QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the quarterly period ended | August 31, 2022 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to |
31-1188630 | ||||||||
(State or | ( |
P.O. Box 625737 | |||||||||||
Cincinnati, | Ohio | 45262-5737 | |||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, no par value | CTAS | The NASDAQ Stock Market LLC | ||||||||||||
(NASDAQ Global Select Market) |
Class | Outstanding | |||||||
Common Stock, no par value |
Page | ||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||
November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | August 31, 2022 | August 31, 2021 | |||||||||||||||||||||||||||||||||
Revenue: | Revenue: | |||||||||||||||||||||||||||||||||||||
Uniform rental and facility services | $ | 1,308,038 | $ | 1,000,015 | $ | 2,619,822 | $ | 1,994,297 | Uniform rental and facility services | $ | 1,697,772 | $ | 1,508,176 | |||||||||||||||||||||||||
Other | 298,403 | 271,062 | 598,122 | 543,430 | Other | 468,682 | 388,774 | |||||||||||||||||||||||||||||||
Total revenue | Total revenue | 2,166,454 | 1,896,950 | |||||||||||||||||||||||||||||||||||
1,606,441 | 1,271,077 | 3,217,944 | 2,537,727 | |||||||||||||||||||||||||||||||||||
Costs and expenses: | Costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of uniform rental and facility services | 723,960 | 551,498 | 1,430,823 | 1,088,595 | Cost of uniform rental and facility services | 890,766 | 779,301 | |||||||||||||||||||||||||||||||
Cost of other | 166,112 | 154,361 | 331,399 | 307,487 | Cost of other | 247,576 | 214,893 | |||||||||||||||||||||||||||||||
Selling and administrative expenses | 468,084 | 361,415 | 954,367 | 731,118 | Selling and administrative expenses | 587,992 | 508,655 | |||||||||||||||||||||||||||||||
G&K Services, Inc. transaction and integration expenses | 13,074 | 3,347 | 17,045 | 6,134 | ||||||||||||||||||||||||||||||||||
Operating income | 235,211 | 200,456 | 484,310 | 404,393 | Operating income | 440,120 | 394,101 | |||||||||||||||||||||||||||||||
Interest income | (291 | ) | (31 | ) | (588 | ) | (96 | ) | Interest income | (155) | (56) | |||||||||||||||||||||||||||
Interest expense | 29,129 | 13,267 | 59,446 | 27,439 | Interest expense | 27,720 | 21,854 | |||||||||||||||||||||||||||||||
Income before income taxes | 206,373 | 187,220 | 425,452 | 377,050 | Income before income taxes | 412,555 | 372,303 | |||||||||||||||||||||||||||||||
Income taxes | 68,636 | 65,270 | 126,607 | 118,892 | Income taxes | 60,866 | 41,124 | |||||||||||||||||||||||||||||||
Income from continuing operations | 137,737 | 121,950 | 298,845 | 258,158 | ||||||||||||||||||||||||||||||||||
(Loss) income from discontinued operations, net of tax benefit of $624 and tax expense of $9,851, $41,103 and $10,992, respectively | (628 | ) | 18,427 | 55,475 | 20,310 | |||||||||||||||||||||||||||||||||
Net income | $ | 137,109 | $ | 140,377 | $ | 354,320 | $ | 278,468 | Net income | $ | 351,689 | $ | 331,179 | |||||||||||||||||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 1.27 | $ | 1.15 | $ | 2.77 | $ | 2.42 | ||||||||||||||||||||||||||||||
Discontinued operations | (0.01 | ) | 0.17 | 0.51 | 0.19 | |||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 1.26 | $ | 1.32 | $ | 3.28 | $ | 2.61 | Basic earnings per share | $ | 3.45 | $ | 3.19 | |||||||||||||||||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | 1.24 | $ | 1.12 | $ | 2.69 | $ | 2.36 | ||||||||||||||||||||||||||||||
Discontinued operations | (0.01 | ) | 0.17 | 0.50 | 0.19 | |||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.23 | $ | 1.29 | $ | 3.19 | $ | 2.55 | Diluted earnings per share | $ | 3.39 | $ | 3.11 | |||||||||||||||||||||||||
Dividends declared per share | $ | 1.62 | $ | 1.33 | $ | 1.62 | $ | 1.33 | Dividends declared per share | $ | 1.15 | $ | 0.95 |
Three Months Ended | |||||||||||||||||||||||
August 31, 2022 | August 31, 2021 | ||||||||||||||||||||||
Net income | $ | 351,689 | $ | 331,179 | |||||||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (19,206) | (24,016) | |||||||||||||||||||||
Change in fair value of interest rate lock agreements, net of tax expense (benefit) of $320 and $(12,554), respectively | 934 | (36,679) | |||||||||||||||||||||
Amortization of interest rate lock agreements, net of tax expense of $512 and $148, respectively | (1,521) | (459) | |||||||||||||||||||||
Other comprehensive loss, net of tax expense (benefit) of $832 and $(12,406), respectively | (19,793) | (61,154) | |||||||||||||||||||||
Comprehensive income | $ | 331,896 | $ | 270,025 |
Three Months Ended | Six Months Ended | ||||||||||||||
November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | ||||||||||||
Net income | $ | 137,109 | $ | 140,377 | $ | 354,320 | $ | 278,468 | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||
Foreign currency translation adjustments | (11,374 | ) | (7,650 | ) | 23,810 | (7,535 | ) | ||||||||
Change in fair value of cash flow hedges | — | 26,390 | — | 14,353 | |||||||||||
Amortization of interest rate lock agreements | (172 | ) | 385 | (344 | ) | 770 | |||||||||
Change in fair value of available-for-sale securities | (20 | ) | 1 | — | — | ||||||||||
Other comprehensive (loss) income | (11,566 | ) | 19,126 | 23,466 | 7,588 | ||||||||||
Comprehensive income | $ | 125,543 | $ | 159,503 | $ | 377,786 | $ | 286,056 |
November 30, 2017 | May 31, 2017 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 236,002 | $ | 169,266 | |||
Marketable securities | 22,732 | 22,219 | |||||
Accounts receivable, net | 763,555 | 736,008 | |||||
Inventories, net | 272,830 | 278,218 | |||||
Uniforms and other rental items in service | 674,572 | 635,702 | |||||
Income taxes, current | 35,700 | 44,320 | |||||
Prepaid expenses and other current assets | 38,058 | 30,132 | |||||
Assets held for sale | — | 38,613 | |||||
