Summary
Cintas Corporation's filing for the nine months ended February 28, 2013, demonstrates continued revenue growth, with a 4.6% increase to $3.2 billion, driven by solid organic performance in its core Rental Uniforms and Ancillary Products segment and strategic acquisitions in the First Aid, Safety and Fire Protection Services and Document Management segments. Net income saw a modest increase of 4.8% to $229.5 million for the nine-month period. Despite some pressure on gross margins in the Rental segment due to increased material and service costs, and a decline in the Document Management segment influenced by lower recycled paper prices, the company's operational efficiency and strategic focus on sales representative productivity have supported overall profitability. The company also highlighted continued share repurchases and a stable financial position, supported by its credit ratings and access to debt markets.
Financial Highlights
52 data points| Revenue | $1.08B |
| Gross Profit | $441.94M |
| SG&A Expenses | $308.92M |
| Operating Income | $133.02M |
| Interest Expense | $16.30M |
| Net Income | $74.70M |
| EPS (Basic) | $0.15 |
| EPS (Diluted) | $0.15 |
| Shares Outstanding (Basic) | 492.48M |
| Shares Outstanding (Diluted) | 495.03M |
Key Highlights
- 1Total revenue for the nine months ended February 28, 2013, increased by 4.6% to $3.2 billion compared to the prior year period.
- 2Net income for the nine months increased by 4.8% to $229.5 million, with diluted EPS rising 9.6% to $1.83 due to a decrease in weighted average shares outstanding from share repurchases.
- 3The Rental Uniforms and Ancillary Products segment, the largest revenue contributor, experienced a 4.5% revenue increase, driven by improved sales representative productivity.
- 4Acquisitions contributed to growth in the First Aid, Safety and Fire Protection Services (9.3% revenue increase) and Document Management Services (0.1% revenue increase) segments.
- 5Gross margin for the Rental Uniforms and Ancillary Products segment saw a decrease of 100 basis points to 42.4% due to increased material costs and route expansion expenses.
- 6The company's financial liquidity remains strong, with net cash provided by operating activities increasing to $368.3 million for the nine-month period.
- 7Cintas continued its share repurchase program, buying back 4.4 million shares for $179.4 million in the first nine months of fiscal 2013.