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 July 16, 2015 |
CINTAS CORPORATION | ||||
Date: July 16, 2015 | By: | /s/ J. Michael Hansen | ||
J. Michael Hansen | ||||
Vice President and Chief Financial Officer |
Exhibit Number | Description | ||
99 | Press release dated July 16, 2015 |
4th Quarter Revenue Results (dollar amounts in millions) | Q4, FY15 (see Note 1) | Q4, FY14 (see Note 1) | Growth % | Organic Growth % (see Note 2) | |||||||||
Rental Uniforms & Ancillary Products | $ | 873.1 | $ | 825.0 | 5.8% | 6.5% | |||||||
Uniform Direct Sales | 118.8 | 118.5 | 0.3% | 1.1% | |||||||||
First Aid, Safety & Fire Protection | 150.7 | 137.2 | 9.8% | 7.3% | |||||||||
Revenue, excluding Document Shredding | $ | 1,142.6 | $ | 1,080.7 | 5.7% | 6.0% | |||||||
Document Shredding - (see Note 3) | — | 53.7 | — | — | |||||||||
Total Cintas Revenue | $ | 1,142.6 | $ | 1,134.4 | 0.7% | 6.0% |
Full Year Revenue Results (dollar amounts in millions) | FY 2015 (see Note 1) | FY 2014 (see Note 1) | Growth % | Organic Growth % (see Note 2) | |||||||||
Rental Uniforms & Ancillary Products | $ | 3,455.0 | $ | 3,224.0 | 7.2% | 7.7% | |||||||
Uniform Direct Sales | 453.6 | 455.5 | (0.4)% | 0.2% | |||||||||
First Aid, Safety & Fire Protection | 568.3 | 514.4 | 10.5% | 9.2% | |||||||||
Revenue, excluding Document Shredding | $ | 4,476.9 | $ | 4,193.9 | 6.7% | 7.1% | |||||||
Document Shredding - (see Note 3) | — | 275.7 | — | — | |||||||||
Total Cintas Revenue | $ | 4,476.9 | $ | 4,469.6 | 0.2% | 7.1% |
Q4, Fiscal 2015 | As Reported (see Note 1) | Shred-it Impact (see Note 2) | Document Shredding Impact (see Note 3) | As Adjusted | Percent of Revenue | ||||||||||||||
(dollar amounts in millions, except EPS) | |||||||||||||||||||
Revenue | $ | 1,142.6 | $ | — | $ | — | $ | 1,142.6 | 100.0 | % | |||||||||
Gross margin | 486.7 | — | — | 486.7 | 42.6 | % | |||||||||||||
Operating income | 177.7 | — | — | 177.7 | 15.6 | % | |||||||||||||
Net income, continuing operations | 101.2 | 1.5 | (1.0 | ) | 100.7 | 8.8 | % | ||||||||||||
EPS, continuing operations | $ | 0.86 | $ | 0.01 | $ | (0.01 | ) | $ | 0.86 | ||||||||||
Q4, Fiscal 2014 | As Reported (see Note 1) | Shred-it Impact (see Note 2) | Document Shredding Impact (see Note 4) | As Adjusted | Percent of Revenue | ||||||||||||||
(dollar amounts in millions, except EPS) | |||||||||||||||||||
Revenue | $ | 1,134.4 | $ | — | $ | 53.7 | $ | 1,080.7 | 100.0 | % | |||||||||
Gross margin | 480.8 | — | 24.6 | 456.2 | 42.2 | % | |||||||||||||
Operating income | 122.8 | — | (43.6 | ) | 166.4 | 15.4 | % | ||||||||||||
Net income, continuing operations | 128.1 | 1.2 | 32.2 | 94.7 | 8.8 | % | |||||||||||||
EPS, continuing operations | $ | 1.04 | $ | 0.01 | $ | 0.26 | $ | 0.77 |
Full Year Fiscal 2015 | As Reported (see Note 1) | Shred-it Impact (see Note 2) | Other (see Note 3) | As Adjusted | Percent of Revenue | ||||||||||||||
(dollar amounts in millions, except EPS) | |||||||||||||||||||
Revenue | $ | 4,476.9 | $ | — | $ | — | $ | 4,476.9 | 100.0 | % | |||||||||
Gross margin | 1,921.3 | — | — | 1,921.3 | 42.9 | % | |||||||||||||
