01—Abstract
Summary
Summary of the 10-K filed July 27, 2022. Cited figures are marked; the original filing is the authoritative source.
Cintas Corporation (CTAS) demonstrated robust performance in its fiscal year ended May 31, 2022, with total revenue reaching $7.85 billiona, a significant increase of 10.4% from the prior year.
This growth was primarily driven by the Uniform Rental and Facility Services segment, which saw a 9.4% revenue increase, and the First Aid and Safety Services segment, which grew by 6.1%. The company successfully navigated the lingering effects of the COVID-19 pandemic, reporting a positive impact from the lifting of restrictions which contributed to increased sales volume and customer engagement. Financially, Cintas maintained a strong position, with net income from continuing operations increasing by 11.2% to $1.24 billionb.
Diluted earnings per share also saw a healthy rise of 13.8%c. The company actively returned capital to shareholders through dividends and a significant share repurchase program, underscoring its commitment to shareholder value. Cintas continues to focus on expanding its customer base, increasing penetration at existing customers, and exploring strategic acquisitions to fuel future growth.
02—Key points
Key Highlights
- Total revenue increased by 10.4% to $7.85 billion for fiscal year 2022.
- Uniform Rental and Facility Services segment revenue grew by 9.4%, driven by organic growth and increased customer penetration.
- First Aid and Safety Services segment revenue increased by 6.1%, benefiting from new business and improved sales productivity.
- Net income from continuing operations rose by 11.2% to $1.24 billion.
- Diluted earnings per share (EPS) from continuing operations increased by 13.8% to $11.65.
- The company repurchased approximately 3.7 million shares of common stock under its buyback programs, totaling $1.53 billion in fiscal 2022.
- Cintas generated strong operating cash flow of $1.54 billion, supporting its operational needs, investments, and shareholder returns.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Cintas Corp kept $0.16.
- Revenue$7.85B100.0%
- Cost of revenue−$4.22B53.8%
- Gross profit$3.63B46.2%
- Operating costs−$2.04B26.0%
- Operating income$1.59B20.2%
- Interest, other & tax−$351.6M4.5%
- Net income$1.24B15.7%
Where FY2022 revenue went
$7.85B- Cost of revenue: $4.22B, 54% of revenue
- SG&A: $2.04B, 26% of revenue
- Net income: $1.24B, 16% of revenue
- Interest, other & tax: $351.6M, 4.5% of revenue
Kept 16% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed July 27, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $7.85B$7.12B | +10.4% |
| Gross Profit | $3.63B$3.31B | +9.6% |
| SG&A Expenses | $2.04B$1.93B | +6.0% |
| Operating Income | $1.59B$1.39B | +14.6% |
| Interest Expense | $88.84M$98.21M | −9.5% |
| Net Income | $1.24B$1.11B | +11.2% |
| EPS (Basic) | $2.98$2.63 | +13.3% |
| EPS (Diluted) | $2.91$2.56 | +13.8% |
| Shares Outstanding (Basic) | 412.69M419.50M | −1.6% |
| Shares Outstanding (Diluted) | 422.09M430.83M | −2.0% |
05—Questions
Frequently Asked Questions
What was Cintas' revenue growth in fiscal year 2022 and what were the key drivers?
Cintas reported a total revenue of $7.85 billion for the fiscal year ended May 31, 2022, representing a 10.4% increase over the prior year. The Uniform Rental and Facility Services segment was a primary driver, with revenue up 9.4%, due to new business, deeper penetration of existing customers, and the positive impact of easing COVID-19 restrictions. The First Aid and Safety Services segment also contributed with a 6.1% revenue increase, driven by new business and improved sales productivity.
How did Cintas manage the impact of COVID-19 and associated costs?
While the COVID-19 pandemic continued to present challenges, Cintas experienced a positive impact from the ongoing rollout of vaccines and the gradual lifting of restrictions, which helped normalize business operations and customer payment timeliness. The company had previously increased inventory, particularly personal protective equipment, leading to additional inventory reserves in fiscal years 2022 and 2021. However, the report indicates that the pandemic's impact is fluid and ongoing.
What is Cintas' approach to returning capital to shareholders?
Cintas actively returns capital to shareholders through dividends and share repurchases. In fiscal year 2022, the company paid total dividends of $3.80 per share, amounting to $393.6 million. Additionally, Cintas executed a significant share repurchase program, buying back approximately 3.7 million shares for a total of $1.53 billion during fiscal year 2022. A new $1.5 billion share buyback program authorized in July 2021 does not have an expiration date.
What are the main business segments of Cintas and how did they perform in fiscal year 2022?
Cintas operates primarily through two reportable segments: Uniform Rental and Facility Services, and First Aid and Safety Services. The Uniform Rental and Facility Services segment, the larger of the two, generated $6.23 billion in revenue, an increase of 9.4%. The First Aid and Safety Services segment generated $832.5 million in revenue, an increase of 6.1%. The 'All Other' category, which includes Fire Protection Services and Uniform Direct Sales, saw revenue increase by 14.1%.
06—Continue