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) March 20, 2012
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 Number) |
6800 Cintas Boulevard, P.O. Box 625737, Cincinnati, Ohio |
|
45262-5737 |
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrants 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:
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 March 20, 2012, Cintas Corporation issued a press release announcing its financial results for the quarter ended February 29, 2012. 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.
Exhibit |
|
Description |
99 |
|
Press release dated March 20, 2012 |
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 hereunto duly authorized.
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| |
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CINTAS CORPORATION | |
|
|
| |
Date: March 20, 2012 |
|
By: |
/s/ William C. Gale |
|
|
|
William C. Gale |
|
|
|
Senior Vice President and Chief Financial Officer |
Exhibit 99
FOR IMMEDIATE RELEASE
March 20, 2012
Cintas Corporation Announces Fiscal 2012 Third Quarter Results
CINCINNATI, March 20, 2012 Cintas Corporation (Nasdaq:CTAS) today reported results for its third quarter ended February 29, 2012. Revenue for the third quarter was $1.01 billion, representing a 7.9% increase compared to last years third quarter. Organic growth, which adjusts for the impact of acquisitions and the impact of one additional workday compared to last years third quarter, was 5.9%. Recycled paper prices, which declined rapidly during our second fiscal quarter, remained at a relatively low level and negatively impacted revenue growth in our Document Management segment. This decline in recycled paper prices negatively impacted consolidated revenue growth by $5.6 million, or 0.6%, compared to last years third quarter.
The Companys third quarter operating income of $137.5 million was a 26.3% improvement as compared to last years third quarter. Net income increased 28.7% to $76.0 million as compared to $59.1 million in last years third quarter. Earnings per diluted share for the third quarter were $0.58, a 41.5% increase over the $0.41 earnings per diluted share reported in last years third quarter. This was the fifth consecutive quarter that operating income and earnings per diluted share grew in excess of 25%.
Scott D. Farmer, Chief Executive Officer, stated, Our results continue to reflect our focus on selling value and growing our business profitably. This high quality growth led us to our third quarter operating margin of 13.6%, which is a nice improvement over both last years third quarter operating margin of 11.6% and our second quarter operating margin of 13.0%. Our Rental Uniforms and Ancillary Products operating segment, which accounts for 71% of our consolidated revenue, had an operating margin of 15.6%, an improvement over the 12.9% operating margin from last years third quarter.
Mr. Farmer added, We continue to be pleased with the performance of all of our businesses and the execution of our game plan by our very talented team of employees, who we call partners.
The effective tax rates for the third quarter of fiscal 2012 and fiscal 2011 were 37.0% and 38.9%, respectively. We expect the effective tax rate for the entire 2012 fiscal year to be approximately 37.0%, as compared to 37.1% for the entire 2011 fiscal year.
Mr. Farmer concluded, As we enter our fourth quarter, we remain confident in our ability to execute our game plan of selling profitable business, managing our cost structure and improving efficiencies through process improvement. As a result, we are updating our fiscal 2012 guidance with revenue in the range of $4.09 billion to $4.12 billion and earnings per diluted share in the range of $2.24 to $2.27. This guidance assumes no significant deterioration in the current U.S. economy.
About Cintas
Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types primarily throughout North America. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, first aid, safety, fire protection products and services and document management services for approximately 900,000 businesses. Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of the Standard & Poors 500 Index.
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 words, terms and 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. You should not place undue reliance on any forward-looking statement. We cannot guarantee that any forward-looking statement will be realized. These statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or implied by this Press Release. Factors that might cause such a difference include, but are not limited to, the possibility of greater than anticipated operating costs including energy and fuel 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, disruptions caused by the inaccessibility of computer systems data, the initiation or outcome of litigation, investigations or other proceedings, higher assumed sourcing or distribution costs of products, the disruption of operations from catastrophic or extraordinary events, the amount and timing of repurchases of our common stock, if any, changes in federal and state tax and labor laws, the reactions of competitors in terms of price and service and the finalization of our financial statements for the quarter ended February 29, 2012. Cintas undertakes no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2011 and in our reports on Forms 10-Q and 8-K. The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not known to us or that we currently believe to be immaterial may also harm our business.