Operating income | 696.4 | — | — | 696.4 | 15.6 | % | |||||||||||||
Net income, continuing operations | 408.1 | (5.5 | ) | 16.7 | 396.9 | 8.9 | % | ||||||||||||
EPS, continuing operations | $ | 3.44 | $ | (0.05 | ) | $ | 0.14 | $ | 3.35 | ||||||||||
Full Year Fiscal 2014 | As Reported (see Note 1) | Shred-it Impact (see Note 2) | Document Shredding Impact (see Note 4) | As Adjusted | Percent of Revenue | ||||||||||||||
(dollar amounts in millions, except EPS) | |||||||||||||||||||
Revenue | $ | 4,469.6 | $ | — | $ | 275.7 | $ | 4,193.9 | 100.0 | % | |||||||||
Gross margin | 1,873.7 | — | 123.9 | 1,749.8 | 41.7 | % | |||||||||||||
Operating income | 564.2 | — | (38.5 | ) | 602.7 | 14.4 | % | ||||||||||||
Net income, continuing operations | 374.3 | 1.2 | 35.3 | 337.8 | 8.1 | % | |||||||||||||
EPS, continuing operations | $ | 3.05 | $ | 0.01 | $ | 0.29 | $ | 2.75 |
Revenue Guidance (dollar amounts in millions) | Fiscal 2015 | Fiscal 2016 Low End of Range | Growth vs. Fiscal 2015 | Fiscal 2016 High End of Range | Growth vs. Fiscal 2015 | |||||||||||
Revenue | $ | 4,476.9 | $ | 4,700.0 | 5.0% | $ | 4,780.0 | 6.8% |
EPS Guidance | Fiscal 2015 | Fiscal 2016 Low End of Range | Growth vs. Fiscal 2015 | Fiscal 2016 High End of Range | Growth vs. Fiscal 2015 | |||||||||||
EPS, excluding below items | $ | 3.35 | $ | 3.74 | 11.6% | $ | 3.83 | 14.3% | ||||||||
Impact of Shred-it partnership | (0.05 | ) | ||||||||||||||
Impact of sale of stock in equity investment | 0.11 | |||||||||||||||
Impact of Shred-it Transaction | 0.03 | |||||||||||||||
Impact of discontinued operations | 0.19 | |||||||||||||||
Total Reported Cintas EPS | $ | 3.63 |
Three Months Ended | ||||||||||
May 31, 2015 | May 31, 2014 | % Change | ||||||||
Revenue: | ||||||||||
Rental uniforms and ancillary products | $ | 873,136 | $ | 825,046 | 5.8% | |||||
Other services | 269,447 | 309,369 | (12.9)% | |||||||
Total revenue | 1,142,583 | 1,134,415 | 0.7% | |||||||
Costs and expenses: | ||||||||||
Cost of rental uniforms and ancillary products | 488,805 | 465,498 | 5.0% | |||||||
Cost of other services | 167,118 | 188,071 | (11.1)% | |||||||
Selling and administrative expenses | 308,941 | 315,612 | (2.1)% | |||||||
Shredding transaction asset impairment charge | — | 16,143 | (100.0)% | |||||||
Shredding transaction costs | — | 26,323 | (100.0)% | |||||||
Operating income | 177,719 | 122,768 | 44.8% | |||||||
(Loss) gain on deconsolidation of Shredding business | (1,667 | ) | 106,441 | (101.6)% | ||||||
Interest income | (171 | ) | (33 | ) | 418.2% | |||||
Interest expense | 16,395 | 16,396 | 0.0% | |||||||
Income before income taxes | 159,828 | 212,846 | (24.9)% | |||||||
Income taxes | 60,112 | 85,975 | (30.1)% | |||||||
Gain on investment in Shred-it, net of tax of $898 and $766, respectively | 1,488 | 1,234 | 20.6% | |||||||
Income from continuing operations | 101,204 | 128,105 | (21.0)% | |||||||
Income (loss) from discontinued operations, net of tax of $116 and tax benefit of $82, respectively | 4,011 | (881 | ) | 555.3% | ||||||
Net income | $ | 105,215 | $ | 127,224 | (17.3)% | |||||
