Cintas Corporation (Nasdaq: CTAS) today reported results for its fiscal 2021 fourth quarter ended May 31, 2021. Revenue for the fourth quarter of fiscal 2021 was $1.84 billion compared to $1.62 billion in last year’s fourth quarter. Diluted earnings per share (EPS) were $2.47 in the fourth quarter of fiscal 2021, an increase of 83.0% from last year's fourth quarter diluted EPS of $1.35.
The organic revenue growth rate for the fourth quarter of fiscal 2021, which is adjusted for the impacts of acquisitions, divestitures, foreign currency exchange rate fluctuations and differences in the number of workdays, was 11.5%. The organic revenue growth rate for the Uniform Rental and Facility Services reportable operating segment was 13.7%. Organic revenue for the First Aid and Safety Services reportable operating segment declined 6.8%.
Gross margin for the fourth quarter of fiscal 2021 was $859.1 million compared to $707.8 million in last year’s fourth quarter. Gross margin as a percentage of revenue increased 310 basis points to 46.8% for the fourth quarter of fiscal 2021 compared to 43.7% in the fourth quarter of fiscal 2020.
Operating income for the fourth quarter of fiscal 2021 of $356.4 million increased 71.8% from last year’s fourth quarter operating income of $207.4 million. Operating income as a percentage of revenue increased 660 basis points to 19.4% in the fourth quarter of fiscal 2021 compared to 12.8% in the fourth quarter of fiscal 2020. Fiscal 2020 fourth quarter operating income was affected by many items caused by the COVID-19 pandemic including incremental allowances for doubtful accounts, inventory reserves, employee-partner termination costs, asset impairment charges, and lower incentive compensation expense.
Net income from continuing operations was $267.7 million for the fourth quarter of fiscal 2021, an increase of 85.2% from last year's fourth quarter net income from continuing operations of $144.6 million. Fourth quarter of fiscal 2021 diluted EPS was $2.47, an increase of 83.0% from last year's fourth quarter diluted EPS of $1.35.
During the fourth quarter of fiscal 2021 and our first quarter of fiscal 2022 to date, Cintas purchased $979.0 million of Cintas common stock under its buyback program. On June 15, 2021, Cintas paid shareholders $79.2 million in quarterly dividends in the aggregate.
For the fiscal year ended May 31, 2021, revenue was $7.12 billion compared to $7.09 billion for fiscal 2020. Diluted EPS for fiscal 2021 was $10.24 compared to $8.11 in fiscal 2020. For the fiscal year ended May 31, 2021, free cash flow, which is defined as net cash provided by operating activities less capital expenditures, was $1.22 billion, an increase of 14.7% compared to the fiscal year ended May 31, 2020.
Todd M. Schneider, Cintas' President and Chief Executive Officer, stated, "We are pleased with our fourth quarter financial results. They conclude a fiscal year of significant accomplishments. These include procuring hard-to-find and potentially lifesaving items such as facemasks and gloves, providing hygienically-cleaned healthcare scrubs and isolation gowns, and developing services including hand sanitizer dispensing and sanitizing spray services. Additionally, we improved shareholder returns by increasing the dollar amount of dividends paid and completing share repurchases. Finally, we issued our inaugural Environmental, Social and Governance, or ESG, report."
Mr. Schneider continued, “Our prospects for continued growth are great. Our value proposition is strong, and we have a vast total addressable market. Also, our continued investment in technology is a competitive advantage."
Mr. Schneider concluded, "For our fiscal 2022, we expect revenue to be in the range of $7.53 billion to $7.63 billion and diluted EPS to be in the range of $10.35 to $10.75. Please note the following regarding guidance:
- Our fiscal 2022 effective tax rate is expected to be in the range of 19.5% to 20.5% compared to a rate of 13.7% for fiscal 2021. The higher effective tax rate negatively impacts fiscal 2022 EPS guidance by about $0.85 and diluted EPS growth by about 800 basis points;
- Guidance does not include any future share buybacks or potential tax reform; and
- We remain in a dynamic environment that can continue to change. Our guidance contemplates a steadily improving economy absent any economic or pandemic-related setbacks."
