Cintas Corporation Provides Update on COVID-19 Impact on Its Business
February 15 2021 - 4:15PM
Business Wire
Cintas Corporation (Nasdaq: CTAS) today provided an
update on the COVID-19 pandemic's impact on its business.
Scott D. Farmer, Cintas Chairman and Chief Executive Officer
stated, “At the time of our fiscal second quarter earnings
conference call in late December, much uncertainty existed.
COVID-19 cases were surging. Economic indicators reflected an
economic recovery that slowed considerably. Many states and
provinces reinstituted temporary economic restrictions in response
to rising COVID-19 cases. Vaccines were just beginning to be
distributed. All of these items contributed to a lack of clarity
regarding their effects on our business in our fiscal third
quarter. As a result, we did not provide financial guidance.”
Mr. Farmer continued, “After peaking in early January, COVID-19
cases have steadily decreased, and the impacts on our business in
our fiscal third quarter, while still significant, are clearer.
Therefore, we want to provide a financial update ahead of our third
quarter earnings announcement. We expect our third quarter revenue
to be in the range of $1.75 billion to $1.76 billion and diluted
earnings per share to be in the range of $2.15 to $2.25. Please
note that this year's third quarter contains one less workday than
last year's third quarter, we expect our third quarter effective
tax rate to be in the range of 13% to 15%, and the financial
guidance excludes any impact from potentially significant winter
storms.”
Mr. Farmer concluded, “Cintas continues to provide necessary
products and services to our customers to ensure they are
READY™ to open their doors with confidence every day. We are
proudly providing our customers with clean garments, healthcare
scrubs, microfiber towels and mops, disinfectant and sanitizer
spray services, restroom supplies, hand sanitizer dispenser
services, personal protective equipment including face masks and
gloves, and numerous other products and services to help businesses
keep their facilities, employees and customers clean and safe.”
Cintas’ consolidated balance sheet remains solid, and it
currently has significant availability under its credit facility.
Cintas is a strong cash flow business and has a track-record of
efficient capital allocation. Quarter to date, Cintas has purchased
$82.0 million of Cintas stock under its buyback program. On January
19, 2021, the Company’s Board of Directors approved a $0.75 per
share quarterly dividend payable on March 15, 2021 to shareholders
of record as of February 15, 2021.
Following this press release, Cintas intends to return to its
normal quarterly financial reporting cadence. The Company will
announce in March its full fiscal third quarter results for the
period ended February 28, 2021 and conduct a conference call to
address these results.
About 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 a wide range of products and
services that enhance our customers’ image and help keep their
facilities and employees clean, safe and looking their best. With
products and services including uniforms, floor care, restroom
supplies, first aid and safety products, fire extinguishers and
testing, and safety and compliance training, Cintas helps customers
get Ready for the Workday®. 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 the
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 finalization of our
financial results as of and for the quarter ended February 28,
2021, which could differ from the estimates provided herein; 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; 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; the cost, results and
ongoing assessment of internal controls for financial reporting
required by the Sarbanes-Oxley Act of 2002; 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 viral 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, 2020 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/20210215005410/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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