01—Abstract
Summary
Summary of the 10-Q filed October 4, 2024. Cited figures are marked; the original filing is the authoritative source.
Cintas Corporation reported strong financial results for the first quarter of fiscal year 2025, ending August 31, 2024.
Total revenue increased by 6.8% to $2.50 billiona, with organic revenue growth at a robust 8.0%, demonstrating the company's ability to expand its market reach and penetrate existing customer relationships. The Uniform Rental and Facility Services segment, the company's largest, saw a 5.9% revenue increase, while the First Aid and Safety Services segment experienced even stronger growth at 12.2%. Net income rose significantly by 17.4% to $452.0 million, translating to a diluted earnings per share (EPS) of $1.10, an increase of 18.3% from the prior year.
This improved profitability was driven by operating leverage from revenue growth, efficiency gains in operational costs, and favorable sourcing and productivity initiatives. The company also demonstrated strong operating cash flow generation, providing ample liquidity. Cintas continued its commitment to shareholder returns through consistent dividend payments and active share repurchase programs, reflecting confidence in its ongoing business strategy and financial health.
02—Key points
Key Highlights
- Total revenue for the quarter reached $2.50 billion, a 6.8% increase year-over-year, with organic revenue growth of 8.0%.
- Net income grew by 17.4% to $452.0 million, and diluted EPS increased by 18.3% to $1.10.
- The Uniform Rental and Facility Services segment revenue increased by 5.9% to $1.93 billion, while First Aid and Safety Services revenue saw a strong 12.2% increase to $292.6 million.
- Operating income improved to $561.0 million, representing 22.4% of revenue, up from 21.4% in the prior year, driven by operational efficiencies and leverage.
- Cash flow from operating activities was robust at $466.7 million, an increase from $336.9 million in the prior year.
- The company declared and paid dividends totaling $138.2 million and repurchased $614.8 million of common stock during the quarter.
- Cintas maintains a strong liquidity position with $101.4 million in cash and cash equivalents and access to a $2.0 billion revolving credit facility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Cintas Corp kept $0.18.
- Revenue$2.50B100.0%
- Cost of revenue−$1.25B49.9%
- Gross profit$1.25B50.1%
- Operating costs−$691.1M27.6%
- Operating income$561.0M22.4%
- Interest, other & tax−$109.0M4.4%
- Net income$452.0M18.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed October 4, 2024Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $2.50B$2.34B | +6.8% |
| Cost of Revenue | $1.25B— | — |
| Gross Profit | $1.25B— | — |
| SG&A Expenses | $691.10M$641.01M | +7.8% |
| Operating Income | $561.03M$500.56M | +12.1% |
| Net Income | $452.03M$385.08M | +17.4% |
| EPS (Basic) | $1.12$0.94 | +19.1% |
| EPS (Diluted) | $1.10$0.93 | +18.3% |
| Shares Outstanding (Basic) | 403.38M407.58M | −1.0% |
| Shares Outstanding (Diluted) | 410.50M414.29M | −0.9% |
05—Questions
Frequently Asked Questions
What was Cintas' primary revenue driver during this quarter?
The primary revenue driver was the Uniform Rental and Facility Services segment, which generated $1.93 billion in revenue, a 5.9% increase year-over-year. This segment continues to be the largest contributor to Cintas' overall revenue.
How did Cintas manage its costs in relation to revenue growth?
Cintas demonstrated effective cost management. The cost of uniform rental and facility services increased by 3.5%, which was less than the revenue growth for that segment, leading to a gross margin improvement. Similarly, cost of other services increased by 6.0%, also less than the revenue growth for that segment. Overall operating income as a percentage of revenue increased from 21.4% to 22.4%.
What is the outlook for Cintas' liquidity and financial flexibility?
Cintas has a strong liquidity position, with $101.4 million in cash and cash equivalents and a $2.0 billion revolving credit facility. The company generated $466.7 million in operating cash flow during the quarter and expects this to be sufficient for operations, expansion, and shareholder returns like dividends and share repurchases.
How are Cintas' share repurchase and dividend strategies progressing?
Cintas continues to actively return capital to shareholders. The company paid $138.2 million in dividends and repurchased $614.8 million of common stock during the quarter. The company has authorized significant share buyback programs, indicating confidence in its financial position and commitment to shareholder value.
06—Continue