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 products and services that help keep their customers’ facilities and employees clean, safe and looking their best. With offerings including uniforms, mats, mops, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety training, Cintas helps customers get Ready for the Workday®. The Company is also the creator of the Total Clean Program™ — a first-of-its-kind service that includes scheduled delivery of essential cleaning supplies, hygienically clean laundering, and sanitizing and disinfecting products and services. 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 Nasdaq-100 Index.
Cintas will host a live webcast to review the fiscal 2021 fourth quarter results today at 10:00 a.m., Eastern Time. The webcast will be available to the public on Cintas' website at www.Cintas.com. A replay of the webcast will be available approximately two hours after the completion of the live call and will remain available for two weeks.
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, 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; 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; the effect of new accounting pronouncements; 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, 2020 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 |
||||||||
|
May 31,
|
|
May 31,
|
|
%
|
||||
Revenue: |
|
|
|
|
|
||||
Uniform rental and facility services |
$ |
1,466,868 |
|
|
$ |
1,270,970 |
|
|
15.4% |
Other |
368,793 |
|
|
348,614 |
|
|
5.8% |
||
Total revenue |
1,835,661 |
|
|
1,619,584 |
|
|
13.3% |
||
|
|
|
|
|
|
||||
Costs and expenses: |
|
|
|
|
|
||||
Cost of uniform rental and facility services |
766,441 |
|
|
716,602 |
|
|
7.0% |
||
Cost of other |
210,170 |
|
|
195,162 |
|
|
7.7% |
||
Selling and administrative expenses |
502,604 |
|
|
500,386 |
|
|
0.4% |
||
|
|
|
|
|
|
||||
Operating income |
356,446 |
|
|
207,434 |
|
|
71.8% |
||
|
|
|
|
|
|
||||
Interest income |
(98) |
|
|
(196) |
|
|
(50.0)% |
||
Interest expense |
24,551 |
|
|
25,952 |
|
|
(5.4)% |
||
|
|
|
|
|
|
||||
Income before income taxes |
331,993 |
|
|
181,678 |
|
|
82.7% |
||
Income taxes |
64,271 |
|
|
37,093 |
|
|
73.3% |
||
Net income |
$ |
267,722 |
|
|
$ |
144,585 |
|
|
85.2% |
|
|
|
|
|
|
||||
Basic earnings per share |
$ |
2.53 |
|
|
$ |
1.38 |
|
|
83.3% |
|
|
|
|
|
|
||||
Diluted earnings per share |
$ |
2.47 |
|
|
$ |
1.35 |
|
|
83.0% |
|
|
|
|
|
|
||||
Basic weighted average common shares outstanding |
105,143 |
|
|
103,758 |
|
|
|
||
Diluted weighted average common shares outstanding |
107,726 |
|
|
106,231 |
|
|
|
||
