Cintas Corporation (Nasdaq:CTAS) today reported results for its
fourth quarter ended May 31, 2013. Revenue for the fourth quarter was
$1.13 billion, representing a 7.2% increase compared to last year’s
fourth quarter. Organic growth, which adjusts for the impact of
acquisitions, compared to last year’s fourth quarter, was 6.2%. Net
income increased 9.4% to $86.0 million as compared to $78.6 million in
last year’s fourth quarter. Earnings per diluted share (EPS) for the
fourth quarter were $0.69, a 15.0% increase over the $0.60 EPS in last
year’s fourth quarter.
Scott D. Farmer, Chief Executive Officer, stated, “We are pleased to
report another quarter of record revenue. In addition, our fourth
quarter operating margin of 13.6% of revenue reflects the execution of
our plan to sell profitable business, manage our cost structure and
continuously improve the efficiency of our processes. These solid
results conclude a successful year for Cintas achieved in large part by
the hard work and dedication of our employees, who we call partners.”
For the fiscal year ended May 31, 2013, revenue was a record $4.32
billion, a 5.2% increase from the prior fiscal year. Adjusting for one
less workday in this fiscal year compared to last fiscal year, revenue
grew 5.6% over last fiscal year. Organic growth, which adjusts for the
impact of acquisitions and the impact of one less workday compared to
last fiscal year, was 4.9%. Net income increased 6.0% to $315.4 million
compared to last fiscal year. EPS increased 11.0% to $2.52 as compared
to last fiscal year.
Mr. Farmer added, “I am proud to report that we achieved record fiscal
year sales and EPS in fiscal year 2013. It was the third consecutive
fiscal year of double digit EPS growth. In addition, our balance sheet
and cash flow remain very strong. As of May 31, 2013, cash and
marketable securities totaled $358.0 million, and debt to EBITDA was 1.9
to one. Cash flow from operations for the fiscal year increased 17.6% to
$552.7 million compared to last fiscal year.”
Mr. Farmer concluded, “While the U.S. economy has shown some signs of
improvement in the past several months, much uncertainty remains. This
uncertainty, due to a number of factors including the effect of the
Affordable Care Act, continues to cause many of our customers to delay
hiring and investment decisions. We have developed our fiscal 2014
expectations with this uncertain economic landscape in mind. We expect
fiscal 2014 revenue to be in the range of $4.5 billion to $4.6 billion,
and full year EPS to be in the range of $2.66 to $2.75. This guidance
assumes no deterioration in the U.S. economy and does not consider any
additional share buybacks. It does incorporate the impact of having one
less workday in fiscal 2014 compared to fiscal 2013 and our current
estimate of the impact of the Affordable Care Act on our cost structure
during fiscal year 2014.”
About Cintas
Headquartered in Cincinnati, Cintas Corporation provides highly
specialized services to businesses of all types primarily throughout
North America. Cintas designs, manufactures and implements corporate
identity uniform programs, and provides entrance mats, restroom
supplies, promotional products, first aid, safety, fire protection
products and services and document management services for over one
million businesses. Cintas is a publicly held company traded over the
Nasdaq Global Select Market under the symbol CTAS and is a component of
the Standard & Poor’s 500 Index.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a safe
harbor from civil litigation for forward-looking statements. Forward-looking
statements may be identified by words such as “estimates,”
“anticipates,” “predicts,” “projects,” “plans,” “expects,” “intends,”
“target,” “forecast,” “believes,” “seeks,” “could,” “should,” “may” and
“will” or the negative versions thereof and similar words, terms and
expressions and by the context in which they are used. Such
statements are based upon current expectations of Cintas and speak only
as of the date made. You should not place undue reliance on any
forward-looking statement. We cannot guarantee that any
forward-looking statement will be realized. These statements are
subject to various risks, uncertainties, potentially inaccurate
assumptions and other factors that could cause actual results to differ
from those set forth in or implied by this Press Release. Factors
that might cause such a difference include, but are not limited to, the
possibility of greater than anticipated operating costs including energy
and fuel costs, lower sales volumes, loss of customers due to
outsourcing trends, the performance and costs of integration of
acquisitions, fluctuations in costs of materials and labor including
increased medical costs, costs and possible effects of union organizing
activities, failure to comply with government regulations concerning
employment discrimination, employee pay and benefits and employee health
and safety, uncertainties regarding any existing or newly-discovered
expenses and liabilities related to environmental compliance and
remediation, the cost, results and ongoing assessment of internal
controls for financial reporting required by the Sarbanes-Oxley Act of
2002, disruptions caused by the inaccessibility of computer systems
data, the initiation or outcome of litigation, investigations or other
proceedings, higher assumed sourcing or distribution costs of products,
the disruption of operations from catastrophic or extraordinary events,
the amount and timing of repurchases of our common stock, if any,
changes in federal and state tax and labor laws, the reactions of
competitors in terms of price and service, the ultimate impact of the
Affordable Care Act and the finalization of our financial statements for
the year ended May 31, 2013. Cintas undertakes no obligation to
publicly release any revisions to any forward-looking statements or to
otherwise update any forward-looking statements whether as a result of
new information or to reflect events, circumstances or any other
unanticipated developments arising after the date on which such
statements are made. A further list and description of risks,
uncertainties and other matters can be found in our Annual Report on
Form 10-K for the year ended May 31, 2012 and in our reports on Forms
10-Q and 8-K. The risks and uncertainties described herein are
not the only ones we may face. Additional risks and uncertainties
presently not known to us or that we currently believe to be immaterial
may also harm our business.
