Earnings Per Share

6 Months Ended

Nov. 30, 2019

The following tables set forth the computation of basic and diluted earnings per share from continuing operations using the two-class method for amounts attributable to Cintas’ common shares:



	Three Months Ended				Six Months Ended
Basic Earnings per Share from Continuing Operations (in thousands except per share data)	November 30, 2019		November 30, 2018		November 30, 2019		November 30, 2018

Income from continuing operations	$	246,443	$	242,994	$	497,255	$	455,541
Less: income from continuing operations allocated to participating securities	2,425		3,376		4,904		6,308
Income from continuing operations available to common shareholders	$	244,018	$	239,618	$	492,351	$	449,233
Basic weighted average common shares outstanding	103,959		106,475		103,638		106,652

Basic earnings per share from continuing operations	$	2.35	$	2.25	$	4.75	$	4.21



	Three Months Ended				Six Months Ended
Diluted Earnings per Share from Continuing Operations (in thousands except per share data)	November 30, 2019		November 30, 2018		November 30, 2019		November 30, 2018

Income from continuing operations	$	246,443	$	242,994	$	497,255	$	455,541
Less: income from continuing operations allocated to participating securities	2,425		3,376		4,904		6,308
Income from continuing operations available to common shareholders	$	244,018	$	239,618	$	492,351	$	449,233
Basic weighted average common shares outstanding	103,959		106,475		103,638		106,652
Effect of dilutive securities – employee stock options	3,376		3,399		3,476		3,605
Diluted weighted average common shares outstanding	107,335		109,874		107,114		110,257

Diluted earnings per share from continuing operations	$	2.27	$	2.18	$	4.60	$	4.07

For the three and six months ended November 30, 2019 and 2018, both basic and diluted earnings per share from discontinued operations rounded to zero.

For the three months ended November 30, 2019 and 2018, options granted to purchase 0.2 million and 0.4 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. For the six months ended November 30, 2019 and 2018, options granted to purchase 0.3 million and 0.4 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. The exercise prices of these options were greater than the average market price of the common stock (anti-dilutive).

On October 30, 2018, Cintas announced that the Board of Directors authorized a $1.0 billion share buyback program, which does not have an expiration date. There were no share buybacks for the three months ended November 30, 2019. For the six months ended November 30, 2019, we purchased 0.8 million shares of Cintas common stock at an average price of $230.66 per share for a total purchase price of $193.1 million. Additionally, on October 29, 2019, we announced that the Board of Directors authorized a new $1.0 billion share buyback program, which does not have an expiration date. There have been no share buybacks under this new share buyback program. There were no share buybacks in the period subsequent to November 30, 2019, through January 9, 2020, under either share buyback program. From the inception of the October 30, 2018 share buyback program through January 9, 2020, Cintas has purchased a total of 3.5 million shares of Cintas common stock at an average price of $209.82 for a total purchase price of $736.5 million.

For the three months ended November 30, 2019, Cintas acquired less than 0.1 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested during the three months ended November 30, 2019. These shares were acquired at an average price of $259.17 per share for a total purchase price of $0.3 million. During the six months ended November 30, 2019, Cintas acquired 0.3 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested during the six months ended November 30, 2019. These shares were acquired at an average price of $260.89 per share for a total purchase price of $65.7 million.