CINTAS CORP Quarterly Report for Q1 Ended Aug 31, 2021

Summary

Cintas Corporation reported a solid fiscal first quarter for the period ending August 31, 2021, demonstrating resilient top-line growth and improved profitability. Total revenue increased by 8.6% year-over-year to $1.9 billion, driven by broad-based growth across its Uniform Rental and Facility Services segment, which saw an 8.2% increase in revenue. The company also experienced a positive organic revenue growth of 8.6%, indicating strong underlying business performance. Profitability saw a significant boost, with operating income rising to $394.1 million, representing 20.8% of revenue, up from 20.0% in the prior year period. This margin expansion was attributed to both cost of sales and selling and administrative expenses decreasing as a percentage of revenue. Net income grew by 10.4% to $331.2 million, leading to a 11.9% increase in diluted earnings per share to $3.11. The company also continues to actively return capital to shareholders through share repurchases and a recently increased dividend. Despite a temporary decrease in cash and cash equivalents, the company maintains a strong liquidity position and access to a substantial credit facility.

Key Highlights

• 1Total revenue grew 8.6% to $1.9 billion for the three months ended August 31, 2021, compared to $1.75 billion in the prior year period.
• 2Uniform Rental and Facility Services segment revenue increased by 8.2% to $1.51 billion.
• 3Operating income increased by 12.7% to $394.1 million, with operating margin expanding 80 basis points to 20.8%.
• 4Net income rose 10.4% to $331.2 million.
• 5Diluted earnings per share increased by 11.9% to $3.11.
• 6The company repurchased approximately $581 million in common stock under its buyback program during the period and announced a new $1.5 billion program.
• 7Dividends paid increased, with a declared dividend of $0.95 per share.

Frequently Asked Questions