CINTAS CORP Quarterly Report for Q3 Ended Feb 29, 2020

Summary

Cintas Corporation (CTAS) reported solid financial results for the nine months ending February 29, 2020, demonstrating continued revenue growth and improved profitability. Total revenue increased by 7.2% year-over-year to $5.47 billion, driven by strong organic growth of 7.1%. The Uniform Rental and Facility Services segment, the company's largest, saw revenue grow 6.0% organically, while the First Aid and Safety Services segment also posted robust organic growth of 12.3%. Profitability metrics also showed improvement, with operating income increasing 16.6% to $955.3 million and net income from continuing operations rising 11.5% to $731.8 million. Diluted earnings per share from continuing operations grew 14.4% to $6.76. The company highlighted operational efficiencies and improved gross margins in its key segments as drivers for this performance. While the report was filed just as the COVID-19 pandemic was escalating, the results reflect a strong operational period prior to significant pandemic impacts.

Key Highlights

• 1Total revenue for the nine months ended February 29, 2020, increased by 7.2% to $5.47 billion, with organic revenue growth of 7.1%.
• 2Net income from continuing operations grew by 11.5% to $731.5 million for the nine-month period.
• 3Diluted earnings per share from continuing operations increased by 14.4% to $6.76 for the nine months.
• 4Operating income improved significantly, up 16.6% to $955.3 million for the nine-month period.
• 5Uniform Rental and Facility Services revenue grew 6.0% organically, demonstrating continued strength in the core business.
• 6First Aid and Safety Services revenue saw strong organic growth of 12.3% for the nine-month period.
• 7The company had strong cash flow from operations of $934.5 million for the nine months ended February 29, 2020, an increase of $263.8 million year-over-year.

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