Cintas Corporation reported a strong financial performance for the three months ended August 31, 2024, with total revenue reaching $2,501.6 million, marking a 6.8% increase from $2,342.3 million in the same period of 2023. The growth was driven primarily by the Uniform Rental and Facility Services segment, which generated $1,933.8 million, up 5.9% year-over-year. This segment accounted for 77.3% of total revenue, with an organic growth rate of 7.0%. The First Aid and Safety Services segment also contributed positively, with revenue increasing by 12.2% to $292.6 million.
Operating income for the quarter was $561.0 million, a 12.1% increase from $500.6 million in the prior year, reflecting an operating margin improvement from 21.4% to 22.4%. Net income rose significantly to $452.0 million, up 17.4% from $385.1 million in the previous year, resulting in diluted earnings per share of $1.10, compared to $0.93 in 2023.
Cintas experienced a notable increase in selling and administrative expenses, which rose by $50.1 million (7.8%) to $688.5 million, representing 27.6% of total revenue. Despite this increase, the cost of uniform rental and facility services as a percentage of revenue decreased from 51.9% to 50.7%, indicating improved operational efficiency.
The company’s cash and cash equivalents decreased significantly to $101.4 million from $342.0 million as of May 31, 2024. This decline was attributed to increased cash used in financing activities, which totaled $592.8 million, up from $202.4 million in the prior year, largely due to higher share buyback activity and increased dividends paid. Cintas repurchased $614.8 million of its common stock during the quarter.
Cintas also reported a net cash provided by operating activities of $466.7 million, an increase from $336.9 million in the same period last year. The company’s total assets as of August 31, 2024, were $9,068.7 million, up from $8,719.7 million a year earlier.
In terms of strategic developments, Cintas announced a four-for-one stock split effective September 11, 2024, and reached a settlement regarding a class action lawsuit related to ERISA violations, which was deemed immaterial and covered by insurance. The company continues to evaluate the impact of new accounting standards on its financial reporting.
About CINTAS CORP
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