Cintas Corporation (Nasdaq: CTAS) today reported results
for its fiscal 2017 fourth quarter and full fiscal year which ended
May 31, 2017.
Revenue for the fourth quarter was $1.53 billion, an increase of
23.1% over last year’s fourth quarter. The organic growth rate,
which adjusts for the impacts of acquisitions and foreign currency
exchange rate fluctuations, was 8.1%. The organic growth rates for
the Uniform Rental and Facility Services and First Aid and Safety
Services reportable operating segments were 8.0% and 9.2%,
respectively.
Scott D. Farmer, Cintas’ Chairman and Chief Executive Officer,
stated, “Our strong finish to the fiscal year helped us to achieve
a seventh consecutive year of organic growth in the mid to high
single digits. We continue to grow revenue in multiples of gross
domestic product and employment growth. I thank our employees, whom
we call partners, for the solid execution that enables us to
achieve our vision of increasing the number of businesses we help
get Ready for the WorkdayTM and of adding greater
value to our existing customers by providing them with more of our
industry-leading products and services.”
Operating income for the fourth quarter of $177.3 million
decreased 11.2% from last year’s fourth quarter operating income of
$199.8 million. Fiscal 2017 fourth quarter operating income was
negatively impacted by $63.7 million of transaction and integration
expenses related to the G&K Services, Inc. (G&K)
acquisition.
Net income and earnings per diluted share (EPS) from continuing
operations for the fourth quarter were $82.2 million and $0.75,
respectively, compared to $115.7 million and $1.06, respectively,
in last year’s fourth quarter. Fiscal 2017 fourth quarter EPS
included a positive impact of $0.02 from a change in the accounting
for equity compensation as required under ASU 2016-09 which was
adopted in the first quarter of fiscal 2017. Fiscal 2017 fourth
quarter EPS included a negative impact of $0.50 from transaction
and integration expenses and certain incremental non-recurring
financing fees included in interest expense related to the G&K
acquisition.
The following table provides summary financial information
including revenue, operating income, net income and EPS from
continuing operations for the fourth quarters of fiscal years 2017
and 2016. This information is presented to provide details of
consolidation and thus transparency to financial performance
because of the significant impacts to the financial results in the
fourth quarter of fiscal year 2017 from the G&K acquisition.
Note that we will not be able to provide this detail going forward
because the G&K business will increasingly be integrated and
thus inseparable from Cintas consolidated financial results.
Q4 Fiscal 2017 Q4 Fiscal 2016
G&K Acquisition
Transaction Cintas % of G&K and ASU
% of %
of Legacy Revenue Results Integration 2016-09
Reported
Revenue Reported Revenue (1)
(2) (3) (4)
(5)
(5) Revenue $1,342.6 $187.7 $— $—
$1,530.3 $1,243.5 Gross margin 603.3 44.9 %
75.4 — —
678.7 44.4 % 546.4 43.9
% SG&A 383.1 28.5 % 51.8 — 2.8
437.7
28.6 % 346.6 27.9 %
G&K transaction and integration expenses — 0.0 % — 63.7
—
63.7 4.2 %
— 0.0 % Operating profit 220.2 16.4 %
23.6 (63.7 ) (2.8 )
177.3 11.6 % 199.8
16.1 % Interest expense, net 13.7 1.0 % 14.5
17.1 —
45.3 3.0
% 15.5 1.2 %
Income before income taxes
206.5 15.4 % 9.1 (80.8 ) (2.8 )
132.0 8.6 %
184.3 14.8 % Income taxes 80.6 6.0 %
3.4 (27.5 ) (6.6 )
49.9 3.3
% 68.6 5.5 %
Income, continuing operations
$125.9 9.4 % $5.7 ($53.3 ) $3.8
$82.1 5.4 % $115.7 9.3 %
Diluted EPS, continuing operations $1.18 $0.05 ($0.50
) $0.02
$0.75 $1.06 (1)
Figures represent reported results less the details of
consolidation provided in the table related to the G&K
acquisition and ASU 2016-09. See notes (2), (3) and (4) for more
information. (2) Figures represent the G&K financial results
from the closing of the acquisition on March 21, 2017 to the
quarter ended May 31, 2017. These results include in SG&A
amortization expense of $9.6 million resulting from the purchase
price accounting (i.e., establishment of intangible assets) for
G&K. They also include interest expense on the debt to finance
the G&K acquisition. (3) These expenses relate to the G&K
acquisition and include employee separation costs, planned facility
reduction activities, and certain incremental non-recurring
financing fees included in interest expense. (4) Figures represent
the impact from a change in the accounting for equity compensation
as required under ASU 2016-09 which was adopted in the first
quarter of fiscal 2017. (5) On July 11, 2017, Cintas sold a
business that was reported as discontinued operations for the
quarters ended May 31, 2017 and 2016. Revenue and EPS for the sold
business were $26.5 million and $0.01, respectively, in Q4 fiscal
2017 and $27.9 million and $0.02, respectively, in Q4 fiscal 2016.
