Cintas Corporation Announces 21.1% Increase in Quarterly Cash Dividend and New $1.0 Billion Stock Buyback Authorization
July 26 2022 - 4:15PM
Business Wire
Cintas Corporation (Nasdaq: CTAS) announced that the
Company’s Board of Directors approved a quarterly cash dividend of
$1.15 per share of common stock payable on September 15, 2022 to
shareholders of record at the close of business on August 15, 2022.
This represents a 21.1% increase. Cintas has a strong record of
returning capital to its shareholders and has consistently raised
its dividend each year since Cintas’ initial public offering 39
years ago in 1983.
Cintas also announced that the Board of Directors approved an
additional share buyback program under which the Company may buy up
to $1.0 billion of Cintas common stock at market prices. This
program is in addition to a current program with $0.5 billion of
Cintas common stock remaining. Thus, in total, the Company may buy
up to $1.5 billion of Cintas common stock at market prices. The
number of shares to be purchased and the timing will be determined
at the discretion of the Board of Directors, and purchases may be
discontinued at any time.
Scott D. Farmer, Executive Chairman of the Cintas Board of
Directors, stated, “We achieved record revenue and earnings per
share in our fiscal 2022. Because of our excellent financial
results and strong financial position, we are increasing our
quarterly dividend. The dividend, accompanied by our share buyback
program, continues to demonstrate our commitment to increasing
shareholder value.”
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 products and services that help
keep their customers’ facilities and employees clean, safe and
looking their best. With offerings including uniforms, mats, mops,
restroom supplies, first aid and safety products, fire
extinguishers and testing, and safety training, Cintas helps
customers get Ready for the Workday®. The Company is also
the creator of the Total Clean Program™ — a first-of-its-kind
service that includes scheduled delivery of essential cleaning
supplies, hygienically clean laundering, and sanitizing and
disinfecting products and services. Headquartered in Cincinnati,
Cintas is a publicly held Fortune 500 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
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, 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;
fluctuations in costs of materials and labor including increased
medical costs; interest rate volatility; 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; our ability to meet our
goals relating to ESG opportunities, improvements and efficiencies;
the cost, results and ongoing assessment of internal controls for
financial reporting; the effect of new accounting pronouncements;
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 including
global health pandemics such as the COVID-19 coronavirus; 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, 2021
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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version on businesswire.com: https://www.businesswire.com/news/home/20220726006056/en/
J. Michael Hansen, Executive Vice President and Chief Financial
Officer - 513-972-2079 Paul F. Adler, Vice President - Treasurer
& Investor Relations - 513-972-4195
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