For additional information, contact:
William C. Gale, Sr. Vice President-Finance and Chief Financial Officer 513-573-4211
J. Michael Hansen, Vice President and Treasurer 513-701-2079
Cintas Corporation
Consolidated Condensed Statements of Income
(Unaudited)
(In thousands except per share data)
|
|
Three Months Ended |
| ||||||
|
|
February 29, |
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February 28, |
|
% Chng. |
| ||
|
|
|
|
|
|
|
| ||
Revenue: |
|
|
|
|
|
|
| ||
Rental uniforms and ancillary products |
|
$ |
721,012 |
|
$ |
664,976 |
|
8.4 |
|
Other services |
|
291,100 |
|
272,851 |
|
6.7 |
| ||
Total revenue |
|
$ |
1,012,112 |
|
$ |
937,827 |
|
7.9 |
|
|
|
|
|
|
|
|
| ||
Costs and expenses: |
|
|
|
|
|
|
| ||
Cost of rental uniforms and ancillary products |
|
$ |
409,958 |
|
$ |
380,224 |
|
7.8 |
|
Cost of other services |
|
176,251 |
|
165,682 |
|
6.4 |
| ||
Selling and administrative expenses |
|
288,367 |
|
283,045 |
|
1.9 |
| ||
|
|
|
|
|
|
|
| ||
Operating income |
|
$ |
137,536 |
|
$ |
108,876 |
|
26.3 |
|
|
|
|
|
|
|
|
| ||
Interest income |
|
$ |
(373 |
) |
$ |
(280 |
) |
33.2 |
|
Interest expense |
|
17,219 |
|
12,520 |
|
37.5 |
| ||
|
|
|
|
|
|
|
| ||
Income before income taxes |
|
$ |
120,690 |
|
$ |
96,636 |
|
24.9 |
|
Income taxes |
|
44,655 |
|
37,566 |
|
18.9 |
| ||
Net income |
|
$ |
76,035 |
|
$ |
59,070 |
|
28.7 |
|
|
|
|
|
|
|
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| ||
Per share data: |
|
|
|
|
|
|
| ||
Basic earnings per share |
|
$ |
0.58 |
|
$ |
0.41 |
|
41.5 |
|
Diluted earnings per share |
|
$ |
0.58 |
|
$ |
0.41 |
|
41.5 |
|
|
|
|
|
|
|
|
| ||
Weighted average number of shares outstanding |
|
129,735 |
|
145,303 |
|
|
| ||
Diluted average number of shares outstanding |
|
129,945 |
|
145,303 |
|
|
|
|
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Nine Months Ended |
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February 29, |
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February 28, |
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% Chng. |
| ||
|
|
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|
|
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Revenue: |
|
|
|
|
|
|
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Rental uniforms and ancillary products |
|
$ |
2,163,224 |
|
$ |
1,980,387 |
|
9.2 |
|
Other services |
|
885,194 |
|
817,910 |
|
8.2 |
| ||
Total revenue |
|
$ |
3,048,418 |
|
$ |
2,798,297 |
|
8.9 |
|
|
|
|
|
|
|
|
| ||
Costs and expenses: |
|
|
|
|
|
|
| ||
Cost of rental uniforms and ancillary products |
|
$ |
1,223,611 |
|
$ |
1,129,210 |
|
8.4 |
|
Cost of other services |
|
530,067 |
|
492,847 |
|
7.6 |
| ||
Selling and administrative expenses |
|
895,945 |
|
864,774 |
|
3.6 |
| ||
|
|
|
|
|
|
|
| ||
Operating income |
|
$ |
398,795 |
|
$ |
311,466 |
|
28.0 |
|
|
|
|
|
|
|
|
| ||
Interest income |
|
$ |
(1,141 |
) |
$ |
(1,252 |
) |
-8.9 |
|
Interest expense |
|
52,281 |
|
36,955 |
|
41.5 |
