EVI INDUSTRIES, INC. Goodwill & Intangibles Disclosure
| 8. Goodwill and Intangible Assets | The changes in the carrying amount of goodwill are as follows (in thousands): |
| Balance at June 30, 2023 | $ | 73,388 | ||
| Goodwill from fiscal 2024 acquisitions (as described in Note 3) | 1,739 | |||
| Working capital adjustments (1) | (25 | ) | ||
| Balance at June 30, 2024 | $ | 75,102 | ||
| Goodwill from fiscal 2025 acquisitions (as described in Note 3) | 16,352 | |||
| Goodwill from other acquisitions (2) | 126 | |||
| Working capital adjustments (3) | 87 | |||
| Balance at June 30, 2025 | $ | 91,667 |
| (1) | Relates to working capital adjustments from business acquisitions consummated by the Company during fiscal 2023. |
| (2) | Relates to other, smaller-scale acquisitions consummated during fiscal 2025 |
| (3) | Relates to working capital adjustments from business acquisitions consummated by the Company during fiscal 2024. |
| Customer-related intangibles and tradenames as of June 30, 2025 and 2024 consisted of the following (dollars in thousands): |
| June 30, | Estimated Useful Lives (in years) | 2025 | 2024 | |||||||
| Customer-related intangibles | 8-10 | $ | 31,047 | $ | 20,887 | |||||
| Tradenames | Indefinite | 14,175 | 13,005 | |||||||
| 45,222 | 33,892 | |||||||||
| Accumulated amortization | (14,347 | ) | (11,870 | ) | ||||||
| $ | 30,875 | $ | 22,022 | |||||||
| Amortization expense was approximately $2.5 million in fiscal 2025 compared to approximately $2.1 million in fiscal 2024, and is included in selling, general and administrative expenses in the consolidated statements of operations. As of June 30, 2025, the weighted average remaining estimated useful lives for customer-related intangibles was 7.4 years. |
| Based on the carrying amount of intangible assets as of June 30, 2025, and assuming no future impairment of the underlying assets, the estimated future amortization at the end of each fiscal year in the five-year period ending June 30, 2030 and thereafter is as follows (in thousands): |
| Fiscal years ending June 30, | ||||
| 2026 | $ | 3,117 | ||
| 2027 | 2,794 | |||
| 2028 | 2,272 | |||
| 2029 | 1,732 | |||
| 2030 | 1,532 | |||
| Thereafter | 5,253 | |||
| Total | $ | 16,700 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 11, 2025 | Showing above |
| 2024 | Sep 12, 2024 | |
| 2023 | Oct 5, 2023 | |
| 2022 | Sep 13, 2022 | |
| 2021 | Sep 13, 2021 | |
| 2020 | Sep 14, 2020 | |
| 2019 | Sep 13, 2019 | |
| 2018 | Sep 13, 2018 | |
| 2017 | Sep 28, 2017 | |
| 2016 | Sep 20, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.