Total current assets | 2,043,449 | 1,954,478 | |||||
Property and equipment, net | 1,353,159 | 1,323,501 | |||||
Investments | 175,663 | 164,788 | |||||
Goodwill | 2,811,796 | 2,782,335 | |||||
Service contracts, net | 565,574 | 586,988 | |||||
Other assets, net | 29,160 | 31,967 | |||||
$ | 6,978,801 | $ | 6,844,057 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 162,981 | $ | 177,051 | |||
Accrued compensation and related liabilities | 113,430 | 149,635 | |||||
Accrued liabilities | 577,960 | 429,809 | |||||
Debt due within one year | 300,000 | 362,900 | |||||
Liabilities held for sale | — | 11,457 | |||||
Total current liabilities | 1,154,371 | 1,130,852 | |||||
Long-term liabilities: | |||||||
Debt due after one year | 2,534,222 | 2,770,624 | |||||
Deferred income taxes | 539,043 | 469,328 | |||||
Accrued liabilities | 198,132 | 170,460 | |||||
Total long-term liabilities | 3,271,397 | 3,410,412 | |||||
Shareholders’ equity: | |||||||
Preferred stock, no par value: | — | — | |||||
100,000 shares authorized, none outstanding | |||||||
Common stock, no par value: | 600,563 | 485,068 | |||||
425,000,000 shares authorized | |||||||
FY 2018: 182,338,749 issued and 106,470,073 outstanding | |||||||
FY 2017: 180,992,605 issued and 105,400,629 outstanding | |||||||
Paid-in capital | 192,191 | 223,924 | |||||
Retained earnings | 5,349,539 | 5,170,830 | |||||
Treasury stock: | (3,609,697 | ) | (3,574,000 | ) | |||
FY 2018: 75,868,676 shares | |||||||
FY 2017: 75,591,976 shares | |||||||
Accumulated other comprehensive income (loss) | 20,437 | (3,029 | ) | ||||
Total shareholders’ equity | 2,553,033 | 2,302,793 | |||||
$ | 6,978,801 | $ | 6,844,057 |
August 31, 2022 | May 31, 2022 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 74,558 | $ | 90,471 | |||||||
Accounts receivable, net | 1,082,783 | 1,006,220 | |||||||||
Inventories, net | 473,888 | 472,150 | |||||||||
Uniforms and other rental items in service | 953,717 | 916,706 | |||||||||
Income taxes, current | — | 21,708 | |||||||||
Prepaid expenses and other current assets | 162,844 | 124,728 | |||||||||
Total current assets | 2,747,790 | 2,631,983 | |||||||||
Property and equipment, net | 1,329,131 | 1,323,673 | |||||||||
Investments | 239,335 | 242,873 | |||||||||
Goodwill | 3,037,278 | 3,042,976 | |||||||||
Service contracts, net | 379,379 | 391,638 | |||||||||
Operating lease right-of-use assets, net | 174,697 | 170,003 | |||||||||
Other assets, net | 353,416 | 344,110 | |||||||||
$ | 8,261,026 | $ | 8,147,256 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 292,321 | $ | 251,504 | |||||||
Accrued compensation and related liabilities | 176,865 | 236,992 | |||||||||
Accrued liabilities | 543,566 | 588,948 | |||||||||
Income taxes, current | 35,783 | — | |||||||||
Operating lease liabilities, current | 43,539 | 43,872 | |||||||||
Debt due within one year | 507,467 | 311,574 | |||||||||
Total current liabilities | 1,599,541 | 1,432,890 | |||||||||
Long-term liabilities: | |||||||||||
Debt due after one year | 2,484,602 | 2,483,932 | |||||||||
Deferred income taxes | 487,755 | 473,777 | |||||||||
Operating lease liabilities | 134,010 | 129,064 | |||||||||
Accrued liabilities | 325,492 | 319,397 | |||||||||
Total long-term liabilities | 3,431,859 | 3,406,170 | |||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, no par value: | — | — | |||||||||
100,000 shares authorized, none outstanding | |||||||||||
Common stock, no par value, and paid-in capital: | 1,878,837 | 1,771,917 | |||||||||
425,000,000 shares authorized | |||||||||||
FY 2023: 191,654,188 shares issued and 101,532,642 shares outstanding | |||||||||||
FY 2022: 190,837,921 shares issued and 101,711,215 shares outstanding | |||||||||||
Retained earnings | 8,953,391 | 8,719,163 | |||||||||
Treasury stock: | (7,690,726) | (7,290,801) | |||||||||
FY 2023: 90,121,546 shares | |||||||||||
FY 2022: 89,126,706 shares | |||||||||||
Accumulated other comprehensive income | 88,124 | 107,917 | |||||||||
Total shareholders’ equity | 3,229,626 | 3,308,196 | |||||||||
$ | 8,261,026 | $ | 8,147,256 |
Common Stock and Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 1, 2022 | 190,838 | $ | 1,771,917 | $ | 8,719,163 | $ | 107,917 | (89,127) | $ | (7,290,801) | $ | 3,308,196 | |||||||||||||||||||||||||||||||||||
Net income | — | — | 351,689 | — | — | — | 351,689 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive loss, net of tax | — | — | — | (19,793) | — | — | (19,793) | ||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | (117,461) | — | — | — | (117,461) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 26,282 | — | — | — | — | 26,282 | ||||||||||||||||||||||||||||||||||||||||
Vesting of stock-based compensation awards | 273 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 543 | 80,638 | — | — | (193) | (79,591) | 1,047 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | (802) | (320,334) | (320,334) | ||||||||||||||||||||||||||||||||||||||||
Balance at August 31, 2022 | 191,654 | $ | 1,878,837 | $ | 8,953,391 | $ | 88,124 | (90,122) | $ | (7,690,726) | $ | 3,229,626 | |||||||||||||||||||||||||||||||||||
Common Stock and Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 1, 2021 | 189,071 | $ | 1,516,202 | $ | 7,877,015 | $ | 30,888 | (85,010) | $ | (5,736,258) | $ | 3,687,847 | |||||||||||||||||||||||||||||||||||
Net income | — | — | 331,179 | — | — | — | 331,179 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive loss, net of tax | — | — | — | (61,154) | — | — | (61,154) | ||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | (98,826) | — | — | — | (98,826) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 36,496 | — | — | — | — | 36,496 | ||||||||||||||||||||||||||||||||||||||||
