Company Announcements

Cintas Corporation Announces Fiscal 2020 Third Quarter Results

CINCINNATI--(BUSINESS WIRE)--Mar. 19, 2020-- Cintas Corporation (Nasdaq: CTAS) today reported results for its fiscal 2020 third quarter ended February 29, 2020. Revenue for the third quarter of fiscal 2020 was $1.81 billion, an increase of 7.6% over last year’s third quarter. Earnings per diluted share (EPS) from continuing operations were $2.16 in the third quarter of fiscal 2020, an increase of 17.4% over last year's third quarter EPS, adjusted for G&K Services, Inc. (G&K) integration expenses. Free cash flow for the third quarter of fiscal 2020 was $300.0 million, an increase of 17.2% over last year's third quarter.

Scott D. Farmer, Cintas' Chairman and Chief Executive Officer, stated, "We are pleased with our third quarter and fiscal year-to-date performance which includes strong growth in revenue, EPS and cash flow generation. More importantly, though, our concerns have turned to the COVID-19 coronavirus and its effects on our customers, our employee-partners and our communities. The pandemic has created a very fluid environment in the markets in which we operate, and I can't thank our employee-partners enough for doing our part to keep our customers' places of work clean, safe and Ready for the WorkdayTM."

The organic revenue growth rate for the third quarter of fiscal 2020, which adjusts for the impacts of acquisitions, foreign currency exchange rate fluctuations, and differences in the number of workdays, was 5.7%. The organic revenue growth rate for the Uniform Rental and Facility Services operating segment was 4.8%, and the organic revenue growth rate for the First Aid and Safety Services operating segment was 12.5%.

Gross margin for the third quarter of fiscal 2020 of $824.4 million increased 9.2% from last year’s third quarter. Gross margin as a percentage of revenue increased 60 basis points to 45.5% for the third quarter of fiscal 2020 compared to 44.9% in the third quarter of fiscal 2019.

Operating income for the third quarter of fiscal 2020 of $314.7 million increased 13.1% from last year’s third quarter operating income of $278.3 million. Operating income as a percentage of revenue was 17.4% in the third quarter of fiscal 2020 compared to 16.5% in the third quarter of fiscal 2019. Operating income in the third quarter of fiscal 2019 was impacted by non-recurring integration expenses related to the G&K acquisition of $0.8 million.

Net income from continuing operations was $234.5 million for the third quarter of fiscal 2020, and EPS from continuing operations were $2.16. Net income from continuing operations was $200.9 million in the third quarter of fiscal 2019, and EPS from continuing operations were $1.83. Fiscal 2019 third quarter EPS from continuing operations included non-recurring G&K integration expenses of $0.01.

The following table provides a comparison of fiscal 2020 third quarter EPS to fiscal 2019 third quarter EPS:

 

Three Months Ended

 

February 29,
2020

 

February 28,
2019

 

Growth vs.
Fiscal 2019

 

 

 

 

 

 

EPS - continuing operations

$

2.16

 

 

$

1.83

 

 

 

G&K integration expenses

 

 

0.01

 

 

 

EPS excluding above items

$

2.16

 

 

$

1.84

 

 

17.4%

 

 

 

 

 

 

 

Nine Months Ended

 

February 29,
2020

 

February 28,
2019

 

Growth vs.
Fiscal 2019

 

 

 

 

 

 

EPS - continuing operations

$

6.76

 

 

$

5.91

 

 

 

G&K integration expenses

 

 

0.09

 

 

 

One-time gain on sale of investment

 

 

(0.47)

 

 

 

EPS excluding above items

$

6.76

 

 

$

5.53

 

 

22.2%

Net cash provided by operating activities for the third quarter of fiscal 2020 of $363.2 million increased 11.4% from last year's third quarter net cash provided by operating activities of $326.2 million. Third quarter free cash flow, which is defined as net cash provided by operating activities less capital expenditures, was $300.0 million, an increase of 17.2% compared to last year. For the nine months ended February 29, 2020, free cash flow was $745.2 million, an increase of 61.0% compared to the nine months ended February 28, 2019.

