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CINTAS CORP Quarterly Report for Q1 Ended Aug 31, 2001

Filing Date
Filed October 12, 2001
Period End
August 31, 2001
Security
CTAS
In the record · 2016–202610-K1110-Q338-K88

CTAS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 88 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Dec ’16Dec ’16
  2. Leadership change8-K · Aug ’18Aug ’18
  3. Leadership change8-K · Apr ’21Apr ’21
  4. FY2025 annual report10-K · Jul ’25Jul ’25

01—Abstract

Summary

Summary of the 10-Q filed October 12, 2001. Cited figures are marked; the original filing is the authoritative source.

Cintas Corporation reported solid financial performance for the quarter ending August 31, 2001.

Total revenue saw a healthy 8% increase year-over-year, driven primarily by an 11% rise in net rental revenue, indicating strong customer base growth. This top-line growth translated into improved profitability, with net income up 11% and diluted earnings per share increasing by 10% to $0.33a.

The company's financial position remains robust, with substantial cash reserves and marketable securities totaling $127 millionb, providing ample resources for future investments in acquisitions and capital expenditures, including eight new uniform rental facilities under construction. Management expressed confidence in the company's ability to meet its operational and capital needs through existing cash, operational cash flow, and banking relationships.

02—Key points

Key Highlights

  1. Total revenue increased by 8% to $564.6 million for the three months ended August 31, 2001, compared to the prior year period.
  2. Net income rose by 11% to $56.54 million, with diluted earnings per share growing 10% to $0.33.
  3. The Rentals segment showed strong performance with an 11% increase in revenue, attributed to customer base growth.
  4. Revenue from the Other Services segment (direct uniform sales and ancillary services) remained flat.
  5. The company adopted new accounting standards for Goodwill and Intangible Assets (SFAS 142) and Derivative Instruments (SFAS 133), discontinuing goodwill amortization.
  6. Cash, cash equivalents, and marketable securities increased to $127 million, supporting future growth initiatives.
  7. Cintas continues to invest in its infrastructure, with eight new uniform rental facilities in development.

03—Questions

Frequently Asked Questions

  1. What is the primary driver of Cintas' revenue growth in this quarter?

    The primary driver of Cintas' revenue growth was the Rentals segment, which saw an 11% increase in revenue. This growth is primarily attributed to an expanding customer base.

  2. How has the adoption of new accounting standards impacted reported earnings?

    Cintas adopted SFAS 142, which discontinued the amortization of goodwill. For the three months ended August 31, 2001, this change had no impact on reported net income or EPS as goodwill amortization was already zeroed out. However, it's noted that in the prior year period (August 2000), the exclusion of goodwill amortization (net of tax) increased adjusted net income and adjusted EPS.

  3. What is the company's outlook for future investments?

    The company has a strong cash position of $127 million in cash, cash equivalents, and marketable securities. This capital, along with operational cash flow, is intended to fund future acquisitions and capital expenditures. Eight new uniform rental facilities are currently under construction, indicating continued investment in operational capacity.

  4. How is Cintas managing its debt and interest expenses?

    Net interest expense decreased from $3 million in the prior year period to $2 million. This reduction is due to lower levels of long-term debt and decreased interest rates. Cintas also utilizes interest rate swap agreements for cash flow hedging to convert a portion of its floating-rate debt to a fixed rate.

04—Continue

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