Vesting of stock-based compensation awards | 493 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 564 | 72,896 | — | — | — | — | 72,896 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | (1,788) | (659,235) | (659,235) | ||||||||||||||||||||||||||||||||||||||||
Balance at August 31, 2021 | 190,128 | $ | 1,625,594 | $ | 8,109,368 | $ | (30,266) | (86,798) | $ | (6,395,493) | $ | 3,309,203 | |||||||||||||||||||||||||||||||||||
Six Months Ended | Three Months Ended | |||||||||||||||||
November 30, 2017 | November 30, 2016 | August 31, 2022 | August 31, 2021 | |||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 354,320 | $ | 278,468 | Net income | $ | 351,689 | $ | 331,179 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation | 107,578 | 79,590 | Depreciation | 63,057 | 60,955 | |||||||||||||
Amortization of intangible assets | 31,261 | 7,460 | ||||||||||||||||
Amortization of intangible assets and capitalized contract costs | Amortization of intangible assets and capitalized contract costs | 36,989 | 36,994 | |||||||||||||||
Stock-based compensation | 55,204 | 39,582 | Stock-based compensation | 26,282 | 36,496 | |||||||||||||
Gain on sale of business | (99,060 | ) | — | |||||||||||||||
Gain on Shred-it | — | (25,876 | ) | |||||||||||||||
Gain on sale of operating assets | Gain on sale of operating assets | — | (12,178) | |||||||||||||||
Deferred income taxes | 42,162 | (3,833 | ) | Deferred income taxes | 14,829 | 22,887 | ||||||||||||
Change in current assets and liabilities, net of acquisitions of businesses: | Change in current assets and liabilities, net of acquisitions of businesses: | |||||||||||||||||
Accounts receivable, net | (24,800 | ) | (44,920 | ) | Accounts receivable, net | (79,397) | (27,742) | |||||||||||
Inventories, net | 2,595 | (14,616 | ) | Inventories, net | (2,476) | 14,986 | ||||||||||||
Uniforms and other rental items in service | (33,294 | ) | (4,315 | ) | Uniforms and other rental items in service | (39,327) | (39,274) | |||||||||||
Prepaid expenses and other current assets | (18,573 | ) | (1,952 | ) | ||||||||||||||
Prepaid expenses and other current assets and capitalized contract costs | Prepaid expenses and other current assets and capitalized contract costs | (63,641) | (36,724) | |||||||||||||||
Accounts payable | (8,706 | ) | 15,451 | Accounts payable | 41,681 | (26,272) | ||||||||||||
Accrued compensation and related liabilities | (36,480 | ) | (18,936 | ) | Accrued compensation and related liabilities | (59,957) | (85,834) | |||||||||||
Accrued liabilities and other | (1,940 | ) | (4,866 | ) | Accrued liabilities and other | (49,105) | (24,342) | |||||||||||
Income taxes, current | 8,742 | 484 | Income taxes, current | 57,532 | 11,010 | |||||||||||||
Net cash provided by operating activities | 379,009 | 301,721 | Net cash provided by operating activities | 298,156 | 262,141 | |||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||
Capital expenditures | (132,466 | ) | (155,173 | ) | Capital expenditures | (70,016) | (48,748) | |||||||||||
Proceeds from redemption of marketable securities | 100,259 | 172,968 | ||||||||||||||||
Purchase of marketable securities and investments | (99,877 | ) | (118,270 | ) | ||||||||||||||
Proceeds from sale of business | 127,835 | — | ||||||||||||||||
Proceeds from sale of investment in Shred-it | — | 25,876 | ||||||||||||||||
Purchases of investments | Purchases of investments | (5,930) | (8,738) | |||||||||||||||
Proceeds from sale of operating assets, net of cash disposed | Proceeds from sale of operating assets, net of cash disposed | — | 15,070 | |||||||||||||||
Acquisitions of businesses, net of cash acquired | (1,099 | ) | (17,778 | ) | Acquisitions of businesses, net of cash acquired | (7,060) | (35,725) | |||||||||||
Other, net | (870 | ) | 332 | Other, net | (3,589) | (6,180) | ||||||||||||
Net cash used in investing activities | (6,218 | ) | (92,045 | ) | Net cash used in investing activities | (86,595) | (84,321) | |||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||
(Payments) issuance of commercial paper, net | (50,500 | ) | 66,000 | |||||||||||||||
Issuance of commercial paper, net | Issuance of commercial paper, net | 196,000 | 326,000 | |||||||||||||||
Repayment of debt | (250,000 | ) | (250,000 | ) | Repayment of debt | — | (250,000) | |||||||||||
Prepaid short-term debt financing fees | — | (13,495 | ) | |||||||||||||||
Proceeds from exercise of stock-based compensation awards | 28,558 | 19,225 | Proceeds from exercise of stock-based compensation awards | 1,047 | 72,896 | |||||||||||||
Dividends paid | Dividends paid | (97,655) | (79,135) | |||||||||||||||
Repurchase of common stock | (35,697 | ) | (19,230 | ) | Repurchase of common stock | (320,334) | (659,235) | |||||||||||
Other, net | (1,882 | ) | (5,572 | ) | Other, net | (5,257) | (610) | |||||||||||
Net cash used in financing activities | (309,521 | ) | (203,072 | ) | Net cash used in financing activities | (226,199) | (590,084) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 3,466 | (2,388 | ) | Effect of exchange rate changes on cash and cash equivalents | (1,275) | (1,627) | ||||||||||||
Net increase in cash and cash equivalents | 66,736 | 4,216 | ||||||||||||||||
Net decrease in cash and cash equivalents | Net decrease in cash and cash equivalents | (15,913) | (413,891) | |||||||||||||||
Cash and cash equivalents at beginning of period | 169,266 | 139,357 | Cash and cash equivalents at beginning of period | 90,471 | 493,640 | |||||||||||||
Cash and cash equivalents at end of period | $ | 236,002 | $ | 143,573 | Cash and cash equivalents at end of period | $ | 74,558 | $ | 79,749 |
(In thousands) | November 30, 2017 | May 31, 2017 | (In thousands) | August 31, 2022 | May 31, 2022 | |||||||||||||
Raw materials | $ | 16,231 | $ | 17,528 | Raw materials | $ | 25,728 | $ | 19,071 | |||||||||