Revenue for the full fiscal year ending May 31, 2017 was $5.32
billion, an increase of 11.0% over last fiscal year. The organic
growth rate, which adjusts for the impacts of acquisitions, foreign
currency exchange rate fluctuations, and workday differences, was
6.7%. Operating income for the full fiscal year of $773.7 million
increased 0.6% from last fiscal year operating income of $768.9
million. Fiscal 2017 operating income was negatively impacted by
$79.2 million of transaction and integration expenses related to
the G&K acquisition. Net income and EPS from continuing
operations for fiscal 2017 were $457.3 million and $4.17,
respectively, compared to $448.6 million and $4.02, respectively,
last fiscal year. Fiscal 2017 EPS included a positive impact of
$0.19 from a change in the accounting for equity compensation as
required under ASU 2016-09. Fiscal 2017 EPS also included a
negative impact of $0.60 from transaction and integration expenses
and certain incremental non-recurring financing fees included in
interest expense related to the G&K acquisition.
The following table provides summary financial information
including revenue, operating income, net income and EPS from
continuing operations for the full fiscal years 2017 and 2016. This
information is presented to provide details of consolidation and
transparency to financial performance.
Fiscal 2017 Fiscal 2016
G&K Acquisition
Transaction Cintas % of G&K and ASU
% of % of
Legacy Revenue Results Integration 2016-09
Reported
Revenue Reported Revenue (1)
(2) (3) (4)
(5)
(5) Revenue $5,135.7 $187.7 $— $—
$5,323.4 $4,795.8 Gross margin 2,304.9 44.9%
75.4 — —
2,380.3 44.7% 2,101.3 43.8%
SG&A 1,467.3 28.6% 51.8 — 8.3
1,527.4
28.7% 1,332.4 27.8% G&K transaction
and integration expenses — 0.0% — 79.2 —
79.2 1.5% — 0.0%
Operating profit 837.6 16.3% 23.6 (79.2 ) (8.3 )
773.7
14.5% 768.9 16.0% Interest expense, net
54.7 1.1% 14.5 17.1 —
86.3 1.6% 63.6 1.3%
Income before income taxes
782.9 15.2% 9.1 (96.3 ) (8.3 )
687.4 12.9%
705.3 14.7% Income taxes 289.9 5.6% 3.4
(30.7 ) (32.5 )
230.1 4.3% 256.7
5.4%
Income-continuing operations
$493.0 9.6% $5.7
($65.6
)
$24.2
$457.3 8.6% $448.6
9.4% Diluted EPS, continuing operations $4.53 $0.05
($0.60
)
$0.19
$4.17 $4.02 (1)
Figures represent reported results less the details of
consolidation provided in the table related to the G&K
acquisition and ASU 2016-09. See notes (2), (3) and (4) for more
information. (2) Figures represent the G&K financial results
from the closing of the acquisition on March 21, 2017 to the year
ended May 31, 2017. These results include in SG&A amortization
expense of $9.6 million resulting from the purchase price
accounting (i.e., establishment of intangible assets) for G&K.
