CINCINNATI, December 17, 1998 — Cintas Corporation
announced that revenues for the second quarter were $367 million up 25% from
$294 million last year. Income before income taxes increased 30% to $65 million.
Net income was $40 million, an increase of 29% on a pro forma basis. Diluted
earnings per share of $.37 increased 23% over the pro forma $.30 per share last
year. Prior year numbers reflect the restatement of Cintas financial results to
include the impact of the acquisition of Uniforms To You (UTY) in April 1998
which was accounted for as a pooling of interests. UTY had previously been a
“Sub-Chapter S” Corporation and had not recognized federal or state income taxes
in its results. All UTY income taxes were previously paid by the shareholders
rather than the Corporation. The income statement for UTY prior to April 8, 1998
did not reflect a tax provision. In order to show comparable results, a pro
forma calculation is made adding a tax provision to UTY results for prior
periods. For the first six months of the fiscal year, revenues of $722
million represent a 27% increase compared to $567 million reported last year.
Net income of $74 million increased 28% over pro forma net income of $58 million
last year. Diluted earnings per share for the first six months were $.69 versus
the pro forma $.56 per share last year, a 23% increase. Richard T. Farmer, Chairman and Founder of the Cincinnati-based
uniform company commented, “We are pleased with our results for the second
quarter. Our core business, the uniform rental business, continues to experience
a healthy growth rate. Our other service revenues including catalog sales,
national account sales, the First Aid and Safety business and our new Uniforms
To You division contributed nicely to the Company’s performance. The remainder
of fiscal year 1999 looks promising, and record sales and earnings are expected
for the thirtieth consecutive year.” Cintas is a leader in the corporate identity uniform business
and also provides a wide range of ancillary services including entrance mats,
sanitation supplies and first aid products and services. Cintas is publicly-held
company traded over the Nasdaq
under the symbol CTAS.
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor from civil litigation for forward-looking statements. This press
release contains forward-looking statements that reflect the Company's current
views as to future events and financial performance. These forward-looking
statements are made based on management’s expectations and beliefs concerning
future events impacting the Company and therefore involve a number of risks and
uncertainties. Management cautions that forward-looking statements are not
guarantees and that actual results could differ materially from those expressed
or implied in the forward-looking statements. For additional information, contact:
William C.
Gale, Vice President-Finance & CFO, 513/573-4211
Karen L. Carnahan, Vice
President & Treasurer,
513/573-4013