Work in process | 23,199 | 17,951 | Work in process | 34,310 | 34,280 | |||||||||||||
Finished goods | 233,400 | 242,739 | Finished goods | 413,850 | 418,799 | |||||||||||||
$ | 272,830 | $ | 278,218 | $ | 473,888 | $ | 472,150 |
(In thousands) | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||
Uniform Rental and Facility Services | $ | 1,697,772 | 78.4 | % | $ | 1,508,176 | 79.5 | % | ||||||||||||||||||||||||||||||||||||
First Aid and Safety Services | 234,161 | 10.8 | % | 199,116 | 10.5 | % | ||||||||||||||||||||||||||||||||||||||
Fire Protection Services | 151,847 | 7.0 | % | 128,218 | 6.8 | % | ||||||||||||||||||||||||||||||||||||||
Uniform Direct Sales | 82,674 | 3.8 | % | 61,440 | 3.2 | % | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 2,166,454 | 100.0 | % | $ | 1,896,950 | 100.0 | % |
(In thousands) | 2022 | 2021 | |||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 12,608 | $ | 11,913 | |||||||
Operating lease right-of-use assets obtained in exchange for new and renewed operating lease liabilities | $ | 15,836 | $ | 2,792 | |||||||
August 31, 2022 | May 31, 2022 | ||||||||||
Weighted-average remaining lease term - operating leases | 5.38 years | 5.40 years | |||||||||
Weighted-average discount rate - operating leases | 2.37% | 2.20% |
(In thousands) | ||||||||
2023 (remaining nine months) | $ | 35,860 | ||||||
2024 | 40,851 | |||||||
2025 | 32,515 | |||||||
2026 | 25,800 | |||||||
2027 | 18,342 | |||||||
Thereafter | 36,036 | |||||||
Total payments | 189,404 | |||||||
Less interest | (11,855) | |||||||
Total present value of lease payments | $ | 177,549 |
As of August 31, 2022 | |||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||
Cash and cash equivalents | $ | 74,558 | $ | — | $ | — | $ | 74,558 | |||||||||||||||
Other assets, net: | |||||||||||||||||||||||
Interest rate lock agreements | — | 58,131 | — | 58,131 | |||||||||||||||||||
Total assets at fair value | $ | 74,558 | $ | 58,131 | $ | — | $ | 132,689 | |||||||||||||||
As of November 30, 2017 | As of May 31, 2022 | |||||||||||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | (In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 236,002 | $ | — | $ | — | $ | 236,002 | Cash and cash equivalents | $ | 90,471 | $ | — | $ | — | $ | 90,471 | |||||||||||||||||||||
Marketable securities: | ||||||||||||||||||||||||||||||||||||||
Canadian treasury securities | — | 22,732 | — | 22,732 | ||||||||||||||||||||||||||||||||||
Other assets, net: | Other assets, net: | |||||||||||||||||||||||||||||||||||||
Interest rate lock agreements | Interest rate lock agreements | — | 56,877 | — | 56,877 | |||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 236,002 | $ | 22,732 | $ | — | $ | 258,734 | Total assets at fair value | $ | 90,471 | $ | 56,877 | $ | — | $ | 147,348 |
As of May 31, 2017 | |||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||
Cash and cash equivalents | $ | 169,266 | $ | — | $ | — | $ | 169,266 | |||||||
Marketable securities: | |||||||||||||||
Canadian treasury securities | — | 22,219 | — | 22,219 | |||||||||||
Total assets at fair value | $ | 169,266 | $ | 22,219 | $ | — | $ | 191,485 |
(In thousands) | August 31, 2022 | May 31, 2022 | |||||||||
Cash surrender value of insurance policies | $ | 233,650 | $ | 237,136 | |||||||
Other investments | 5,685 | 5,737 | |||||||||
Total investments | $ | 239,335 | $ | 242,873 |
Basic Earnings per Share (In thousands except per share data) | 2022 | 2021 | |||||||||||||||||||||
Net income | $ | 351,689 | $ | 331,179 | |||||||||||||||||||
Less: income allocated to participating securities | 1,520 | 1,765 | |||||||||||||||||||||
Income available to common shareholders | $ | 350,169 | $ | 329,414 | |||||||||||||||||||
Basic weighted average common shares outstanding | 101,428 | 103,295 | |||||||||||||||||||||
Basic earnings per share | $ | 3.45 | $ | 3.19 |
Three Months Ended | Six Months Ended | ||||||||||||||
Basic Earnings per Share from Continuing Operations (in thousands except per share data) | November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | |||||||||||
Income from continuing operations | $ | 137,737 | $ | 121,950 | $ | 298,845 | $ | 258,158 | |||||||
Less: income from continuing operations allocated to participating securities | 2,111 | 1,923 | 5,298 | 4,775 | |||||||||||
Income from continuing operations available to common shareholders | $ | 135,626 | $ | 120,027 | $ | 293,547 | $ | 253,383 | |||||||
Basic weighted average common shares outstanding | 106,340 | 104,957 | 106,039 | 104,719 | |||||||||||
Basic earnings per share from continuing operations | $ | 1.27 | $ | 1.15 | $ | 2.77 | $ | 2.42 |
Diluted Earnings per Share (In thousands except per share data) | 2022 | 2021 | |||||||||||||||||||||
Net income | $ | 351,689 | $ | 331,179 | |||||||||||||||||||
Less: income allocated to participating securities | 1,520 | 1,765 | |||||||||||||||||||||
Income available to common shareholders | $ | 350,169 | $ | 329,414 | |||||||||||||||||||
Basic weighted average common shares outstanding | 101,428 | 103,295 | |||||||||||||||||||||
Effect of dilutive securities – employee stock options | 1,909 | 2,649 | |||||||||||||||||||||
Diluted weighted average common shares outstanding | 103,337 | 105,944 | |||||||||||||||||||||
Diluted earnings per share | $ | 3.39 | $ | 3.11 |
Three Months Ended | Six Months Ended | ||||||||||||||
Diluted Earnings per Share from Continuing Operations (in thousands except per share data) | November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | |||||||||||
Income from continuing operations | $ | 137,737 | $ | 121,950 | $ | 298,845 | $ | 258,158 | |||||||
Less: income from continuing operations allocated to participating securities | 2,111 | 1,923 | 5,298 | 4,775 | |||||||||||
