8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) September 27, 2007  

CINTAS CORPORATION

(Exact name of registrant as specified in its charter)

Washington	0-11399	31-1188630
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6800 Cintas Boulevard, P.O. Box 625737, Cincinnati, Ohio	45262-5737
(Address of principal executive offices)	Zip Code

Registrant’s telephone number, including area code (513) 459-1200

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)  

 o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)  

 o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))  

 o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))  

Item 2.02 – Results of Operations and Financial Condition.

On September 27, 2007, the Registrant issued a press release announcing its financial results for the quarter ended August 31, 2007.  A copy of the press release is furnished as Exhibit 99 to this report and is incorporated herein by reference.

Item 9.01. – Financial Statements and Exhibits.

(d)           Exhibits.

99           Press release dated September 27, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CINTAS CORPORATION
Date:  September 28, 2007	By:	/s/ William C. Gale
		William C. Gale
		Senior Vice President and
		Chief Financial Officer

EX-99

FOR IMMEDIATE RELEASE

September 27, 2007

Cintas Corporation Reports First Quarter Fiscal 2008

Revenue and Earnings and Announces International Expansion

New Sales Organization Gaining Momentum

Company Acquires Business in Europe

CINCINNATI, September 27, 2007 -- Cintas Corporation (Nasdaq:CTAS) today reported revenue for the first quarter of fiscal 2008 of $969.1 million, a 6.0% increase from the previous year’s first quarter revenue of $914.2 million.  Net income was $81.1 million and earnings per diluted share were $0.51.

Scott D. Farmer, President and Chief Executive Officer, stated, “Our results for the first quarter are in line with our expectations.  Our new sales organization is now fully staffed and operational.  We believe that the initial disruption in new business sales caused by the rollout of this new organization is behind us and we are beginning to see an improvement in new business results.  We expect the new sales organization to continue to gain strength and momentum, resulting in improving revenue growth as we progress through the rest of our fiscal year.”

While net income and earnings per diluted share decreased 4.6% and 3.8%, respectively, as compared to the first quarter of last fiscal year, the results were in line with Company projections.  The Company indicated that the investment in the new sales organization has impacted profitability, as expected.  Mr. Farmer stated, “The investment in the new organization has been made in order to enhance future growth opportunities.  As the amount of new business sold improves under this new organization, we expect our selling costs as a percent of revenue to begin to trend back to more traditional levels.”

International Expansion

In addition to their first quarter results, Cintas announced that it has expanded internationally.  Scott Farmer stated, “I am very pleased to announce that we have acquired Certo Information Management, a privately-held document shredding and storage business located in the Netherlands.  We are very excited about the opportunity to now expand our services outside of North America.  While the revenue added directly from this acquisition is not material to our operations, our hope and intent is that experience gained from operating this business will provide a platform for further international expansion.”

Strong Balance Sheet and Cash Flow

The Company’s balance sheet continues to be strong.  As of August 31, 2007, the Company’s current assets exceeded current liabilities by over a four to one ratio and debt to total capitalization was 28.2%.  The Company’s cash flow from operations continues to be healthy.

As of June 1, 2007, the Company adopted FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes– an interpretation of FASB Statement No. 109.  As a result of the implementation of FIN 48, the Company recorded a $14 million decrease to opening retained earnings as of June 1, 2007, and a corresponding tax reserve was established.

New Segment Reporting

Cintas also announced that beginning this quarter it will increase the number of operating segments reported in the Company’s financial statements.  Scott Farmer stated, “Our Document Management business and our First Aid, Safety and Fire business have grown to a sufficient size and scale that we believe reporting these businesses as separate operating segments is appropriate.  These emerging businesses, which have historically been included in our “Other Services” operating segment, will now be broken out separately.”

As a result of this change, the Company will now report results for five operating segments:  Rental Uniforms and Ancillary Products; Uniform Direct Sales; First Aid, Safety and Fire Protection Services; Document Management Services; and Corporate.

Outlook

Mr. Farmer stated, “Our first quarter results are in line with our expectations for the quarter.  Based on these results and the improvement we are beginning to experience in our new business sales, we reiterate our full fiscal year guidance of $3.9 billion to $4.1 billion in revenue and earnings per diluted share of $2.15 to $2.25.  Achieving this guidance would allow us to reach our 39^th consecutive year of growth in revenue and earnings.”