Cintas Corporation Consolidated Condensed Statements of Income (In thousands except per share data) |
|||||||||
|
Twelve Months Ended |
||||||||
|
May 31,
|
|
May 31,
|
|
%
|
||||
Revenue: |
|
|
|
|
|
||||
Uniform rental and facility services |
$ |
5,689,632 |
|
|
$ |
5,643,494 |
|
|
0.8% |
Other |
1,426,708 |
|
|
1,441,626 |
|
|
(1.0)% |
||
Total revenue |
7,116,340 |
|
|
7,085,120 |
|
|
0.4% |
||
|
|
|
|
|
|
||||
Costs and expenses: |
|
|
|
|
|
||||
Cost of uniform rental and facility services |
2,983,514 |
|
|
3,055,145 |
|
|
(2.3)% |
||
Cost of other |
818,175 |
|
|
796,227 |
|
|
2.8% |
||
Selling and administrative expenses |
1,929,159 |
|
|
2,071,052 |
|
|
(6.9)% |
||
|
|
|
|
|
|
||||
Operating income |
1,385,492 |
|
|
1,162,696 |
|
|
19.2% |
||
|
|
|
|
|
|
||||
Interest income |
(467) |
|
|
(988) |
|
|
(52.7)% |
||
Interest expense |
98,210 |
|
|
105,393 |
|
|
(6.8)% |
||
|
|
|
|
|
|
||||
Income before income taxes |
1,287,749 |
|
|
1,058,291 |
|
|
21.7% |
||
Income taxes |
176,781 |
|
|
181,931 |
|
|
(2.8)% |
||
Income from continuing operations |
1,110,968 |
|
|
876,360 |
|
|
26.8% |
||
Loss from discontinued operations, net of tax |
— |
|
|
(323) |
|
|
(100.0)% |
||
Net income |
$ |
1,110,968 |
|
|
$ |
876,037 |
|
|
26.8% |
|
|
|
|
|
|
||||
Basic earnings per share: |
|
|
|
|
|
||||
Continuing operations |
$ |
10.52 |
|
|
$ |
8.36 |
|
|
25.8% |
Discontinued operations |
0.00 |
|
|
0.00 |
|
|
—% |
||
Basic earnings per share |
$ |
10.52 |
|
|
$ |
8.36 |
|
|
25.8% |
|
|
|
|
|
|
||||
Diluted earnings per share: |
|
|
|
|
|
||||
Continuing operations |
$ |
10.24 |
|
|
$ |
8.11 |
|
|
26.3% |
Discontinued operations |
0.00 |
|
|
0.00 |
|
|
—% |
||
Diluted earnings per share |
$ |
10.24 |
|
|
$ |
8.11 |
|
|
26.3% |
|
|
|
|
|
|
||||
Basic weighted average common shares outstanding |
104,874 |
|
|
103,816 |
|
|
|
||
Diluted weighted average common shares outstanding |
107,707 |
|
|
107,012 |
|
|
|
||
CINTAS CORPORATION SUPPLEMENTAL DATA
Gross Margin and Net Income Margin Results |
|||
|
Three Months Ended |
||
|
May 31,
|
|
May 31,
|
|
|
|
|
Uniform rental and facility services gross margin |
47.7% |
|
43.6% |
Other gross margin |
43.0% |
|
44.0% |
Total gross margin |
46.8% |
|
43.7% |
Net income margin |
14.6% |
|
8.9% |
|
|
|
|
|
Twelve Months Ended |
||
|
May 31,
|
|
May 31,
|
|
|
|
|
Uniform rental and facility services gross margin |
47.6% |
|
45.9% |
Other gross margin |
42.7% |
|
44.8% |
Total gross margin |
46.6% |
|
45.6% |
Net income margin, continuing operations |
15.6% |
|
12.4% |
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 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.
