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.