Cintas Corporation Announces Record Sales and Profits For the Second Quarter Ended November 30, 1999

CINCINNATI, Dec  16 - Cintas Corporation - announced today record results for the second quarter ended November 30, 1999. Prior year numbers have been restated to include the results of Unitog, acquired by Cintas in March 1999 and accounted for as a pooling of interests. Revenue for the second quarter was $466 million. The following table represents selected revenue information for the quarter:

THREE MONTHS ENDED
(in thousands)
  11/30/99 11/30/98 % CHANGE
Cintas Rental Revenue (Excl.Unitog) $301,732 $264,866 14%
Cintas Other Service Revenue (Excl.Unitog) $105,391 $102,461 3%
Unitog Revenue $ 58,726 $ 69,171 -15%
Total Revenue $465,849 $436,498 7%

The revenue contribution from Unitog declined from the prior year due to a number of factors: 

Net income of $48.3 million increased 9% over the second quarter of last year. In the second quarter of last fiscal year, Unitog reported non-recurring income items in the amount of $4.1 million ($2.5 million after tax). Without these non-recurring items, net income increased 16% over the prior year. Diluted earnings per share of $.43 increased 10% over the prior year, and increased 16% excluding the non-recurring income from the prior year.

For the first six months of the fiscal year, total revenue of $923.2 million increased 7% compared to $862.9 million reported last year. Net income of $91.5 million increased 14% from $80.6 million last year. Excluding the non-recurring income previously explained, net income increased 17%. Diluted earnings per share of $.81 increased 14% for the first six months and increased 17% excluding the non-recurring income from the prior year. Richard T. Farmer, Chairman of the Cincinnati-based uniform Company, commented, ``The consolidation and integration of Unitog is well ahead of schedule. The more rapid consolidation pace means some expenses -- including overhead and uniform replacement costs -- are occurring over a shorter timeframe. This acceleration means a more rapid achievement of anticipated profit improvements for the Unitog operations.

We are also pleased about the recently-released government statistics on the size and growth of the uniform rental industry. The industry grew at a healthy 9.3% in calendar year 1998, which is up substantially from the previous year and higher than the average growth for the previous five and ten year periods.

We are well on our way to achieving our 31st consecutive year of record sales and profits and are confident that we will be able to continue to report impressive increases in both sales and profits in the future.`` The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. This news release contains forward-looking statements that reflect the Company's current views as to future events and financial performance with respect to its operations. These statements are subject to risks and uncertainties which could cause actual results to differ materially from those set forth in this press release. Factors that might cause such a difference include the possibility of greater than anticipated operating costs, lower sales volumes and higher assumed sourcing or distribution costs of products and the reactions of competitors in terms of price and service. Forward-looking statements speak only as of the date made. Cintas undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date of which they are made. Cintas is a leader in the corporate identity uniform business and also provides many ancillary services including entrance mats, sanitation supplies, first aid products and services and cleanroom services. Cintas is publicly-traded over the Nasdaq under the symbol CTAS.  

CINTAS CORPORATION 
Second Quarter Results
Fiscal 2000 and 1999
(000's except per share data)
(Unaudited)
Three Months Ended

 

November 30 1999

November 30 1998

Percent Increase

Rental Revenues

$349,726

$320,342

9%

Other Service Revenues

$116,123

$116,156

--

Total Revenues

$465,849

$436,498

7%

Income Before Income Taxes

$ 78,010

$ 71,960

8%

Income Taxes

$ 29,675

$ 27,581

8%

Net Income

$ 48,335

$ 44,379

9%

Basic Earnings Per Share

$.43

$.40

8%

Diluted Earnings Per Share

$.43

$.39

10%

Weighted Shares Outstanding - Basic

111,265

110,358

Weighted Shares Outstanding - Diluted

113,221

112,572


CINTAS CORPORATION 
Second Quarter Results
Fiscal 2000 and 1999
(000's except per share data)
(Unaudited)
Six Months Ended

 

November 30 1999

November 30 1998

Percent Increase

Rental Revenues

$694,243

$637,833

9%

Other Service Revenues

$228,981

$225,095

2%

Total Revenues

$923,224

$862,928

7%

Income Before Income Taxes

$147,933

$131,162

13%

Income Taxes

$ 56,433

$ 50,533

12%

Net Income

$ 91,500

$ 80,629

13%

Basic Earnings Per Share

$.82

$.73

12%

Diluted Earnings Per Share

$.81

$.71

14%

Weighted Shares Outstanding - Basic

111,132

110,402

Weighted Shares Outstanding - Diluted

113,184

112,894

 

 

SOURCE Cintas Corporation
For additional information, contact:
William C. Gale, Vice President-Finance and CFO - 513-573-4211
Karen L. Carnahan, Vice President and Treasurer - 513-573-4013