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Cintas Corporation Posts 35th Consecutive Year of Growth in Revenue and Earnings

  • Record Fourth Quarter 2004 Revenue and Earnings
  • Fourth Quarter Total Revenue increased 9 percent
  • Fourth Quarter Profits up 12 percent
  • Company is recognized by employees and customers

CINCINNATI, OH, JULY 12, 2004 – Cintas Corporation (Nasdaq: CTAS) today reported record revenue for fiscal 2004 of $2.81 billion, a 5 percent increase from last year’s $2.69 billion. The company also reported a 9 percent increase in net income of $272.2 million compared to $249.3 million last year. After-tax margins were a solid 9.7% of revenue. Earnings per diluted share of $1.58 increased 9% from last year’s $1.45 per diluted share.

Scott D. Farmer, Chief Executive Officer of Cintas, stated, “On behalf of our Cintas employee-partners, I am proud to report our 35 th consecutive year of uninterrupted growth in sales and profits. In addition to achieving this milestone, we experienced healthy improvements in profitability, cash flow and balance sheet strength. This was accomplished while finalizing the integration of the largest uniform rental acquisition in the Company’s history, Omni Services, Inc. The Other Services segment of our business, which includes uniform sales, first aid and safety services and other business services, also saw improvements in sales growth, profit margins and productivity.”

Cintas reported record revenue for the fiscal fourth quarter, ended May 31, of $738 million, an increase of 9 percent from last year’s $676 million. The Company also reported record net income for the quarter of $72.7 million, up 12 percent from $65.2 million last year. Earnings of $.42 per diluted share, were up 11 percent from last year.

“For the fourth quarter, our organic growth in the rental business was 5.3% while our other services segment grew 3.7%, all on a comparable workday basis. Both segments showed sequential improvements in organic growth compared to our third quarter results,” Mr. Farmer stated.

The Companys balance sheet is strong and the Company has reduced its debt to total capitalization from 25.5 percent at May 31, 2003 to 20.4 percent at May 31, 2004. Cash and marketable securities reached $254 million at May 31, 2004 compared to $58 million at May 31, 2003, a 340 percent increase. Shareholders equity reached $1.9 billion compared to $1.6 billion last year.

Mr. Farmer continued, “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. We continue to see opportunities to expand our customer base and leverage our vast geographic presence and nationwide distribution and sales network.”

In fiscal 2004, Cintas was recognized for outstanding customer service and management excellence. Cintas is proud of the following recognition:

  • Named among “ America’s Best Managed Companies” by Forbes magazine
  • Recognized as one of “ America’s Most Admired Companies” for the fourth consecutive year by Fortune magazine
  • Recognized as a top company to work for in Canada, the state of Oregon and the city of Las Vegas
  • Presented “Exemplary Employer Award” by State of Massachusetts for its record of providing opportunities to people with disabilities
  • Received the “Corporate Humanitarian Award”, the highest honor bestowed by Matthew 25: Ministries for public service
  • Named “Best In The Business” by Food Processing Magazine
  • Received the “Supplier Excellence Award”, the highest award for vendor quality from Royal Caribbean Cruise Lines
  • Presented “Image of the Year Award” for exceptional style and design, the highest honor given for uniform designs in the uniform industry

“Our employee-partners deserve the credit for these prestigious awards,” said Scott Farmer. “Their commitment to excellence exemplifies the Cintas culture and our principal objective, which is to maximize the long-term value of Cintas for our shareholders and working partners by exceeding our customers’ expectations. We are truly honored by this recognition.”

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 500,000 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.

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.

For additional information, contact:
William C. Gale
Senior Vice President-Finance and CFO

Karen L. Carnahan
Vice President and Treasurer



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