Income from continuing operations available to common shareholders | $ | 135,626 | $ | 120,027 | $ | 293,547 | $ | 253,383 | |||||||
Basic weighted average common shares outstanding | 106,340 | 104,957 | 106,039 | 104,719 | |||||||||||
Effect of dilutive securities – employee stock options | 3,478 | 2,690 | 2,899 | 2,559 | |||||||||||
Diluted weighted average common shares outstanding | 109,818 | 107,647 | 108,938 | 107,278 | |||||||||||
Diluted earnings per share from continuing operations | $ | 1.24 | $ | 1.12 | $ | 2.69 | $ | 2.36 |
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
Buyback Activity (In thousands except per share data) | Shares | Avg. Price per Share | Purchase Price | Shares | Avg. Price per Share | Purchase Price | ||||||||||||||||||||||||||||||||
October 29, 2019 | — | $ | — | $ | — | 1,590 | $ | 365.41 | $ | 581,220 | ||||||||||||||||||||||||||||
July 27, 2021 | 532 | 396.39 | 210,751 | — | — | — | ||||||||||||||||||||||||||||||||
July 26, 2022 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
532 | $ | 396.39 | $ | 210,751 | 1,590 | $ | 365.41 | $ | 581,220 | |||||||||||||||||||||||||||||
Shares acquired for taxes due (1) | 270 | $ | 405.93 | $ | 109,583 | 198 | $ | 394.19 | $ | 78,015 | ||||||||||||||||||||||||||||
Total repurchase of Cintas common stock | $ | 320,334 | $ | 659,235 |
Goodwill (in thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | |||||||||||||||||||
Balance as of June 1, 2022 | $ | 2,635,099 | $ | 285,769 | $ | 122,108 | $ | 3,042,976 | |||||||||||||||
Goodwill acquired | 652 | 3,283 | 484 | 4,419 | |||||||||||||||||||
Foreign currency translation | (9,265) | (820) | (32) | (10,117) | |||||||||||||||||||
Balance as of August 31, 2022 | $ | 2,626,486 | $ | 288,232 | $ | 122,560 | $ | 3,037,278 |
Goodwill (in thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | |||||||||||
Balance as of June 1, 2017 | $ | 2,448,070 | $ | 243,112 | $ | 91,153 | $ | 2,782,335 | |||||||
Goodwill acquired (1) | 27,107 | 73 | 426 | 27,606 | |||||||||||
Foreign currency translation | 927 | 891 | 37 | 1,855 | |||||||||||
Balance as of November 30, 2017 | $ | 2,476,104 | $ | 244,076 | $ | 91,616 | $ | 2,811,796 |
Service Contracts (in thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | Service Contracts (in thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | |||||||||||||||||||||||||||||
Balance as of June 1, 2017 | $ | 529,923 | $ | 30,062 | $ | 27,003 | $ | 586,988 | ||||||||||||||||||||||||||||||
Balance as of June 1, 2022 | Balance as of June 1, 2022 | $ | 349,634 | $ | 24,144 | $ | 17,860 | $ | 391,638 | |||||||||||||||||||||||||||||
Service contracts acquired | 32 | 411 | 533 | 976 | Service contracts acquired | 1,253 | 986 | 630 | 2,869 | |||||||||||||||||||||||||||||
Service contracts amortization | (21,946 | ) | (1,927 | ) | (2,364 | ) | (26,237 | ) | Service contracts amortization | (10,781) | (1,250) | (1,223) | (13,254) | |||||||||||||||||||||||||
Foreign currency translation | 3,748 | 99 | — | 3,847 | Foreign currency translation | (1,793) | (81) | — | (1,874) | |||||||||||||||||||||||||||||
Balance as of November 30, 2017 | $ | 511,757 | $ | 28,645 | $ | 25,172 | $ | 565,574 | ||||||||||||||||||||||||||||||
Balance as of August 31, 2022 | Balance as of August 31, 2022 | $ | 338,313 | $ | 23,799 | $ | 17,267 | $ | 379,379 |
As of August 31, 2022 | As of May 31, 2022 | |||||||||||||||||||||||||||||||||||||
(In thousands) | Carrying Amount | Accumulated Amortization | Net | Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||
Service contracts | $ | 1,000,115 | $ | 620,736 | $ | 379,379 | $ | 1,001,311 | $ | 609,673 | $ | 391,638 | ||||||||||||||||||||||||||
Capitalized contract costs (1) | $ | 580,949 | $ | 341,753 | $ | 239,196 | $ | 551,582 | $ | 319,358 | $ | 232,224 | ||||||||||||||||||||||||||
Noncompete and consulting agreements | 50,944 | 44,191 | 6,753 | 50,637 | 43,775 | 6,862 | ||||||||||||||||||||||||||||||||
Other | 128,491 | 21,024 | 107,467 | 125,941 | 20,917 | 105,024 | ||||||||||||||||||||||||||||||||
Total other assets, net | $ | 760,384 | $ | 406,968 | $ | 353,416 | $ | 728,160 | $ | 384,050 | $ | 344,110 |
As of November 30, 2017 | |||||||||||
(In thousands) | Carrying Amount | Accumulated Amortization | Net | ||||||||
Service contracts | $ | 917,072 | $ | 351,498 | $ | 565,574 | |||||
Noncompete and consulting agreements | $ | 40,913 | $ | 39,588 | $ | 1,325 | |||||
Other | 35,711 | 7,876 | 27,835 | ||||||||
Total other assets | $ | 76,624 | $ | 47,464 | $ | 29,160 |
As of May 31, 2017 | |||||||||||
(In thousands) | Carrying Amount | Accumulated Amortization | Net | ||||||||
Service contracts | $ | 911,273 | $ | 324,285 | $ | 586,988 | |||||
Noncompete and consulting agreements | $ | 40,743 | $ | 39,244 | $ | 1,499 | |||||
Other | 34,890 | 4,422 | 30,468 | ||||||||
Total other assets | $ | 75,633 | $ | 43,666 | $ | 31,967 |
Fiscal Year (In thousands) | ||||||||
2023 (remaining nine months) | $ | 107,424 | ||||||
2024 | 131,835 | |||||||
2025 | 117,265 | |||||||
2026 | 97,896 | |||||||
2027 | 79,275 | |||||||
Thereafter | 181,622 | |||||||
Total future amortization expense | $ | 715,317 |
(In thousands) | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | August 31, 2022 | May 31, 2022 | ||||||||||||||||||||||||
Debt due within one year | |||||||||||||||||||||||||||||
Commercial paper | 2.69 | % | (1) | 2023 | 2023 | $ | 457,200 | $ | 261,200 | ||||||||||||||||||||
Senior notes (2) | 2.78 | % | 2013 | 2023 | 50,272 | 50,380 | |||||||||||||||||||||||
Debt issuance costs | (5) | (6) | |||||||||||||||||||||||||||
Total debt due within one year | $ | 507,467 | $ | 311,574 | |||||||||||||||||||||||||
Debt due after one year | |||||||||||||||||||||||||||||
Senior notes (3) | 3.11 | % | 2015 | 2025 | $ | 50,881 | $ | 50,965 | |||||||||||||||||||||
