Cintas Corporation Provides Second Half Guidance
February 16 2010 - 8:00AM
Business Wire
Cintas Corporation (Nasdaq: CTAS) today announced its estimate
of revenues and earnings for its third and fourth quarters of
fiscal 2010.
Scott D. Farmer, Chief Executive Officer, commented, “We stated
on December 22, 2009, that we had seen some stabilization in our
business this fiscal year, and that we continued to expect a very
slow recovery in the job market. Additionally, we indicated our
third quarter is traditionally our most challenging due to a
reduced number of workdays and extended customer holiday closures.
As a result, we stated at that time the current analyst
expectations for Cintas revenue and earnings were too optimistic.
We did not provide specific guidance due to continued uncertainties
regarding job recovery and the approaching holiday period. However,
we now believe we can provide revenue and earnings estimates due to
continued stability in our business and increased revenue
clarity.”
The Company expects third quarter revenues to be between $850
and $860 million and earnings per diluted share to be between $0.29
and $0.31. While the recent adverse weather conditions in the
northeast, particularly in the large markets of Baltimore,
Washington and Philadelphia, may affect our third quarter results,
we cannot yet quantify the significance of its impact.
Mr. Farmer further stated, “Growth in our businesses is greatly
influenced by job recovery which tends to lag the general economic
recovery. As we look to the fourth quarter of our fiscal year, we
continue to expect a very slow improvement in the job market. As a
result, we estimate that revenue levels will be between $870 and
$890 million, which is comparable to the third quarter estimate
adjusted for the additional two work days in the fourth quarter
compared to the third quarter. Absent any significant increases in
costs, we expect earnings per diluted share for the fourth quarter
to be between $0.30 and $0.34."
Mr. Farmer continued, “Despite the current pressure, we remain
enthusiastic about our future opportunities. We have a great team
of employee partners. Cintas is a market leader in each of our
businesses, and we believe we have the most modern facilities and
infrastructure. Our balance sheet remains strong and our excellent
cash flow allowed us to recently announce an increase in our annual
dividend, continuing our history of raising our dividend each year
since we went public in 1983.”
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, safety, fire protection
products and services and document management services for
approximately 800,000 businesses. Cintas is a publicly held company
traded over the Nasdaq Global Select Market under the symbol CTAS,
and is a Nasdaq-100 company and component of the Standard &
Poor’s 500 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, the possibility of
greater than anticipated operating costs including energy 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, 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 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, 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, 2009
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.
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