Cintas Corporation
|
Consolidated Condensed Statements of Income
|
(In thousands except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
(Unaudited)
|
|
|
May 31, 2013
|
May 31, 2012
|
% Chng.
|
|
|
|
|
|
Revenue:
|
|
|
|
|
Rental uniforms and ancillary products
|
|
$
|
785,018
|
|
$
|
749,037
|
|
4.8
|
Other services
|
|
|
344,068
|
|
|
304,545
|
|
13.0
|
Total revenue
|
|
$
|
1,129,086
|
|
$
|
1,053,582
|
|
7.2
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
Cost of rental uniforms and ancillary products
|
|
$
|
454,438
|
|
$
|
424,940
|
|
6.9
|
Cost of other services
|
|
|
207,433
|
|
|
184,774
|
|
12.3
|
Selling and administrative expenses
|
|
|
313,344
|
|
|
303,036
|
|
3.4
|
|
|
|
|
|
Operating income
|
|
$
|
153,871
|
|
$
|
140,832
|
|
9.3
|
|
|
|
|
|
Interest income
|
|
$
|
(51
|
)
|
$
|
(801
|
)
|
-93.6
|
Interest expense
|
|
|
16,518
|
|
|
18,344
|
|
-10.0
|
|
|
|
|
|
Income before income taxes
|
|
$
|
137,404
|
|
$
|
123,289
|
|
11.4
|
Income taxes
|
|
|
51,427
|
|
|
44,675
|
|
15.1
|
Net income
|
|
$
|
85,977
|
|
$
|
78,614
|
|
9.4
|
|
|
|
|
|
Per share data:
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.69
|
|
$
|
0.60
|
|
15.0
|
Diluted earnings per share
|
|
$
|
0.69
|
|
$
|
0.60
|
|
15.0
|
|
|
|
|
|
Weighted average number of shares outstanding
|
|
|
122,392
|
|
|
128,788
|
|
|
Diluted average number of shares outstanding
|
|
|
123,103
|
|
|
129,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
May 31, 2013
|
May 31, 2012
|
% Chng.