They also include interest expense on the debt to finance the
G&K acquisition. (3) These expenses relate to the G&K
acquisition and include employee separation costs, planned facility
reduction activities, and certain incremental non-recurring
financing fees included in interest expense. (4) Figures represent
the impact from a change in the accounting for equity compensation
as required under ASU 2016-09 which was adopted in the first
quarter of fiscal 2017. (5) On July 11, 2017, Cintas sold a
business that was reported as discontinued operations for the
fiscal years ended May 31, 2017 and 2016. Revenue and EPS for the
sold business were $105.6 million and $0.07, respectively, in
fiscal year 2017 and $109.7 million and $0.07, respectively, in
fiscal year 2016.
Mr. Farmer continued, “The financial results of fiscal 2017 were
affected by items including a change in accounting standard related
to equity compensation and transaction and integration expenses
related to the largest acquisition in our history. At the core,
however, is a consistently growing and profitable company with a
record of success that includes 46 of the past 48 years of growing
both revenue and net income and achieving double-digit growth in
EPS for 7 consecutive years. We are proud of our accomplishments,
but our focus remains on the bright future. Significant
opportunities exist in all of our businesses. In addition,
long-term investments such as the G&K acquisition and the
implementation of an enterprise resource planning system contribute
to a long runway for continued growth.”
Mr. Farmer concluded, “Looking ahead to fiscal 2018, we expect
revenue to be in the range of $6.27 billion to $6.36 billion and
fiscal 2018 EPS from continuing operations to be in the range of
$5.15 to $5.25.”
Fiscal 2018 guidance includes the following assumptions related
to the acquired G&K business:
- No transaction and integration
expenses
- Revenue of approximately $870 million
to $900 million, compared to a prior year annualized amount of $965
million;
- Synergies of approximately $50 million
to $55 million;
- Purchase price amortization
(specifically related to intangible assets) of $50 million;
- Interest expense on G&K acquisition
debt of approximately $65 million; and
- EPS contribution of 15 cents to 17
cents, inclusive of all items above.
The table below provides a comparison of fiscal 2017 revenue and
EPS to our fiscal 2018 guidance.
Fiscal Fiscal 2018
Growth Fiscal 2018 Growth 2017 Low
end vs. 2017 High end vs. 2017
of Range of Range
Revenue
Guidance
($s in millions)
Total Revenue $5,323.4
$6,270.0 17.8% $6,360.0 19.5%
Earnings Per
Share Guidance
EPS, continuing operations $4.17 $5.15 $5.25 G&K
transaction and integration expenses 0.60 — —
EPS after above items $4.77
$5.15 8.0% $5.25 10.1%
Fiscal 2018 EPS guidance does not include any G&K
transaction and integration expenses. However, we expect that these
expenses will be incurred in fiscal 2018 as we continue to
integrate this significant acquisition. We estimate that these
expenses will range from $50 million to $65 million.
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 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 timeframe; 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; 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; 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, 2016 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 (In thousands except per
share data) Three Months Ended
(Unaudited) May 31, 2017 May 31, 2016
% Change Revenue: Uniform rental and facility
services $ 1,220,015 $ 959,721 27.1 Other 310,272
283,827 9.3 Total revenue 1,530,287 1,243,548
23.1 Costs and expenses: Cost of uniform rental and facility
services 676,389 533,543 26.8 Cost of other 175,172 163,634 7.1
Selling and administrative expenses 437,672 346,610 26.3 G&K
Services, Inc. transaction and integration expenses 63,746
- 100.0 Operating income 177,308
199,761 -11.2 Interest income (130 ) (331 ) -60.7 Interest
expense 45,389 15,776 187.7
Income before income taxes 132,049 184,316 -28.4 Income
taxes 49,875 68,605 -27.3 Income
from continuing operations 82,174 115,711 -29.0 Income from
discontinued operations, net of tax 2,063
15,187 -86.4 Net income $ 84,237 $
130,898 -35.6 Basic earnings per share: Continuing
operations $ 0.76 $ 1.07 -29.0 Discontinued operations 0.02
0.14 -85.7 Basic earnings per share $ 0.78
$ 1.21 -35.5 Diluted earnings per
share: Continuing operations $ 0.75 $ 1.06 -29.2 Discontinued
operations 0.01 0.14 -92.9
Diluted earnings per share $ 0.76 $ 1.20 -36.7
Weighted average number of shares outstanding 105,325
106,136 Diluted average number of shares outstanding 109,023
107,797
Twelve Months Ended May 31, 2017
May 31, 2016 % Change Revenue:
Uniform rental and facility services $ 4,202,490 $ 3,759,524 11.8
Other 1,120,891 1,036,248 8.2
Total revenue 5,323,381 4,795,772 11.0 Costs and expenses:
Cost of uniform rental and facility services 2,307,774 2,092,833
10.3 Cost of other 635,312 601,599 5.6 Selling and administrative
expenses 1,527,380 1,332,399 14.6 G&K Services, Inc.