About Cintas

Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types predominantly in the United States and Canada. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, first aid and safety products, fire protection services and document management services for approximately 800,000 businesses. Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol CTAS, and is a Nasdaq-100 company and component of the Standard & Poor’s 500 Index. The Company has achieved 38 consecutive years of growth in sales and earnings, to date.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements.  Forward-looking statements may be identified by words such as “estimates”, “anticipates”, “predicts”, “projects”, “plans”, “expects”, “intends”, “target”, “forecast”, “believes”, “seeks”, “could”, “should”, “may” and “will” or the negative versions thereof and similar expressions and by the context in which they are used.  Such statements are based upon current expectations of Cintas and speak only as of the date made.  We cannot guarantee that any forward-looking statement will be realized.  These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ from those set forth in or implied by this news release.  Factors that might cause such a difference include, but are not limited to, the possibility of greater than anticipated operating costs including energy costs, lower sales volumes, loss of customers due to outsourcing trends, the performance and costs of integration of acquisitions, fluctuations in costs of materials and labor including increased medical costs, costs and possible effects of union organizing activities, failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, the cost, results and ongoing assessment of internal controls for financial reporting required by the Sarbanes-Oxley Act of 2002, the initiation or outcome of litigation, higher assumed sourcing or distribution costs of products, the disruption of operations from catastrophic events, changes in federal and state tax laws and the reactions of competitors in terms of price and service.  Cintas undertakes no obligation to update any forward-looking statements whether as a result of new information or to reflect events or circumstances arising after the date on which they are made.  You are advised, however, to consult any further disclosures we make on related subjects in our Form 10-Q, 8K and 10-K reports to the SEC.

For additional information, contact:

William C. Gale, Senior Vice President-Finance and Chief Financial Officer - 513-573-4211

Michael L. Thompson, Vice President and Treasurer – 513-573-4133

Cintas Corporation

Consolidated Condensed Statements of Income

(Unaudited)

(In thousands except per share data)

	Three Months Ended
	Aug. 31, 2007			Aug. 31, 2006			% Chng.
Revenue:
Rental uniforms and ancillary products	$	710,354		$	687,658			3.3
Other services		258,774			226,503			14.2
Total revenue	$	969,128		$	914,161			6.0
Costs and expenses (income):
Cost of rental uniforms and ancillary products	$	391,490		$	378,300			3.5
Cost of other services		160,266			145,380			10.2
Selling and administrative expenses		276,710			244,128			13.3
Interest income		(1,462	)		(1,526	)		-4.2
Interest expense		12,837			12,432			3.3
Total costs and expenses	$	839,841		$	778,714			7.8
Income before income taxes	$	129,287		$	135,447			-4.5
Income taxes		48,224			50,485			-4.5
Net income	$	81,063		$	84,962			-4.6
Per share data:
Basic earnings per share	$	0.51		$	0.53			-3.8
Diluted earnings per share	$	0.51		$	0.53			-3.8
Basic shares outstanding		158,771			160,770
Diluted shares outstanding		159,038			161,147

CINTAS CORPORATION SUPPLEMENTAL DATA

	Three Months Ended
	Aug. 31, 2007			Aug. 31, 2006			% Chng.
Rental uniforms and ancillary products gross margin		44.9	%		45.0	%
Other services gross margin		38.1	%		35.8	%
Total gross margin		43.1	%		42.7	%
Net margin		8.4	%		9.3	%
Depreciation and amortization		$46,222			$42,768			8.1
Capital expenditures		$45,344			$36,496			24.2
Debt to total capitalization		28.2	%		29.5	%

SUPPLEMENTAL SEGMENT DATA	Rental Uniforms and Ancillary Products		Uniform Direct Sales		First Aid, Safety and Fire Protection		Document Management		Corporate			Total
For the three months ended August 31, 2007
Revenue	$	710,354	$	118,805	$	102,256	$	37,713	$	0		$	969,128
Gross margin	$	318,864	$	36,470	$	41,820	$	20,218	$	0		$	417,372
Selling and administrative expenses	$	204,071	$	25,343	$	31,199	$	16,097	$	0		$	276,710
Income (loss) before income taxes	$	114,793	$	11,127	$	10,621	$	4,121	$	(11,375	)	$	129,287
Assets	$	2,592,401	$	182,278	$	332,757	$	375,122	$	138,272		$	3,620,830
For the three months ended August 31, 2006
Revenue	$	687,658	$	116,997	$	88,336	$	21,170	$	0		$	914,161
Gross margin	$	309,358	$	35,693	$	34,330	$	11,100	$	0		$	390,481
Selling and administrative expenses	$	185,278	$	23,790	$	25,151	$	9,909	$	0		$	244,128
Income (loss) before income taxes	$	124,080	$	11,903	$	9,179	$	1,191	$	(10,906	)	$	135,447
Assets	$	2,519,943	$	163,572	$	287,521	$	238,291	$	174,894		$	3,384,221

