Cintas Corporation Announces Fiscal 2012 First Quarter Results
CINCINNATI, September 22, 2011 — Cintas Corporation (Nasdaq:CTAS) today reported results for its first quarter ended August 31, 2011. Revenue was $1,017.2 million, representing a 10.1% increase compared to last year’s first quarter. Organic growth, which adjusts for the impact of acquisitions, was 7.6%. Scott D. Farmer, Chief Executive Officer, stated, “We are pleased with our first quarter revenue results which came during a period of minimal improvement in U.S. employment. It is our second consecutive quarter of double-digit revenue growth.”
The Company’s first quarter operating income of $128.6 million was a 28.3% improvement as compared to last year’s first quarter. Net income increased 12.0% to $68.6 million as compared to $61.3 million in last year’s first quarter. Earnings per diluted share for the first quarter were $0.52, a 30.0% increase over the $0.40 earnings per diluted share reported in last year’s first quarter.
Mr. Farmer added, “Our focus on selling profitable business, managing our cost structure and improving efficiencies through process improvement continues to drive margin expansion. Our first quarter operating margin of 12.6% improved by 170 basis points over last year’s first quarter operating margin of 10.9%, despite a 50 basis point increase in energy related costs. Cintas’ dedicated team of employees, who we call partners, continues to be focused on delivering positive results.”
The effective tax rate for the first quarter of fiscal 2012 was 38.5%. Last year’s first quarter effective tax rate of 30.8% reflected the resolution of several tax audits. We expect the effective tax rate for the entire 2012 fiscal year to be approximately 37.3%, as compared to 37.1% for the entire 2011 fiscal year.
Mr. Farmer concluded, “We are reiterating our fiscal 2012 guidance, which includes revenue in the range of $4.0 billion to $4.1 billion, and earnings per diluted share in the range of $1.97 to $2.05. While pleased with our first quarter results, we are cautious about the state of the U.S. economy. Our current guidance reflects recent U.S. employment results, which have been disappointing, and 2011 and 2012 economic forecasts, which generally reflect a low growth environment.”
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 900,000 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, the amount and timing of repurchases of our common stock, if any, 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 quarter ended August 31, 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, 2011 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