Computation of Free Cash Flow |
|||||||
|
Twelve Months Ended |
||||||
|
May 31,
|
|
May 31,
|
||||
Net cash provided by operations |
$ |
1,360,740 |
|
|
$ |
1,291,483 |
|
Capital expenditures |
(143,470) |
|
|
(230,289) |
|
||
Free cash flow |
$ |
1,217,270 |
|
|
$ |
1,061,194 |
|
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 |
|
Twelve Months Ended |
||||||||||||||||
|
May 31,
|
|
May 31,
|
|
Growth
|
|
May 31,
|
|
May 31,
|
|
Growth
|
||||||||
|
A |
|
B |
|
G |
|
I |
|
J |
|
O |
||||||||
Revenue |
$ |
1,835,661 |
|
|
$ |
1,619,584 |
|
|
13.3% |
|
$ |
7,116,340 |
|
|
$ |
7,085,120 |
|
|
0.4% |
|
|
|
|
|
G=(A-B)/B |
|
|
|
|
|
O=(I-J)/J |
||||||||
|
C |
|
D |
|
|
|
K |
|
L |
|
|
||||||||
Workdays in the period |
66 |
|
65 |
|
|
|
261 |
|
260 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
E |
|
F |
|
H |
|
M |
|
N |
|
P |
||||||||
Workday adjusted revenue growth |
$ |
1,807,848 |
|
|
$ |
1,619,584 |
|
|
11.6% |
|
$ |
7,089,074 |
|
|
$ |
7,085,120 |
|
|
0.1% |
|
E=(A/C)*D |
|
F=(B/D)*D |
|
H=(E-F)/F |
|
M=(I/K)*L |
|
N=(J/L)*L |
|
P=(M-N)/N |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Acquisition, divestitures and foreign currency exchange impact, net |
|
|
|
|
(0.1)% |
|
|
|
|
|
0.1% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Organic growth |
|
|
|
|
11.5% |
|
|
|
|
|
0.2% |
||||||||
Management believes that organic 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 and excludes the impact from acquisitions, divestitures and foreign currency exchange rate fluctuations.
SUPPLEMENTAL SEGMENT DATA |
|||||||||||||||||||
|
Uniform Rental
|
|
First Aid
|
|
All
|
|
Corporate |
|
Total |
||||||||||
For the three months ended May 31, 2021 |
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
1,466,868 |
|
|
$ |
186,917 |
|
|
$ |
181,876 |
|
|
$ |
— |
|
|
$ |
1,835,661 |
|
Gross margin |
$ |
700,427 |
|
|
$ |
80,294 |
|
|
$ |
78,329 |
|
|
$ |
— |
|
|
$ |
859,050 |
|
Selling and administrative expenses |
$ |
388,627 |
|
|
$ |
64,964 |
|
|
$ |
49,013 |
|
|
$ |
— |
|
|
$ |
502,604 |
|
Interest income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(98) |
|
|
$ |
(98) |
|
Interest expense |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
24,551 |
|
|
$ |
24,551 |
|
Income (loss) before income taxes |
$ |
311,800 |
|
|
$ |
15,330 |
|
|
$ |
29,316 |
|
|
$ |
(24,453) |
|
|
$ |
331,993 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the three months ended May 31,2020 |
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
1,270,970 |
|
|
$ |
196,270 |
|
|
$ |
152,344 |
|
|
$ |
— |
|
|
$ |
1,619,584 |
|
Gross margin |
$ |
554,368 |
|
|
$ |
90,389 |
|
|
$ |
63,063 |
|
|
$ |
— |
|
|
$ |
707,820 |
|
Selling and administrative expenses |
$ |
376,809 |
|
|
$ |
57,599 |
|
|
$ |
65,978 |
|
|
$ |
— |
|
|
$ |
500,386 |
|
Interest income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(196) |
|
|
$ |
(196) |
|
Interest expense |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
25,952 |
|
|
$ |
25,952 |
|
Income (loss) before income taxes |
$ |
177,559 |
|
|
$ |
32,790 |
|
|
$ |
(2,915) |
|
|
$ |
(25,756) |
|
|
$ |
181,678 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the twelve months ended May 31, 2021 |
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
5,689,632 |
|
|
$ |
784,291 |
|
|
$ |
642,417 |
|
|
$ |
— |
|
|
$ |
