Washington | 0-11399 | 31-1188630 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
6800 Cintas Boulevard, P.O. Box 625737, Cincinnati, Ohio | 45262-5737 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. |
Exhibit Number | Description | ||
99 | Press Release dated September 20, 2012 |
CINTAS CORPORATION | ||||
Date: September 20, 2012 | By: | /s/ William C. Gale | ||
William C. Gale | ||||
Senior Vice President and Chief Financial Officer |
Exhibit Number | Description | ||
99 | Press release dated September 20, 2012 |
Three Months Ended | |||||||||||
August 31, 2012 | August 31, 2011 | % Chng. | |||||||||
Revenue: | |||||||||||
Rental uniforms and ancillary products | $ | 754,843 | $ | 719,423 | 4.9 | ||||||
Other services | 296,482 | 297,757 | (0.4 | ) | |||||||
Total revenue | $ | 1,051,325 | $ | 1,017,180 | 3.4 | ||||||
Costs and expenses: | |||||||||||
Cost of rental uniforms and ancillary products | $ | 428,148 | $ | 403,406 | 6.1 | ||||||
Cost of other services | 177,302 | 174,734 | 1.5 | ||||||||
Selling and administrative expenses | 306,581 | 310,466 | (1.3 | ) | |||||||
Operating income | $ | 139,294 | $ | 128,574 | 8.3 | ||||||
Interest income | $ | (77 | ) | $ | (365 | ) | (78.9 | ) | |||
Interest expense | 16,598 | 17,334 | (4.2 | ) | |||||||
Income before income taxes | $ | 122,773 | $ | 111,605 | 10.0 | ||||||
Income taxes | 46,040 | 42,967 | 7.2 | ||||||||
Net income | $ | 76,733 | $ | 68,638 | 11.8 | ||||||
Per share data: | |||||||||||
Basic earnings per share | $ | 0.61 | $ | 0.52 | 17.3 | ||||||
Diluted earnings per share | $ | 0.60 | $ | 0.52 | 15.4 | ||||||
Weighted average number of shares outstanding | 126,110 | 131,309 | |||||||||
Diluted average number of shares outstanding | 126,458 | 131,338 |
Three Months Ended | ||||||||
August 31, 2012 | August 31, 2011 | |||||||
Rental uniforms and ancillary products gross margin | 43.3 | % | 43.9 | % | ||||
Other services gross margin | 40.2 | % | 41.3 | % | ||||
Total gross margin | 42.4 | % | 43.2 | % | ||||
Net margin | 7.3 | % | 6.7 | % | ||||
Depreciation and amortization | $ | 46,442 | $ | 48,510 | ||||
Capital expenditures | $ | 47,438 | $ | 44,421 |
Three Months Ended | ||||||||
August 31, 2012 | August 31, 2011 | |||||||
Net Cash Provided by Operations | $ | 94,865 | $ | 56,562 | ||||
Capital Expenditures | $ | (47,438 | ) | $ | (44,421 | ) | ||
Free Cash Flow | $ | 47,427 | $ | 12,141 |
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 August 31, 2012 | ||||||||||||||||||||||||
Revenue | $ | 754,843 | $ | 100,279 | $ | 110,841 | $ | 85,362 | $ | — | $ | 1,051,325 | ||||||||||||
Gross margin | $ | 326,695 | $ | 29,478 | $ | 47,791 | $ | 41,911 | $ | — | $ | 445,875 | ||||||||||||
Selling and administrative expenses | $ | 209,788 | $ | 20,737 | $ | 38,770 | $ | 37,286 | $ | — | $ | 306,581 | ||||||||||||
Interest income | $ | — | $ | — | $ | — | $ | — | $ | (77 | ) | $ | (77 | ) | ||||||||||
Interest expense | $ | — | $ | — | $ | — | $ | — | $ | 16,598 | $ | 16,598 | ||||||||||||
Income (loss) before income taxes | $ | 116,907 | $ | 8,741 | $ | 9,021 | $ | 4,625 | $ | (16,521 | ) | $ | 122,773 | |||||||||||
Assets | $ | 2,774,417 | $ | 125,094 | $ | 359,387 | $ | 563,172 | $ | 330,165 | $ | 4,152,235 | ||||||||||||
For the three months ended August 31, 2011 | ||||||||||||||||||||||||
Revenue | $ | 719,423 | $ | 101,702 | $ | 103,743 | $ | 92,312 | $ | — | $ | 1,017,180 | ||||||||||||
Gross margin | $ | 316,017 | $ | 29,108 | $ | 44,787 | $ | 49,128 | $ | — | $ | 439,040 | ||||||||||||
Selling and administrative expenses | $ | 216,599 | $ | 20,701 | $ | 36,404 | $ | 36,762 | $ | — | $ | 310,466 | ||||||||||||
Interest income | $ | — | $ | — | $ | — | $ | — | $ | (365 | ) | $ | (365 | ) | ||||||||||
Interest expense | $ | — | $ | — | $ | — | $ | — | $ | 17,334 | $ | 17,334 | ||||||||||||
Income (loss) before income taxes | $ | 99,418 | $ | 8,407 | $ | 8,383 | $ | 12,366 | $ | (16,969 | ) | $ | 111,605 | |||||||||||
Assets | $ | 2,761,317 | $ | 150,228 | $ | 363,692 | $ | 575,615 | $ | 277,040 | $ | 4,127,892 |
August 31, 2012 | May 31, 2012 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash & cash equivalents | $ | 319,217 | $ | 339,825 | ||||