Senior notes | 3.45 | % | 2022 | 2025 | 400,000 | 400,000 | |||||||||||||||||||||||
Senior notes | 3.70 | % | 2017 | 2027 | 1,000,000 | 1,000,000 | |||||||||||||||||||||||
Senior notes | 4.00 | % | 2022 | 2032 | 800,000 | 800,000 | |||||||||||||||||||||||
Senior notes | 6.15 | % | 2007 | 2037 | 250,000 | 250,000 | |||||||||||||||||||||||
Debt issuance costs | (16,279) | (17,033) | |||||||||||||||||||||||||||
Total debt due after one year | $ | 2,484,602 | $ | 2,483,932 |
(In thousands) | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | November 30, 2017 | May 31, 2017 | |||||||||
Debt due within one year | ||||||||||||||
Senior notes | 6.13 | % | 2008 | 2018 | $ | 300,000 | $ | 300,000 | ||||||
Commercial paper | 1.24 | % | (1) | Various | Various | — | 50,500 | |||||||
Current portion of term loan | 2.00 | % | (1) | 2017 | 2018 | — | 12,500 | |||||||
Debt issuance costs | — | (100 | ) | |||||||||||
Total debt due within one year | $ | 300,000 | $ | 362,900 | ||||||||||
Debt due after one year | ||||||||||||||
Senior notes | 4.30 | % | 2012 | 2022 | $ | 250,000 | $ | 250,000 | ||||||
Senior notes | 2.90 | % | 2017 | 2022 | 650,000 | 650,000 | ||||||||
Senior notes | 3.25 | % | 2013 | 2023 | 300,000 | 300,000 | ||||||||
Senior notes (2) | 2.78 | % | 2013 | 2023 | 52,337 | 52,554 | ||||||||
Senior notes (3) | 3.11 | % | 2015 | 2025 | 52,476 | 52,645 | ||||||||
Senior notes | 3.70 | % | 2017 | 2027 | 1,000,000 | 1,000,000 | ||||||||
Senior notes | 6.15 | % | 2007 | 2037 | 250,000 | 250,000 | ||||||||
Long-term portion of term loan | 2.00 | % | (1) | 2017 | 2022 | — | 237,500 | |||||||
Debt issuance costs | (20,591 | ) | (22,075 | ) | ||||||||||
Total debt due after one year | $ | 2,534,222 | $ | 2,770,624 |
August 31, 2022 | May 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
Fiscal Year of Issuance (in thousands) | Other assets, net | Other assets, net | ||||||||||||||||||||||||||||||||||||||||||
2022 | $ | 19,168 | $ | 18,331 | ||||||||||||||||||||||||||||||||||||||||
2020 | $ | 38,963 | $ | 38,546 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||
Cash consideration for common stock | $ | 1,901,845 | (1) | |
Cash consideration for share-based awards | 62,257 | (2) | ||
Cash consideration for G&K revolving debt | 124,180 | (3) | ||
Cash consideration for transaction expenses | 24,529 | (4) | ||
Total consideration | 2,112,811 | |||
Cash acquired | (34,393 | ) | (5) | |
Net consideration transferred | $ | 2,078,418 |
Assets | |||
Accounts receivable | $ | 95,846 | |
Inventories | 30,254 | ||
Uniforms and other rental items in service | 93,659 | ||
Income taxes, current | 15,873 | ||
Prepaid expenses and other current assets | 43,235 | ||
Property and equipment | 254,035 | ||
Goodwill | 1,520,295 | ||
Service contracts | 519,000 | ||
Trade names | 17,000 | ||
Other assets | 15,585 | ||
Liabilities | |||
Accounts payable | (53,220 | ) | |
Accrued compensation and related liabilities | (9,594 | ) | |
Accrued liabilities | (115,109 | ) | |
Long-term accrued liabilities | (28,380 | ) | |
G&K senior notes | (105,359 | ) | |
Deferred income taxes | (214,702 | ) | |
Total consideration | $ | 2,078,418 |
Identifiable intangible assets | Preliminary Valuation | Amortization Period | ||
Service contracts | $ | 519,000 | 15 years | |
Trade names | 17,000 | 3 years | ||
Total | $ | 536,000 |
(In thousands) | December 10, 2021 | |||||||
ASSETS | ||||||||
Working capital assets | $ | 17,352 | ||||||
Property and equipment | 16,230 | |||||||
Operating lease right-of-use assets | 16,882 | |||||||
Goodwill | 55,986 | |||||||
Separately identifiable intangible assets | 9,201 | |||||||
LIABILITIES | ||||||||
Total current liabilities | (6,425) | |||||||
Operating lease liabilities | (17,734) | |||||||
Total allocation (consideration) | $ | 91,492 |
Three Months Ended | Six Months Ended | ||||||
(In thousands except per share data) | November 30, 2016 | November 30, 2016 | |||||
Net sales | $ | 1,515,222 | $ | 3,026,600 | |||
Net income from continuing operations | $ | 131,212 | $ | 277,625 | |||
Earnings from continuing operations per common share - diluted | $ | 1.20 | $ | 2.54 |
Three Months Ended | Six Months Ended | ||||||
(In thousands) | November 30, 2017 | November 30, 2017 | |||||
Interest cost | $ | 711 | $ | 1,421 | |||
Expected return on assets | (716 | ) | (1,432 | ) | |||
Amortization of net loss | — | — | |||||
Total net periodic benefit cost | $ | (5 | ) | $ | (11 | ) |
(In thousands) | Foreign Currency | Unrealized Income on Interest Rate Locks | Other | Total | |||||||||||||||||||
Balance at June 1, 2022 | $ | 17,006 | $ | 92,688 | $ | (1,777) | $ | 107,917 | |||||||||||||||
Other comprehensive (loss) income before reclassifications | (19,206) | 934 | — | (18,272) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1,521) | — | (1,521) | |||||||||||||||||||
Net current period other comprehensive loss | (19,206) | (587) | — | (19,793) | |||||||||||||||||||
Balance at August 31, 2022 | $ | (2,200) | $ | 92,101 | $ | (1,777) | $ | 88,124 | |||||||||||||||
(In thousands) | Foreign Currency | Unrealized Income on Cash Flow Hedges | Other | Total | |||||||||||
Balance at June 1, 2017 | $ | (12,726 | ) | $ | 11,382 | $ | (1,685 | ) | $ | (3,029 | ) | ||||
Other comprehensive income before reclassifications | 35,184 | — | 20 | 35,204 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (172 | ) | — | (172 | ) | |||||||||
Net current period other comprehensive income (loss) | 35,184 | (172 | ) | 20 | 35,032 | ||||||||||
Balance at August 31, 2017 | 22,458 | 11,210 | (1,665 | ) | 32,003 | ||||||||||
Other comprehensive loss before reclassifications | (11,374 | ) | — | (20 | ) | (11,394 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (172 | ) | — | (172 | ) | |||||||||
Net current period other comprehensive loss | (11,374 | ) | (172 | ) | (20 | ) | (11,566 | ) | |||||||
