Cintas Announces First Quarter 2013 Results, Expands Services and Leases New Warehouse
Cintas Corporation, based in Cincinnati, has reported its first quarter results for the period ended August 31, 2012. Revenue for the first quarter was $1.05 billion, representing a 3.4 percent increase compared to last year's first quarter. Organic growth, which adjusts for the impact of acquisitions, compared to last year's first quarter, was 3.2 percent. Recycled paper prices remained lower than last year, and this negatively impacted first quarter consolidated revenue by $8.3 million, or 0.8 percent, compared to last year's first quarter.
The company's operating income of $139.3 million was an 8.3 percent increase as compared to last year's first quarter. Net income increased 11.8 percent to $76.7 million as compared to $68.6 million in last year's first quarter. Earnings per diluted share (EPS) for the first quarter were $0.60, a 15.4 percent increase over the $0.52 earnings per diluted share in last year's first quarter.
"In my July earnings release comments, I spoke of a U.S. economy without momentum," said Scott D. Farmer, chief operating officer of Cintas Corporation. "During our first quarter, we saw nothing that would change that assessment. However, despite this continued absence of momentum and another quarter of difficult year-over-year recycled paper price comparisons, we are pleased to report solid revenue growth and a double-digit increase in earnings per share."
Farmer added, "We continue to be pleased with our operating margin performance, particularly in our rental operating segment. The rental segment's operating margin improved to 15.5 percent of revenue, compared to last year's first quarter operating margin of 13.8 percent. Our total operating margin improved to 13.2 percent from last year's first quarter operating margin of 12.6 percent despite the recycled paper price impact. We will continue our focus on selling profitable business, managing our cost structure and improving efficiencies through process improvement."
The company also made a series of other announcements this week. On Tuesday, Banker & Tradesman reported that Cintas Corporation had leased a warehouse in Sharon, Mass. The company will be the sole occupant of the 27,750 square-foot warehouse, which includes 2,750 square feet of office space. The company also announced that it had expanded its document management services by implementing a hard drive destruction program.
For more information, visit www.cintas.com.