Earnings Per Share

9 Months Ended

Feb. 28, 2021

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				Nine Months Ended
Basic Earnings per Share from Continuing Operations (in thousands except per share data)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020

Income from continuing operations	$	258,384	$	234,520	$	843,246	$	731,775
Less: income from continuing operations allocated to participating securities	1,894		2,193		5,908		6,864
Income from continuing operations available to common shareholders	$	256,490	$	232,327	$	837,338	$	724,911
Basic weighted average common shares outstanding	105,264		104,245		104,782		103,840

Basic earnings per share from continuing operations	$	2.44	$	2.23	$	7.99	$	6.98


	Three Months Ended				Nine Months Ended
Diluted Earnings per Share from Continuing Operations (in thousands except per share data)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020

Income from continuing operations	$	258,384	$	234,520	$	843,246	$	731,775
Less: income from continuing operations allocated to participating securities	1,894		2,193		5,908		6,864
Income from continuing operations available to common shareholders	$	256,490	$	232,327	$	837,338	$	724,911
Basic weighted average common shares outstanding	105,264		104,245		104,782		103,840
Effect of dilutive securities – employee stock options	2,732		3,343		2,914		3,440
Diluted weighted average common shares outstanding	107,996		107,588		107,696		107,280

Diluted earnings per share from continuing operations	$	2.37	$	2.16	$	7.78	$	6.76

There were no discontinued operations for the three or nine months ended February 28, 2021. For the three and nine months ended February 29, 2020, both basic and diluted earnings per share from discontinued operations rounded to zero.

For the three months ended February 28, 2021 and February 29, 2020, options granted to purchase 0.1 million shares of Cintas common stock were excluded from the computation of diluted earnings per share. For the nine months ended February 28, 2021 and February 29, 2020, options granted to purchase 0.2 million shares of Cintas common stock 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. The October 30, 2018 share buyback program was completed during the third quarter of fiscal 2021. From the inception of the October 30, 2018 share buyback program through February 28, 2021, Cintas purchased a total of 4.5 million shares of Cintas common stock at an average price of $223.68 per share for a total purchase price of $1.0 billion. 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.

The following tables summarize the share buyback activity by program and fiscal period:


	Three Months Ended					Nine Months Ended
	February 28, 2021					February 28, 2021
Buyback Program (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price

October 30, 2018	190	$	319.88	$	60,877	190	$	319.88	$	60,877
October 29, 2019	66	$	321.51	$	21,080	66	$	321.51	$	21,080
	256	$	320.30	$	81,957	256	$	320.30	$	81,957


	Three Months Ended					Nine Months Ended
	February 29, 2020					February 29, 2020
Buyback Program (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price

October 30, 2018	—	$	—	$	—	837	$	230.66	$	193,109
October 29, 2019	—	$	—	$	—	—	$	—	$	—
	—	$	—	$	—	837	$	230.66	$	193,109

In the period subsequent to February 28, 2021, through April 6, 2021, we purchased less than 0.1 million shares of Cintas common stock at an average price of $337.39 for a total purchase price of $8.0 million. From the inception of the October 29, 2019 program through April 6, 2021, Cintas has purchased less than 0.1 million shares of Cintas common stock in the aggregate, at an average price of $325.71 per share, for a total purchase price of $29.1 million. For the three months ended February 28, 2021, 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 $332.73 per share for a total purchase price of $1.2 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. 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 28, 2021, 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 $301.49 per share for a total purchase price of $72.5 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. These shares were acquired at an average price of $261.48 per share for a total purchase price of $68.4 million.