Summary
Cintas Corporation (CTAS) reported its fiscal second quarter 2021 results, ending November 30, 2020. The company demonstrated resilience despite the ongoing COVID-19 pandemic, with total revenue declining by 4.7% year-over-year to $1.76 billion. This decline was primarily driven by reduced sales volumes in the Uniform Rental and Facility Services segment due to pandemic-related business closures. However, the First Aid and Safety Services segment showed strong growth of 14.6%, partly fueled by increased demand for personal protective equipment. Despite revenue headwinds, Cintas managed its costs effectively, leading to an increase in operating income by 5.5% to $352.9 million. Net income from continuing operations rose by 15.6% to $284.9 million, and diluted earnings per share (EPS) increased by 15.4% to $2.62. The company also generated a healthy $573.0 million in operating cash flow for the first six months of the fiscal year, underscoring its robust liquidity position and ability to navigate the challenging economic environment.
Financial Highlights
50 data points| Revenue | $1.76B |
| SG&A Expenses | $467.01M |
| Operating Income | $352.87M |
| Interest Expense | $24.56M |
| Net Income | $284.86M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.66 |
| Shares Outstanding (Basic) | 420.00M |
| Shares Outstanding (Diluted) | 431.92M |
Key Highlights
- 1Total revenue for the quarter was $1.76 billion, a decrease of 4.7% compared to the prior year, primarily impacted by COVID-19 related business closures.
- 2Net income from continuing operations increased by 15.6% to $284.9 million.
- 3Diluted earnings per share (EPS) from continuing operations grew by 15.4% to $2.62.
- 4Uniform Rental and Facility Services revenue decreased by 4.0%, while First Aid and Safety Services revenue increased by 14.6%.
- 5Operating income increased by 5.5% to $352.9 million, driven by effective cost management and a one-time gain on the sale of operating assets.
- 6The company generated $573.0 million in net cash from operating activities for the first six months of the fiscal year, demonstrating strong cash flow generation.
- 7Cintas maintained compliance with its debt covenants and held $703.2 million in cash and cash equivalents as of November 30, 2020, indicating a strong liquidity position.