transaction and integration expenses 79,224
- 100.0 Operating income 773,691 768,941 0.6
Interest income (237 ) (896 ) -73.5 Interest expense
86,524 64,522 34.1 Income before
income taxes 687,404 705,315 -2.5 Income taxes 230,118
256,710 -10.4 Income from continuing
operations 457,286 448,605 1.9 Income from discontinued operations,
net of tax 23,422 244,915 -90.4
Net income $ 480,708 $ 693,520 -30.7
Basic earnings per share: Continuing operations $ 4.27 $ 4.08 4.7
Discontinued operations 0.22 2.22
-90.1 Basic earnings per share $ 4.49 $ 6.30
-28.7 Diluted earnings per share: Continuing
operations $ 4.17 $ 4.02 3.7 Discontinued operations 0.21
2.19 -90.4 Diluted earnings per share $
4.38 $ 6.21 -29.5 Weighted average
number of shares outstanding 104,964 108,221 Diluted average number
of shares outstanding 107,783 109,956
CINTAS CORPORATION SUPPLEMENTAL DATA Three
Months Ended May 31, 2017 May 31,
2016 Uniform rental and facility services gross margin 44.6%
44.4% Other gross margin 43.5% 42.3% Total gross margin 44.4% 43.9%
Net income margin, continuing operations 5.4% 9.3%
Twelve Months Ended May 31, 2017 May
31, 2016 Uniform rental and facility services gross margin
45.1% 44.3% Other gross margin 43.3% 41.9% Total gross margin 44.7%
43.8% Net income margin, continuing operations 8.6% 9.4%
Computation of Diluted Earnings Per Share from Continuing
Operations Three Months Ended
May 31, 2017 May 31, 2016 Income
from continuing operations $ 82,174 $ 115,711 Less: income from
continuing operations allocated to participating securities
951 1,882 Income from continuing operations
available to common shareholders $ 81,223 $ 113,829
Basic weighted average common shares outstanding 105,325
106,136 Effect of dilutive securities - employee stock options
3,698 1,661 Diluted weighted average
common shares outstanding 109,023
107,797 Diluted earnings per share from continuing
operations $ 0.75 $ 1.06
Twelve Months
Ended May 31, 2017 May 31, 2016
Income from continuing operations $ 457,286 $ 448,605 Less:
income from continuing operations allocated to participating
securities 8,168 7,131 Income from
continuing operations available to common shareholders $ 449,118
$ 441,474 Basic weighted average common shares
outstanding 104,964 108,221 Effect of dilutive securities -
employee stock options 2,819 1,735
Diluted weighted average common shares outstanding 107,783
109,956 Diluted earnings per share from
continuing operations $ 4.17 $ 4.02
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 financial
statements presented in accordance with U.S. generally accepted
accounting principles (GAAP), the Company provides additional
non-GAAP financial measures of revenue and related growth and cash
flow. 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. Reconciliations of the
differences between these non-GAAP financial measures with the most
directly comparable financial measures calculated in accordance
with GAAP are shown below.
Computation of Workday Adjusted
Revenue Growth Twelve Months Ended May
31, 2017 May 31, 2016
Growth % A B G Revenue $
5,323,381 $ 4,795,772 11.0%
G=(A-B)/B C D
Workdays in the period 261 262
E F H
Revenue adjusted for workday difference $ 5,343,777 $ 4,795,772
11.4%
H=(E-F)/F E=(A/C)*D F=(B/D)*D
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.
