Summary
Cintas Corporation reported solid financial results for the nine months and third quarter ended February 29, 2016. Total revenue saw a healthy increase of 9.7% year-over-year for the quarter and 9.0% for the nine-month period, driven by both organic growth and strategic acquisitions, notably the acquisition of ZEE Medical Inc. The company demonstrated strong operational execution, with its core Uniform Rental and Facility Services segment continuing to be a reliable performer, showing consistent revenue growth and improved gross margins. The company's profitability also improved, with net income from continuing operations increasing by 16.9% for the quarter and 9.4% for the nine-month period. Diluted earnings per share from continuing operations showed significant growth, reflecting improved profitability and the impact of share repurchases. Cintas continues to actively manage its capital structure, with substantial share buyback programs in place and a stable credit rating, indicating financial strength and a commitment to returning value to shareholders. The company also successfully completed the sale of its investment in Shred-it, further streamlining its operations.
Financial Highlights
52 data points| Revenue | $1.19B |
| Gross Profit | $517.85M |
| SG&A Expenses | $331.66M |
| Operating Income | $192.95M |
| Interest Expense | $16.16M |
| Net Income | $117.34M |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 431.37M |
| Shares Outstanding (Diluted) | 437.85M |
Key Highlights
- 1Total revenue increased by 9.7% to $1,216.1 million for the three months ended February 29, 2016, compared to the prior year period.
- 2Net income from continuing operations rose by 16.9% to $117.3 million for the three months ended February 29, 2016, compared to the prior year period.
- 3Diluted earnings per share from continuing operations increased by 23.5% to $1.05 for the three months ended February 29, 2016, compared to the prior year period.
- 4The Uniform Rental and Facility Services segment revenue grew by 6.0% year-over-year for the quarter, with gross margin improving by 70 basis points.
- 5The acquisition of ZEE Medical Inc. contributed significantly to the First Aid and Safety Services segment's revenue growth of 49.8% for the quarter, although integration costs impacted gross margins in this segment.
- 6Cintas completed the sale of its investment in Shred-it during the quarter, which is now reported under discontinued operations.
- 7The company repurchased a substantial amount of its common stock under its authorized share buyback programs, contributing to the increase in diluted EPS.