Cintas Corporation Announces Fiscal 2010 First Quarter Results
Cinncinati-based Cintas Corporation reported results for the first quarter of its fiscal year 2010. Revenue for the quarter, which ended August 31, 2009, was $892 million and represents a 1.5 percent revenue increase as compared to the fourth quarter of fiscal 2009, which ended on May 31, 2009.
Net income and earnings per diluted share for the quarter were $54 million and $0.35, respectively. First quarter results included a previously announced legal settlement, net of insurance proceeds. Without this charge, net income was $66 million and earnings per diluted share were $0.43.
Excluding special charges, the company’s net income and earnings per diluted share for the first quarter ended August 31, 2009 both increased over 13 percent, as compared to the fourth quarter ended May 31, 2009. The special charges impacting these quarters were the legal settlement charge in the current quarter and a restructuring, fixed-asset impairment and inventory valuation charge in the fourth quarter of last year. The improvement in net income and earnings per diluted share was primarily due to the Company’s continued effort to control costs and right size the organization in the current economic environment.
Scott D. Farmer, CEO, stated, "Over the last 12 months, the U.S. economy has shed employment at levels not experienced since the Great Depression. These job losses make year-over-year comparisons difficult as our customers continued to shed jobs throughout the year. In order to give investors better information on trends in our business, we have provided comparisons to the fourth quarter of fiscal 2009."
Farmer continued, "While we gain some solace in the recent moderation of job loss, market conditions remain difficult and will continue to impact our businesses. However, we continue to be a market leader in our businesses, with state-of-the-art technology, extremely efficient operations and very dedicated employee-partners. In addition, our balance sheet and cash flow both continue to be strong, with our total cash and marketable securities increasing to over $350 million and our total debt to total capitalization ratio improving to 24.5 percent. The leadership position in our businesses combined with this strong financial condition will provide us enhanced opportunities when economic conditions improve."