Hello everyone, and welcome to EVI Industries earnings call for the Q3 of the fiscal year ending 30 June 2022. This is Henry Nahmad, Chairman and CEO of EVI. Before we proceed, 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 in our SEC filings, including the Risk Factors section of the annual report on Form 10-K for the fiscal year ended 30 June . Actual results may differ materially from those expressed in or applied by the forward-looking statements. This call also includes a discussion of adjusted EBITDA, which is a non-GAAP financial measure that the company believes is useful in evaluating performance.
Please refer to our earnings press release issued today for additional information regarding adjusted EBITDA, including how we define adjusted EBITDA and a reconciliation of adjusted EBITDA to net income, the most comparable GAAP financial measure. Hello again, and thank you for listening to this quarter's earnings call and general business update. The central theme of this earnings call for the third fiscal quarter, including events following the completion of this quarter, is long-term confidence. During the third fiscal quarter, our management team successfully navigated through continued supply constraints, unpredictable lead times, inflation, and labor shortages.
Notwithstanding the challenges and their impact on our near-term results, long-term confidence in our industry and in the dominant business we are building is evidenced by the completion of multiple acquisitions, over 20% growth in our backlog of confirmed customer sales contracts over the prior fiscal quarter, record gross profits and record gross margins, the sustained deployment of our advanced operating technologies, and the extension of our favorable credit facility. At this point, I will provide you details supporting our long-term confidence. Our continued deployment of capital in connection with several acquisitions during and following the completion of the third fiscal quarter supports our confidence in the commercial laundry industry and the dominant business we are building.
Our team completed the acquisition of Consolidated Laundry Equipment on 7 February , and I'm pleased to share that, as we always have, we retained 100% of the employees at Consolidated, and that the leaders of our Southeast group of businesses are actively collaborating in the pursuit of new growth and optimization opportunities. Following the completion of the third fiscal quarter, we announced three additional acquisitions. First, we entered into a definitive agreement to acquire Lakewood, Colorado-based Clean Designs and Clean Route, which strengthens our leading market share position in Colorado and the surrounding area. Second, we completed the acquisition of Pearl, Mississippi-based Laundry South, which expands our sales and service operations into the state of Mississippi and increases our presence and market share in eastern Louisiana.
Third, we completed the acquisition of Spynr, which adds a highly specialized full-service marketing agency with deep roots in the commercial laundry industry, from which our company will be able to provide critical digital marketing services to existing and prospective laundry business customers. These acquisitions are consistent with four primary objectives of our growth strategy. One, to build the industry's foremost group of sales professionals. Two, to amass the most knowledgeable and well-trained network of commercial laundry technicians. Three, to add product representations and service capabilities to better serve our growing customer base. Four, to build a modern and technologically advanced operation, including well-located distribution facilities from which we may best support our sales and service operations. Finally, these acquisitions also demonstrate our confidence in and commitment to building North America's most dominant commercial laundry distribution and service business.
The successful completion of acquisitions and the sustained investments we are making in pursuit of a modern and optimized operation requires the complete confidence of our lenders. Following the completion of the third fiscal quarter on 6 May , our lenders signaled their confidence in our long-term approach to buying and building our company when we executed a five-year extension to our existing $100 million credit facility on substantially the same terms as our original agreement. Time and again, we stress that the health and strength of our balance sheet is critical to long-term success. Our balance sheet continues to be in pristine health, affording us the necessary flexibility to act with confidence when needed in connection with attractive investment opportunities.
At 31 March 2022, EVI had net debt of $18.3 million, which represents a $12.5 million-dollar increase in net debt as compared to the end of fiscal 2021. The change in net debt is primarily due to changes in working capital and cash used in connection with acquisitions. On working capital, accounts receivable increased over $4 million, and inventory increased nearly $16 million as compared to 30 June 2021, of which approximately $2 million was required in connection with acquisitions.
These increases were offset by a 104% increase or nearly $11 million increase in customer deposits. We believe that our investments in additional inventory is necessary to best navigate current market conditions, which include constrained product availability, lengthened lead times, and third-party labor shortages slowing what has historically been a fluid and speedy delivery and installation process across our industry. While it is difficult to determine when we may return to normalcy, it is important to know that the majority of the roughly $6 million buildup of inventory in successive quarters attributed to continuing operations is associated with confirmed customer sales contracts. While we draw confidence from each of the areas already discussed in this call, no data point provides greater confidence in the future of our business than the rate of growth and the sheer size of our backlog of confirmed customer sales contracts.
