My Company Store 
l rss t f yt

   

Cintas Corporation Reports Growth in First Quarter Fiscal 2005 Revenue and Earnings

CINCINNATI, OH, September 16, 2004 – Cintas Corporation (Nasdaq: CTAS) today reported revenue for the first quarter of fiscal 2005 of $746 million, a 10 percent increase from last year’s $678 million. The Company also reported a 15 percent increase in net income of $72.7 million compared to $63.3 million last year. Prior year net income included a pre tax charge of approximately $4 million related to a write off of a receivable from a garment manufacturer. After-tax margins were a solid 9.7 percent of revenue. Earnings per diluted share of $.42 increased 14 percent from last year’s $.37 per diluted share.

Scott D. Farmer, Chief Executive Officer of Cintas, stated, “On behalf of our Cintas employee-partners, I am proud to report these solid results for the first quarter of fiscal 2005. Our Rental Revenue increased 8 percent while Other Services Revenue grew 18 percent over the previous year. On an organic growth basis, the segments grew approximately 6 percent and 5 percent, respectively, after excluding the extra workday in the quarter. Gross margins of 42.7 percent increased from 42.4 percent last year. We continue to see opportunities to expand our customer base and leverage our vast geographic presence and nationwide delivery and sales network.”

STRONG BALANCE SHEET
The Company’s balance sheet continues to strengthen. Debt to total capitalization was 19.8 percent as of August 31, 2004, versus 24.5 percent last year. Cash and marketable securities climbed to $264 million as of August 31, 2004, compared to $92 million last year. Total shareholders’ equity has now reached $1.97 billion.

OUTLOOK IS POSITIVE
Mr. Farmer continued, “We are reiterating our guidance for fiscal 2005, which was communicated with our fiscal 2004 results. We expect revenue for fiscal 2005 in the range of $3.0 billion to $3.2 billion, with full year earnings per share (diluted) in the range of $1.70 to $1.80, assuming a continued improvement in the economy.”



About Cintas
Headquartered in Cincinnati, Ohio, Cintas Corporation provides highly specialized services to businesses of all types throughout North America. Cintas designs, manufactures and implements corporate identity uniform programs, provides entrance mats, restroom supplies, promotional products, and first aid and safety products and services for over 550,000 businesses. Cintas is a publicly held company traded over the Nasdaq National Market under the symbol CTAS, and is a Nasdaq-100 company and component of the Standard & Poors 500 Index. The Company has achieved 35 consecutive years of growth in sales and earnings, to date.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. Forward-looking statements may be identified by words such as estimates, anticipates, projects, plans, expects, intends, believes, should and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the Company and speak only as of the date made. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ from those set forth in this news release. Factors that might cause such a difference include the possibility of greater than anticipated operating costs, lower sales volumes, the performance and costs of integration of acquisitions, fluctuations in costs of materials and labor, costs and possible effects of union organizing activities, the outcome of pending environmental matters, the initiation or outcome of litigation, higher assumed sourcing or distribution costs of products and the reactions of competitors in terms of price and service. Forward-looking statements speak only as of the date made. Cintas undertakes no obligation under the Act to update any forward-looking statements to reflect the events or circumstances arising after the date on which they are made.

William C. Gale,
Senior Vice President-Finance and CFO
513/573-4211

Karen L. Carnahan,
Vice President and Treasurer
513/573-4013

 



Subscribe to Cintas RSS Feeds