Cintas Corporation Announces Fiscal 2012 Results
CINCINNATI, July 16, 2012 — Cintas Corporation (Nasdaq:CTAS) today reported results for its fourth quarter ended May 31, 2012. Revenue for the fourth quarter was $1.05 billion, representing a 4.1% increase compared to last year’s fourth quarter. Organic growth, which adjusts for the impact of acquisitions, compared to last year’s fourth quarter, was 4.0%. Net income increased 11.1% to $78.6 million as compared to $70.8 million in last year’s fourth quarter. Earnings per diluted share (EPS) for the fourth quarter were $0.60, a 22.4% increase over the $0.49 earnings per diluted share in last year’s fourth quarter.
Scott D. Farmer, Chief Executive Officer, stated, “In an increasingly challenging economy, we are pleased to report record quarterly revenue and solid operating results. We continue to be pleased with the performance of all of our businesses and the execution of our game plan.”
For the fiscal year ended May 31, 2012, revenue was a record $4.1 billion, a 7.7% increase from the prior fiscal year. Organic growth was 6.1%. Net income increased 20.5% to $297.6 million as compared to last fiscal year. Earnings per diluted share increased 35.1% to $2.27 as compared to last fiscal year.
Mr. Farmer added, “This concludes a very successful year for Cintas in which our revenue topped the $4 billion mark for the first time and EPS hit a record level of $2.27. We also significantly improved our operating margins for the fiscal year to 13.2% as compared to 11.6% last fiscal year. Cash flows from operations increased by 37.8% to $469.9 million compared to last year’s $340.9 million. Our employees, who we call partners, did a great job of executing our game plan throughout the past twelve months. Congratulations to these partners on their achievements this year.”
During the fourth quarter, Cintas purchased 3.3 million shares of its common stock at an aggregate cost of $129.6 million. This share buyback had no impact on fourth quarter results since it occurred so late in the fiscal year. However, it is expected to benefit fiscal year 2013 earnings per diluted shared by approximately $0.06. The Cintas Board of Directors authorized a $500 million share buyback program in October 2011. As of May 31, 2012, the Company has $370.4 million available under the current Board authorization.
Mr. Farmer concluded, “We enter fiscal 2013 in a U.S. economy without momentum. The U.S. job growth has significantly slowed to the point of only adding 225,000 jobs in the past three months. Many forecasts indicate U.S. GDP growth during our fiscal year 2013 to be less than 2%. Because of these factors, combined with the uncertainty of potential changes in tax law for 2013, we view fiscal year 2013 with caution. We expect our fiscal 2013 revenue to be in the range of $4.25 billion to $4.35 billion, with full year earnings per diluted share in the range of $2.47 to $2.55. This guidance assumes no further deterioration in the U.S. economy and some improvement in recycled paper prices from our fourth quarter level. It also incorporates the share buyback executed in our fourth quarter, but does not consider any additional share buyback.”
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 supplies, promotional products, first aid, safety, fire protection products and services and document management services for over 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, the reactions of competitors in terms of price and service and the finalization of our financial statements for the year ended May 31, 2012. 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