Cintas Provides Update on Impact Caused by Hurricane Katrina
September 08 2005 - 10:22AM
PR Newswire (US)
CINCINNATI, Sept. 8 /PRNewswire-FirstCall/ -- Cintas Corporation
(NASDAQ:CTAS) continues to reach out to all its employees impacted
by Hurricane Katrina. The Company has continued to pay its affected
employees and will attempt to provide employment at a facility in
any area where an employee has been relocated. The Company has also
established a special phone number for its affected employees to
call with any questions they may have. Scott D. Farmer, President
and Chief Executive Officer stated, "Our most immediate concern is
that our employees are safe, and we have requested that they
contact the Company to tell us where they are located. We intend to
do whatever we can to assist them in this terrible situation.
Additionally, the Company is evaluating alternatives how it can
best assist the region impacted by the storm." Due to the impact of
Hurricane Katrina and its aftermath, the Cintas operation in New
Orleans, Louisiana has been shut down, and there currently is no
estimate as to when operations can resume. The facility accounts
for approximately $400,000 per week in revenues. While the facility
appears to have sustained minimal property damage, it is difficult
to determine, at this time, the financial impact on the Company due
to the uncertain impact on Cintas' customers. Additionally, the
Company's operations in Mobile, Alabama; Jackson and Gulfport,
Mississippi; Thibodaux, Baton Rouge and Hammond, Louisiana have all
had disruptions in their utilities and were unable to operate most
of last week. Power has now been restored and the operations are
processing. However, business results may be impacted due to
difficulties encountered by our customers in resuming their
operations. The rapid increases in energy costs will also have a
negative impact on the Company's margins if the current or higher
price levels continue. While it is difficult, at this time, to
accurately determine the financial impact of the hurricane on
Cintas, the Company expects to provide more specific information
during its review of the first quarter operating results prior to
the end of September. About Cintas Headquartered in Cincinnati,
Cintas Corporation provides highly specialized services to
businesses of all types throughout North America. Cintas designs,
manufactures and implements corporate identity uniform programs,
and provides entrance mats, restroom supplies, promotional
products, first aid and safety products, fire protection services
and document management services for approximately 700,000
businesses. Cintas is a publicly held company traded over the
Nasdaq National Market under the symbol CTAS, and is a Nasdaq-100
company and component of the Standard & Poor's 500 Index. The
Company has achieved 36 consecutive years of growth in sales and
earnings, to date. 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, projects, plans, expects, intends,
believes, should and similar expressions and by the context in
which they are used. Such statements are based upon current
expectations of the Company and speak only as of the date made.
These statements are subject to various risks, uncertainties and
other factors that could cause actual results to differ from those
set forth in this news release. Factors that might cause such a
difference include the possibility of greater than anticipated
operating costs, lower sales volumes, the performance and costs of
integration of acquisitions, fluctuations in costs of materials and
labor, costs and possible effects of union organizing activities,
outcome of pending environmental matters, the cost, results and
timely completion of assessment and remediation of internal
controls for financial reporting required by the Sarbanes-Oxley Act
of 2002, the initiation or outcome of litigation, higher assumed
sourcing or distribution costs of products, the disruption of
operations from catastrophic events and the reactions of
competitors in terms of price and service. Forward-looking
statements speak only as of the date made. Cintas undertakes no
obligation to update any forward-looking statements to reflect the
events or circumstances arising after the date on which they are
made. DATASOURCE: Cintas Corporation CONTACT: William C. Gale,
Senior Vice President-Finance and Chief Financial Officer,
+1-513-573-4211, or Karen L. Carnahan, Vice President and
Treasurer, +1-513-573-4013, both of Cintas Corporation Web site:
http://www.cintas.com/
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