|
|
|
|
|
|
Revenue:
|
|
|
|
|
Rental uniforms and ancillary products
|
|
$
|
3,044,587
|
|
$
|
2,912,261
|
|
4.5
|
Other services
|
|
|
1,271,884
|
|
|
1,189,739
|
|
6.9
|
Total revenue
|
|
$
|
4,316,471
|
|
$
|
4,102,000
|
|
5.2
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
Cost of rental uniforms and ancillary products
|
|
$
|
1,756,297
|
|
$
|
1,648,551
|
|
6.5
|
Cost of other services
|
|
|
773,107
|
|
|
714,841
|
|
8.2
|
Selling and administrative expenses
|
|
|
1,221,856
|
|
|
1,198,981
|
|
1.9
|
|
|
|
|
|
Operating income
|
|
$
|
565,211
|
|
$
|
539,627
|
|
4.7
|
|
|
|
|
|
Interest income
|
|
$
|
(409
|
)
|
$
|
(1,942
|
)
|
-78.9
|
Interest expense
|
|
|
65,712
|
|
|
70,625
|
|
-7.0
|
|
|
|
|
|
Income before income taxes
|
|
$
|
499,908
|
|
$
|
470,944
|
|
6.2
|
Income taxes
|
|
|
184,466
|
|
|
173,307
|
|
6.4
|
Net income
|
|
$
|
315,442
|
|
$
|
297,637
|
|
6.0
|
|
|
|
|
|
Per share data:
|
|
|
|
|
Basic earnings per share
|
|
$
|
2.53
|
|
$
|
2.27
|
|
11.5
|
Diluted earnings per share
|
|
$
|
2.52
|
|
$
|
2.27
|
|
11.0
|
|
|
|
|
|
Weighted average number of shares outstanding
|
|
|
123,956
|
|
|
129,891
|
|
|
Diluted average number of shares outstanding
|
|
|
124,531
|
|
|
130,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CINTAS CORPORATION SUPPLEMENTAL DATA
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
May 31, 2013
|
May 31, 2012
|
|
Rental uniforms and ancillary products gross margin
|
|
|
42.1
|
%
|
|
43.3
|
%
|
|
Other services gross margin
|
|
|
39.7
|
%
|
|
39.3
|
%
|
|
Total gross margin
|
|
|
41.4
|
%
|
|
42.1
|
%
|
|
Net margin
|
|
|
7.6
|
%
|
|
7.5
|
%
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
48,251
|
|
$
|
49,080
|
|
|
Capital expenditures
|
|
$
|
44,687
|
|
$
|
43,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
May 31, 2013
|
May 31, 2012
|
|
Rental uniforms and ancillary products gross margin
|
|
|
42.3
|
%
|
|
43.4
|
%
|
|
Other services gross margin
|
|
|
39.2
|
%
|
|
39.9
|
%
|
|
Total gross margin
|
|
|
41.4
|
%
|
|
42.4
|
%
|
|
Net margin
|
|
|
7.3
|
%
|
|
7.3
|
%
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
189,377
|
|
$
|
194,165
|
|
|
Capital expenditures
|
|
$
|
196,486
|
|
$
|
160,802
|
|
|
|
|
|
|
|
Debt / EBITDA
|
|
|
1.9
|
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures and Regulation G
Disclosure
|
|
|
The press release contains non-GAAP financial measures within the
meaning of Regulation G promulgated by the Securities and Exchange
Commission. To supplement its consolidated financial statements
presented in accordance with U.S. generally accepted accounting
principles (GAAP), the Company provides additional measures of
revenue growth, debt and cash flow. The Company believes that these
non-GAAP financial measures are appropriate to enhance understanding
of its past performance as well as prospects for future performance.
A reconciliation of the differences between these non-GAAP financial
measures with the most directly comparable financial measures
calculated in accordance with GAAP is shown below.
|
|
Computation of Workday Adjusted Revenue Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
May 31, 2013
|
|
May 31, 2012
|
|
Growth %
|
|
|
|
|
|
|
|
|
|
A
|
|
B
|
|
G
|
Revenue
|
|
$
|
4,316,471
|
|
$
|
4,102,000
|
|
5.2%
|
|
|
|
|
|
|
G=(A-B)/B
|
|
|
C
|
|
D
|
|
|
Workdays in the period
|
|
|
261
|
|
|
262
|
|
|
|
|
|
|
|
|
|
|
|
E
|
|
F
|
|
H
|
Revenue adjusted for workday difference
|
|
$
|
4,333,009
|
|
$
|
4,102,000
|
|
5.6%
|
|
|
|
|
|
|
H=(E-F)/F
|
|
|
E=(A/C)*D
|
|
F=(B/D)*D
|
|
|
|
|
|
|
|
|
|
Management believes that Workday Adjusted Revenue Growth is valuable
to investors because it reflects the revenue performance compared to
a prior period with the same number of revenue generating days.
