CINTAS CORP Annual Report, Year Ended May 31, 2017

Cintas Corporation's 2017 Form 10-K details a year marked by significant strategic acquisition and continued operational growth. The company successfully completed the acquisition of G&K Services, Inc. for approximately $2.1 billion, a move that substantially expanded its Uniform Rental and Facility Services segment. This acquisition, financed through a combination of debt and cash, is expected to drive future revenue and synergy realization, though it also introduced integration costs and increased debt levels. Financially, Cintas demonstrated robust performance with an 11.0% increase in total revenue, reaching $5.3 billion. This growth was driven by an organic increase of 6.7% and the contribution from acquisitions. The Uniform Rental and Facility Services segment saw an 11.8% revenue increase, while the First Aid and Safety Services segment grew by 10.1%. Despite higher transaction and integration expenses, along with increased interest costs due to the G&K acquisition, the company managed to achieve a modest 1.9% increase in net income from continuing operations, reaching $457.3 million, and a 3.7% rise in diluted earnings per share from continuing operations to $4.17. The company also continued its commitment to shareholder returns, increasing its annual dividend for the 34th consecutive year.