Earnings Per Share

9 Months Ended

Feb. 29, 2020

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. Cintas uses the two-class method to calculate basic and diluted earnings per share as a result of outstanding participating securities in the form of restricted stock awards.


	Three Months Ended						Nine Months Ended
Basic Earnings per Share from Continuing Operations (in thousands except per share data)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019

Income from continuing operations	$	234,520	$	200,923	$	731,775	$	656,464
Less: income from continuing operations allocated to participating securities	2,193		2,783		6,864		8,977
Income from continuing operations available to common shareholders	$	232,327	$	198,140	$	724,911	$	647,487
Basic weighted average common shares outstanding	104,245		105,080		103,840		106,147

Basic earnings per share from continuing operations	$	2.23	$	1.89	$	6.98	$	6.10


	Three Months Ended						Nine Months Ended
Diluted Earnings per Share from Continuing Operations (in thousands except per share data)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019

Income from continuing operations	$	234,520	$	200,923	$	731,775	$	656,464
Less: income from continuing operations allocated to participating securities	2,193		2,783		6,864		8,977
Income from continuing operations available to common shareholders	$	232,327	$	198,140	$	724,911	$	647,487
Basic weighted average common shares outstanding	104,245		105,080		103,840		106,147
Effect of dilutive securities – employee stock options	3,343		3,082		3,440		3,436
Diluted weighted average common shares outstanding	107,588		108,162		107,280		109,583

Diluted earnings per share from continuing operations	$	2.16	$	1.83	$	6.76	$	5.91

For both the three and nine months ended February 29, 2020, both basic and diluted earnings per share from discontinued operations rounded to zero. For both the three and nine months ended February 28, 2019, both basic and diluted earnings per share from discontinued operations were $0.02.

For the three months ended February 29, 2020 and February 28, 2019, options granted to purchase 0.2 million and 0.7 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. For the nine months ended February 29, 2020 and February 28, 2019, options granted to purchase 0.2 million and 0.5 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 February 29, 2020. For the nine months ended February 29, 2020, 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. In the period subsequent to February 29, 2020, through March 31, 2020, we purchased 0.8 million shares of Cintas common stock under the October 30, 2018 share buyback program at an average price of $263.07 for a total purchase price of $202.6 million. From the inception of the October 30, 2018 share buyback program through March 31, 2020, Cintas has purchased a total of $4.3 million shares of Cintas common stock at an average price of $219.40 for a total purchase price of $939.1 million.

For the three months ended February 29, 2020, 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 February 29, 2020. These shares were acquired at an average price of $278.21 per share for a total purchase price of $2.5 million. During the nine months ended February 29, 2020, Cintas acquired 0.3 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested during the nine months ended February 29, 2020. These shares were acquired at an average price of $261.48 per share for a total purchase price of $68.4 million.