|
|
Computation of Debt to EBITDA
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
May 31, 2013
|
|
May 31, 2012
|
|
|
|
|
|
Long-term debt
|
|
$
|
1,309,166
|
|
$
|
1,284,802
|
Letters of credit
|
|
|
85,775
|
|
|
85,716
|
Debt
|
|
$
|
1,394,941
|
|
$
|
1,370,518
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
May 31, 2013
|
|
May 31, 2012
|
Net Income
|
|
$
|
315,442
|
|
$
|
297,637
|
|
|
|
|
|
Add back:
|
|
|
|
|
Interest expense
|
|
|
65,712
|
|
|
70,625
|
Taxes
|
|
|
184,466
|
|
|
173,307
|
Depreciation
|
|
|
165,664
|
|
|
155,830
|
Amortization
|
|
|
23,713
|
|
|
38,335
|
EBITDA
|
|
$
|
754,997
|
|
$
|
735,734
|
|
|
|
|
|
Debt / EBITDA
|
|
|
1.9
|
|
|
1.9
|
Management believes the ratio of debt to earnings before interest,
taxes, depreciation and amortization (EBITDA) is valuable to
investors, particularly investors of the company's debt, because it
is a common metric that reflects the company's earnings and cash
flow available for debt service payments.
|
|
Computation of Free Cash Flow
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
May 31, 2013
|
|
May 31, 2012
|
|
|
|
|
|
Net Cash Provided by Operations
|
|
$
|
552,748
|
|
|
$
|
469,862
|
|
|
|
|
|
|
Capital Expenditures
|
|
$
|
(196,486
|
)
|
|
$
|
(160,802
|
)
|
|
|
|
|
|
Free Cash Flow
|
|
$
|
356,262
|
|
|
$
|
309,060
|
|
Management uses free cash flow to assess the financial performance
of the Company. Management believes that free cash flow is useful to
investors because it relates the operating cash flow of the Company
to the capital that is spent to continue, improve and grow business
operations.
|
|
SUPPLEMENTAL SEGMENT DATA
|
|
Rental Uniforms and Ancillary Products
|
|
Uniform Direct Sales
|
|
First Aid, Safety and Fire Protection
|
|
Document Management
|
|
Corporate
|
|
Total
|
For the three months ended May 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
785,018
|
|
$
|
124,717
|
|
$
|
125,360
|
|
$
|
93,991
|
|
$
|
-
|
|
|
$
|
1,129,086
|
|
Gross margin
|
|
$
|
330,580
|
|
$
|
38,472
|
|
$
|
54,593
|
|
$
|
43,570
|
|
$
|
-
|
|
|
$
|
467,215
|
|
Selling and administrative expenses
|
|
$
|
213,044
|
|
$
|
20,421
|
|
$
|
40,716
|
|
$
|
39,163
|
|
$
|
-
|
|
|
$
|
313,344
|
|
Interest income
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(51
|
)
|
|
$
|
(51
|
)
|
Interest expense
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
16,518
|
|
|
$
|
16,518
|
|
Income (loss) before income taxes
|
|
$
|
117,536
|
|
$
|
18,051
|
|
$
|
13,877
|
|
$
|
4,407
|
|
$
|
(16,467
|
)
|
|
$
|
137,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended May 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
749,037
|
|
$
|
111,232
|
|
$
|
108,895
|
|
$
|
84,418
|
|
$
|
-
|
|
|
$
|
1,053,582
|
|
Gross margin
|
|
$
|
324,097
|
|
$
|
34,153
|
|
$
|
46,119
|
|
$
|
39,499
|
|
$
|
-
|
|
|
$
|
443,868
|
|
Selling and administrative expenses
|
|
$
|
210,963
|
|
$
|
21,246
|
|
$
|
36,061
|
|
$
|
34,766
|
|
$
|
-
|
|
|
$
|
303,036
|
|
Interest income
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(801
|
)
|
|
$
|
(801
|
)
|
Interest expense
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
18,344
|
|
|
$
|
18,344
|
|
Income (loss) before income taxes
|
|
$
|
113,134
|
|
$
|
12,907
|
|
$
|
10,058
|
|
$
|
4,733
|
|
$
|
(17,543
|
)
|
|
$
|
123,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve months ended May 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
3,044,587
|
|
$
|
461,328
|
|
$
|
460,592
|
|
$
|
349,964
|
|
$
|
-
|
|
|
$
|
4,316,471
|
|
Gross margin
|
|
$
|
1,288,290
|
|
$
|
134,985
|
|
$
|
199,314
