01—Abstract
Summary
Summary of the 10-K filed July 26, 2019. Cited figures are marked; the original filing is the authoritative source.
Cintas Corporation reported total revenues of $6.9 billiona for the fiscal year ended May 31, 2019, representing a 6.4% increase over the prior year, driven by a 6.5% organic growth rate.
The Uniform Rental and Facility Services segment remains the largest contributor, with revenue up 5.8%, and demonstrated improved gross margins. The First Aid and Safety Services segment also showed solid performance with revenue growth of 9.7%. The company continued its share repurchase program, repurchasing $543.4 millionb in the fiscal year, and increased its quarterly dividend, marking the 36th consecutive year of dividend increases.
Financially, Cintas demonstrated strong operational efficiency, with income before income taxes increasing by 31.1%. Net income from continuing operations grew 12.6% to $882.6 millionc, leading to diluted earnings per share from continuing operations of $7.97, a 13.4% increase.
The company's financial health remains robust, supported by strong operating cash flow of $1.1 billiond. Cintas is well-positioned for continued growth, driven by its strategy of increasing penetration with existing customers and expanding its customer base.
02—Key points
Key Highlights
- Total revenue reached $6.9 billion, a 6.4% increase year-over-year, with a 6.5% organic growth rate.
- Uniform Rental and Facility Services segment revenue grew 5.8% to $5.6 billion, with improved gross margins.
- First Aid and Safety Services segment revenue increased by 9.7% to $619 million.
- Net income from continuing operations rose by 12.6% to $882.6 million.
- Diluted EPS from continuing operations increased by 13.4% to $7.97.
- The company generated strong operating cash flow of $1.1 billion.
- Cintas increased its quarterly dividend by 26.5% and continued its share buyback program, repurchasing $543.4 million worth of stock.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2019, Cintas Corp kept $0.13.
- Revenue$6.89B100.0%
- Cost of revenue−$3.76B54.6%
- Gross profit$3.13B45.4%
- Operating costs−$2.00B28.9%
- Operating income$1.13B16.4%
- Interest, other & tax−$248.6M3.6%
- Net income$885.0M12.8%
Where FY2019 revenue went
$6.89B- Cost of revenue: $3.76B, 55% of revenue
- SG&A: $1.98B, 29% of revenue
- Net income: $885.0M, 13% of revenue
- Interest, other & tax: $248.6M, 3.6% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2019filed July 26, 2019Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $6.89B$6.48B | +6.4% |
| Gross Profit | $3.13B$2.91B | +7.6% |
| SG&A Expenses | $1.98B$1.92B | +3.3% |
| Operating Income | $1.13B$949.83M | +19.3% |
| Interest Expense | $101.74M$110.17M | −7.7% |
| Net Income | $884.98M$842.59M | +5.0% |
| EPS (Basic) | $2.06$1.95 | +6.0% |
| EPS (Diluted) | $2.00$1.89 | +5.7% |
| Shares Outstanding (Basic) | 424.32M426.37M | −0.5% |
| Shares Outstanding (Diluted) | 437.98M439.24M | −0.3% |
05—Questions
Frequently Asked Questions
What was Cintas Corporation's revenue performance in fiscal year 2019?
Cintas Corporation reported total revenues of $6.9 billion for the fiscal year ended May 31, 2019, an increase of 6.4% compared to the prior year. This growth was primarily driven by organic growth of 6.5%, indicating strong performance from existing operations.
How did the company's main operating segments perform?
The Uniform Rental and Facility Services segment, the company's largest, saw its revenue increase by 5.8% to $5.6 billion and achieved improved gross margins. The First Aid and Safety Services segment also performed well, with revenue up 9.7% to $619 million.
What is Cintas' approach to returning capital to shareholders?
Cintas demonstrated a commitment to returning capital to shareholders by increasing its quarterly dividend by 26.5% to $2.05 per share, marking its 36th consecutive annual dividend increase. Additionally, the company actively repurchased its common stock, spending $543.4 million under its share buyback program during fiscal year 2019.
What was the company's profitability and earnings per share for fiscal year 2019?
Cintas reported a net income from continuing operations of $882.6 million, a 12.6% increase year-over-year. Diluted earnings per share from continuing operations also saw a significant increase of 13.4%, reaching $7.97.
06—Continue