01—Abstract
Summary
Summary of the 10-K filed July 30, 2013. Cited figures are marked; the original filing is the authoritative source.
Cintas Corporation's 2013 10-K filing reveals a company experiencing consistent revenue growth, primarily driven by its core Rental Uniforms and Ancillary Products segment.
The company demonstrated resilience with a 5.2% increase in total revenue to $4.3 billiona, supported by strong organic growth and strategic acquisitions, particularly in the First Aid, Safety and Fire Protection Services and Document Management segments. Net income also saw a healthy increase of 6.0% to $315.4 million. Investors will note Cintas' commitment to shareholder returns, evidenced by its 30th consecutive year of dividend increases.
The company also actively engaged in share repurchases, reducing outstanding shares and contributing to a 11.0%b increase in diluted earnings per share. Despite facing competitive pressures and potential economic headwinds, Cintas' diversified business model, operational efficiencies, and focus on customer relationships position it for continued stability and growth.
02—Key points
Key Highlights
- Total revenue for fiscal year 2013 reached $4.3 billion, a 5.2% increase from the prior year, driven by 4.9% organic growth.
- The Rental Uniforms and Ancillary Products segment remains the largest revenue generator, accounting for 70.5% of total revenue.
- Net income increased by 6.0% to $315.4 million, and diluted earnings per share grew by 11.0% to $2.52, partly due to share repurchases.
- Cintas continues its tradition of returning capital to shareholders, marking its 30th consecutive year of increasing its annual dividend.
- The company made strategic acquisitions in its First Aid, Safety and Fire Protection Services and Document Management Services segments, contributing to overall revenue growth.
- Cintas maintained effective internal controls over financial reporting, as attested by its independent auditors, Ernst & Young LLP.
- The company's financial position remains strong, with $352.3 million in cash and cash equivalents at the end of fiscal year 2013.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Cintas Corp kept $0.07.
- Revenue$4.25B100.0%
- Cost of revenue−$2.49B58.7%
- Gross profit$1.75B41.3%
- Operating costs−$1.19B28.0%
- Operating income$566.0M13.3%
- Interest, other & tax−$250.5M5.9%
- Net income$315.4M7.4%
Where FY2013 revenue went
$4.25B- Cost of revenue: $2.49B, 59% of revenue
- SG&A: $1.19B, 28% of revenue
- Net income: $315.4M, 7.4% of revenue
- Interest, other & tax: $250.5M, 5.9% of revenue
Kept 7.4% as net incomeNet income $315.4M · 7.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed July 30, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $4.25B$4.10B | +3.5% |
| Gross Profit | $1.75B$1.74B | +0.8% |
| SG&A Expenses | $1.19B$1.20B | −1.0% |
| Operating Income | $565.98M$539.63M | +4.9% |
| Interest Expense | $65.71M$70.63M | −7.0% |
| Net Income | $315.44M$297.64M | +6.0% |
| EPS (Basic) | $0.63$0.57 | +11.5% |
| EPS (Diluted) | $0.63$0.57 | +11.0% |
| Shares Outstanding (Basic) | 495.82M519.56M | −4.6% |
| Shares Outstanding (Diluted) | 498.12M520.13M | −4.2% |
05—Questions
Frequently Asked Questions
What are Cintas Corporation's main business segments?
Cintas Corporation operates through four primary business segments: Rental Uniforms and Ancillary Products, Uniform Direct Sales, First Aid, Safety and Fire Protection Services, and Document Management Services.
How did Cintas perform in terms of revenue and profitability in fiscal year 2013?
In fiscal year 2013, Cintas reported total revenue of $4.3 billion, an increase of 5.2% over the previous year. Net income rose by 6.0% to $315.4 million, and diluted earnings per share increased by 11.0% to $2.52.
What is Cintas' strategy for growth?
Cintas' growth strategy involves increasing penetration at existing customers and broadening its customer base. This is achieved through its sales organization, geographic expansion in emerging businesses, and evaluating strategic acquisitions.
What are the key risks Cintas identified in its 10-K filing?
Key risks identified by Cintas include negative global economic factors, increased competition, difficulties in opening new cost-effective facilities, risks associated with acquisitions, rising fuel and energy costs, unionization campaigns, supplier risks, foreign currency fluctuations, regulatory compliance failures, legal proceedings, environmental compliance costs, IT system disruptions, failure of internal controls, difficulties in attracting and retaining personnel, unexpected operational disruptions, potential impairment charges, and security breaches in its Document Management business.
06—Continue