| ||
|
|
|
|
|
|
|
| ||
Income before income taxes |
|
$ |
347,655 |
|
$ |
275,763 |
|
26.1 |
|
Income taxes |
|
128,632 |
|
99,550 |
|
29.2 |
| ||
Net income |
|
$ |
219,023 |
|
$ |
176,213 |
|
24.3 |
|
|
|
|
|
|
|
|
| ||
Per share data: |
|
|
|
|
|
|
| ||
Basic earnings per share |
|
$ |
1.67 |
|
$ |
1.19 |
|
40.3 |
|
Diluted earnings per share |
|
$ |
1.67 |
|
$ |
1.19 |
|
40.3 |
|
|
|
|
|
|
|
|
| ||
Weighted average number of shares outstanding |
|
130,261 |
|
147,686 |
|
|
| ||
Diluted average number of shares outstanding |
|
130,321 |
|
147,686 |
|
|
|
CINTAS CORPORATION SUPPLEMENTAL DATA
|
|
Three Months Ended |
| ||||
|
|
February 29, |
|
February 28, |
| ||
Rental uniforms and ancillary products gross margin |
|
43.1 |
% |
42.8 |
% | ||
Other services gross margin |
|
39.5 |
% |
39.3 |
% | ||
Total gross margin |
|
42.1 |
% |
41.8 |
% | ||
Net margin |
|
7.5 |
% |
6.3 |
% | ||
|
|
|
|
|
| ||
Depreciation and amortization |
|
$ |
48,060 |
|
$ |
48,547 |
|
Capital expenditures |
|
$ |
37,884 |
|
$ |
54,164 |
|
|
|
Nine Months Ended |
| ||||
|
|
February 29, |
|
February 28, |
| ||
Rental uniforms and ancillary products gross margin |
|
43.4 |
% |
43.0 |
% | ||
Other services gross margin |
|
40.1 |
% |
39.7 |
% | ||
Total gross margin |
|
42.5 |
% |
42.0 |
% | ||
Net margin |
|
7.2 |
% |
6.3 |
% | ||
|
|
|
|
|
| ||
Depreciation and amortization |
|
$ |
145,086 |
|
$ |
144,292 |
|
Capital expenditures |
|
$ |
117,716 |
|
$ |
142,298 |
|
|
|
|
|
|
| ||
Debt / EBITDA |
|
1.9 |
|
1.5 |
|
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
The press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. To supplement its consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides additional measures of operating performance that may be considered non-GAAP financial measures. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance as well as prospects for future performance. A reconciliation of the differences between these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP is shown below.
Management believes organic growth adjusted for the number of workdays allows investors to review our results on a comparable basis.
|
|
Three Months Ended |
|
|
|
February 29, |
|
|
|
|
|
Revenue growth |
|
7.9 |
% |
Workday adjustment |
|
-1.6 |
% |
(65 days in Q3 FY12, 64 days in Q3 FY11) |
|
|
|
Acquisition adjustment |
|
-0.4 |
% |
Organic growth |
|
5.9 |
% |
Computation of Free Cash Flow
|
|
Nine Months Ended |
| ||||
|
|
February 29, |
|
February 28, |
| ||
|
|
|
|
|
| ||
Net Cash Provided by Operations |
|
$ |
307,714 |
|
$ |
207,955 |
|
|
|
|
|
|
| ||
Capital Expenditures |
|
$ |
(117,716 |
) |
$ |
(142,298 |
) |
|
|
|
|
|
| ||
Free Cash Flow |
|
$ |
189,998 |
|
$ |
65,657 |
|
Note: Management uses free cash flow to assess the financial performance of the Company. Management believes that free cash flow is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue, improve and grow business operations.