Basic earnings (loss) per share: | ||||||||||
Continuing operations | $ | 0.88 | $ | 1.05 | (16.2)% | |||||
Discontinued operations | 0.03 | (0.01 | ) | 400.0% | ||||||
Basic earnings per share | $ | 0.91 | $ | 1.04 | (12.5)% | |||||
Diluted earnings (loss) per share: | ||||||||||
Continuing operations | $ | 0.86 | $ | 1.04 | (17.3)% | |||||
Discontinued operations | 0.04 | (0.01 | ) | 500.0% | ||||||
Diluted earnings per share | $ | 0.90 | $ | 1.03 | (12.6)% | |||||
Weighted average number of shares outstanding | 113,666 | 119,541 | ||||||||
Diluted average number of shares outstanding | 115,383 | 120,886 | ||||||||
Twelve Months Ended | ||||||||||
May 31, 2015 | May 31, 2014 | % Change | ||||||||
Revenue: | ||||||||||
Rental uniforms and ancillary products | $ | 3,454,956 | $ | 3,223,930 | 7.2% | |||||
Other services | 1,021,930 | 1,245,635 | (18.0)% | |||||||
Total revenue | 4,476,886 | 4,469,565 | 0.2% | |||||||
Costs and expenses: | ||||||||||
Cost of rental uniforms and ancillary products | 1,913,466 | 1,829,427 | 4.6% | |||||||
Cost of other services | 642,083 | 766,484 | (16.2)% | |||||||
Selling and administrative expenses | 1,224,930 | 1,264,836 | (3.2)% | |||||||
Shredding transaction asset impairment charge | — | 16,143 | (100.0)% | |||||||
Shredding transaction costs | — | 28,481 | (100.0)% | |||||||
Operating income | 696,407 | 564,194 | 23.4% | |||||||
Gain on deconsolidation of Shredding business | 4,952 | 106,441 | (95.3)% | |||||||
Gain on sale of stock of an equity method investment | 21,739 | — | 100.0% | |||||||
Interest income | (339 | ) | (229 | ) | 48.0% | |||||
Interest expense | 65,161 | 65,822 | (1.0)% | |||||||
Income before income taxes | 658,276 | 605,042 | 8.8% | |||||||
Income taxes | 244,660 | 231,991 | 5.5% | |||||||
(Loss) gain on investment in Shred-it, net of tax benefit of $3,264 and tax of $766, respectively | (5,539 | ) | 1,234 | (548.9)% | ||||||
Income from continuing operations | 408,077 | 374,285 | 9.0% | |||||||
Income from discontinued operations, net of tax of $12,320 and $658, respectively | 22,541 | 157 | 14,257.3% | |||||||
Net income | $ | 430,618 | $ | 374,442 | 15.0% | |||||
Basic earnings per share: | ||||||||||
Continuing operations | $ | 3.49 | $ | 3.08 | 13.3% | |||||
Discontinued operations | 0.19 | 0.00 | 100.0% | |||||||
Basic earnings per share | $ | 3.68 | $ | 3.08 | 19.5% | |||||
Diluted earnings per share: | ||||||||||
Continuing operations | $ | 3.44 | $ | 3.05 | 12.8% | |||||
Discontinued operations | 0.19 | 0.00 | 100.0% | |||||||
Diluted earnings per share | $ | 3.63 | $ | 3.05 | 19.0% | |||||
Weighted average number of shares outstanding | 115,900 | 120,377 | ||||||||
Diluted average number of shares outstanding | 117,543 | 121,640 |
Three Months Ended | ||||||
May 31, 2015 | May 31, 2014 | |||||
Rental uniforms and ancillary products gross margin | 44.0 | % | 43.6 | % | ||
Other services gross margin(1) | 38.0 | % | 39.2 | % | ||
Total gross margin(1) | 42.6 | % | 42.4 | % | ||
Net margin, continuing operations(1) | 8.9 | % | 11.3 | % | ||
Twelve Months Ended | ||||||