Mr. Farmer commented, “We continue to effectively deploy cash to increase shareholder value. In the third quarter of fiscal 2020, we paid an annual dividend of $2.55 per share, an increase of 24.4% over last year’s annual dividend. The amount paid to shareholders was $268.0 million. We have increased the annual dividend for 36 consecutive years. In addition to the annual dividend, we utilized cash to purchase $393.1 million of Cintas stock in fiscal 2020 to date, including $200.0 million in March 2020. The amount remaining under our share buyback authorization is $1.1 billion.”

Mr. Farmer concluded, “A week ago, we were expecting today to raise revenue and EPS guidance based upon our fourth quarter outlook. However, much has changed in the past week as our country and others continue to respond to the COVID-19 coronavirus pandemic. Due to the uncertainty, including the severity and duration of the pandemic, we are not providing guidance for the fourth quarter of fiscal 2020 at this time and withdrawing our full fiscal year guidance. Although our visibility to near-term financial results is currently diminished, we remain focused on the safety and well-being of our employee-partners and the care of our customers.”

About Cintas

Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing a wide range of products and services that enhance our customers’ image and help keep their facilities and employees clean, safe and looking their best. With products and services including uniforms, floor care, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety and compliance training, Cintas helps customers get Ready for the Workday™. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and the Nasdaq-100 Index.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “predicts,” “projects,” “plans,” “expects,” “intends,” “target,” “forecast,” “believes,” “seeks,” “could,” “should,” “may” and “will” or the negative versions thereof and similar words, terms and expressions and by the context in which they are used. Such statements are based upon current expectations of Cintas and speak only as of the date made. You should not place undue reliance on any forward-looking statement. We cannot guarantee that any forward-looking statement will be realized. These statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or implied by this Press Release. Factors that might cause such a difference include, but are not limited to, risks inherent with the G&K transaction in the achievement of cost synergies and the timing thereof, including whether the transaction will be accretive and within the expected time frame and the actual amounts of future integration expenses; the possibility of greater than anticipated operating costs including energy and fuel costs; lower sales volumes; loss of customers due to outsourcing trends; the performance and costs of integration of acquisitions, including G&K; fluctuations in costs of materials and labor including increased medical costs; costs and possible effects of union organizing activities; failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety; the effect on operations of exchange rate fluctuations, tariffs and other political, economic and regulatory risks; uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation; the cost, results and ongoing assessment of internal controls for financial reporting required by the Sarbanes-Oxley Act of 2002; the effect of new accounting pronouncements; costs of our SAP system implementation; disruptions caused by the inaccessibility of computer systems data, including cybersecurity risks; the initiation or outcome of litigation, investigations or other proceedings; higher assumed sourcing or distribution costs of products; the disruption of operations from catastrophic or extraordinary events including viral pandemics such as the COVID-19 coronavirus; the amount and timing of repurchases of our common stock, if any; changes in federal and state tax and labor laws; and the reactions of competitors in terms of price and service. Cintas undertakes no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2019 and in our reports on Forms 10-Q and 8-K. The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not known to us, or that we currently believe to be immaterial, may also harm our business.

Cintas Corporation

Consolidated Condensed Statements of Income

(Unaudited)

(In thousands except per share data)

 

Three Months Ended

 

February 29,
2020

 

February 28,
2019

 

%
Change

Revenue:

 

 

 

 

 

Uniform rental and facility services

$

1,448,021

 

 

$

1,358,322

 

 

6.6%

Other

362,627

 

 

324,008

 

 

11.9%

Total revenue

1,810,648

 

 

1,682,330

 

 

7.6%

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

Cost of uniform rental and facility services

784,930

 

 

748,971

 

 

4.8%

Cost of other

201,323

 

 

178,206

 

 

13.0%

Selling and administrative expenses

509,743

 

 

476,099

 

 

7.1%

G&K Services, Inc. integration expenses

 

 

799

 

 

(100.0)%

 

 

 

 

 

 

Operating income

314,652

 

 

278,255

 

 

13.1%

 

 

 

 

 

 

Interest income

(347)

 

 

(70)

 

 

395.7%

Interest expense

25,943

 

