Investor
Relations:
Cintas Corporation Announces Record Sales And Profits For The
Third
Quarter Ended February 28, 1999
CINCINNATI, March 19, 1999 — Cintas Corporation announced that revenues for the third quarter were $361 million up 19% from $302 million last year. Income before income taxes increased 29% to $61 million. Net income was $38 million, an increase of 29% on a pro forma basis. Diluted earnings per share of $.35 increased 25% over the pro forma $.28 per share last year. Prior year numbers reflect the restatement of Cintas financial results to include the impact of the acquisition ofUniforms 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 nine months of the fiscal year, revenues of $1.1 billion represent a 25% increase compared to $870 million reported last year. Net income of $112 million increased 28% over pro forma net income of $87 million last year. Diluted earnings per share for the first nine months were $1.04 versus the pro forma $.84 per share last year, a 24% increase.
In January, 1999, Cintas announced that it had entered into a definitive merger agreement to acquire Unitog Company, the fifth largest uniform rental company in the industry. Unitog has annual revenues of approximately $270 million and is a publicly-held company traded over NASDAQ. The merger is subject to approval by Unitog's shareholders, who are scheduled to meet on March 24, 1999. Cintas anticipates that the merger will also close on March 24, 1999.
Richard T. Farmer, Chairman and Founder of the Cincinnati-based uniform company commented, "We are pleased with the strong results for the third quarter. Our core business continues to grow at a healthy rate and we are expanding our infrastructure to accommodate that growth. We have also been working diligently on the merger with Unitog Company. By combining forces with Unitog, Cintas will have annual revenues of over $1.7 billion which means that we have doubled the size of Cintas in the last two years. This is a remarkable achievement and presents exciting opportunities. We are very encouraged about our future in an industry that has tremendous growth opportunities."
Cintas is a leader in the corporate identity uniform business and also provides a wide range of ancillary services including entrance mats, sanitation supplies, first aid products and services and cleanroom supplies. Cintas is a publicly-held company traded over 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 and CFO - 513/573-4211
Karen L. Carnahan, Vice
President and Treasurer
513/573-4013