Cintas Corporation Announces 9% Increase in Annual Dividend
CINCINNATI, January 24, 2006 – Cintas Corporation (Nasdaq: CTAS) announced today that its Board of Directors has approved a 9 percent increase in the Company's annual dividend to 35 cents per share from 32 cents per share. The dividend is payable on March 14, 2006, to shareholders of record as of February 7, 2006.
Richard T. Farmer, Chairman and Founder of Cintas said, "Our principal objective is to maximize the long-term value of Cintas for our shareholders and working partners by exceeding our customers' expectations. Since going public in 1983, Cintas has paid a dividend each year. Dividends have increased at a compound annual rate of 21 percent over that timeframe. Our track record of consistent growth in sales, profits, and dividends shows our commitment to increasing shareholder value."
The Company has long been recognized as a leader in enhancing shareholder value, honored regularly as a "Dividend Achiever" by Mergent Inc. The list of Mergent Dividend Achievers represents just 3 percent of more than 10,000 North American-listed dividend-paying common stocks. To qualify for this list, companies must have ten or more consecutive years of dividend growth. Cintas' dividends grew at a 10-year compound annual growth rate of 16.4 percent versus 12.1 percent for the Dividend Achievers. In 2005, Fortune Magazine also recognized Cintas as " America 's Most Admired Company" in the diversified outsourcing sector, which marked the fifth consecutive year that Fortune recognized Cintas in their prestigious list.
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, first aid and safety products, fire protection services and document management services for approximately 700,000 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 & Poor's 500 Index. The Company has achieved 36 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", "seeks", "could", "should", "may" and "will" or the negative versions thereof 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 or implied by this news release. Factors that might cause such a difference include, but are not limited to, the possibility of greater than anticipated operating costs including fuel costs, lower sales volumes, the performance and costs of integration of acquisitions, fluctuations in costs of materials and labor including increased medical costs, costs and possible effects of union organizing activities, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, the cost, results and ongoing assessment of internal controls for financial reporting required by the Sarbanes-Oxley Act of 2002, the initiation or outcome of litigation, higher assumed sourcing or distribution costs of products, the disruption of operations from catastrophic events, changes in federal and state tax laws and the reactions of competitors in terms of price and service. Cintas undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date on which they are made.
For additional information, contact:
William C. Gale
Senior Vice President-Finance and CFO
Karen L. Carnahan
Vice President and Treasurer