customer could have on EVI’s
results and financial condition, risks related to EVI’s ability to
successfully build its existing operations, risks related to organic
growth initiatives, risks that investments and expenses may not result
in the benefits anticipated, including long-term growth and increases in
shareholder value, risks that investments in advanced technologies may
not result in the realization of improved efficiency and productivity,
risks that equipment sales may not result in the ancillary benefits
anticipated, including that they not lead to increases in higher gross
margin sale of parts, accessories, supplies, and technical services
related to the equipment, and the risk that the benefit of lower gross
margin equipment sales under longer-term federal government contracts
will not outweigh the possible short-term impact to gross margin, and
other economic, competitive, governmental, technological and other risks
and factors, including those discussed in the Company’s filings with the
Securities and Exchange Commission, including, without limitation, the
Company’s Annual Report on Form 10-K for the fiscal year ended June 30,
2018. Many of these risks and factors are beyond EVI’s control. In
addition, dividends are subject to declaration by EVI’s Board of
Directors based on factors deemed relevant by it from time to time, may
be restricted by the terms of EVI’s indebtedness, and may not be paid in
the future, whether with the frequency or in the amounts previously paid
or at all. Further, past performance of EVI and its acquired businesses
and perceived 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)
       

9-Months

Ended

9-Months

Ended

3-Months

Ended

3-Months

Ended

3/31/19 3/31/18 3/31/19 3/31/18
 
Revenues $163,436 $105,995 $59,290 $43,673
Cost of Sales 126,615   80,604   45,867   32,500
Gross Profit 36,821 25,391 13,423 11,173
SG&A 32,180   20,313   12,316   9,286
Operating Income 4,641 5,078 1,107 1,887
Interest Expense, net 942   376   403   193
Income before Income Taxes 3,699 4,702 704 1,694
Provision for Income Taxes 1,172   1,493   238   558
Net Income $2,527   $3,209   $466   $1,136
 
Net Income per Share
Basic $0.20 $0.28 $0.04 $0.10
Diluted $0.20 $0.27 $0.04 $0.09
 
Weighted Average Shares Outstanding
Basic 11,463 10,728 11,666 11,020
Diluted 11,960 11,145 12,145 11,519
 

The following table reconciles net income, 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)

       

9-Months

Ended

9-Months

Ended

3-Months

Ended

3-Months

Ended

3/31/19 3/31/18 3/31/19 3/31/18
 
Net Income $2,527 $3,209 $466 $1,136
Provision for Income Taxes 1,172 1,493 238 558
Interest Expense 942 376 403 193
Depreciation and Amortization 1,894 1,023 739 476
Amortization of Share-based Compensation 1,287   1,164   449   391
Adjusted EBITDA $7,822   $7,265   $2,295   $2,754

Contacts

EVI Industries, Inc.
Henry M. Nahmad (305) 754-8676

Michael Steiner (305) 754-8676


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Innocan

Innocan Pharma Announces Study Findings that LPT-CBD maintains its prolonged release in Rabbits

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HERZLIYA, Israel and CALGARY, AB, Feb. 26, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), a pioneer in the pharmaceutical and biotechnology industries, is pleased to announce the latest findings from the Company’s pharmacokinetic study of its LPT-CBD platform in rabbits.

The fundamentals of LPT-CBD lay in its ability to slowly release CBD into the blood stream. Studies conducted in various animal models including mice, dogs, goats, and sheep showed long pharmacokinetics of CBD that persisted up to several weeks. In the Company’s latest study conducted on rabbits, the results showed additional supportive data for the long exposure of CBD obtained following a single subcutaneous LPT-CBD injection.   

The Company is encouraged by these study results as they confirm the approach the Company is taking with its LPT platform. The results from studies of several organisms injected with the Company’s liposomal CBD –have consistently demonstrated that a detectable CBD level could be maintained for weeks following one injection. The Company will continue with human trials in the near future.

