Summary
Cintas Corporation (CTAS) reported strong financial results for the nine months and third quarter ended February 29, 2012. Revenue saw a significant increase of 7.9% year-over-year for the third quarter and 8.9% for the nine-month period, driven by organic growth and strategic acquisitions across its diverse business segments. The company demonstrated effective cost management, with selling and administrative expenses growing at a slower pace than revenue, leading to improved operating income and net income. Diluted earnings per share also saw a substantial increase, bolstered by revenue growth and a reduction in outstanding shares due to ongoing share repurchase programs. The company's core Rental Uniforms and Ancillary Products segment continues to be a strong performer, showing robust revenue growth and improved margins. Other segments, including First Aid, Safety and Fire Protection Services, and Uniform Direct Sales, also contributed positively to the overall performance. While the Document Management Services segment experienced some headwinds due to declining recycled paper prices, overall revenue and income growth across the company remain positive. Cintas maintains a healthy balance sheet and strong liquidity, with ample cash flow from operations to fund its business and shareholder returns. The company reaffirmed its financial position and operational strength, projecting continued growth and value creation for its shareholders.
Financial Highlights
52 data points| Revenue | $1.01B |
| Gross Profit | $425.90M |
| SG&A Expenses | $288.37M |
| Operating Income | $137.54M |
| Interest Expense | $17.22M |
| Net Income | $76.03M |
| EPS (Basic) | $0.14 |
| EPS (Diluted) | $0.14 |
| Shares Outstanding (Basic) | 518.94M |
| Shares Outstanding (Diluted) | 519.78M |
Key Highlights
- 1Total revenue increased by 7.9% to $1.01 billion for the third quarter and 8.9% to $3.05 billion for the nine months ended February 29, 2012, compared to the prior year periods.
- 2Net income rose by 28.7% to $76.0 million for the third quarter and 24.3% to $219.0 million for the nine months, demonstrating strong profitability.
- 3Diluted earnings per share (EPS) grew significantly, reaching $0.58 for the third quarter and $1.67 for the nine months, reflecting improved profitability and a reduced share count from buybacks.
- 4The Rental Uniforms and Ancillary Products segment showed strong performance with an 8.4% revenue increase in the third quarter and a 9.2% increase for the nine months, along with improved gross margins.
- 5Selling and administrative expenses as a percentage of revenue decreased for both the third quarter and nine-month periods, indicating effective cost management and operational efficiency.
- 6The company generated robust operating cash flow of $307.7 million for the nine months ended February 29, 2012, a substantial increase from the prior year, supporting liquidity and investment.
- 7Cintas continued its share repurchase program, with a new $500 million authorization announced, contributing to the increase in diluted EPS by reducing the number of outstanding shares.