|
|
$
|
164,478
|
|
$
|
-
|
|
|
$
|
1,787,067
|
|
Selling and administrative expenses
|
|
$
|
835,249
|
|
$
|
81,739
|
|
$
|
156,232
|
|
$
|
148,636
|
|
$
|
-
|
|
|
$
|
1,221,856
|
|
Interest income
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(409
|
)
|
|
$
|
(409
|
)
|
Interest expense
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
65,712
|
|
|
$
|
65,712
|
|
Income (loss) before income taxes
|
|
$
|
453,041
|
|
$
|
53,246
|
|
$
|
43,082
|
|
$
|
15,842
|
|
$
|
(65,303
|
)
|
|
$
|
499,908
|
|
Assets
|
|
$
|
2,830,941
|
|
$
|
152,551
|
|
$
|
398,614
|
|
$
|
605,573
|
|
$
|
357,953
|
|
|
$
|
4,345,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve months ended May 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
2,912,261
|
|
$
|
433,994
|
|
$
|
415,703
|
|
$
|
340,042
|
|
$
|
-
|
|
|
$
|
4,102,000
|
|
Gross margin
|
|
$
|
1,263,710
|
|
$
|
129,614
|
|
$
|
178,465
|
|
$
|
166,819
|
|
$
|
-
|
|
|
$
|
1,738,608
|
|
Selling and administrative expenses
|
|
$
|
834,210
|
|
$
|
80,577
|
|
$
|
143,338
|
|
$
|
140,856
|
|
$
|
-
|
|
|
$
|
1,198,981
|
|
Interest income
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(1,942
|
)
|
|
$
|
(1,942
|
)
|
Interest expense
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
70,625
|
|
|
$
|
70,625
|
|
Income (loss) before income taxes
|
|
$
|
429,500
|
|
$
|
49,037
|
|
$
|
35,127
|
|
$
|
25,963
|
|
$
|
(68,683
|
)
|
|
$
|
470,944
|
|
Assets
|
|
$
|
2,770,491
|
|
$
|
136,478
|
|
$
|
362,128
|
|
$
|
556,784
|
|
$
|
339,825
|
|
|
$
|
4,165,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cintas Corporation
|
Consolidated Balance Sheets
|
(In thousands except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
May 31, 2013
|
|
May 31, 2012
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash & cash equivalents
|
|
|
|
$
|
352,273
|
|
|
$
|
339,825
|
|
|
Marketable securities
|
|
|
|
|
5,680
|
|
|
|
-
|
|
|
Accounts receivable, net
|
|
|
|
|
496,049
|
|
|
|
450,861
|
|
|
Inventories, net
|
|
|
|
|
240,440
|
|
|
|
251,205
|
|
|
Uniforms and other rental items in service
|
|
|
|
|
496,752
|
|
|
|
452,785
|
|
|
Income taxes, current
|
|
|
|
|
9,102
|
|
|
|
22,188
|
|
|
Prepaid expenses and other
|
|
|
|
|
24,530
|
|
|
|
21,222
|
|
|
|
Total current assets
|
|
|
|
|
1,624,826
|
|
|
|
1,538,086
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, at cost, net
|
|
|
|
|
986,703
|
|
|
|
952,587
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
1,517,560
|
|
|
|
1,485,375
|
|
Service contracts, net
|
|
|
|
|
92,153
|
|
|
|
76,822
|
|
Other assets, net
|
|
|
|
|
124,390
|
|
|
|
112,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,345,632
|
|
|
$
|
4,165,706
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
121,029
|
|
|
$
|
94,840
|
|
|
Accrued compensation and related liabilities
|
|
|
|
|
78,050
|
|
|
|
91,214
|
|
|
Accrued liabilities
|
|
|
|
|
271,821
|
|
|
|
261,442
|
|
|
Deferred tax liability
|
|
|
|
|
77,169
|
|
|
|
2,559
|
|
|
Long-term debt due within one year
|
|
|
|
|
8,187
|
|
|
|
225,636
|
|
|
|
Total current liabilities
|
|
|
|
|
556,256
|
|
|
|
675,691
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
Long-term debt due after one year
|
|
|
|
|
1,300,979
|
|
|
|
1,059,166
|
|
|
Deferred income taxes
|
|
|
|
|
210,483
|
|
|
|
204,581
|
|
|
Accrued liabilities
|
|
|
|
|
76,422
|
|
|
|
87,133
|
|
|
|
Total long-term liabilities
|
|
|
|
|
1,587,884
|
|
|
|
1,350,880
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
Preferred stock, no par value:
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