7,116,340 |
|
Gross margin |
$ |
2,706,118 |
|
|
$ |
332,336 |
|
|
$ |
276,197 |
|
|
$ |
— |
|
|
$ |
3,314,651 |
|
Selling and administrative expenses |
$ |
1,480,278 |
|
|
$ |
251,153 |
|
|
$ |
197,728 |
|
|
$ |
— |
|
|
$ |
1,929,159 |
|
Interest income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(467) |
|
|
$ |
(467) |
|
Interest expense |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
98,210 |
|
|
$ |
98,210 |
|
Income (loss) before income taxes |
$ |
1,225,840 |
|
|
$ |
81,183 |
|
|
$ |
78,469 |
|
|
$ |
(97,743) |
|
|
$ |
1,287,749 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the twelve months ended May 31, 2020 |
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
5,643,494 |
|
|
$ |
708,569 |
|
|
$ |
733,057 |
|
|
$ |
— |
|
|
$ |
7,085,120 |
|
Gross margin |
$ |
2,588,349 |
|
|
$ |
338,661 |
|
|
$ |
306,738 |
|
|
$ |
— |
|
|
$ |
3,233,748 |
|
Selling and administrative expenses |
$ |
1,583,791 |
|
|
$ |
231,769 |
|
|
$ |
255,492 |
|
|
$ |
— |
|
|
$ |
2,071,052 |
|
Interest income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(988) |
|
|
$ |
(988) |
|
Interest expense |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
105,393 |
|
|
$ |
105,393 |
|
Income (loss) before income taxes |
$ |
1,004,558 |
|
|
$ |
106,892 |
|
|
$ |
51,246 |
|
|
$ |
(104,405) |
|
|
$ |
1,058,291 |
|
Cintas Corporation Consolidated Condensed Balance Sheets (In thousands except per share data) |
|||||||
|
May 31,
|
|
May 31,
|
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
493,640 |
|
|
$ |
145,402 |
|
Accounts receivable, net |
901,710 |
|
|
870,369 |
|
||
Inventories, net |
481,797 |
|
|
408,898 |
|
||
Uniforms and other rental items in service |
810,104 |
|
|
770,411 |
|
||
Income taxes, current |
22,282 |
|
|
— |
|
||
Prepaid expenses and other current assets |
133,776 |
|
|
114,619 |
|
||
Total current assets |
2,843,309 |
|
|
2,309,699 |
|
||
|
|
|
|
||||
Property and equipment, net |
1,318,438 |
|
|
1,403,065 |
|
||
|
|
|
|
||||
Investments |
274,616 |
|
|
214,847 |
|
||
Goodwill |
2,913,069 |
|
|
2,870,020 |
|
||
Service contracts, net |
408,445 |
|
|
451,529 |
|
||
Operating lease right-of-use assets, net |
168,532 |
|
|
159,967 |
|
||
Other assets, net |
310,414 |
|
|
260,758 |
|
||
|
$ |
8,236,823 |
|
|
$ |
7,669,885 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
230,786 |
|
|
$ |
230,995 |
|
Accrued compensation and related liabilities |
241,469 |
|
|
127,417 |
|
||
Accrued liabilities |
518,910 |
|
|
456,653 |
|
||
Income taxes, current |
— |
|
|
27,099 |
|
||
Operating lease liabilities, current |
43,850 |
|
|
43,031 |
|
||
Debt due within one year |
899,070 |
|
|
— |
|
||
Total current liabilities |
1,934,085 |
|
|
885,195 |
|
||
|
|
|
|
||||
Long-term liabilities: |
|
|
|
||||
Debt due after one year |
1,642,833 |
|
|
2,539,705 |
|
||
Deferred income taxes |
386,647 |
|
|
388,579 |
|
||
Operating lease liabilities |
130,774 |
|
|
122,695 |
|
||
Accrued liabilities |
454,637 |
|
|
498,509 |
|
||
Total long-term liabilities |
2,614,891 |
|
|
3,549,488 |
|
||
|
|
|
|
||||
Shareholders’ equity: |
|
|
|
||||
Preferred stock, no par value: |
— |
|
|
— |
|
||
100,000 shares authorized, none outstanding |
|||||||
Common stock, no par value: |
1,417,343 |
|
|
1,102,689 |
|
||
425,000,000 shares authorized |
|||||||
