Cintas Corporation Announces Annual Dividend and Stock Buyback Authorization
October 26 2010 - 4:10PM
Business Wire
Cintas Corporation (Nasdaq: CTAS) announced that the
Company’s Board of Directors approved a 49 cents per share annual
dividend at its meeting today. This dividend represents a 2%
increase over last year’s annual dividend of 48 cents per share.
This dividend is payable on December 15, 2010, to shareholders of
record as of November 12, 2010.
Robert J. Kohlhepp, Chairman of the Board of Cintas said,
“Historically, we have paid our annual dividend in March. However,
we decided moving the annual dividend closer to the end of our
fiscal year was more appropriate. Despite a very challenging
economic environment during our past two fiscal years, we continued
to generate a healthy cash flow and even strengthened our balance
sheet. As a result, we are pleased to be able to increase our
annual dividend for the 28th consecutive year dating back to 1983,
the year we went public.”
The Board of Directors also approved a share repurchase program
under which the Company may repurchase up to $500 million of Cintas
common stock at market prices. The number of shares to be
repurchased and the timing of the purchases will be determined at
the discretion of the Board.
Mr. Kohlhepp added, “As Scott Farmer, our Chief Executive
Officer, announced on September 21, 2010, we completed our existing
Board authorized share buyback program during our first quarter and
into September by acquiring 7.6 million shares of common stock at a
cost of approximately $202 million. Repurchased shares will be
reserved in treasury for general purposes, including reissue in
connection with stock option exercises and future
acquisitions.”
About Cintas
Headquartered in Cincinnati, Cintas Corporation provides highly
specialized services to businesses of all types predominantly in
the United States and Canada. 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 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, 2010,
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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