Earnings Per Share

6 Months Ended

Nov. 30, 2023

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 (In thousands except per share data)	November 30, 2023		November 30, 2022		November 30, 2023		November 30, 2022

Net income	$	374,613	$	324,293	$	759,698	$	675,982
Less: net income allocated to participating securities	1,460		1,372		2,957		2,859
Net income available to common shareholders	$	373,153	$	322,921	$	756,741	$	673,123
Basic weighted average common shares outstanding	101,667		101,637		101,781		101,530

Basic earnings per share	$	3.67	$	3.18	$	7.43	$	6.63



	Three Months Ended				Six Months Ended
Diluted Earnings per Share (In thousands except per share data)	November 30, 2023		November 30, 2022		November 30, 2023		November 30, 2022

Net income	$	374,613	$	324,293	$	759,698	$	675,982
Less: net income allocated to participating securities	1,460		1,372		2,957		2,859
Net income available to common shareholders	$	373,153	$	322,921	$	756,741	$	673,123
Basic weighted average common shares outstanding	101,667		101,637		101,781		101,530
Effect of dilutive securities – employee stock options	1,599		1,719		1,637		1,813
Diluted weighted average common shares outstanding	103,266		103,356		103,418		103,343

Diluted earnings per share	$	3.61	$	3.12	$	7.32	$	6.51

For the three months ended November 30, 2023 and 2022, options granted to purchase 0.5 million and 1.1 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. For the six months ended November 30, 2023 and 2022, options granted to purchase 0.3 million and 0.9 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 July 27, 2021, Cintas announced that the Board of Directors authorized a $1.5 billion share buyback program, which does not have an expiration date. On July 26, 2022, Cintas announced that the Board of Directors authorized a new $1.0 billion share buyback program, which does not have an expiration date. The following table summarizes the share buyback activity by program and period:


	Three Months Ended					Six Months Ended
	November 30, 2023					November 30, 2023

Buyback Activity (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price

July 27, 2021	658	$	486.58	$	320,266	658	$	486.58	$	320,266
July 26, 2022	—	—		—		—	—		—
	658	$	486.58	$	320,266	658	$	486.58	$	320,266

Shares acquired for taxes due (1)	58	$	518.89	$	29,586	203	$	507.61	$	102,862

Total repurchase of Cintas common stock				$	349,852				$	423,128

	Three Months Ended					Six Months Ended
	November 30, 2022					November 30, 2022
Buyback Activity (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price

July 27, 2021	12	$	377.66	$	4,683	544	$	395.97	$	215,434
July 26, 2022	—	—		—		—	—		—
	12	$	377.66	$	4,683	544	$	395.97	$	215,434

Shares acquired for taxes due (1)	56	$	423.64	$	23,665	326	$	408.97	$	133,248

Total repurchase of Cintas common stock				$	28,348				$	348,682

(1) Shares of Cintas common stock acquired for employee payroll taxes due on options exercised and vested restricted stock awards.

In addition to the share buyback activity presented above, Cintas acquired shares of Cintas common stock, via non-cash transactions, in connection with net-share settlements of option exercises. The following table summarizes Cintas' non-cash share buyback activity:


	Three Months Ended					Six Months Ended
	November 30, 2023					November 30, 2023

(In thousands except per share data)	Shares	Avg. Price per Share		Non-Cash Value		Shares	Avg. Price per Share		Non-Cash Value

Non-cash transaction activity	68	$	514.75	$	35,087	186	$	506.82	$	94,300

	Three Months Ended					Six Months Ended
	November 30, 2022					November 30, 2022
	Shares	Avg. Price per Share		Non-Cash Value		Shares	Avg. Price per Share		Non-Cash Value

Non-cash transaction activity	66	$	421.85	$	27,975	260	$	414.46	$	107,566