Earnings Per Share

6 Months Ended

Nov. 30, 2020

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. The following tables set forth the computation of basic and diluted earnings per share 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, 2020		November 30, 2019		November 30, 2020		November 30, 2019

Income from continuing operations	$	284,857	$	246,443	$	584,862	$	497,255
Less: income from continuing operations allocated to participating securities	2,015		2,425		4,153		4,904
Income from continuing operations available to common shareholders	$	282,842	$	244,018	$	580,709	$	492,351
Basic weighted average common shares outstanding	104,999		103,959		104,546		103,638

Basic earnings per share from continuing operations	$	2.69	$	2.35	$	5.55	$	4.75


	Three Months Ended				Six Months Ended
Diluted Earnings per Share from Continuing Operations (in thousands except per share data)	November 30, 2020		November 30, 2019		November 30, 2020		November 30, 2019

Income from continuing operations	$	284,857	$	246,443	$	584,862	$	497,255
Less: income from continuing operations allocated to participating securities	2,015		2,425		4,153		4,904
Income from continuing operations available to common shareholders	$	282,842	$	244,018	$	580,709	$	492,351
Basic weighted average common shares outstanding	104,999		103,959		104,546		103,638
Effect of dilutive securities – employee stock options	2,982		3,376		3,010		3,476
Diluted weighted average common shares outstanding	107,981		107,335		107,556		107,114

Diluted earnings per share from continuing operations	$	2.62	$	2.27	$	5.40	$	4.60

There were no discontinued operations for the three or six months ended November 30, 2020. For the three and six months ended November 30, 2019, both basic and diluted earnings per share from discontinued operations rounded to zero.

For the three months ended November 30, 2020 and 2019, options granted to purchase 0.2 million shares of Cintas common stock were excluded from the computation of diluted earnings per share. For the six months ended November 30, 2020 and 2019, options granted to purchase 0.2 million and 0.3 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. 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 were no share buybacks for the three months ended November 30, 2020 or 2019, and no share buybacks for the six months ended November 30, 2020. 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. There were no share buybacks in the period subsequent to November 30, 2020, through January 8, 2021, under any share buyback program. From the inception of the October 30, 2018 program through January 8, 2021, Cintas has purchased a total of 4.3 million shares of Cintas common stock at an average price of $219.42 per share for a total purchase price of $939.1 million.

For the three months ended November 30, 2020, Cintas acquired less than 0.1 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested. These shares were acquired at an average price of $333.60 per share for a total purchase price of $2.4 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. 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, 2020, Cintas acquired 0.2 million shares of Cintas common stock for employee payroll taxes due on restricted stock awards that vested. These shares were acquired at an average price of $301.01 per share for a total purchase price of $71.4 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. These shares were acquired at an average price of $260.89 per share for a total purchase price of $65.7 million.