May 31, 2015 | May 31, 2014 | |||||
Rental uniforms and ancillary products gross margin | 44.6 | % | 43.3 | % | ||
Other services gross margin(1) | 37.2 | % | 38.5 | % | ||
Total gross margin(1) | 42.9 | % | 41.9 | % | ||
Net margin, continuing operations(1) | 9.1 | % | 8.4 | % |
Three Months Ended | ||||||||
May 31, 2015 | May 31, 2014 | |||||||
Income from continuing operations | $ | 101,204 | $ | 128,105 | ||||
Less: income from continuing operations allocated to participating securities | 1,432 | 2,233 | ||||||
Income from continuing operations available to common shareholders | $ | 99,772 | $ | 125,872 | ||||
Basic weighted average common shares outstanding | 113,666 | 119,541 | ||||||
Effect of dilutive securities - employee stock options and awards | 1,717 | 1,345 | ||||||
Diluted weighted average common shares outstanding | 115,383 | 120,886 | ||||||
Diluted earnings per share from continuing operations | $ | 0.86 | $ | 1.04 | ||||
Twelve Months Ended | ||||||||
May 31, 2015 | May 31, 2014 | |||||||
Income from continuing operations | $ | 408,077 | $ | 374,285 | ||||
Less: income from continuing operations allocated to participating securities | 3,876 | 3,450 | ||||||
Income from continuing operations available to common shareholders | $ | 404,201 | $ | 370,835 | ||||
Basic weighted average common shares outstanding | 115,900 | 120,377 | ||||||
Effect of dilutive securities - employee stock options and awards | 1,643 | 1,263 | ||||||
Diluted weighted average common shares outstanding | 117,543 | 121,640 | ||||||
Diluted earnings per share from continuing operations | $ | 3.44 | $ | 3.05 |
Twelve Months Ended | ||||||||
May 31, 2015 | May 31, 2014 | |||||||
Net cash provided by operations | $ | 580,276 | $ | 605,969 | ||||
Capital expenditures | (217,720 | ) | (145,580 | ) | ||||
Free cash flow | $ | 362,556 | $ | 460,389 |
As Reported (see Note 1) | Shred-it Impact (see Note 2) | Other (see Note 3) | As Adjusted | Percent of Revenue | ||||||||||||||||
For the twelve months ended May 31, 2015 | ||||||||||||||||||||
Revenue | $ | 4,476,886 | $ | — | $ | — | $ | 4,476,886 | 100.0 | % | ||||||||||
Gross margin | $ | 1,921,337 | $ | — | $ | — | $ | 1,921,337 | 42.9 | % | ||||||||||
Operating income | $ | 696,407 | $ | — | $ | — | $ | 696,407 | 15.6 | % | ||||||||||
Net income, continuing operations | $ | 408,077 | $ | (5,539 | ) | $ | 16,704 | $ | 396,912 | 8.9 | % | |||||||||
Diluted earnings per share, continuing operations | $ | 3.44 | $ | (0.05 | ) | $ | 0.14 | $ | 3.35 |
As Reported (see Note 1) | Shred-it Impact (see Note 2) | Document Shredding Impact (see Note 4) | As Adjusted | Percent of Revenue | ||||||||||||||||
For the twelve months ended May 31, 2014 | ||||||||||||||||||||
Revenue | $ | 4,469,565 | $ | — | $ | 275,721 | $ | 4,193,844 | 100.0 | % | ||||||||||
Gross margin | $ | 1,873,654 | $ | — | $ | 123,895 | $ | 1,749,759 | 41.7 | % | ||||||||||
Operating income | $ | 564,194 | $ | — | $ | (38,526 | ) | $ | 602,720 | 14.4 | % | |||||||||
Net income, continuing operations | $ | 374,285 | $ | 1,234 | $ | 35,279 | $ | 337,772 | 8.1 | % | ||||||||||
