CINTAS CORP Quarterly Report for Q3 Ended Feb 28, 2022

Summary

Cintas Corporation (CTAS) reported strong performance in its third quarter fiscal year 2022, ending February 28, 2022. Total revenue saw a significant increase of 10.3% year-over-year to $1.96 billion, driven by a robust 10.0% organic growth rate. This growth was primarily fueled by the Uniform Rental and Facility Services segment, which experienced a 9.6% revenue increase, and the First Aid and Safety Services segment and other businesses, which collectively saw a 13.4% rise in revenue. Net income for the quarter grew by 22.1% to $315.4 million, translating to a 25.3% increase in diluted earnings per share to $2.97. This impressive earnings growth was supported by improved operating margins and strategic share repurchases, which reduced the diluted weighted average common shares outstanding. The company's financial health remains strong, with a solid increase in operating income and a positive outlook, despite ongoing economic uncertainties.

Key Highlights

• 1Total revenue increased by 10.3% to $1.96 billion for the three months ended February 28, 2022, compared to $1.78 billion in the prior year period.
• 2Organic revenue growth was a strong 10.0%, demonstrating healthy underlying business expansion.
• 3Net income grew by 22.1% to $315.4 million, a significant increase from $258.4 million in the prior year.
• 4Diluted earnings per share rose by 25.3% to $2.97, up from $2.37 in the comparable prior year period.
• 5Operating income increased by 25.6% to $407.6 million, with operating margin expanding by 240 basis points to 20.8%.
• 6The company repurchased approximately 1.4 million shares under its $1.5 billion buyback program during the nine months ended February 28, 2022, contributing to EPS growth.
• 7Uniform Rental and Facility Services, the largest segment, showed a 9.6% revenue increase, while Other revenue (First Aid and Safety Services and All Other) grew by 13.4%.

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