Summary
Cintas Corporation reported its first-quarter fiscal year 2016 results, ending August 31, 2015. The company demonstrated solid top-line growth, with total revenue increasing by 8.8% to $1.199 billion, driven by a 6.8% organic growth rate and contributions from acquisitions. The core Uniform Rental and Facility Services segment showed a 7.4% revenue increase, while the First Aid and Safety Services segment experienced robust growth of 24.5%. Despite increased operating expenses and costs associated with acquisitions, Cintas managed to maintain its net income from continuing operations at $106.2 million, a slight increase from the prior year. Diluted earnings per share from continuing operations also saw a modest rise to $0.93. The company is actively managing its capital structure, with significant share repurchases continuing under its authorized buyback programs. Cintas also announced the pending sale of its investment in Shred-it, which, along with the prior sale of its Storage business, led to these operations being classified as discontinued. The company's liquidity remains strong, with substantial cash flows from operations and an unused revolving credit facility, positioning it well for ongoing strategic initiatives and shareholder returns.
Financial Highlights
49 data points| Revenue | $1.17B |
| Gross Profit | $516.89M |
| SG&A Expenses | $338.64M |
| Operating Income | $185.51M |
| Interest Expense | $16.41M |
| Net Income | $100.18M |
| EPS (Basic) | $0.22 |
| EPS (Diluted) | $0.22 |
| Shares Outstanding (Basic) | 442.39M |
| Shares Outstanding (Diluted) | 448.92M |
Key Highlights
- 1Total revenue increased by 8.8% to $1.199 billion, with 6.8% attributed to organic growth.
- 2Uniform Rental and Facility Services segment revenue grew 7.4%, indicating continued strength in its core business.
- 3First Aid and Safety Services segment revenue surged by 24.5%, boosted by acquisitions and organic growth.
- 4Net income from continuing operations was stable at $106.2 million, with diluted EPS from continuing operations increasing to $0.93 due to share buybacks.
- 5The company is actively returning capital to shareholders, with significant share repurchases continuing under its authorized programs.
- 6Cintas is divesting non-core assets, with the sale of its investment in Shred-it expected to close, impacting future financial reporting.
- 7Strong liquidity position maintained with $146.9 million in cash and cash equivalents and an undrawn revolving credit facility.