Top 40 distributor Cintas (asi/162167) reported quarterly revenues of $1.22 billion for a year-over-year increase of 8.5%. In the company’s fiscal year second quarter (which ended November 30), Cintas recorded 6.5% organic growth, tabulated after adjusting for acquisitions and foreign currency exchange rates. Its operating income increased 10.3% for a total of $200.3 million.
“Our solid start to fiscal year 2016 was followed by a second quarter of excellent financial results,” said CEO Scott D. Farmer. “We are pleased to again report strong increases in organic revenue, operating income, and [earnings per share]. I thank our employees, whom we call partners, for continuously striving to exceed expectations.”
On December 4, Cintas paid an annual dividend of $1.05 per share, an increase over last year’s dividend of $.85. It was the 32nd consecutive year the annual dividend has increased. Since the beginning of the fiscal year 2016, the company has repurchased about 4.5 million shares under a buyback program. So far, Cintas has spent $382.9 million in share purchases, and the company says it still has $380 million available to repurchase stock.
“The dividend and share buyback program further demonstrate our commitment to increasing shareholder value,” Farmer said.
The company’s Uniform Rental and Facility Services segment, which accounts for three-quarters of Cintas’ revenue, increased 5.2% for a total of $937.7 million. The company’s All Other segment, which includes promotional product sales, recorded $161 million, an increase of 7.5%. The company updated its revenue guidance for the fiscal year and expects to generate between $4.825 billion and $4.88 billion, an increase of 7.8%-9.0%.
Cintas ranks number 10 on Counselor’s Top 40, after Counselor estimated that the company recorded $153.9 million in North American promotional product sales in 2014.