Computation of Free Cash Flow
Twelve Months Ended May 31, 2017
May 31, 2016 Net cash provided by operations $
763,887 $ 465,845 Capital expenditures (273,317 )
(275,385 ) Free cash flow $ 490,570
$ 190,460
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.
SUPPLEMENTAL SEGMENT DATA
Uniform Rental First Aid and Facility and
Safety All
Services Services Other
Corporate Total For the three months ended
May 31, 2017 Revenue $ 1,220,015 $ 134,358 $ 175,914 $ - $
1,530,287 Gross margin $ 543,626 $ 59,814 $ 75,286 $ - $ 678,726
Selling and administrative expenses $ 336,400 $ 45,551 $ 55,721 $ -
$ 437,672 G&K Services, Inc. transaction and integration
expenses $ 63,746 $ - $ - $ - $ 63,746 Interest income $ - $ - $ -
$ (130 ) $ (130 ) Interest expense $ - $ - $ - $ 45,389 $ 45,389
Income (loss) before income taxes $ 143,480 $ 14,263 $ 19,565 $
(45,259 ) $ 132,049
For the three months ended May 31,
2016 Revenue $ 959,721 $ 122,793 $ 161,034 $ - $ 1,243,548
Gross margin $ 426,178 $ 52,631 $ 67,562 $ - $ 546,371 Selling and
administrative expenses $ 255,870 $ 39,197 $ 51,543 $ - $ 346,610
Interest income $ - $ - $ - $ (331 ) $ (331 ) Interest expense $ -
$ - $ - $ 15,776 $ 15,776 Income (loss) before income taxes $
170,308 $ 13,434 $ 16,019 $ (15,445 ) $ 184,316
For the
twelve months ended May 31, 2017 Revenue $ 4,202,490 $ 508,233
$ 612,658 $ - $ 5,323,381 Gross margin $ 1,894,716 $ 230,166 $
255,413 $ - $ 2,380,295 Selling and administrative expenses $
1,138,345 $ 177,378 $ 211,657 $ - $ 1,527,380 G&K Services,
Inc. transaction and integration expenses $ 79,224 $ - $ - $ - $
79,224 Interest income $ - $ - $ - $ (237 ) $ (237 ) Interest
expense $ - $ - $ - $ 86,524 $ 86,524 Income (loss) before income
taxes $ 677,147 $ 52,788 $ 43,756 $ (86,287 ) $ 687,404
For the twelve months ended May 31, 2016 Revenue $ 3,759,524
$ 461,783 $ 574,465 $ - $ 4,795,772 Gross margin $ 1,666,691 $
197,010 $ 237,639 $ - $ 2,101,340 Selling and administrative
expenses $ 994,590 $ 147,503 $ 190,306 $ - $ 1,332,399 Interest
income $ - $ - $ - $ (896 ) $ (896 ) Interest expense $ - $ - $ - $
64,522 $ 64,522 Income (loss) before income taxes $ 672,101 $
49,507 $ 47,333 $ (63,626 ) $ 705,315
Cintas Corporation Consolidated Condensed
Balance Sheets (In thousands except share data)
ASSETS
May 31, May 31, 2017 2016
Current assets: Cash and cash equivalents $ 169,266 $ 139,357
Marketable securities 22,219 70,405 Accounts receivable, net
736,008 546,488 Inventories, net 278,218 249,362 Uniforms and other
rental items in service 635,702 538,286 Income taxes, current
44,320 1,712 Prepaid expenses and other current assets 30,132
25,948 Assets held for sale 38,613 19,021
Total current assets 1,954,478 1,590,579 Property and
equipment, at cost, net 1,323,501 993,692 Investments
164,788 124,952 Goodwill 2,782,335 1,276,076 Service contracts, net
586,988 78,194 Other assets, net 31,967 14,283 Long-term assets
held for sale - 21,039 $
6,844,057 $ 4,098,815
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities: Accounts payable $ 177,051 $ 110,940
Accrued compensation and related liabilities 149,635 101,391
Accrued liabilities 429,809 343,266 Debt due within one year
362,900 250,000 Liabilities held for sale 11,457
9,958 Total current liabilities 1,130,852 815,555
Long-term liabilities: Debt due after one year 2,770,624
1,044,422 Deferred income taxes 469,328 259,475 Accrued liabilities
