DOW JONES NEWSWIRES
Cintas Corp.'s (CTAS) fiscal second-quarter earnings fell 2.3%,
though they met analysts' estimates, as the uniform and
business-supply company's revenue rose but costs also
increased.
"Revenue in all four of our business segments grew over last
year," said Chief Executive Scott D. Farmer. "Our sales force's
momentum continued to improve both in new business efforts and
existing customer penetration. In addition, our customer retention
improved during the quarter."
The company has seen rising sales lately after it was hurt for
an extended period during the recession when high unemployment and
spending cutbacks curbed demand for corporate uniforms and business
supplies.
For the quarter ended Nov. 30, Cintas reported a profit of $55.9
million, down from $57.2 million a year earlier. Per-share earnings
rose to 38 cents from 37 cents are there were 4.8% fewer shares
outstanding in the most recent quarter. The year-earlier quarter's
bottom line was dinged by 2 cents for a legal settlement.
Revenue rose 5.9% to $936.6 million.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 38 cents on $916 million in revenue.
The company's cost of uniforms and ancillary products rose 3.8%,
while other-services costs jumped 12% and overhead costs climbed
11%.
Rental revenue, which makes up most of the company's top line,
rose 2.2%, while services revenue climbed 5.9%.
Shares of Cintas, which also affirmed its full-year forecasts,
rose 0.1% to $29.24 after hours. As of the close, the stock had
risen 12% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com