Cintas Corporation Announces Fiscal 2012 First Quarter Results
Cintas Corporation, Cincinnati, reported results for its first quarter ended August 31, 2011. Revenue was $1,017.2 million, representing a 10.1 percent increase compared to last year’s first quarter. Organic growth, which adjusts for the impact of acquisitions, was 7.6 percent. Scott D. Farmer, chief executive officer, stated, “We are pleased with our first quarter revenue results which came during a period of minimal improvement in U.S. employment. It is our second consecutive quarter of double-digit revenue growth.”
The company’s first quarter operating income of $128.6 million was a 28.3 percent improvement as compared to last year’s first quarter. Net income increased 12.0 percent to $68.6 million as compared to $61.3 million in last year’s first quarter. Earnings per diluted share for the first quarter were $0.52, a 30.0 percent increase over the $0.40 earnings per diluted share reported in last year’s first quarter.
Farmer added, “Our focus on selling profitable business, managing our cost structure and improving efficiencies through process improvement continues to drive margin expansion. Our first quarter operating margin of 12.6 percent improved by 170 basis points over last year’s first quarter operating margin of 10.9 percent, despite a 50 basis point increase in energy related costs. Cintas’ dedicated team of employees, who we call partners, continues to be focused on delivering positive results.”
The effective tax rate for the first quarter of fiscal 2012 was 38.5 percent. Last year’s first quarter effective tax rate of 30.8 percent reflected the resolution of several tax audits. Cintas expects the effective tax rate for the entire 2012 fiscal year to be approximately 37.3 percent, as compared to 37.1 percent for the entire 2011 fiscal year.
“We are reiterating our fiscal 2012 guidance, which includes revenue in the range of $4.0 billion to $4.1 billion, and earnings per diluted share in the range of $1.97 to $2.05. While pleased with our first quarter results, we are cautious about the state of the U.S. economy. Our current guidance reflects recent U.S. employment results, which have been disappointing, and 2011 and 2012 economic forecasts, which generally reflect a low growth environment,” Farmer concluded.