Summary
Cintas Corporation reported strong financial performance for the fiscal year ending May 31, 2018, demonstrating robust revenue growth and enhanced profitability. The company's strategic acquisition of G&K Services in the prior year significantly contributed to a 21.7% increase in total revenue, reaching $6.5 billion. This growth was driven by both organic expansion, reflecting a 7.1% increase in sales volume, and the integration of G&K's operations. Profitability saw a substantial improvement, with net income from continuing operations rising by 71.4% to $783.9 million. This surge in earnings was notably influenced by the positive impact of the Tax Cuts and Jobs Act, which significantly reduced the company's effective tax rate to 6.8%. The company also highlighted operational efficiencies and sales force productivity as key drivers of its financial success. Cintas continued to reward shareholders through dividend increases and share repurchases, underscoring its commitment to shareholder value.
Financial Highlights
55 data points| Revenue | $6.48B |
| Gross Profit | $2.91B |
| SG&A Expenses | $1.92B |
| Operating Income | $949.83M |
| Interest Expense | $110.17M |
| Net Income | $842.59M |
| EPS (Basic) | $1.95 |
| EPS (Diluted) | $1.89 |
| Shares Outstanding (Basic) | 426.37M |
| Shares Outstanding (Diluted) | 439.24M |
Key Highlights
- 1Total revenue increased by 21.7% to $6.5 billion, largely driven by the acquisition of G&K Services and organic growth of 7.1%.
- 2Net income from continuing operations increased by 71.4% to $783.9 million, benefiting from a lower effective tax rate due to the Tax Cuts and Jobs Act.
- 3The Uniform Rental and Facility Services segment saw a 24.9% revenue increase, primarily due to the G&K acquisition and organic growth.
- 4First Aid and Safety Services segment revenue grew by 11.1%, with organic growth of 10.5%, showcasing strong performance in this sector.
- 5The company successfully managed its debt, reducing total debt by $634.7 million year-over-year, primarily due to repayment of debt incurred for the G&K acquisition.
- 6Cintas demonstrated a strong commitment to shareholder returns, increasing its annual dividend by 21.8% and continuing its share repurchase program.
- 7The company reported effective internal controls over financial reporting, with an unqualified opinion from its independent registered public accounting firm.