Marketable securities | 10,948 | — | ||||||
Accounts receivable, net | 459,302 | 450,861 | ||||||
Inventories, net | 241,699 | 251,205 | ||||||
Uniforms and other rental items in service | 462,541 | 452,785 | ||||||
Income taxes, current | — | 22,188 | ||||||
Prepaid expenses and other | 30,170 | 24,704 | ||||||
Total current assets | 1,523,877 | 1,541,568 | ||||||
Property and equipment, at cost, net | 953,761 | 944,305 | ||||||
Goodwill | 1,489,104 | 1,485,375 | ||||||
Service contracts, net | 72,297 | 76,822 | ||||||
Other assets, net | 113,196 | 112,836 | ||||||
$ | 4,152,235 | $ | 4,160,906 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 110,906 | $ | 94,840 | ||||
Accrued compensation and related liabilities | 40,531 | 91,214 | ||||||
Accrued liabilities | 213,440 | 256,642 | ||||||
Income taxes, current | 7,930 | — | ||||||
Deferred tax liability | 10,668 | 2,559 | ||||||
Long-term debt due within one year | 636 | 225,636 | ||||||
Total current liabilities | 384,111 | 670,891 | ||||||
Long-term liabilities: | ||||||||
Long-term debt due after one year | 1,309,012 | 1,059,166 | ||||||
Deferred income taxes | 206,856 | 204,581 | ||||||
Accrued liabilities | 97,841 | 87,133 | ||||||
Total long-term liabilities | 1,613,709 | 1,350,880 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, no par value: 100,000 shares authorized, none outstanding | — | — | ||||||
Common stock, no par value: 425,000,000 shares authorized FY13: 174,357,822 issued and 125,117,508 outstanding FY12: 173,745,913 issued and 126,519,758 outstanding | 171,091 | 148,255 | ||||||
Paid-in capital | 93,331 | 107,019 | ||||||
Retained earnings | 3,558,806 | 3,482,073 | ||||||
Treasury stock: FY13: 49,240,314 shares FY12: 47,226,155 shares | (1,712,828 | ) | (1,634,875 | ) | ||||
Other accumulated comprehensive income (loss): | ||||||||
Foreign currency translation | 59,416 | 52,399 | ||||||
Unrealized loss on derivatives | (15,767 | ) | (16,104 | ) | ||||
Other | 366 | 368 | ||||||
Total shareholders’ equity | 2,154,415 | 2,139,135 | ||||||
$ | 4,152,235 | $ | 4,160,906 |
Three Months Ended | ||||||||
August 31, 2012 | August 31, 2011 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 76,733 | $ | 68,638 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 40,342 | 38,277 | ||||||
Amortization of deferred charges | 6,100 | 10,233 | ||||||
Stock-based compensation | 5,448 | 4,522 | ||||||
Deferred income taxes | 9,716 | (7,808 | ) | |||||
Change in current assets and liabilities, net of acquisitions of businesses: | ||||||||
Accounts receivable, net | (7,128 | ) | (10,142 | ) | ||||
Inventories, net | 9,889 | (30,770 | ) | |||||
Uniforms and other rental items in service | (8,672 | ) | (11,124 | ) | ||||
Prepaid expenses and other | (5,392 | ) | (5,983 | ) | ||||
Accounts payable | 16,278 | (9,329 | ) | |||||
Accrued compensation and related liabilities | (50,793 | ) | (27,611 | ) | ||||
Accrued liabilities | (27,400 | ) | (10,201 | ) | ||||
Income taxes payable | 29,744 | 47,860 | ||||||
Net cash provided by operating activities | 94,865 | 56,562 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (47,438 | ) | (44,421 | ) | ||||
Proceeds from redemption of marketable securities | 24,720 | 63,561 | ||||||
Purchase of marketable securities and investments | (36,970 | ) | (107,145 | ) | ||||
Acquisitions of businesses, net of cash acquired | (2,130 | ) | (870 | ) | ||||
Other, net | 577 | 6,539 | ||||||
Net cash used in investing activities | (61,241 | ) | (82,336 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of debt | 250,000 | — | ||||||
Repayment of debt | (225,154 | ) | (444 | ) | ||||
Exercise of stock-based compensation awards | 1,119 | — | ||||||
Repurchase of common stock | (77,953 | ) | (262,639 | ) | ||||
Other, net | (3,491 | ) | 926 | |||||
Net cash used in financing activities | (55,479 | ) | (262,157 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 1,247 | 137 | ||||||
Net decrease in cash and cash equivalents | (20,608 | ) | (287,794 | ) | ||||
Cash and cash equivalents at beginning of period | 339,825 | 438,106 | ||||||
Cash and cash equivalents at end of period | $ | 319,217 | $ | 150,312 |