Balance at November 30, 2017 | $ | 11,084 | $ | 11,038 | $ | (1,685 | ) | $ | 20,437 |
(In thousands) | Foreign Currency | Unrealized Loss on Interest Rate Locks | Other | Total | |||||||||||||||||||
Balance at June 1, 2021 | $ | 41,839 | $ | (7,308) | $ | (3,643) | $ | 30,888 | |||||||||||||||
Other comprehensive loss before reclassifications | (24,016) | (36,679) | — | (60,695) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (459) | — | (459) | |||||||||||||||||||
Net current period other comprehensive loss | (24,016) | (37,138) | — | (61,154) | |||||||||||||||||||
Balance at August 31, 2021 | $ | 17,823 | $ | (44,446) | $ | (3,643) | $ | (30,266) | |||||||||||||||
(In thousands) | Foreign Currency | Unrealized Loss on Cash Flow Hedges | Other | Total | |||||||||||
Balance at June 1, 2016 | $ | (2,474 | ) | $ | (20,830 | ) | $ | (1,570 | ) | $ | (24,874 | ) | |||
Other comprehensive income (loss) before reclassifications | 115 | (12,037 | ) | (1 | ) | (11,923 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 385 | — | 385 | |||||||||||
Net current period other comprehensive income (loss) | 115 | (11,652 | ) | (1 | ) | (11,538 | ) | ||||||||
Balance at August 31, 2016 | (2,359 | ) | (32,482 | ) | (1,571 | ) | (36,412 | ) | |||||||
Other comprehensive (loss) income before reclassifications | (7,650 | ) | 26,390 | 1 | 18,741 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 385 | — | 385 | |||||||||||
Net current period other comprehensive (loss) income | (7,650 | ) | 26,775 | 1 | 19,126 | ||||||||||
Balance at November 30, 2016 | $ | (10,009 | ) | $ | (5,707 | ) | $ | (1,570 | ) | $ | (17,286 | ) |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line in the Consolidated Condensed Statements of Income | ||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||||||||||||||
Amortization of interest rate locks | $ | 2,033 | $ | 607 | Interest expense | |||||||||||||||||||||
Tax expense | (512) | (148) | Income taxes | |||||||||||||||||||||||
Amortization of interest rate locks, net of tax | $ | 1,521 | $ | 459 | ||||||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line in the Consolidated Condensed Statements of Income | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
(In thousands) | November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | ||||||||||||||
Amortization of interest rate locks | $ | 278 | $ | (615 | ) | $ | 556 | $ | (1,229 | ) | Interest expense | |||||||
Tax (expense) benefit | (106 | ) | 230 | (212 | ) | 459 | Income taxes | |||||||||||
Amortization of interest rate locks, net of tax | $ | 172 | $ | (385 | ) | $ | 344 | $ | (770 | ) | Net income |
(In thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Corporate (1) | Total | ||||||||||||||||||||||||
As of and for the three months ended August 31, 2022 | |||||||||||||||||||||||||||||
Revenue | $ | 1,697,772 | $ | 234,161 | $ | 234,521 | $ | — | $ | 2,166,454 | |||||||||||||||||||
Income (loss) before income taxes | $ | 364,771 | $ | 40,846 | $ | 34,503 | $ | (27,565) | $ | 412,555 | |||||||||||||||||||
Total assets | $ | 7,036,979 | $ | 680,864 | $ | 468,625 | $ | 74,558 | $ | 8,261,026 | |||||||||||||||||||
As of and for the three months ended August 31, 2021 | |||||||||||||||||||||||||||||
Revenue | $ | 1,508,176 | $ | 199,116 | $ | 189,658 | $ | — | $ | 1,896,950 | |||||||||||||||||||
Income (loss) before income taxes | $ | 329,382 | $ | 25,728 | $ | 38,991 | $ | (21,798) | $ | 372,303 | |||||||||||||||||||
Total assets | $ | 6,770,296 | $ | 636,829 | $ | 370,876 | $ | 79,749 | $ | 7,857,750 |
(In thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Corporate (1) | Total | ||||||||||||||
For the three months ended November 30, 2017 | |||||||||||||||||||
Revenue | $ | 1,308,038 | $ | 139,090 | $ | 159,313 | $ | — | $ | 1,606,441 | |||||||||
Income (loss) before income taxes | $ | 203,814 | $ | 17,975 | $ | 13,422 | $ | (28,838 | ) | $ | 206,373 | ||||||||
For the three months ended November 30, 2016 | |||||||||||||||||||
Revenue | $ | 1,000,015 | $ | 124,797 | $ | 146,265 | $ | — | $ | 1,271,077 | |||||||||
Income (loss) before income taxes | $ | 176,947 | $ | 14,779 | $ | 8,730 | $ | (13,236 | ) | $ | 187,220 | ||||||||
As of and for the six months ended November 30, 2017 | |||||||||||||||||||
Revenue | $ | 2,619,822 | $ | 279,672 | $ | 318,450 | $ | — | $ | 3,217,944 | |||||||||
Income (loss) before income taxes | $ | 422,724 | $ | 37,386 | $ | 24,200 | $ | (58,858 | ) | $ | 425,452 | ||||||||
Total assets | $ | 5,899,010 | $ | 467,902 | $ | 353,155 | $ | 258,734 | $ | 6,978,801 | |||||||||
As of and for the six months ended November 30, 2016 | |||||||||||||||||||
Revenue | $ | 1,994,297 | $ | 249,636 | $ | 293,794 | $ | — | $ | 2,537,727 | |||||||||
Income (loss) before income taxes | $ | 361,735 | $ | 26,290 | $ | 16,368 | $ | (27,343 | ) | $ | 377,050 | ||||||||
Total assets | $ | 3,262,448 | $ | 443,151 | $ | 326,039 | $ | 182,941 | $ | 4,214,579 |
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands) | November 30, 2017 | November 30, 2016 (1) | November 30, 2017 | November 30, 2016 (1) | |||||||||||
Revenue | $ | — | $ | 25,845 | $ | 10,773 | $ | 53,326 | |||||||
(Loss) income before income taxes | (43 | ) | 2,402 | (2,482 | ) | 5,426 | |||||||||
Income tax benefit (expense) | 18 | (898 | ) | 920 | (2,039 | ) | |||||||||
(Loss) gain on sale of business | (1,209 | ) | — | 99,060 | — | ||||||||||
Gain on Shred-it | — | 25,876 | — | 25,876 | |||||||||||
Income tax benefit (expense) on net gain | 606 | (8,953 | ) | (42,023 | ) | (8,953 | ) | ||||||||
Net (loss) income from discontinued operations | $ | (628 | ) | $ | 18,427 | $ | 55,475 | $ | 20,310 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 1,086,667 | $ | 170,320 | $ | 100,933 | $ | (49,882 | ) | $ | 1,308,038 | ||||||||||