 

26,770

 

 

(3.1)%

 

 

 

 

 

 

Income before income taxes

289,056

 

 

251,555

 

 

14.9%

Income taxes

54,536

 

 

50,632

 

 

7.7%

Income from continuing operations

234,520

 

 

200,923

 

 

16.7%

Income from discontinued operations, net of tax

 

 

2,411

 

 

(100.0)%

Net income

$

234,520

 

 

$

203,334

 

 

15.3%

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

Continuing operations

$

2.23

 

 

$

1.89

 

 

18.0%

Discontinued operations

0.00

 

 

0.02

 

 

(100.0)%

Basic earnings per share

$

2.23

 

 

$

1.91

 

 

16.8%

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

Continuing operations

$

2.16

 

 

$

1.83

 

 

18.0%

Discontinued operations

0.00

 

 

0.02

 

 

(100.0)%

Diluted earnings per share

$

2.16

 

 

$

1.85

 

 

16.8%

 

 

 

 

 

 

Weighted average number of shares outstanding

104,245

 

 

105,080

 

 

 

Diluted average number of shares outstanding

107,588

 

 

108,162

 

 

 

Cintas Corporation

Consolidated Condensed Statements of Income

(Unaudited)

(In thousands except per share data)

Nine Months Ended

 

February 29,
2020

 

February 28,
2019

 

%
Change

Revenue:

 

 

 

 

 

Uniform rental and facility services

$

4,372,524

 

 

$

4,124,038

 

 

6.0%

Other

1,093,012

 

 

974,535

 

 

12.2%

Total revenue

5,465,536

 

 

5,098,573

 

 

7.2%

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

Cost of uniform rental and facility services

2,338,543

 

 

2,256,543

 

 

3.6%

Cost of other

601,065

 

 

537,007

 

 

11.9%

Selling and administrative expenses

1,570,666

 

 

1,472,404

 

 

6.7%

G&K Services, Inc. integration expenses

 

 

13,496

 

 

(100.0)%

 

 

 

 

 

 

Operating income

955,262

 

 

819,123

 

 

16.6%

 

 

 

 

 

 

Gain on sale of a cost method investment

 

 

69,373

 

 

(100.0)%

 

 

 

 

 

 

Interest income

(792)

 

 

(957)

 

 

(17.2)%

Interest expense

79,441

 

 

75,954

 

 

4.6%

 

 

 

 

 

 

Income before income taxes

876,613

 

 

813,499

 

 

7.8%

Income taxes

144,838

 

 

157,035

 

 

(7.8)%

Income from continuing operations

731,775

 

 

656,464

 

 

11.5%

(Loss) income from discontinued operations, net of tax

(323)

 

 

2,398

 

 

(113.5)%

Net income

$

731,452

 

 

$

658,862

 

 

11.0%

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

Continuing operations

$

6.98

 

 

$

6.10

 

 

14.4%

Discontinued operations

0.00

 

 

0.02

 

 

(100.0)%

Basic earnings per share

$

6.98

 

 

$

6.12

 

 

14.1%

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

Continuing operations

$

6.76

 

 

$

5.91

 

 

14.4%

Discontinued operations

0.00

 

 

0.02

 

 

(100.0)%

Diluted earnings per share

$

6.76

 

 

$

5.93

 

 

14.0%

 

 

 

 

 

 

Weighted average number of shares outstanding

103,840

 

 

106,147

 

 

 

Diluted average number of shares outstanding

107,280

 

 

109,583

 

 

 

CINTAS CORPORATION SUPPLEMENTAL DATA

Gross Margin and Net Income Margin Results

 

Three Months Ended

 

February 29,
2020

 

February 28,
2019

 

 

 

 

Uniform rental and facility services gross margin

45.8%

 

44.9%

Other gross margin

44.5%

 

45.0%

Total gross margin

45.5%

 

44.9%

Net income margin, continuing operations

13.0%

 

11.9%

 

 

 

 

 

Nine Months Ended

 

February 29,
2020

 

February 28,
2019

 

 

 

 

Uniform rental and facility services gross margin

46.5%

 

45.3%

Other gross margin

45.0%

 

44.9%

Total gross margin

46.2%

 

45.2%

Net income margin, continuing operations

13.4%

 

12.9%

Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure

The press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. To supplement its consolidated condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides the additional non-GAAP financial measures of earnings per diluted share, cash flow and workday adjusted revenue growth. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance as well as prospects for future performance. A reconciliation of the differences between these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP are shown in the tables within the narrative of the press release or below.

