Cintas Corporation Provides Second Half Guidance
Cincinnati, OH, February 16, 2010 — Cintas Corporation today announced its estimate of revenues and earnings for its third and fourth quarters of fiscal 2010.
Scott D. Farmer, Chief Executive Officer, commented, "We stated on December 22, 2009, that we had seen some stabilization in our business this fiscal year, and that we continued to expect a very slow recovery in the job market. Additionally, we indicated our third quarter is traditionally our most challenging due to a reduced number of workdays and extended customer holiday closures. As a result, we stated at that time the current analyst expectations for Cintas revenue and earnings were too optimistic. We did not provide specific guidance due to continued uncertainties regarding job recovery and the approaching holiday period. However, we now believe we can provide revenue and earnings estimates due to continued stability in our business and increased revenue clarity."
The Company expects third quarter revenues to be between $850 and $860 million and earnings per diluted share to be between $0.29 and $0.31. While the recent adverse weather conditions in the northeast, particularly in the large markets of Baltimore, Washington and Philadelphia, may affect our third quarter results, we cannot yet quantify the significance of its impact.
Mr. Farmer further stated, "Growth in our businesses is greatly influenced by job recovery which tends to lag the general economic recovery. As we look to the fourth quarter of our fiscal year, we continue to expect a very slow improvement in the job market. As a result, we estimate that revenue levels will be between $870 and $890 million, which is comparable to the third quarter estimate adjusted for the additional two work days in the fourth quarter compared to the third quarter. Absent any significant increases in costs, we expect earnings per diluted share for the fourth quarter to be between $0.30 and $0.34."
Mr. Farmer continued, "Despite the current pressure, we remain enthusiastic about our future opportunities. We have a great team of employee partners. Cintas is a market leader in each of our businesses, and we believe we have the most modern facilities and infrastructure. Our balance sheet remains strong and our excellent cash flow allowed us to recently announce an increase in our annual dividend, continuing our history of raising our dividend each year since we went public in 1983."
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
Senior Vice President and Chief Financial Officer
Michael L. Thompson
Vice President and Treasurer