Early Access

10-KPeriod: FY2011

CINTAS CORP Annual Report, Year Ended May 31, 2011

Filed July 29, 2011For Securities:CTAS

Summary

Cintas Corporation's 2011 10-K filing highlights a year of recovery and growth following a challenging economic period. The company demonstrated resilience, with total revenue increasing by 7.4% to $3.8 billion. This growth was driven by a combination of organic expansion, particularly in the Document Management Services segment (up 27.0%), and strategic acquisitions across multiple segments. The Rental Uniforms and Ancillary Products segment, the largest contributor to revenue, saw a solid 4.8% increase, signaling a rebound in core business activity. Profitability also improved, with operating income rising by 12.7% and net income up 14.5% to $247.0 million. Diluted Earnings Per Share (EPS) saw a significant 20.0% increase, partly due to effective share repurchases. The company maintained a strong financial position, with robust operating cash flows and a stable credit rating, allowing for continued investment in growth initiatives and shareholder returns, including a 28th consecutive year of dividend increases.

Financial Statements
Beta
Revenue$3.81B
Gross Profit$1.61B
SG&A Expenses$1.17B
Operating Income$440.34M
Interest Expense$49.70M
Net Income$246.99M
EPS (Basic)$0.42
EPS (Diluted)$0.42
Shares Outstanding (Basic)586.34M
Shares Outstanding (Diluted)586.34M

Key Highlights

  • 1Total revenue increased by 7.4% to $3.81 billion, indicating a strong recovery from the previous year.
  • 2Operating income grew by 12.7% to $440.3 million, reflecting improved operational efficiency and revenue growth.
  • 3Net income increased by 14.5% to $247.0 million, with diluted EPS rising by 20.0% to $1.68.
  • 4The Document Management Services segment showed exceptional growth, with revenue up 27.0% due to organic expansion and acquisitions.
  • 5The company continued its share repurchase program, buying back approximately 7.7 million shares in the fourth quarter of FY2011, contributing to EPS growth.
  • 6Cintas maintained a strong balance sheet and liquidity position, with $438.1 million in cash and cash equivalents and a stable credit rating.
  • 7The company celebrated its 28th consecutive year of increasing its annual dividend, demonstrating a commitment to shareholder returns.

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