Summary
Cintas Corporation reported solid top-line growth for the nine months ended February 28, 2019, with total revenue increasing by 6.1% to $5.1 billion. This growth was driven by a 5.6% increase in the core Uniform Rental and Facility Services segment and a robust 9.3% increase in the First Aid and Safety Services segment. Diluted earnings per share from continuing operations saw a healthy increase of 10.5% to $5.91 for the same period. The company also demonstrated effective cost management, with selling and administrative expenses increasing only slightly as a percentage of revenue, and improvements in gross margins across key segments. Cintas maintained a strong liquidity position, with net cash provided by operating activities increasing year-over-year. The company continued its commitment to shareholder returns through share repurchases and dividend payments.
Financial Highlights
51 data points| Revenue | $1.68B |
| Gross Profit | $755.15M |
| SG&A Expenses | $476.10M |
| Operating Income | $278.25M |
| Interest Expense | $26.77M |
| Net Income | $203.33M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.46 |
| Shares Outstanding (Basic) | 420.32M |
| Shares Outstanding (Diluted) | 432.65M |
Key Highlights
- 1Total revenue for the nine months ended February 28, 2019, grew 6.1% to $5.1 billion, driven by organic growth.
- 2Uniform Rental and Facility Services revenue increased 5.6% organically, while First Aid and Safety Services revenue saw a strong 9.3% organic increase.
- 3Diluted earnings per share from continuing operations rose 10.5% to $5.91 for the nine-month period, indicating improved profitability.
- 4Gross margins showed improvement across key segments, with Uniform Rental and Facility Services at 45.3% and First Aid and Safety Services at 48.0% for the nine months.
- 5Operating cash flow increased slightly to $670.7 million for the nine months, highlighting the company's strong operational cash generation.
- 6Cintas continues its share repurchase program, buying back approximately $546.6 million worth of stock in the nine-month period.
- 7The company successfully navigated the adoption of new accounting standard ASC 606 (Revenue from Contracts with Customers) with no material negative impact on its financial results.