Diluted earnings per share, continuing operations | $ | 3.05 | $ | 0.01 | $ | 0.29 | $ | 2.75 |
SUPPLEMENTAL SEGMENT DATA | Rental Uniforms & Ancillary Products | Uniform Direct Sales | First Aid, Safety & Fire Protection | Document Management (1) | Corporate (2) | Total | ||||||||||||||||||
For the three months ended May 31, 2015 | ||||||||||||||||||||||||
Revenue | $ | 873,136 | $ | 118,802 | $ | 150,645 | $ | — | $ | — | $ | 1,142,583 | ||||||||||||
Gross margin | $ | 384,331 | $ | 35,420 | $ | 66,909 | $ | — | $ | — | $ | 486,660 | ||||||||||||
Selling and administrative expenses | $ | 239,467 | $ | 20,653 | $ | 48,821 | $ | — | $ | — | $ | 308,941 | ||||||||||||
Loss on deconsolidation of Shredding business | $ | — | $ | — | $ | — | $ | — | $ | (1,667 | ) | $ | (1,667 | ) | ||||||||||
Interest income | $ | — | $ | — | $ | — | $ | — | $ | (171 | ) | $ | (171 | ) | ||||||||||
Interest expense | $ | — | $ | — | $ | — | $ | — | $ | 16,395 | $ | 16,395 | ||||||||||||
Income (loss) before income taxes | $ | 144,864 | $ | 14,767 | $ | 18,088 | $ | — | $ | (17,891 | ) | $ | 159,828 | |||||||||||
. | ||||||||||||||||||||||||
For the three months ended May 31, 2014 | ||||||||||||||||||||||||
Revenue | $ | 825,046 | $ | 118,462 | $ | 137,226 | $ | 53,681 | $ | — | $ | 1,134,415 | ||||||||||||
Gross margin | $ | 359,548 | $ | 35,508 | $ | 61,158 | $ | 24,632 | $ | — | $ | 480,846 | ||||||||||||
Selling and administrative expenses | $ | 224,334 | $ | 20,598 | $ | 44,891 | $ | 25,789 | $ | — | $ | 315,612 | ||||||||||||
Gain on deconsolidation of Shredding business, net of impairment charges and other Shredding transaction costs | $ | — | $ | — | $ | — | $ | 63,975 | $ | — | $ | 63,975 | ||||||||||||
Interest income | $ | — | $ | — | $ | — | $ | — | $ | (33 | ) | $ | (33 | ) | ||||||||||
Interest expense | $ | — | $ | — | $ | — | $ | — | $ | 16,396 | $ | 16,396 | ||||||||||||
Income (loss) before income taxes | $ | 135,214 | $ | 14,910 | $ | 16,267 | $ | 62,818 | $ | (16,363 | ) | $ | 212,846 | |||||||||||
As of and for the twelve months ended May 31, 2015 | ||||||||||||||||||||||||
Revenue | $ | 3,454,956 | $ | 453,653 | $ | 568,277 | $ | — | $ | — | $ | 4,476,886 | ||||||||||||
Gross margin | $ | 1,541,490 | $ | 129,446 | $ | 250,401 | $ | — | $ | — | $ | 1,921,337 | ||||||||||||
Selling and administrative expenses | $ | 948,455 | $ | 85,317 | $ | 191,158 | $ | — | $ | — | $ | 1,224,930 | ||||||||||||
Gain on deconsolidation of Shredding business | $ | — | $ | — | $ | — | $ | — | $ | 4,952 | $ | 4,952 | ||||||||||||
Gain on sale of stock of an equity method investment | $ | — | $ | — | $ | — | $ | — | $ | 21,739 | $ | 21,739 | ||||||||||||
Interest income | $ | — | $ | — | $ | — | $ | — | $ | (339 | ) | $ | (339 | ) | ||||||||||
Interest expense | $ | — | $ | — | $ | — | $ | — | $ | 65,161 | $ | 65,161 | ||||||||||||
Income (loss) before income taxes | $ | 593,035 | $ | 44,129 | $ | 59,243 | $ | — | $ | (38,131 | ) | $ | 658,276 | |||||||||||
Assets | $ | 2,853,740 | $ | 122,658 | $ | 436,149 | $ | — | $ | 779,913 | $ | 4,192,460 | ||||||||||||
