Cintas Reports Strong Quarterly Sales

Top 40 distributor Cintas (asi/162167) has announced its total revenues for the quarter ended August 31 were $1.2 billion, a year-over-year increase of 8.8%. Excluding the impacts of acquisitions and currency fluctuations, sales at the Ohio-based firm increased 6.8% for the quarter. Operating income jumped 13.5% to $185.5 million and gross margin for the quarter was 43.7%.

“We are pleased to report a good start to our fiscal year 2016,” said Scott Farmer, CEO of Cintas. “We continue to focus on both adding new customers and providing existing customers with additional products and services.”

Within segments in Q1, Cintas’ uniform rental and facility services revenues rose 7.4%, reaching $938.4 million. The firm’s first aid and safety services segment produced a 24.5% sales increase, largely due to Cintas’ recent acquisition of Zee Medical. Cintas’ fire protection services and direct sale business revenues hit $161 million. As is customary in its earnings release, Cintas did not break out figures for promotional products sales and profits.  

Looking ahead, Cintas has released improved guidance for 2016, now forecasting its fiscal year revenue to be between $4 billion and $4.8 billion, which would represent an increase of more than 7%. Earnings per share, meanwhile, are now expected to be between $3.79 to $3.88. Counselor ranks Cintas as the 10th-largest distributor in the industry, estimating the firm generated 2014 North American ad specialty sales of $153.9 million, a year-over-year rise of 3%.