During the third fiscal quarter, our backlog increased by over 20% as compared to the prior fiscal quarter, reaching nearly $150 million. As of today, our backlog is even greater after accounting for backlog acquired in connection with acquisitions completed following the end of the third fiscal quarter and new customer sales contracts confirmed across our continuing operations. It is important to know that the size and increase in our backlog reflects the extraordinary capabilities of our growing and talented sales organization, combined with representing loyal suppliers that deliver efficient, effective, and well-supported products. For these reasons, and others too, we are confident that we have a significant advantage in capturing a greater portion of future demand for the commercial laundry products and services we provide across the industrial, OPL, vended, and multi-family segments in the geographies we cover. Moving to our operating performance.
Our revenue performance reflects the adverse impact of supply chain disruptions OEMs continue to experience, which results in constrained product availability and lengthened lead times. The unpredictable timing of product deliveries, combined with labor shortages, has caused near term installation and service delays. Accordingly, revenue for the third fiscal quarter was $60 million or 4% less as compared to the same period of prior fiscal year, and revenue was flat in successive quarters. Meanwhile, revenue for the nine-month period ended 31 March increased 4% as compared to the same period of the prior fiscal year. Despite these challenges and our revenue performance during the third fiscal quarter, we are encouraged by the fact that industrial laundry customers have returned to market, that travel rates are increasing, that hospitality occupancy rates are increasing, and that the healthcare industry remains strong.
These are just a few of the factors that are driving demand for the OPL products and services we provide. Additionally, vended laundry owners continue to execute on new store opportunities and equipment replacement and repair, and multi-family customers remain consistent with contractual obligations. All of these trends have contributed to the growth of our backlog of confirmed customer sales contracts, which we expect to recognize in the coming quarters. Although revenue was adversely impacted, we set records for both gross profit and gross margin for the third fiscal quarter and the nine-month period ended 31 March . Like other industries, manufacturers of commercial laundry products have experienced inflationary pressures and continue to raise prices. Accordingly, we raised selling prices and took certain other measures to improve gross margins.
For the third fiscal quarter, gross margins increased over 300 basis points to a record 28.4% as compared to the same period of prior fiscal year and successive quarters. Gross margins for the nine-month period ended 31 March increased over 300 basis points from 24.5% during the same period of prior fiscal year to a record 28%. The increase in gross margin resulted in an 8% increase in gross profit for a record $17 million during the third fiscal quarter, and an 18% increase in gross profit to a record $51.5 million during the nine-month period ended 31 March, each as compared to the same period of prior fiscal year.
We believe that our continuous gross margin improvement reflects the benefits we derive from our efforts to improve and expand upon the comprehensive commercial laundry solutions we sell, install, and service for our customers. In connection with these capabilities, it is important to highlight that in the third fiscal quarter, 10 of the 15 business units included in EVI's operating results had gross margins equal to or greater than 28%. Given we are still early in the growth of our company, we are encouraged by this performance and are striving to maximize gross margin performance at all of our business units.
Operating expenses for the third fiscal quarter increased 12% as compared to the same period of prior fiscal year, increased 7% in successive quarters, and increased 15% during the nine-month period ended 31 March as compared to the same period of the prior fiscal year. The increases in operating expenses include operating expenses related to acquired businesses, expenses in connection with a robust acquisition program, non-recurring expenses, continued investment in the deployment of our operating technologies, and higher personnel expenses. Adjusted EBITDA for the third fiscal quarter decreased 18% or from an adjusted EBITDA margin of 4.2% to 3.6%.
Meanwhile, adjusted EBITDA increased 30% from $7.5 million to a record $9.5 million, or from 4.1% to 5.2% for the nine-month period ended 31 March 2022. This performance also includes all corporate operating expenses, which indicates that we generated a much greater level of EBITDA from our operating businesses. In summary, our long-term confidence is based on our achievements during and following the completion of the third fiscal quarter, including that we acquired four additional businesses. We built a backlog worth nearly $150 million. We set records for gross profit and gross margin. We sustained a healthy balance sheet. We secured ample and well-priced liquidity for an additional five years. We further modernized our business. We attracted and retained talented professionals to support our growth and profitability objectives.
These are the achievements of the most dynamic, well-respected, and entrepreneurial team in the commercial laundry industry, and I am particularly proud of each and every member of our team. Given our approach and results have earned us a positive reputation in and around our industry, including among owners of quality businesses, which we may add to our growing EVI family, and among talented professionals who we may seek to hire, we are highly confident in the long-term growth and profitability prospects of our company. This concludes our comments related to the Q3 of fiscal 2022. In closing, I want to thank our valued employees, our loyal suppliers and customers, and our shareholders for your support and participation in EVI. Until next time, be well.