170,460 136,704 Total long-term
liabilities 3,410,412 1,440,601 Shareholders' equity:
Preferred stock, no par value: - - 100,000 shares authorized, none
outstanding Common stock, no par value: 485,068 409,682 425,000,000
shares authorized FY17: 180,992,605 issued and 105,400,629
outstanding FY16: 179,598,516 issued and 104,213,479 outstanding
Paid-in capital 223,924 205,260 Retained earnings 5,170,830
4,805,867 Treasury stock: (3,574,000 ) (3,553,276 ) FY17:
75,591,976 shares FY16: 75,385,037 shares Accumulated other
comprehensive loss (3,029 ) (24,874 ) Total
shareholders' equity 2,302,793 1,842,659
$ 6,844,057 $ 4,098,815
Cintas Corporation Consolidated
Condensed Statements of Cash Flows (In thousands)
Twelve Months Ended May 31, 2017 May 31,
2016
Cash flows from
operating activities:
Net income $ 480,708 $ 693,520 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
171,565 149,691 Amortization of intangible assets 25,030 15,588
Stock-based compensation 88,868 79,293 Gain on Storage (1,460 )
(15,786 ) Gain on Shred-it (25,457 ) (354,071 ) Asset impairment
charge 23,331 - G&K Services, Inc. transaction and integration
expenses 31,445 - Short-term debt financing fees included in net
income 17,062 - Settlement of interest rate hedge 30,194 - Deferred
income taxes 3,902 (59,302 ) Change in current assets and
liabilities, net of acquisitions of businesses: Accounts
receivable, net (93,557 ) (52,762 ) Inventories, net (668 ) (17,917
) Uniforms and other rental items in service (8,732 ) (6,306 )
Prepaid expenses and other current assets 24,201 (965 ) Accounts
payable 13,726 (564 ) Accrued compensation and related liabilities
13,654 13,512 Accrued liabilities and other (501 ) 22,714 Income
taxes, current (29,424 ) (800 ) Net cash
provided by operating activities 763,887 465,845
Cash flows from
investing activities:
Capital expenditures (273,317 ) (275,385 ) Proceeds from
redemption of marketable securities 218,324 434,179 Purchase of
marketable securities and investments (181,065 ) (494,146 )
Proceeds from Storage transactions 2,400 35,338 Proceeds from sale
of investment in Shred-it 25,876 580,837 Acquisitions of
businesses, net of cash acquired (2,102,371 ) (156,579 ) Other, net
(196 ) 4,137 Net cash (used in)
provided by investing activities (2,310,349 ) 128,381
Cash flows from
financing activities:
Proceeds from issuance of commercial paper, net 50,500 -
Proceeds from issuance of debt, net 1,932,229 - Repayment of debt
(250,000 ) (16 ) Payment of short-term debt financing fees (17,062
) - Proceeds from exercise of stock-based compensation awards
31,870 28,226 Dividends paid (142,433 ) (115,273 ) Repurchase of
common stock (20,724 ) (780,151 ) Other, net (5,878 )
490 Net cash provided by (used in) financing
activities 1,578,502 (866,724 ) Effect of exchange rate
changes on cash and cash equivalents (2,131 ) (5,218
) Net increase (decrease) in cash and cash equivalents
29,909 (277,716 ) Cash and cash equivalents at beginning of
year 139,357 417,073 Cash and
cash equivalents at end of year $ 169,266 $ 139,357
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170720006155/en/
Cintas CorporationJ. Michael Hansen, Sr. VP-Finance and Chief
Financial Officer, 513-701-2079Paul F. Adler, Vice President and
Treasurer, 513-573-4195
Cintas (NASDAQ:CTAS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Cintas (NASDAQ:CTAS)
Historical Stock Chart
From Sep 2023 to Sep 2024