As of and for the twelve months ended May 31, 2014 | ||||||||||||||||||||||||
Revenue | $ | 3,223,930 | $ | 455,485 | $ | 514,429 | $ | 275,721 | $ | — | $ | 4,469,565 | ||||||||||||
Gross margin | $ | 1,394,503 | $ | 130,018 | $ | 225,238 | $ | 123,895 | $ | — | $ | 1,873,654 | ||||||||||||
Selling and administrative expenses | $ | 887,444 | $ | 83,309 | $ | 176,286 | $ | 117,797 | $ | — | $ | 1,264,836 | ||||||||||||
Gain on deconsolidation of Shredding business, net of impairment charges and other Shredding transaction costs | $ | — | $ | — | $ | — | $ | 61,817 | $ | — | $ | 61,817 | ||||||||||||
Interest income | $ | — | $ | — | $ | — | $ | — | $ | (229 | ) | $ | (229 | ) | ||||||||||
Interest expense | $ | — | $ | — | $ | — | $ | — | $ | 65,822 | $ | 65,822 | ||||||||||||
Income (loss) before income taxes | $ | 507,059 | $ | 46,709 | $ | 48,952 | $ | 67,915 | $ | (65,593 | ) | $ | 605,042 | |||||||||||
Assets | $ | 2,875,014 | $ | 142,033 | $ | 422,015 | $ | 344,264 | $ | 679,126 | $ | 4,462,452 | ||||||||||||
May 31, 2015 | May 31, 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 417,073 | $ | 513,288 | ||||
Marketable securities | 16,081 | — | ||||||
Accounts receivable, net | 496,130 | 508,427 | ||||||
Inventories, net | 226,211 | 251,239 | ||||||
Uniforms and other rental items in service | 534,005 | 506,537 | ||||||
Income taxes, current | 936 | — | ||||||
Assets held for sale | 21,341 | — | ||||||
Prepaid expenses and other current assets | 24,030 | 26,190 | ||||||
Total current assets | 1,735,807 | 1,805,681 | ||||||
Property and equipment, at cost, net | 871,421 | 855,702 | ||||||
Investments | 329,692 | 458,357 | ||||||
Goodwill | 1,195,612 | 1,267,411 | ||||||
Service contracts, net | 42,434 | 55,675 | ||||||
Other assets, net | 17,494 | 19,626 | ||||||
$ | 4,192,460 | $ | 4,462,452 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 109,607 | $ | 150,070 | ||||
Accrued compensation and related liabilities | 88,423 | 85,026 | ||||||
Accrued liabilities | 309,935 | 299,727 | ||||||
Income taxes, current | — | 5,960 | ||||||
Deferred tax liability | 112,389 | 88,845 | ||||||
Liabilities held for sale | 704 | — | ||||||
Long-term debt due within one year | — | 503 | ||||||
Total current liabilities | 621,058 | 630,131 | ||||||
Long-term liabilities: | ||||||||
Long-term debt due after one year | 1,300,000 | 1,300,477 | ||||||
Deferred income taxes | 226,938 | 246,044 | ||||||
Accrued liabilities | 112,009 | 92,942 | ||||||
Total long-term liabilities | 1,638,947 | 1,639,463 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, no par value: 100,000 shares authorized, none outstanding | — | — | ||||||
Common stock, no par value: 425,000,000 shares authorized FY15: 178,117,334 issued and 111,702,949 outstanding FY14: 176,378,412 issued and 117,037,784 outstanding | 329,248 | 251,753 | ||||||
Paid-in capital | 157,183 | 134,939 | ||||||
Retained earnings | 4,227,620 | 3,998,893 | ||||||
Treasury stock: FY15: 66,414,385 shares FY14: 59,340,628 shares | (2,773,125 | ) | (2,221,155 | ) | ||||