100,000 shares authorized, none outstanding
|
|
|
|
|
|
|
|
Common stock, no par value:
|
|
|
|
|
186,332
|
|
|
|
148,255
|
|
|
|
425,000,000 shares authorized
|
|
|
|
|
|
|
|
|
FY13: 174,786,010 issued and 122,281,507 outstanding
|
|
|
|
|
|
|
|
FY12: 173,745,913 issued and 126,519,758 outstanding
|
|
|
|
|
|
|
Paid-in capital
|
|
|
|
|
109,822
|
|
|
|
107,019
|
|
|
Retained earnings
|
|
|
|
|
3,717,771
|
|
|
|
3,482,073
|
|
|
Treasury stock:
|
|
|
|
|
(1,850,556
|
)
|
|
|
(1,634,875
|
)
|
|
|
FY13: 52,504,503 shares
|
|
|
|
|
|
|
|
|
FY12: 47,226,155 shares
|
|
|
|
|
|
|
|
Other accumulated comprehensive income (loss):
|
|
|
|
|
|
|
|
|
Foreign currency translation
|
|
|
|
|
51,312
|
|
|
|
52,399
|
|
|
|
Unrealized loss on derivatives
|
|
|
|
|
(14,339
|
)
|
|
|
(16,104
|
)
|
|
|
Other
|
|
|
|
|
1,150
|
|
|
|
368
|
|
|
|
Total shareholders' equity
|
|
|
|
|
2,201,492
|
|
|
|
2,139,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,345,632
|
|
|
$
|
4,165,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cintas Corporation
|
Consolidated Condensed Statements of Cash Flows
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
Cash flows from operating activities:
|
|
|
May 31, 2013
|
|
May 31, 2012
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
315,442
|
|
|
$
|
297,637
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
|
165,664
|
|
|
|
155,831
|
|
|
Amortization of intangible assets
|
|
|
|
23,713
|
|
|
|
38,334
|
|
|
Stock-based compensation
|
|
|
|
23,310
|
|
|
|
20,312
|
|
|
Deferred income taxes
|
|
|
|
48,023
|
|
|
|
56,727
|
|
|
Change in current assets and liabilities, net of acquisitions of
businesses:
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
(42,704
|
)
|
|
|
(24,261
|
)
|
|
|
Inventories, net
|
|
|
|
10,997
|
|
|
|
(2,330
|
)
|
|
|
Uniforms and other rental items in service
|
|
|
(44,179
|
)
|
|
|
(60,279
|
)
|
|
|
Prepaid expenses and other
|
|
|
|
(3,281
|
)
|
|
|
(1,496
|
)
|
|
|
Accounts payable
|
|
|
|
25,023
|
|
|
|
(12,557
|
)
|
|
|
Accrued compensation and related liabilities
|
|
|
(13,161
|
)
|
|
|
11,625
|
|
|
|
Accrued liabilities
|
|
|
|
31,873
|
|
|
|
(20,371
|
)
|
|
|
Income taxes payable
|
|
|
|
12,028
|
|
|
|
10,690
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
552,748
|
|
|
|
469,862
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(196,486
|
)
|
|
|
(160,802
|
)
|
Proceeds from redemption of marketable securities
|
|
|
161,478
|
|
|
|
665,016
|
|
Purchase of marketable securities and investments
|
|
|
(178,464
|
)
|
|
|
(585,655
|
)
|
Acquisitions of businesses, net of cash acquired
|
|
|
(69,370
|
)
|
|
|
(24,864
|
)
|
Other, net
|
|
|
|
(1,339
|
)
|
|
|
2,011
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(284,181
|
)
|
|
|
(104,294
|
)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of debt
|
|
|
|
250,000
|
|
|
|
-
|
|
Repayment of debt
|
|
|
|
(225,636
|
)
|
|
|
(1,323
|
)
|
Proceeds from exercise of stock-based compensation awards
|
|
|
14,807
|
|
|
|
3,341
|
|
Dividends paid
|
|
|
|
(79,744
|
)
|
|
|
(70,820
|
)
|
Repurchase of common stock
|
|
|
|
(215,681
|
)
|
|
|
(392,328
|
)
|
Other, net
|
|
|
|
196
|
|
|
|
555
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(256,058
|
)
|
|
|
(460,575
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(61
|
)
|
|
|
(3,274
|
)
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
12,448
|
|
|
|
(98,281
|
)
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
339,825
|
|
|
|
438,106
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
352,273
|
|
|
$
|
339,825
|
|
Copyright Business Wire 2013