Cintas Corporation Announces Fiscal 2010 First Quarter Results
CINCINNATI, September 23, 2009 — Cintas Corporation (Nasdaq:CTAS) today reported results for the first quarter of its fiscal year 2010. Revenue for the quarter, which ended August 31, 2009, was $892 million and represents a 1.5% revenue increase as compared to the fourth quarter of fiscal 2009, which ended on May 31, 2009.
Net income and earnings per diluted share for the quarter were $54 million and $0.35, respectively. First quarter results included a previously announced legal settlement, net of insurance proceeds. Without this charge, net income was $66 million and earnings per diluted share were $0.43.
Excluding special charges, the Company’s net income and earnings per diluted share for the first quarter ended August 31, 2009 both increased over 13% as compared to the fourth quarter ended May 31, 2009. The special charges impacting these quarters were the legal settlement charge in the current quarter and a restructuring, fixed asset impairment and inventory valuation charge in the fourth quarter of last year. The improvement in net income and earnings per diluted share was primarily due to the Company’s continued effort to control costs and right size the organization in the current economic environment.
Scott D. Farmer, Chief Executive Officer, stated, "Over the last twelve months, the U.S. economy has shed employment at levels not experienced since the Great Depression. These job losses make year over year comparisons difficult as our customers continued to shed jobs throughout the year. In order to give investors better information on trends in our business, we have provided comparisons to the fourth quarter of fiscal 2009."
Mr. Farmer emphasized, "While we gain some solace in the recent moderation of job loss, market conditions remain difficult and will continue to impact our businesses. However, we continue to be a market leader in our businesses, with state-of-the-art technology, extremely efficient operations and very dedicated employee-partners. In addition, our balance sheet and cash flow both continue to be strong, with our total cash and marketable securities increasing to over $350 million and our total debt to total capitalization ratio improving to 24.5%. The leadership position in our businesses combined with this strong financial condition will provide us enhanced opportunities when economic conditions improve."
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 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 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. 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, 2009 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
Michael L. Thompson
Vice President and Treasurer