RECONCILIATION TO GAAP MEASURES

	Three Months Ended
	Aug. 31, 2007			Aug. 31, 2006			% Chng.
Income before income taxes	$	129,287		$	135,447			-4.5
Interest income		(1,462	)		(1,526	)		-4.2
Interest expense		12,837			12,432			3.3
Earnings before interest and taxes	$	140,662		$	146,353			-3.9

Cintas Corporation

Consolidated Condensed Balance Sheets

(In thousands except share data)

	Aug. 31, 2007 (Unaudited)			May 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	40,841		$	35,360
Marketable securities		97,431			120,053
Accounts receivable, net		409,441			408,870
Inventories, net		236,102			231,741
Uniforms and other rental items in service		352,279			344,931
Deferred tax assets		19,912			-
Prepaid expenses		17,896			15,781
Total current assets		1,173,902			1,156,736
Property and equipment, at cost, net		933,233			920,243
Goodwill		1,270,780			1,245,877
Service contracts, net		166,223			171,361
Other assets, net		76,692			76,263
	$	3,620,830		$	3,570,480
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	70,093		$	64,622
Accrued compensation & related liabilities		34,517			62,826
Accrued liabilities		124,174			200,686
Income taxes:
Current		27,966			18,584
Deferred		-			52,179
Long-term debt due within one year		4,161			4,141
Total current liabilities		260,911			403,038
Long-term liabilities:
Long-term debt due after one year		876,522			877,074
Deferred income taxes		122,884			122,630
Accrued liabilities		116,552			0
Total long-term liabilities		1,115,958			999,704
Shareholders' equity:
Preferred stock, no par value: 100,000 shares authorized, none outstanding		-			-
Common stock, no par value: 425,000,000 shares authorized
FY 2008:  173,057,674 issued and 158,860,351 outstanding
FY 2007:  172,874,195 issued and 158,676,872 outstanding		128,041			120,811
Paid-in capital		55,542			56,909
Retained earnings		2,600,792			2,533,459
Treasury stock FY 2008:  14,197,323; FY 2007:  14,197,323		(580,562	)		(580,562	)
Other accumulated comprehensive income		40,148			37,121
Total shareholders' equity		2,243,961			2,167,738
	$	3,620,830		$	3,570,480

Cintas Corporation

Consolidated Condensed Statements of Cash Flows

(Unaudited)

(In thousands)

	Three Months Ended
	Aug. 31, 2007			Aug. 31, 2006
Cash flows from operating activities:
Net income	$	81,063		$	84,962
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		35,636			33,078
Amortization of deferred charges		10,586			9,690
Stock-based compensation		2,132			(598	)
Deferred income taxes		17,418			10,772
Change in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable		644			(1,202	)
Inventories		(4,293	)		(12,381	)
Uniforms and other rental items in service		(7,128	)		(2,311	)
Prepaid expenses		(2,117	)		634
Accounts payable		5,435			(11,770	)
Accrued compensation and related liabilities		(28,386	)		(2,777	)
Accrued liabilities		(77,865	)		(58,777	)
Income taxes payable		24,001			6,524
Net cash provided by operating activities		57,126			55,844
Cash flows from investing activities:
Capital expenditures		(45,344	)		(36,496	)
Proceeds from sale or redemption of marketable securities		29,156			66,214
Purchase of marketable securities and investments		(6,237	)		(3,527	)
Acquisitions of businesses, net of cash acquired		(32,630	)		(25,101	)
Other		177			(1,954	)
Net cash used in investing activities		(54,878	)		(864	)
Cash flows from financing activities:
Proceeds from issuance of debt		224,750			252,460
Repayment of debt		(225,282	)		(194,283	)
Stock options exercised		7,230			3,403
Repurchase of common stock		-			(114,418	)
Other		(3,465	)		(6,091	)
Net cash provided by (used in) financing activities		3,233			(58,929	)
Net increase/(decrease) in cash and cash equivalents		5,481			(3,949	)
Cash and cash equivalents at beginning of period		35,360			38,914
Cash and cash equivalents at end of period	$	40,841		$	34,965