Earnings Per Share Results

 

Three Months Ended

 

February 29,
2020

 

February 28,
2019

 

Growth vs.
Fiscal 2019

EPS - continuing operations

$

2.16

 

 

$

1.83

 

 

 

G&K Services, Inc. integration expenses

 

 

0.01

 

 

 

EPS excluding above items

$

2.16

 

 

$

1.84

 

 

17.4%

 

 

 

 

 

 

 

Nine Months Ended

 

February 29,
2020

 

February 28,
2019

 

Growth vs.
Fiscal 2019

EPS - continuing operations

$

6.76

 

 

$

5.91

 

 

 

G&K Services, Inc. integration expenses

 

 

0.09

 

 

 

One-time gain on sale of investment

 

 

(0.47)

 

 

 

EPS excluding above items

$

6.76

 

 

$

5.53

 

 

22.2%

Computation of Free Cash Flow

Nine Months Ended

 

February 29,
2020

 

February 28,
2019

Net cash provided by operations

$

934,549

 

 

$

670,717

 

Capital expenditures

(189,379)

 

 

(207,805)

 

Free cash flow

$

745,170

 

 

$

462,912

 

Management uses free cash flow to assess the financial performance of the Company. Management believes that free cash flow is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue, improve and grow business operations.

Computation of Growth on a Constant Workday Basis

 

Three Months Ended

 

Nine Months Ended

 

February 29,
2020

 

February 28,
2019

 

Growth %

 

February 29,
2020

 

February 28,
2019

 

Growth %

 

A

 

B

 

G

 

I

 

J

 

O

Revenue

$

1,810,648

 

 

$

1,682,330

 

 

7.6%

 

$

5,465,536

 

 

$

5,098,573

 

 

7.2%

 

 

 

 

 

G=(A-B)/B

 

 

 

 

 

O=(I-J)/J

 

C

 

D

 

 

 

K

 

L

 

 

Workdays in the period

65

 

64

 

 

 

195

 

195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

E

 

F

 

H

 

M

 

N

 

P

Revenue adjusted for
workday difference

$

1,782,792

 

 

$

1,682,330

 

 

6.0%

 

$

5,465,536

 

 

$

5,098,573

 

 

7.2%

 

E=(A/C)*D

 

F=(B/D)*D

 

H=(E-F)/F

 

M=(I/K)*L

 

N=(J/L)*L

 

P=(M-N)/N

Management believes that workday adjusted revenue growth is valuable to investors because it reflects the revenue performance compared to a prior period with the same number of revenue generating days.

SUPPLEMENTAL SEGMENT DATA

 

Uniform Rental
and Facility Services

 

First Aid
and Safety Services

 

All
Other

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

For the three months ended February 29, 2020

 

 

 

 

 

 

 

 

Revenue

$

1,448,021

 

 

$

170,541

 

 

$

192,086

 

 

$

 

 

$

1,810,648

 

Gross margin

$

663,091

 

 

$

81,910

 

 

$

79,394

 

 

$

 

 

$

824,395

 

Selling and administrative expenses

$

391,462

 

 

$

57,218

 

 

$

61,063

 

 

$

 

 

$

509,743

 

Interest income

$

 

 

$

 

 

$

 

 

$

(347)

 

 

$

(347)

 

Interest expense

$

 

 

$

 

 

$

 

 

$

25,943

 

 

$

25,943

 

Income (loss) before income taxes

$

271,629

 

 

$

24,692

 

 

$

18,331

 

 

$

(25,596)

 

 

$

289,056

 

 

 

 

 

 

 

 

 

 

 

For the three months ended February 28, 2019

 

 

 

 

 

 

 

 

Revenue

$

1,358,322

 

