Cintas Corporation Announces First-Quarter Fiscal 2009 Results; Indicates Results In-Line with Fiscal 2009 Plan
CINCINNATI, September 18, 2008 — Cintas Corporation (Nasdaq: CTAS) today reported results for its first quarter of fiscal 2009, which ended on August 31, 2008. Revenue for the quarter was $1.0 billion, an increase of 5.0% over the first quarter revenue in fiscal 2008, on a comparable workday basis. Without this workday adjustment, revenue increased 3.4%. Net income, which was also impacted by the lesser number of workdays, was $78.6 million, a 3.0% decrease from the prior year first quarter. Diluted earnings per share were $0.51, the same as the first quarter of last fiscal year.
Scott D. Farmer, President and Chief Executive Officer, stated, "The current difficult economic conditions are certainly impacting our customers, causing them to respond with head count reductions and facility consolidations. When combined with the significant increases in our energy and other commodity costs, our results clearly have been impacted. Despite these issues, our results through the first quarter are in line with our full year fiscal 2009 plan. We have continued to demonstrate the benefit of our products and services to our customers as well as new prospects, growing our top line revenue. We also continue to leverage and improve our infrastructure and gain scale in our First Aid, Safety and Fire Protection and Document Management segments, which has helped to offset some of the increases in external costs."
Cintas continues to generate strong cash flow and maintains a solid balance sheet. Net cash provided by operations was $88.3 million for the first quarter and the company’s current ratio was 3.75 to 1 at August 31, 2008. The company’s debt to total capitalization remained below 30% despite purchasing 900,000 shares of its outstanding common stock during the quarter at a cost of $25.8 million.
Mr. Farmer stated, "Based on our first-quarter results, we are reiterating our full year fiscal 2009 guidance of revenue to be in the range of $4.1 to $4.2 billion and fully diluted earnings per share to be in the range of $2.22 to $2.30. While we are cautious due to current economic conditions and the potential impact from recent weather conditions, this guidance continues to be appropriate."
Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types throughout North America. Cintas designs, manufactures and implements corporate identity uniform programs and provides entrance mats, restroom supplies, promotional products, first aid, safety, fire protection products and services and document management services for approximately 800,000 businesses. Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol CTAS and is a Nasdaq-100 company and component of the Standard & Poor’s 500 Index.
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," "predicts," "projects," "plans," "expects," "intends," "target," "forecast," "believes," "seeks," "could," "should," "may" and "will" or the negative versions thereof and similar words, terms and expressions and by the context in which they are used. Such statements are based upon current expectations of Cintas and speak only as of the date made. You should not place undue reliance on any forward-looking statement. We cannot guarantee that any forward-looking statement will be realized. These statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or implied by this Quarterly Report. Factors that might cause such a difference include, but are not limited to, the possibility of greater than anticipated operating costs including energy costs, lower sales volumes, loss of customers due to outsourcing trends, 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, failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety, 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, investigations or other proceedings, higher assumed sourcing or distribution costs of products, the disruption of operations from catastrophic or extraordinary events, changes in federal and state tax and labor laws and the reactions of competitors in terms of price and service. Cintas undertakes no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made. Also note that we provide a cautionary discussion of risks, uncertainties and possibly inaccurate assumptions relevant to our businesses in Part II, Item 1A, of this Quarterly Report and in our Annual Report on Form 10-K for the year ended May 31, 2008. We incorporate those items here and you should refer to them. These are factors that, individually or in the aggregate, we think could cause our actual results to differ materially from expected and historical results. We note these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995. You should understand that it is not possible to predict or identify all such factors. The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not known to us or that we currently believe to be immaterial may also harm our business. Consequently, you should not consider the risk factors identified in Part II, Item 1A, in this Quarterly Report and in our Form 10-K for the year ended May 31, 2008, to be a complete discussion of all potential risks or uncertainties.
For additional information, contact:
William C. Gale
Senior Vice President-Finance and Chief Financial Officer
Michael L. Thompson
Vice President and Treasurer