Summary
Cintas Corporation reported a strong performance for the quarter and six months ended November 30, 2018. Total revenue increased by 7.0% and 6.2% respectively, driven by organic growth in its core Uniform Rental and Facility Services segment and solid performance in First Aid and Safety Services. The company benefited from increased sales volume, strong customer retention, and effective new business acquisition. Net income from continuing operations saw significant year-over-year growth, with diluted EPS also showing robust improvement, partly aided by a lower effective tax rate due to the Tax Cuts and Jobs Act. Financially, Cintas demonstrated healthy operating cash flow and managed its debt effectively. The company also continued its capital allocation strategy by repurchasing shares under its authorized buyback programs. A notable event was the substantial gain from the sale of a cost method investment, which positively impacted net income. Cintas also announced an increase in its annual cash dividend, signaling confidence in its ongoing financial strength and commitment to returning value to shareholders.
Financial Highlights
50 data points| Revenue | $1.72B |
| Gross Profit | $775.16M |
| SG&A Expenses | $491.67M |
| Operating Income | $275.64M |
| Interest Expense | $24.88M |
| Net Income | $243.01M |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.55 |
| Shares Outstanding (Basic) | 425.90M |
| Shares Outstanding (Diluted) | 439.50M |
Key Highlights
- 1Total revenue increased by 7.0% to $1.718 billion for the three months ended November 30, 2018, compared to the prior year period.
- 2Uniform Rental and Facility Services revenue grew by 6.3% organically, demonstrating continued strength in the core business.
- 3Net income from continuing operations significantly increased by 76.4% to $243.0 million for the three months ended November 30, 2018.
- 4Diluted earnings per share from continuing operations rose to $2.18, an increase of 75.8% year-over-year.
- 5The company realized a significant pre-tax gain of $69.4 million from the sale of a cost method investment.
- 6Cintas declared an annual cash dividend of $2.05 per share, a 26.5% increase from the prior year.
- 7Net cash provided by operating activities was $344.6 million for the six months ended November 30, 2018, supporting financial flexibility.