SUPPLEMENTAL SEGMENT DATA |
|
Rental |
|
Uniform |
|
First Aid, |
|
Document |
|
Corporate |
|
Total |
| ||||||
For the three months ended February 29, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenue |
|
$ |
721,012 |
|
$ |
109,114 |
|
$ |
101,378 |
|
$ |
80,608 |
|
$ |
|
|
$ |
1,012,112 |
|
Gross margin |
|
$ |
311,054 |
|
$ |
33,226 |
|
$ |
43,759 |
|
$ |
37,864 |
|
$ |
|
|
$ |
425,903 |
|
Selling and administrative expenses |
|
$ |
198,583 |
|
$ |
18,745 |
|
$ |
36,035 |
|
$ |
35,004 |
|
$ |
|
|
$ |
288,367 |
|
Interest income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
(373 |
) |
$ |
(373 |
) |
Interest expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
17,219 |
|
$ |
17,219 |
|
Income (loss) before income taxes |
|
$ |
112,471 |
|
$ |
14,481 |
|
$ |
7,724 |
|
$ |
2,860 |
|
$ |
(16,846 |
) |
$ |
120,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
For the three months ended February 28, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenue |
|
$ |
664,976 |
|
$ |
102,598 |
|
$ |
91,195 |
|
$ |
79,058 |
|
$ |
|
|
$ |
937,827 |
|
Gross margin |
|
$ |
284,752 |
|
$ |
30,222 |
|
$ |
37,890 |
|
$ |
39,057 |
|
$ |
|
|
$ |
391,921 |
|
Selling and administrative expenses |
|
$ |
199,194 |
|
$ |
17,839 |
|
$ |
33,262 |
|
$ |
32,750 |
|
$ |
|
|
$ |
283,045 |
|
Interest income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
(280 |
) |
$ |
(280 |
) |
Interest expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
12,520 |
|
$ |
12,520 |
|
Income (loss) before income taxes |
|
$ |
85,558 |
|
$ |
12,383 |
|
$ |
4,628 |
|
$ |
6,307 |
|
$ |
(12,240 |
) |
$ |
96,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
For the nine months ended February 29, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenue |
|
$ |
2,163,224 |
|
$ |
322,762 |
|
$ |
306,808 |
|
$ |
255,624 |
|
$ |
|
|
$ |
3,048,418 |
|
Gross margin |
|
$ |
939,613 |
|
$ |
95,461 |
|
$ |
132,346 |
|
$ |
127,320 |
|
$ |
|
|
$ |
1,294,740 |
|
Selling and administrative expenses |
|
$ |
623,247 |
|
$ |
59,331 |
|
$ |
107,277 |
|
$ |
106,090 |
|
$ |
|
|
$ |
895,945 |
|
Interest income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
(1,141 |
) |
$ |
(1,141 |
) |
Interest expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
52,281 |
|
$ |
52,281 |
|
Income (loss) before income taxes |
|
$ |
316,366 |
|
$ |
36,130 |
|
$ |
25,069 |
|
$ |
21,230 |
|
$ |
(51,140 |
) |
$ |
347,655 |
|
Assets |
|
$ |
2,543,951 |
|
$ |
422,931 |
|
$ |
369,288 |
|
$ |
564,383 |
|
$ |
352,614 |
|
$ |
4,253,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
For the nine months ended February 28, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenue |
|
$ |
1,980,387 |
|
$ |
310,167 |
|
$ |
278,044 |
|
$ |
229,699 |
|
$ |
|
|
$ |
2,798,297 |
|
Gross margin |
|
$ |
851,177 |
|
$ |
92,724 |
|
$ |
114,480 |
|
$ |
117,859 |
|
$ |
|
|
$ |
1,176,240 |
|
