Cintas Releases Quarterly Financials
Known Mostly For Its Uniform Sales And Rental Business
Top 40 distributor Cintas (asi/162167) announced yesterday that it attained revenue of $1.1 billion in its most recent quarter. The company said that organic growth in its fiscal third quarter of 2015 increased by 7.5%. Although Cintas doesn’t specifically break out the revenue of its promotional products division, the company did say that it increased its operating income in the quarter ended February 28 by 16.1% to reach a total of $173.6 million.
“Our third quarter results reflect a continuation of the fiscal 2015 game plan,” said Scott D. Farmer, Cintas’ CEO. “Our employees continue to execute at high levels. In addition to the solid results for the quarter, we are pleased to report that we purchased 3.2 million shares of our common stock during the third quarter, demonstrating our commitment to provide shareholder value.”
In the third quarter, Cintas, which is known mostly for its uniform sales and rental business, saw growth in each of its operating units. The first aid, safety, and fire protection division saw the fastest growth at 8.2%, but Cintas’ rental uniform business also saw a solid 7.2% gain. Direct sales of uniforms climbed the least, but still grew by 4.2%, reversing a year-over-year drop last quarter. The company said that its success in these units reflects the improving business climate for employment.
Looking forward to the remainder of 2015, Cintas said that continued job creation should lift its prospects. The company raised its earnings guidance for the full 2015 fiscal year, saying it now expects to earn $3.55 to $3.58 per share, raising its previous range by about a nickel and representing 16% to 17% growth in earnings per share for the company in fiscal 2015. Sales guidance of $4.46 billion to $4.49 billion was within the range that it has been forecasting this year.
On its Top 40 list, Counselor ranks Cintas as the ninth-largest distributor in the industry, with an estimated $150 million in annual sales of promotional products in North America.