Cintas Reports 4.1% Sales Increase
Distributor Fueled By Uniform Rentals
Counselor Top 40 distributor Cintas (asi/162167) has announced its revenues rose $1.05 billion in its fiscal quarter ended May 31, a 4.1% year-over-year increase. Earnings at the Cincinnati-based company improved by 11%, reaching $78.6 million after gaining $70.8 million during the same period in 2011. "In an increasingly challenging economy, we are pleased to report record quarterly revenue and solid operating results," said Scott Farmer, CEO of Cintas. "We continue to be pleased with the performance of all of our businesses and the execution of our game plan."
For its fiscal year 2012, Cintas reported its revenues grew 7.7% to $4.1 billion, largely on the strength of uniform rentals. Net income, meanwhile, rose by 20.5% to $297.6 million. "We also significantly improved our operating margins for the fiscal year to 13.2% as compared to 11.6% last fiscal year," Farmer said. "Cash flows from operations increased by 37.8% to $469.9 million compared to last year's $340.9 million."
Despite its quarterly and yearly gains, Cintas offered a cautious 2013 forecast, specifically listing slowed job growth in the U.S. and potential tax law changes as challenges. The company expects its 2013 revenues to be in the range of $4.25 billion to $4.35 billion, with full year earnings per diluted share between $2.47 and $2.55. "We enter fiscal 2013 in a U.S. economy without momentum," Farmer said. "Many forecasts indicate U.S. GDP growth during our fiscal year 2013 to be less than 2%."
Cintas, which generated estimated 2011 North American ad specialty sales of $160 million, signed an alliance partnership deal with OH-based Touchstone (asi/345631) earlier this year. Through that agreement, Touchstone has begun to service Cintas' enterprise promotional clients.