Summary
Cintas Corporation reported a solid first quarter for fiscal year 2012, with total revenue increasing by 10.1% year-over-year to $1.017 billion. This growth was driven by a strong organic increase of 7.6%, complemented by 2.5% growth from acquisitions, particularly in the Document Management and First Aid/Safety segments. Net income rose by 12.0% to $68.6 million, and diluted earnings per share (EPS) saw a significant 30.0% increase to $0.52, benefiting from a reduced share count due to share repurchases. The company demonstrated improved operating efficiency, with selling and administrative expenses growing at a slower pace than revenue. The Rental Uniforms and Ancillary Products segment remains the largest contributor, showing 9.4% revenue growth and improved gross and operating margins. The "Other Services" revenue, encompassing Uniform Direct Sales, First Aid/Safety, and Document Management, also grew robustly at 11.8%, with Document Management and First Aid/Safety being key organic growth drivers. Despite increased interest expenses due to recent debt issuance, Cintas maintained strong compliance with debt covenants and a healthy liquidity position.
Financial Highlights
51 data points| Revenue | $1.02B |
| Gross Profit | $439.04M |
| SG&A Expenses | $310.47M |
| Operating Income | $128.57M |
| Interest Expense | $17.33M |
| Net Income | $68.64M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 525.24M |
| Shares Outstanding (Diluted) | 525.35M |
Key Highlights
- 1Total revenue increased by 10.1% to $1.017 billion for the three months ended August 31, 2011, compared to the prior year period.
- 2Net income grew by 12.0% to $68.6 million, with diluted earnings per share increasing by 30.0% to $0.52, aided by share repurchases.
- 3The Rental Uniforms and Ancillary Products segment showed strong performance with a 9.4% revenue increase and improved gross and operating margins.
- 4Significant growth was observed in the Document Management Services (24.7% revenue increase) and First Aid, Safety and Fire Protection Services (10.9% revenue increase) segments, with strong organic contributions.
- 5Selling and administrative expenses as a percentage of revenue decreased, indicating improved operational efficiency.
- 6The company completed its $500 million share buyback program, demonstrating a commitment to returning capital to shareholders.
- 7Cintas maintained compliance with all significant debt covenants and possesses adequate liquidity for future operations and expansion.