Cintas Corporation Announces Record Revenue for Fiscal Year 2014
On July 15, 2014, Cincinnati-based Cintas Corporation reported results for its fourth quarter and full fiscal year ended May 31, 2014. Revenue for the fourth quarter and for the fiscal year was $1.16 billion and $4.55 billion, respectively. The fiscal year revenue of $4.55 billion is a record level for Cintas. Net income for the fourth quarter and for the fiscal year was $127.2 million and $374.4 million, respectively. Earnings per diluted share (EPS) for the fourth quarter and the fiscal year were $1.03 and $3.05, respectively. Fourth quarter net income and EPS figures included a positive impact of $32.9 million and $0.27, net of tax, respectively, related to the closing of the previously announced partnership transaction with Shred-it International Inc. (the "Shred-it Transaction"), which closed on April 30, 2014. The impact of the Shred-it Transaction will be further explained in the Operating Income and Net Income Results section below.
Fourth quarter revenue of $1.16 billion grew 2.5 percent compared to last year's fourth quarter revenue of $1.13 billion. However, this revenue growth rate was negatively affected by the impact of the Shred-it Transaction. With the closing of the Shred-it Transaction effective April 30, 2014, Cintas will no longer include Document Shredding revenue in its reported revenue. As a result, we believe that revenue unaffected by the Shred-it Transaction is more representative of the ongoing revenue stream of Cintas.
For the businesses unaffected by the Shred-it Transaction, fourth quarter revenue grew 4.7 percent over last year's fourth quarter. When adjusting for one fewer workday in this year's fourth quarter compared to last year's fourth quarter, revenue for the businesses unaffected by the Shred-it Transaction grew 6.3 percent. Organic growth for those businesses, which adjusts for both the impact of acquisitions and the difference in workdays, was 6.1 percent. Scott D. Farmer, Chief Executive Officer, stated, "After very challenging weather in our third quarter, we are pleased to see our revenue growth rate rebound in the fourth quarter. Our Rental operating segment organic growth rate, in particular, improved from a third quarter rate of 5.4 percent to 6.7 percent in the fourth quarter."