Cintas Corporation Announces Annual Dividend and Stock Buyback Authorization
CINCINNATI, October 18, 2011 — Cintas Corporation (Nasdaq:CTAS) announced that the Company’s Board of Directors approved a 54 cents per share annual dividend at its meeting today. This dividend represents a 10.2% increase over last year’s annual dividend of 49 cents per share. This dividend is payable on December 14, 2011, to shareholders of record as of November 11, 2011.
Robert J. Kohlhepp, Chairman of the Board of Cintas said, “For the 29th consecutive year, we are pleased to announce an increase in our annual dividend. This increased dividend, along with our strong fiscal 2011 sales and profit results and the execution of our share buyback program during the past year, demonstrates our continued commitment to increasing shareholder value.”
The Board of Directors also approved a new share repurchase program under which the Company may repurchase up to $500 million of Cintas common stock at market prices. The number of shares to be repurchased and the timing of the purchases will be determined at the discretion of the Board.
Mr. Kohlhepp added, “We completed our most recent Board authorized share buyback program in July 2011. Since the beginning of our fiscal 2011 year, we purchased 23.4 million shares under our share buyback programs at a total cost of $702 million. Repurchased shares will be reserved in treasury for general purposes, including reissue in connection with stock option exercises and future acquisitions.”
Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types primarily throughout North America. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom cleaning services and supplies, carpet and tile cleaning services, promotional products, first aid, safety and fire protection products and services and document management services for approximately 900,000 businesses. Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol CTAS and is a 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 Press Release. Factors that might cause such a difference include, but are not limited to, the possibility of greater than anticipated operating costs including energy and fuel 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, disruptions caused by the inaccessibility of computer systems data, 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, the amount and timing of repurchases of our common stock, if any, 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. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2011, and in our reports on Forms 10-Q and 8-K. 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.
For additional information, contact:
William C. Gale
Sr. Vice President-Finance and Chief Financial Officer
J. Michael Hansen
Vice President and Treasurer