Cintas Corporation Announces Fiscal 2011 Third Quarter Results
CINCINNATI – March 22, 2011 — Cintas Corporation (Nasdaq:CTAS), today reported its results for the third quarter of its fiscal year 2011. Revenue for the quarter, which ended February 28, 2011, was $937.8 million, representing an 8.8% increase compared to last year’s third quarter. Net income increased 20.6% to $59.1 million as compared to $49.0 million in last year’s third quarter. Earnings per diluted share for the third quarter were $0.41, a 28.1% increase over the $0.32 earnings per diluted share reported in last year’s third quarter.
Scott D. Farmer, Chief Executive Officer, stated, “Our revenue momentum of the past several quarters continued throughout our third quarter, propelled largely by improvements in sales productivity and customer retention. Our organic growth rate, which adjusts for the impact of acquisitions, was 5.5%, up sequentially from 4.2% and 2.8% in this year’s second and first quarters, respectively.”
Mr. Farmer added, “We are pleased with our operating margin improvement, both year over year and sequentially. A year ago, upon seeing signs of stabilization in the U.S. economy, we invested in sales resources to create revenue momentum. This fiscal year’s third quarter operating income results reflect the leveraging of this investment.”
Cintas’ balance sheet remains strong as of February 28, 2011. Cash and marketable securities were $216.7 million. Cintas’ current ratio was 3.4 to 1. Total debt was $808.1 million and total debt to total capitalization was 25%.
Mr. Farmer concluded, “Based on our third quarter results and our current outlook for the remainder of the year, we are updating our guidance for fiscal 2011. We expect our fiscal 2011 revenue to be in the range of $3.75 billion to $3.77 billion. While not significantly impacting our third quarter earnings, the recent increase in gasoline and diesel costs could negatively impact fourth quarter earnings. Thus, we expect our fiscal 2011 earnings per diluted share to be in the range of $1.60 to $1.63.”
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 approximately 800,000 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, 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 three and nine months ended February 28, 2011. 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, 2010 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