Selling and administrative expenses |
|
$ |
609,289 |
|
$ |
57,215 |
|
$ |
100,967 |
|
$ |
97,303 |
|
$ |
|
|
$ |
864,774 |
|
Interest income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
(1,252 |
) |
$ |
(1,252 |
) |
Interest expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
36,955 |
|
$ |
36,955 |
|
Income (loss) before income taxes |
|
$ |
241,888 |
|
$ |
35,509 |
|
$ |
13,513 |
|
$ |
20,556 |
|
$ |
(35,703 |
) |
$ |
275,763 |
|
Assets |
|
$ |
2,508,299 |
|
$ |
294,238 |
|
$ |
358,536 |
|
$ |
594,292 |
|
$ |
216,705 |
|
$ |
3,972,070 |
|
Cintas Corporation
Consolidated Balance Sheets
(In thousands except share data)
|
|
February 29, |
|
May 31, |
| ||
|
|
(Unaudited) |
|
|
| ||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash & cash equivalents |
|
$ |
217,983 |
|
$ |
438,106 |
|
Marketable securities |
|
134,631 |
|
87,220 |
| ||
Accounts receivable, net |
|
439,650 |
|
429,131 |
| ||
Inventories, net |
|
275,673 |
|
249,658 |
| ||
Uniforms and other rental items in service |
|
434,475 |
|
393,826 |
| ||
Income taxes, current |
|
37,386 |
|
33,542 |
| ||
Deferred tax asset |
|
56,422 |
|
45,813 |
| ||
Prepaid expenses and other |
|
29,316 |
|
23,481 |
| ||
Total current assets |
|
1,625,536 |
|
1,700,777 |
| ||
|
|
|
|
|
| ||
Property and equipment, at cost, net |
|
944,034 |
|
946,218 |
| ||
|
|
|
|
|
| ||
Goodwill |
|
1,486,465 |
|
1,487,882 |
| ||
Service contracts, net |
|
81,666 |
|
102,312 |
| ||
Other assets, net |
|
115,466 |
|
114,751 |
| ||
|
|
|
|
|
| ||
|
|
$ |
4,253,167 |
|
$ |
4,351,940 |
|
|
|
|
|
|
| ||
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
|
$ |
115,566 |
|
$ |
110,279 |
|
Accrued compensation and related liabilities |
|
83,007 |
|
79,834 |
| ||
Accrued liabilities |
|
224,355 |
|
242,691 |
| ||
Long-term debt due within one year |
|
225,633 |
|
1,335 |
| ||
Total current liabilities |
|
648,561 |
|
434,139 |
| ||
|
|
|
|
|
| ||
Long-term liabilities: |
|
|
|
|
| ||
Long-term debt due after one year |
|
1,059,276 |
|
1,284,790 |
| ||
Deferred income taxes |
|
206,047 |
|
196,321 |
| ||
Accrued liabilities |
|
142,656 |
|
134,041 |
| ||
Total long-term liabilities |
|
1,407,979 |
|
1,615,152 |
| ||
|
|
|
|
|
| ||
Shareholders equity: |
|
|
|
|
| ||
Preferred stock, no par value: |
|
|
|
|
| ||
100,000 shares authorized, none outstanding |
|
|
|
|
| ||
Common stock, no par value: |
|
145,120 |
|
135,401 |
| ||
425,000,000 shares authorized |
|
|
|
|
| ||
FY12: 173,652,551 issued and 129,742,251 outstanding |
|
|
|
|
| ||
FY11: 173,346,180 issued and 137,583,884 outstanding |
|
|
|
|
| ||
Paid-in capital |
|
102,201 |
|
95,732 |
| ||
Retained earnings |
|
3,403,459 |
|
3,255,256 |
| ||
Treasury stock: |
|
|
|
|
| ||
FY12: 43,910,300 shares |
|
|
|
|
| ||
FY11: 35,762,296 shares |
|
(1,505,229 |
) |
(1,242,547 |
) | ||
Other accumulated comprehensive income (loss): |