Accumulated other comprehensive (loss) income | (8,471 | ) | 28,428 | |||||
Total shareholders’ equity | 1,932,455 | 2,192,858 | ||||||
$ | 4,192,460 | $ | 4,462,452 |
Twelve Months Ended | ||||||||
May 31, 2015 | May 31, 2014 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 430,618 | $ | 374,442 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 140,624 | 168,220 | ||||||
Amortization of intangible assets | 14,458 | 22,642 | ||||||
Stock-based compensation | 47,002 | 29,875 | ||||||
Gain on sale of Storage business | (38,573 | ) | — | |||||
Gain on deconsolidation of Shredding business | (4,952 | ) | (106,441 | ) | ||||
Gain on sale of stock of an equity method investment | (21,739 | ) | — | |||||
Loss (gain) on investment in Shred-it | 8,803 | (2,000 | ) | |||||
Shredding transaction asset impairment charge | — | 16,143 | ||||||
Shredding transaction costs | — | 26,057 | ||||||
Deferred income taxes | 20,866 | 47,109 | ||||||
Change in current assets and liabilities, net of acquisitions of businesses: | ||||||||
Accounts receivable, net | (1,443 | ) | (56,231 | ) | ||||
Inventories, net | 23,785 | (11,062 | ) | |||||
Uniforms and other rental items in service | (31,994 | ) | (11,435 | ) | ||||
Prepaid expenses and other current assets | (3,202 | ) | (2,177 | ) | ||||
Accounts payable | (33,445 | ) | 30,446 | |||||
Accrued compensation and related liabilities | 3,234 | 10,931 | ||||||
Accrued liabilities and other | 33,066 | 54,237 | ||||||
Income taxes, current | (6,832 | ) | 15,213 | |||||
Net cash provided by operating activities | 580,276 | 605,969 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (217,720 | ) | (145,580 | ) | ||||
Proceeds from redemption of marketable securities | 161,938 | 54,196 | ||||||
Purchase of marketable securities and investments | (195,471 | ) | (63,858 | ) | ||||
Proceeds from Storage transaction, net of cash contributed | 158,428 | — | ||||||
Proceeds from Shredding transaction, net of cash contributed | 3,344 | 179,359 | ||||||
Proceeds from sale of stock of an equity method investment | 29,933 | — | ||||||
Dividends received on equity method investment | 5,247 | — | ||||||
Dividends received on Shred-it investment | 113,400 | — | ||||||
Acquisitions of businesses, net of cash acquired | (15,495 | ) | (33,441 | ) | ||||
Other, net | 1,383 | (5,219 | ) | |||||
Net cash provided by (used in) investing activities | 44,987 | (14,543 | ) | |||||
Cash flows from financing activities: | ||||||||
Repayment of debt | (518 | ) | (8,187 | ) | ||||
Proceeds from exercise of stock-based compensation awards | 40,230 | 41,902 | ||||||
Dividends paid | (201,891 | ) | (93,320 | ) | ||||
Repurchase of common stock | (551,970 | ) | (370,599 | ) | ||||
Other, net | 1,589 | 469 | ||||||
Net cash used in financing activities | (712,560 | ) | (429,735 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (8,918 | ) | (676 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (96,215 | ) | 161,015 | |||||
Cash and cash equivalents at beginning of year | 513,288 | 352,273 | ||||||
Cash and cash equivalents at end of year | $ | 417,073 | $ | 513,288 |