FY 2021: 189,071,185 issued and 104,061,391 outstanding |
|||||||
FY 2020: 186,793,207 issued and 103,415,368 outstanding |
|||||||
Paid-in capital |
98,859 |
|
|
171,521 |
|
||
Retained earnings |
7,877,015 |
|
|
7,296,509 |
|
||
Treasury stock: |
(5,736,258) |
|
|
(5,182,137) |
|
||
FY 2021: 85,009,794 shares |
|||||||
FY 2020: 83,377,839 shares |
|||||||
Accumulated other comprehensive income (loss) |
30,888 |
|
|
(153,380) |
|
||
Total shareholders’ equity |
3,687,847 |
|
|
3,235,202 |
|
||
|
$ |
8,236,823 |
|
|
$ |
7,669,885 |
|
Cintas Corporation Consolidated Condensed Statements of Cash Flows (In thousands) |
|||||||
|
Twelve Months Ended |
||||||
|
May 31,
|
|
May 31,
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
1,110,968 |
|
|
$ |
876,037 |
|
|
|
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation |
243,836 |
|
|
235,905 |
|
||
Amortization of intangible assets and capitalized contract costs |
144,115 |
|
|
143,148 |
|
||
Stock-based compensation |
112,035 |
|
|
115,435 |
|
||
Net gain on sale of operating assets |
(22,030) |
|
|
— |
|
||
Long-lived asset impairment |
5,114 |
|
|
9,220 |
|
||
Deferred income taxes |
(42,242) |
|
|
(16,252) |
|
||
Change in current assets and liabilities, net of acquisitions of businesses: |
|
|
|
||||
Accounts receivable, net |
(32,576) |
|
|
39,681 |
|
||
Inventories, net |
(75,501) |
|
|
(74,773) |
|
||
Uniforms and other rental items in service |
(35,659) |
|
|
12,773 |
|
||
Prepaid expenses and other current assets and capitalized contract costs |
(102,600) |
|
|
(110,248) |
|
||
Accounts payable |
(2,604) |
|
|
2,629 |
|
||
Accrued compensation and related liabilities |
113,769 |
|
|
(26,476) |
|
||
Accrued liabilities and other |
(6,735) |
|
|
49,906 |
|
||
Income taxes, current |
(49,150) |
|
|
34,498 |
|
||
Net cash provided by operating activities |
1,360,740 |
|
|
1,291,483 |
|
||
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
(143,470) |
|
|
(230,289) |
|
||
Purchases of investments |
(4,299) |
|
|
(10,031) |
|
||
Proceeds from sale of operating assets, net of cash disposed |
31,705 |
|
|
13,300 |
|
||
Acquisitions of businesses, net of cash acquired |
(10,038) |
|
|
(53,720) |
|
||
Other, net |
(11,113) |
|
|
(4,658) |
|
||
Net cash used in investing activities |
(137,215) |
|
|
(285,398) |
|
||
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Payments of commercial paper, net |
— |
|
|
(112,500) |
|
||
Repayment of debt |
— |
|
|
(200,000) |
|
||
Proceeds from exercise of stock-based compensation awards |
129,957 |
|
|
90,519 |
|
||
Dividends paid |
(451,327) |
|
|
(267,956) |
|
||
Repurchase of common stock |
(554,121) |
|
|
(464,518) |
|
||
Other, net |
(4,377) |
|
|
(752) |
|
||
Net cash used in financing activities |
(879,868) |
|
|
(955,207) |
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
4,581 |
|
|
(2,121) |
|
||
|
|
|
|
||||
Net increase in cash and cash equivalents |
348,238 |
|
|
48,757 |
|
||
Cash and cash equivalents at beginning of year |
145,402 |
|
|
96,645 |
|
||
Cash and cash equivalents at end of year |
$ |
493,640 |
|
|
$ |
145,402 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210715005179/en/
Contacts
J. Michael Hansen, Executive Vice President and Chief Financial Officer - 513-972-2079
Paul F. Adler, Vice President - Treasurer & Investor Relations - 513-972-4195
