Summary
Cintas Corporation reported strong performance for the quarter and six months ended November 30, 2015. Total revenue saw a significant increase driven by both organic growth and strategic acquisitions. The Uniform Rental and Facility Services segment remains the largest contributor, showing steady revenue growth and improved gross margins, partly due to lower energy costs and operational efficiencies. The First Aid and Safety Services segment experienced substantial revenue growth, largely fueled by the acquisition of ZEE Medical, though integration costs impacted its gross margin. Financially, the company demonstrated robust earnings growth from continuing operations and a notable increase in diluted earnings per share, supported by effective cost management and a reduced share count from ongoing share repurchase programs. The company also completed the sale of its Shred-it investment, which significantly boosted cash flow from investing activities. Cintas maintains a strong liquidity position and is in compliance with its debt covenants, with stable credit ratings.
Financial Highlights
50 data points| Revenue | $1.19B |
| Gross Profit | $520.22M |
| SG&A Expenses | $327.05M |
| Operating Income | $200.35M |
| Interest Expense | $16.17M |
| Net Income | $345.10M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 433.20M |
| Shares Outstanding (Diluted) | 440.45M |
Key Highlights
- 1Total revenue increased by 8.5% for the three months ended November 30, 2015, compared to the prior year, with 6.5% organic growth.
- 2Uniform Rental and Facility Services segment revenue grew 5.2%, with an improved gross margin of 43.9%, up 60 basis points year-over-year.
- 3First Aid and Safety Services segment revenue surged by 46.4% due to the ZEE acquisition, though integration costs impacted its gross margin.
- 4Net income from continuing operations for the quarter increased by 11.3%, and diluted EPS from continuing operations rose 19.8% to $1.03.
- 5The company completed the sale of its investment in Shred-it, generating significant proceeds and impacting cash flows from investing activities.
- 6Shareholders benefited from a 23.5% increase in the declared annual cash dividend to $1.05 per share.
- 7Cintas repurchased a substantial number of shares under its buyback programs, reducing the share count and contributing to EPS growth.