Cintas Corporation, Cincinnati, this week reported results for its fourth quarter ended May 31, 2013. Revenue for the fourth quarter was $1.13 billion, representing a 7.2 percent increase compared to last year’s fourth quarter. Organic growth, which adjusts for the impact of acquisitions, compared to last year’s fourth quarter, was 6.2 percent. Net income increased 9.4 percent to $86.0 million as compared to $78.6 million in last year’s fourth quarter. Earnings per diluted share (EPS) for the fourth quarter were $0.69, a 15.0 percent increase over the $0.60 EPS in last year’s fourth quarter.
“We are pleased to report another quarter of record revenue,” said Scott D. Farmer, chief executive officer of Cintas Corporation. “In addition, our fourth quarter operating margin of 13.6 percent of revenue reflects the execution of our plan to sell profitable business, manage our cost structure and continuously improve the efficiency of our processes. These solid results conclude a successful year for Cintas achieved in large part by the hard work and dedication of our employees, who we call partners.”
For the fiscal year ended May 31, 2013, revenue was a record $4.32 billion, a 5.2 percent increase from the prior fiscal year. Adjusting for one less workday in this fiscal year compared to last fiscal year, revenue grew 5.6 percent over last fiscal year. Organic growth, which adjusts for the impact of acquisitions and the impact of one less workday compared to last fiscal year, was 4.9 percent. Net income increased 6.0 percent to $315.4 million compared to last fiscal year. EPS increased 11.0% to $2.52 as compared to last fiscal year.
Farmer added, “I am proud to report that we achieved record fiscal year sales and EPS in fiscal year 2013. It was the third consecutive fiscal year of double digit EPS growth. In addition, our balance sheet and cash flow remain very strong. As of May 31, 2013, cash and marketable securities totaled $358.0 million, and debt to EBITDA was 1.9 to one. Cash flow from operations for the fiscal year increased 17.6 percent to $552.7 million compared to last fiscal year.”
He concluded, “While the U.S. economy has shown some signs of improvement in the past several months, much uncertainty remains. This uncertainty, due to a number of factors including the effect of the Affordable Care Act, continues to cause many of our customers to delay hiring and investment decisions. We have developed our fiscal 2014 expectations with this uncertain economic landscape in mind. We expect fiscal 2014 revenue to be in the range of $4.5 billion to $4.6 billion, and full year EPS to be in the range of $2.66 to $2.75. This guidance assumes no deterioration in the U.S. economy and does not consider any additional share buybacks. It does incorporate the impact of having one less workday in fiscal 2014 compared to fiscal 2013 and our current estimate of the impact of the Affordable Care Act on our cost structure during fiscal year 2014.”
For more information, visit www.cintas.com.