 

$

149,170

 

 

$

174,838

 

 

$

 

 

$

1,682,330

 

Gross margin

$

609,351

 

 

$

71,890

 

 

$

73,912

 

 

$

 

 

$

755,153

 

Selling and administrative expenses

$

369,414

 

 

$

50,268

 

 

$

56,417

 

 

$

 

 

$

476,099

 

G&K Services, Inc. integration
expenses

$

799

 

 

$

 

 

$

 

 

$

 

 

$

799

 

Interest income

$

 

 

$

 

 

$

 

 

$

(70)

 

 

$

(70)

 

Interest expense

$

 

 

$

 

 

$

 

 

$

26,770

 

 

$

26,770

 

Income (loss) before income taxes

$

239,138

 

 

$

21,622

 

 

$

17,495

 

 

$

(26,700)

 

 

$

251,555

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended February 29, 2020

 

 

 

 

 

 

 

 

Revenue

$

4,372,524

 

 

$

512,299

 

 

$

580,713

 

 

$

 

 

$

5,465,536

 

Gross margin

$

2,033,981

 

 

$

248,272

 

 

$

243,675

 

 

$

 

 

$

2,525,928

 

Selling and administrative expenses

$

1,206,982

 

 

$

174,170

 

 

$

189,514

 

 

$

 

 

$

1,570,666

 

Interest income

$

 

 

$

 

 

$

 

 

$

(792)

 

 

$

(792)

 

Interest expense

$

 

 

$

 

 

$

 

 

$

79,441

 

 

$

79,441

 

Income (loss) before income taxes

$

826,999

 

 

$

74,102

 

 

$

54,161

 

 

$

(78,649)

 

 

$

876,613

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended February 28, 2019

 

 

 

 

 

 

 

 

Revenue

$

4,124,038

 

 

$

455,935

 

 

$

518,600

 

 

$

 

 

$

5,098,573

 

Gross margin

$

1,867,495

 

 

$

219,045

 

 

$

218,483

 

 

$

 

 

$

2,305,023

 

Selling and administrative expenses

$

1,140,436

 

 

$

154,112

 

 

$

177,856

 

 

$

 

 

$

1,472,404

 

G&K Services, Inc. integration
expenses

$

13,496

 

 

$

 

 

$

 

 

$

 

 

$

13,496

 

Gain on sale of a cost method
investment

$

 

 

$

 

 

$

 

 

$

69,373

 

 

$

69,373

 

Interest income

$

 

 

$

 

 

$

 

 

$

(957)

 

 

$

(957)

 

Interest expense

$

 

 

$

 

 

$

 

 

$

75,954

 

 

$

75,954

 

Income (loss) before income taxes

$

713,563

 

 

$

64,933

 

 

$

40,627

 

 

$

(5,624)

 

 

$

813,499

 

Cintas Corporation

Consolidated Condensed Balance Sheets

(In thousands except per share data)

February 29,
2020

 

May 31,
2019

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

234,441

 

 

$

96,645

 

Accounts receivable, net

942,853

 

 

910,120

 

Inventories, net

352,924

 

 

334,589

 

Uniforms and other rental items in service

818,486

 

 

784,133

 

Income taxes, current

23,485

 

 

7,475

 

Prepaid expenses and other current assets

125,517

 

 

103,318

 

Total current assets

2,497,706

 

 

2,236,280

 

 

 

 

 

Property and equipment, net

1,434,866

 

 

1,430,685

 

 

 

 

 

Investments

212,798

 

 

192,346

 

Goodwill

2,873,996

 

 

2,842,441

 

Service contracts, net

464,852

 

 

494,595

 

Operating lease right-of-use assets, net

165,169

 

 

 

Other assets, net

252,593

 

 

240,315

 

 

$

7,901,980

 

 

$

7,436,662

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

243,248

 

 

$

226,020

 

Accrued compensation and related liabilities

148,912

 

 

155,509

 

Accrued liabilities

430,643

 

 

433,940

 

Operating lease liabilities, current

44,043

 

 

 

Debt due within one year

199,800

 

 

312,264

 

Total current liabilities

1,066,646

 

