Hi Mary Beth, 

If you are using the default field for 'picture' in your Catalog, and the default configuration and template in EVAM, you should be getting the image from your catalog in the search results. 

The EVAM Template for Catalog Items has this: 

    ....
    "mappings": {
        "imageURL": "picture",
        ....
    }....

The pencil outline is a placeholder for when the 'picture' field is blank. 

If you're not seeing this behavior, and your configuration looks correct, can you open a case?