Pharmacokinetics (PK) is an important tool that helps evaluate the bioavailability and exposure level of a specific drug. Parameters such as maximal blood drug concentration (cMax), time to reach cMax (Tmax) and half-life of the drug are calculated based on data collected from blood analysis of the drug across a determined time. The collected PK parameters along with other tests help to define the required dose of a drug to achieve a maximal therapeutic effect. In the study conducted on rabbits, the animals were collected for blood analysis of the drug for up to 11 days. As expected, the animals presented a persistent CBD concentration in their blood that maintained through the entire testing period. This correlates to PK results obtained from other species, supporting the long CBD exposure and the necessity of only a single LPT-CBD injection to obtain a long and wide therapeutic window for CBD.   

About Innocan Pharma:

Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies comprises with cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD-loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for two indications: Epilepsy and Pain Management. In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment Innocan has established a Joint Venture by the name of BI Sky Global Ltd. that focuses developing on advanced targeted online sales. https://innocanpharma.com/

Contact Information:

For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1 5162104025
+972-54-3012842
+442037699377
info@innocanpharma.com

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Caution Regarding Forward-Looking Information

Certain information set forth in this news release, including, without limitation, the Company’s plans for human trials of its LPT-CBD platform, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan’s control. . The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of production and distribution arrangements.

Forward-looking information is subject to various risks and uncertainties that could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: global and local (national) economic, political, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and potential disruption of relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import/export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner). The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release. A comprehensive discussion of other risks that impact Innocan can be found in Innocan’s public reports and filings which are available under Innocan’s profile at www.sedarplus.ca.

Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.

Logo: https://mma.prnewswire.com/media/2046271/3968398/Innocan_Pharma_Corporation_Logo.jpg

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SCHWAZZE

Schwazze Appoints Forrest Hoffmaster as Interim Chief Executive Officer

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DENVER, Feb. 23, 2024 /PRNewswire/ — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (NEO: SHWZ) (“Schwazze” or the “Company”), today announced that Forrest Hoffmaster, the Company’s Chief Financial Officer, has been appointed to the additional role of interim Chief Executive Officer (“CEO”). This follows Nirup Krishnamurthy’s resignation as CEO and as a member of the Board of Directors (“Board”), effective February 20, 2024, due to personal reasons.

Mr. Hoffmaster, who joined the Company in January 2023, brings over 30 years of executive experience in finance and operations for both public and private companies. Prior to Schwazze, Mr. Hoffmaster served as CEO of New Seasons Market, a specialty gourmet food retailer, where he navigated the company through one of the most disruptive periods in the retail grocery industry. Under his leadership, Mr. Hoffmaster implemented a focused growth and cost optimization program, enabling the company to grow EBITDA by over 30% in two years. Prior to New Seasons Market, Forrest held leadership positions with other leading grocers including Whole Foods Market and H-E-B.

“Forrest is well-positioned to seamlessly step in and lead the Company’s day-to-day operations as we conduct our search for a permanent successor,” said Justin Dye, Chairman of the Board. “With Forrest’s proven track record and deep retail expertise, we plan to continue leveraging our operating playbook to drive strong Adjusted EBITDA margins and consistent cash flow generation. On behalf of the Board, I’d like to wish Nirup the best in his future endeavors.”

About Schwazze

Schwazze (OTCQX: SHWZ) (NEO: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.

Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.

Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit https://schwazze.com/.

Forward-Looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intends,” “plans,” “strategy,” “prospects,” “anticipate,” “believe,” “approximately,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other words of similar meaning in connection with a discussion of future events or future operating or financial performance, although the absence of these words does not necessarily mean that a statement is not forward-looking. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services and the uncertainty in the application of federal, state, and local laws to our business, and any changes in such laws; (ii) our ability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (iii) our ability to identify, consummate, and integrate anticipated acquisitions; (iv) general industry and economic conditions; (v) our ability to access adequate capital upon terms and conditions that are acceptable to us; (vi) our ability to pay interest and principal on outstanding debt when due; (vii) volatility in credit and market conditions; (viii) the loss of one or more key executives or other key employees; and (ix) other risks and uncertainties related to the cannabis market and our business strategy. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
[email protected] 

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Cannabis

Hemp, Inc. Reports: Hemp-Based Foods Market Set to Reach $8.36 Billion by 2028

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GrassNews.net: Your premier portal for the latest developments in the cannabis industry. We provide timely news, insightful analysis, and in-depth features on everything from legislation changes and business trends, to scientific research and lifestyle topics. Stay informed and navigate the rapidly evolving cannabis landscape with GrassNews.net..

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