Cintas Corporation Announces Fiscal 2014 Second Quarter Results
CINCINNATI, December 19, 2013 — Cintas Corporation (Nasdaq:CTAS) today reported results for its second quarter ended November 30, 2013. Revenue for the second quarter was $1.14 billion, representing a 7.9% increase compared to last year’s second quarter. Organic growth, which adjusts for the impact of acquisitions, compared to last year’s second quarter, was 7.1%.
The Company’s operating income of $153.0 million was a 10.0% increase as compared to last year’s second quarter. Net income increased 8.8% to $84.9 million as compared to $78.0 million in last year’s second quarter. Earnings per diluted share (EPS) for the second quarter were $0.70, an 11.1% increase over the $0.63 EPS in last year’s second quarter.
The effective tax rate for the second quarter of fiscal 2013 was 36.5%, which reflected the positive impact of certain revised tax regulations. This year’s second quarter effective tax rate was 37.9%. We expect the effective tax rate for the entire 2014 fiscal year to be approximately 37.3%.
Scott D. Farmer, Chief Executive Officer, stated, “We are pleased with our results for the quarter and our fiscal year to date. Our services continue to be valued by our customers, and our new business generation remains very strong. While some signs of economic growth are beginning to appear, our customers continue to be cautious in adding employees or making any significant capital investment in their businesses.”
Mr. Farmer added, “Last week, we paid our annual dividend to our shareholders amounting to $0.77 per share, a 20.3% increase from last year’s dividend of $0.64 per share. This was the 31st consecutive year in which we have raised our dividend, which is every year since we went public.”
Mr. Farmer concluded, “Based on our second quarter results and our view of the U.S. economic climate, we are updating our fiscal 2014 guidance with revenue in the range of $4.525 billion to $4.575 billion and EPS to be in the range of $2.73 to $2.79. This guidance assumes no deterioration in the U.S. economy and does not consider any additional share buybacks.”
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, first aid, safety, fire protection products and services and document management services for over one million 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, the ultimate impact of the Affordable Care Act and the finalization of our financial statements for the quarter ended November 30, 2013. 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, 2013 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