|
|
|
|
| ||
Foreign currency translation |
|
60,871 |
|
70,214 |
| ||
Unrealized loss on derivatives |
|
(10,710 |
) |
(12,326 |
) | ||
Other |
|
915 |
|
919 |
| ||
Total shareholders equity |
|
2,196,627 |
|
2,302,649 |
| ||
|
|
|
|
|
| ||
|
|
$ |
4,253,167 |
|
$ |
4,351,940 |
|
Cintas Corporation
Consolidated Condensed Statements of Cash Flows
(Unaudited)
(In thousands)
|
|
Nine Months Ended |
| ||||
|
|
February 29, |
|
February 28, |
| ||
|
|
|
|
|
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Net income |
|
$ |
219,023 |
|
$ |
176,213 |
|
|
|
|
|
|
| ||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation |
|
115,566 |
|
112,126 |
| ||
Amortization of deferred charges |
|
29,520 |
|
32,166 |
| ||
Stock-based compensation |
|
15,023 |
|
9,813 |
| ||
Deferred income taxes |
|
(995 |
) |
22,524 |
| ||
Change in current assets and liabilities, net of acquisitions of businesses: |
|
|
|
|
| ||
Accounts receivable, net |
|
(11,760 |
) |
(32,844 |
) | ||
Inventories, net |
|
(26,958 |
) |
(61,620 |
) | ||
Uniforms and other rental items in service |
|
(40,435 |
) |
(38,433 |
) | ||
Prepaid expenses and other |
|
(5,977 |
) |
(2,418 |
) | ||
Accounts payable |
|
6,372 |
|
26,974 |
| ||
Accrued compensation and related liabilities |
|
3,251 |
|
241 |
| ||
Accrued liabilities |
|
9,327 |
|
(40,663 |
) | ||
Income taxes payable |
|
(4,243 |
) |
3,876 |
| ||
|
|
|
|
|
| ||
Net cash provided by operating activities |
|
307,714 |
|
207,955 |
| ||
|
|
|
|
|
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Capital expenditures |
|
(117,716 |
) |
(142,298 |
) | ||
Proceeds from redemption of marketable securities |
|
519,955 |
|
137,879 |
| ||
Purchase of marketable securities and investments |
|
(576,404 |
) |
(23,174 |
) | ||
Acquisitions of businesses, net of cash acquired |
|
(20,882 |
) |
(158,517 |
) | ||
Other |
|
1,853 |
|
(2,845 |
) | ||
|
|
|
|
|
| ||
Net cash used in investing activities |
|
(193,194 |
) |
(188,955 |
) | ||
|
|
|
|
|
| ||
Cash flows from financing activities: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Proceeds from issuance of debt |
|
|
|
304,781 |
| ||
Repayment of debt |
|
(1,216 |
) |
(282,755 |
) | ||
Exercise of stock-based compensation awards |
|
356 |
|
|
| ||
Dividends paid |
|
(70,820 |
) |
(71,812 |
) | ||
Repurchase of common stock |
|
(262,682 |
) |
(203,214 |
) | ||
Other |
|
1,390 |
|
930 |
| ||
|
|
|
|
|
| ||
Net cash used in financing activities |
|
(332,972 |
) |
(252,070 |
) | ||
|
|
|
|
|
| ||
Effect of exchange rate changes on cash and cash equivalents |
|
(1,671 |
) |
6,520 |
| ||
|
|
|
|
|
| ||
Net decrease in cash and cash equivalents |
|
(220,123 |
) |
(226,550 |
) | ||
|
|
|
|
|
| ||
Cash and cash equivalents at beginning of period |
|
438,106 |
|
411,281 |
| ||
|
|
|
|
|
| ||
Cash and cash equivalents at end of period |
|
$ |
217,983 |
|
$ |
184,731 |
|