Cintas Grows Quarterly Revenue
Sales Topped $1 Billion
Counselor Top 40 distributor Cintas (asi/162167) announced this week that it increased its fiscal third-quarter revenue by 6.3%. The uniform and ancillary office products (including promotional items) provider reported that its revenue for the quarter ended February 28 was $1.08 billion. Organic growth, which adjusts for the impact of acquisitions and the impact of one fewer workday compared to last year's third quarter, was 6.9%. Organic growth rates in each of the company's four operating segments increased from second-quarter levels.
As an overall indicator of employment in the U.S., Cintas CEO Scott Farmer pointed to his company's uniform segment as performing particularly well in the beginning of 2013. "We are pleased to report record quarterly revenue led by very strong uniform direct sales performance," Farmer said, in a statement. "We are also encouraged to see organic growth rates improve in each of our operating segments, reflecting the great execution by our dedicated team of employees."
While the company's revenue increased in the period, its net income fell in the period by 1.7% to $74.7 million. Cintas said the falloff was due to higher material and logistics costs. Overall, though, the company increased its sales guidance for its full fiscal 2013, saying it now expected to record revenues of between $4.3 billion and $4.325 billion. In the ad specialty market, Cintas ranks as the eighth-largest distributor. The company struck a deal with distributor firm Touchstone (asi/345631) last May that calls for Touchstone to manage much of Cintas' promotional marketing clients and sales.