Summary
Cintas Corporation's 2010 Form 10-K/A filing, an amendment to its original report, primarily provides updated disclosures related to credit ratings following the Dodd-Frank Act. The report covers the fiscal year ended May 31, 2010, a period significantly impacted by the economic downturn. Despite a 6.0% decrease in total revenue to $3.5 billion, the company demonstrated resilience by improving cash flow, with net cash provided by operating activities increasing by 7.3% to $561.6 million. Key operational highlights include a -6.4% internal growth rate for the full year, with a notable improvement in the fourth quarter to 1.9%. The company maintained its commitment to shareholders by increasing its dividend for the 27th consecutive year. Cintas' diversified business segments, including Rental Uniforms and Ancillary Products, Uniform Direct Sales, First Aid & Safety, and Document Management, experienced varying impacts from the economic conditions, with Document Management showing strong growth. The company focused on cost reduction initiatives and strategic adjustments to navigate the challenging economic landscape while maintaining its long-term objective of exceeding customer expectations.
Financial Highlights
52 data points| Revenue | $3.55B |
| Gross Profit | $1.50B |
| SG&A Expenses | $1.09B |
| Operating Income | $390.81M |
| Interest Expense | $48.61M |
| Net Income | $215.62M |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.35 |
| Shares Outstanding (Basic) | 611.43M |
| Shares Outstanding (Diluted) | 611.43M |
Key Highlights
- 1Total revenue for fiscal year 2010 was $3.5 billion, a 6.0% decrease from the prior year, largely due to the economic downturn.
- 2Despite revenue decline, net cash provided by operating activities increased by 7.3% to $561.6 million, demonstrating improved cash flow generation.
- 3The company experienced a -6.4% internal growth rate for the fiscal year, with a positive trend emerging in the fourth quarter, showing 1.9% growth.
- 4Cintas increased its quarterly dividend to $0.48 per share, marking the 27th consecutive annual dividend increase.
- 5The Document Management Services segment showed robust growth, with revenue increasing by 18.6% and internal growth of 14.4%, partially driven by higher recycled paper prices.
- 6Significant cost reduction efforts were undertaken, including inventory valuation adjustments and restructuring charges in prior periods, which helped mitigate the impact of lower volumes.
- 7Selling and administrative expenses saw a slight increase of 0.3% in fiscal 2010, attributed to higher medical expenses and system implementation costs, but were managed effectively in the context of revenue.