Cintas Corporation Reports Growth in Second Quarter Fiscal 2005 Revenue and Earnings
CINCINNATI, OH, December 16, 2004 – Cintas Corporation (Nasdaq: CTAS) today reported revenue for the second quarter of fiscal 2005 of $757 million, an 8 percent increase from last year's $701 million. The company also reported a 6 percent increase in net income of $73.6 million compared to $69.7 million last year. After-tax margins were 9.7 percent of revenue. Earnings per diluted share of $.43 increased 8 percent from last year's $.40 per diluted share.
Scott D. Farmer, Chief Executive Officer of Cintas, stated, "On behalf of our Cintas employee-partners, I am pleased to report continued growth in revenue and profits this quarter. Our Rental Revenue increased over 6 percent while Other Services Revenue grew over 13 percent compared to the previous year. Over the past 6 quarters, we have seen continued momentum in the organic growth in Rental Revenue, which has now reached 6 percent for the current quarter."
Mr. Farmer continued, "We serve a broad and diverse group of customers who use many of our services, such as our uniform rental and sales services, entrance mats, restroom supply and hygiene services, first aid and safety products or document management services. We believe our top line growth and bottom line profits will continue to strengthen as U.S. employment strengthens and customers rely on Cintas for one or more of our services."
For the six months ended November, revenue of $1.5 billion increased 9 percent compared to $1.38 billion, while earnings per share rose 10 percent from $.77 per diluted share to $.85 per diluted share. Mr. Farmer commented, "We continue to build our sales staff to take advantage of growth opportunities throughout our Company. In addition, we are actively identifying and making acquisitions in order to grow our business and gain market share."
STRONG BALANCE SHEET
The Company's balance sheet continues to strengthen. Debt to total capitalization was 18.8 percent as of November 30, 2004, versus 22.1 percent last year. Cash and marketable securities climbed to $356 million as of November 30, 2004, compared to $196 million last year. Total shareholders' equity has now reached $2.1 billion.
Mr. Farmer continued, "We are reiterating our guidance for fiscal 2005, which was communicated with our fiscal 2004 results. 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."
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 550,000 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 & Poor's 500 Index. The Company has achieved 35 consecutive years of growth in sales and earnings, to date.
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, 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