 

1,127,733

 

 

 

 

 

Long-term liabilities:

 

 

 

Debt due after one year

2,539,156

 

 

2,537,507

 

Deferred income taxes

423,677

 

 

438,179

 

Operating lease liabilities

126,994

 

 

 

Accrued liabilities

421,198

 

 

330,522

 

Total long-term liabilities

3,511,025

 

 

3,306,208

 

 

 

 

 

Shareholders’ equity:

 

 

 

Preferred stock, no par value:

 

 

 

100,000 shares authorized, none outstanding

Common stock, no par value:
425,000,000 shares authorized
FY 2020: 186,631,553 issued and 104,026,576 outstanding
FY 2019: 184,790,626 issued and 103,284,401 outstanding

1,092,074

 

 

840,328

 

Paid-in capital

154,157

 

 

227,928

 

Retained earnings

7,151,838

 

 

6,691,236

 

Treasury stock:

(4,978,946)

 

 

(4,717,619)

 

FY 2020: 82,604,977 shares

FY 2019: 81,506,225 shares

Accumulated other comprehensive loss

(94,814)

 

 

(39,152)

 

Total shareholders’ equity

3,324,309

 

 

3,002,721

 

 

$

7,901,980

 

 

$

7,436,662

 

Cintas Corporation

Consolidated Condensed Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

Nine Months Ended

 

February 29,
2020

 

February 28,
2019

Cash flows from operating activities:

 

 

 

Net income

$

731,452

 

 

$

658,862

 

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation

175,261

 

 

164,380

 

Amortization of intangible assets and capitalized contract costs

107,232

 

 

101,949

 

Stock-based compensation

96,428

 

 

105,553

 

Gain on sale of a cost method investment

 

 

(69,373)

 

Gain on sale of business

 

 

(2,419)

 

Deferred income taxes

5,013

 

 

25,079

 

Change in current assets and liabilities, net of acquisitions of businesses:

 

 

 

Accounts receivable, net

(31,135)

 

 

(61,102)

 

Inventories, net

(17,780)

 

 

(70,716)

 

Uniforms and other rental items in service

(33,732)

 

 

(72,336)

 

Prepaid expenses and other current assets and capitalized contract costs

(95,169)

 

 

(85,123)

 

Accounts payable

14,271

 

 

79

 

Accrued compensation and related liabilities

(4,792)

 

 

(3,866)

 

Accrued liabilities and other

3,426

 

 

3,614

 

Income taxes, current

(15,926)

 

 

(23,864)

 

Net cash provided by operating activities

934,549

 

 

670,717

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Capital expenditures

(189,379)

 

 

(207,805)

 

Purchase of investments

(10,461)

 

 

(17,544)

 

Proceeds from sale of assets

13,300

 

 

 

Proceeds from sale of a cost method investment

 

 

73,342

 

Proceeds from sale of business

 

 

3,200

 

Acquisitions of businesses, net of cash acquired

(47,850)

 

 

(7,403)

 

Other, net

(2,090)

 

 

(6,804)

 

Net cash used in investing activities

(236,480)

 

 

(163,014)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

(Payments) issuance of commercial paper, net

(112,500)

 

 

217,500

 

Proceeds from exercise of stock-based compensation awards

81,547

 

 

54,274

 

Dividends paid

(268,042)

 

 

(220,760)

 

Repurchase of common stock

(261,327)

 

 

(608,224)

 

Other, net

30

 

 

(8,088)

 

Net cash used in financing activities

(560,292)

 

 

(565,298)

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

19

 

 

(270)

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

137,796

 

 

(57,865)

 

Cash and cash equivalents at beginning of period

96,645

 

 

138,724

 

Cash and cash equivalents at end of period

$

234,441

 

 

$

80,859

 

 

J. Michael Hansen, Executive Vice President and Chief Financial Officer - 513-972-2079
Paul F. Adler, Vice President and Treasurer - 513-972-4195

Source: Cintas Corporation

J. Michael Hansen, Executive Vice President and Chief Financial Officer - 513-972-2079
Paul F. Adler, Vice President and Treasurer - 513-972-4195