Other | — | 435,539 | (313 | ) | 21,982 | (158,805 | ) | 298,403 | |||||||||||||||
Equity in net income of affiliates | 137,737 | — | — | — | (137,737 | ) | — | ||||||||||||||||
137,737 | 1,522,206 | 170,007 | 122,915 | (346,424 | ) | 1,606,441 | |||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 628,123 | 105,954 | 65,220 | (75,337 | ) | 723,960 | ||||||||||||||||
Cost of other | — | 302,065 | (25,046 | ) | 15,438 | (126,345 | ) | 166,112 | |||||||||||||||
Selling and administrative expenses | — | 528,369 | (85,417 | ) | 31,211 | (6,079 | ) | 468,084 | |||||||||||||||
G&K Services, Inc. transaction and integration expenses | — | 4,192 | 8,319 | 563 | — | 13,074 | |||||||||||||||||
Operating income | 137,737 | 59,457 | 166,197 | 10,483 | (138,663 | ) | 235,211 | ||||||||||||||||
Interest income | — | (45 | ) | (59 | ) | (187 | ) | — | (291 | ) | |||||||||||||
Interest expense (income) | — | 29,444 | (313 | ) | (2 | ) | — | 29,129 | |||||||||||||||
Income before income taxes | 137,737 | 30,058 | 166,569 | 10,672 | (138,663 | ) | 206,373 | ||||||||||||||||
Income taxes | — | 11,449 | 54,414 | 2,798 | (25 | ) | 68,636 | ||||||||||||||||
Income from continuing operations | 137,737 | 18,609 | 112,155 | 7,874 | (138,638 | ) | 137,737 | ||||||||||||||||
Loss from discontinued operations, net of tax | (628 | ) | (628 | ) | — | — | 628 | (628 | ) | ||||||||||||||
Net income | $ | 137,109 | $ | 17,981 | $ | 112,155 | $ | 7,874 | $ | (138,010 | ) | $ | 137,109 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 835,892 | $ | 149,886 | $ | 57,610 | $ | (43,373 | ) | $ | 1,000,015 | ||||||||||
Other | — | 390,963 | 633 | 18,162 | (138,696 | ) | 271,062 | ||||||||||||||||
Equity in net income of affiliates | 121,950 | — | — | — | (121,950 | ) | — | ||||||||||||||||
121,950 | 1,226,855 | 150,519 | 75,772 | (304,019 | ) | 1,271,077 | |||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 483,399 | 94,323 | 37,603 | (63,827 | ) | 551,498 | ||||||||||||||||
Cost of other | — | 271,812 | (19,549 | ) | 13,636 | (111,538 | ) | 154,361 | |||||||||||||||
Selling and administrative expenses | — | 398,592 | (48,256 | ) | 18,703 | (7,624 | ) | 361,415 | |||||||||||||||
G&K Services, Inc. transaction and integration expenses | — | — | 3,347 | — | — | 3,347 | |||||||||||||||||
Operating income | 121,950 | 73,052 | 120,654 | 5,830 | (121,030 | ) | 200,456 | ||||||||||||||||
Interest income | — | — | (7 | ) | (25 | ) | 1 | (31 | ) | ||||||||||||||
Interest expense (income) | — | 14,528 | (1,176 | ) | (85 | ) | — | 13,267 | |||||||||||||||
Income before income taxes | 121,950 | 58,524 | 121,837 | 5,940 | (121,031 | ) | 187,220 | ||||||||||||||||
Income taxes | — | 20,635 | 42,652 | 2,011 | (28 | ) | 65,270 | ||||||||||||||||
Income from continuing operations | 121,950 | 37,889 | 79,185 | 3,929 | (121,003 | ) | 121,950 | ||||||||||||||||
Income from discontinued operations, net of tax | 18,427 | 17,115 | — | 1,941 | (19,056 | ) | 18,427 | ||||||||||||||||
Net income | $ | 140,377 | $ | 55,004 | $ | 79,185 | $ | 5,870 | $ | (140,059 | ) | $ | 140,377 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 2,186,536 | $ | 335,215 | $ | 197,528 | $ | (99,457 | ) | $ | 2,619,822 | ||||||||||
Other | — | 862,841 | (6 | ) | 42,290 | (307,003 | ) | 598,122 | |||||||||||||||
Equity in net income of affiliates | 298,845 | — | — | — | (298,845 | ) | — | ||||||||||||||||
298,845 | 3,049,377 | 335,209 | 239,818 | (705,305 | ) | 3,217,944 | |||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 1,250,271 | 204,973 | 125,737 | (150,158 | ) | 1,430,823 | ||||||||||||||||
Cost of other | — | 590,984 | (44,715 | ) | 30,173 | (245,043 | ) | 331,399 | |||||||||||||||
Selling and administrative expenses | — | 1,039,324 | (132,955 | ) | 61,117 | (13,119 | ) | 954,367 | |||||||||||||||
G&K Services, Inc. transaction and integration expenses | — | 5,713 | 10,754 | 578 | — | 17,045 | |||||||||||||||||
Operating income | 298,845 | 163,085 | 297,152 | 22,213 | (296,985 | ) | 484,310 | ||||||||||||||||
Interest income | — | (76 | ) | (158 | ) | (354 | ) | — | (588 | ) | |||||||||||||
Interest expense (income) | — | 60,005 | (452 | ) | (107 | ) | — | 59,446 | |||||||||||||||
Income before income taxes | 298,845 | 103,156 | 297,762 | 22,674 | (296,985 | ) | 425,452 | ||||||||||||||||
Income taxes | — | 31,019 | 89,537 | 6,095 | (44 | ) | 126,607 | ||||||||||||||||
Income from continuing operations | 298,845 | 72,137 | 208,225 | 16,579 | (296,941 | ) | 298,845 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 55,475 | 64,374 | (8,899 | ) | — | (55,475 | ) | 55,475 | |||||||||||||||
Net income | $ | 354,320 | $ | 136,511 | $ | 199,326 | $ | 16,579 | $ | (352,416 | ) | $ | 354,320 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Uniform rental and facility services | $ | — | $ | 1,667,852 | $ | 299,034 | $ | 115,273 | $ | (87,862 | ) | $ | 1,994,297 | ||||||||||
Other | — | 779,045 | 1,601 | 37,037 | (274,253 | ) | 543,430 | ||||||||||||||||
Equity in net income of affiliates | 258,158 | — | — | — | (258,158 | ) | — | ||||||||||||||||
258,158 | 2,446,897 | 300,635 | 152,310 | (620,273 | ) | 2,537,727 | |||||||||||||||||
Costs and expenses (income): | |||||||||||||||||||||||
Cost of uniform rental and facility services | — | 958,620 | 184,995 | 74,717 | (129,737 | ) | 1,088,595 | ||||||||||||||||
Cost of other | — | 535,538 | (34,480 | ) | 27,464 | (221,035 | ) | 307,487 | |||||||||||||||
Selling and administrative expenses | — | 806,203 | (98,990 | ) | 38,968 | (15,063 | ) | 731,118 | |||||||||||||||
G&K Services, Inc. transaction and integration expenses | — | — | 6,134 | — | — | 6,134 | |||||||||||||||||
Operating income | 258,158 | 146,536 | 242,976 | 11,161 | (254,438 | ) | 404,393 | ||||||||||||||||
Interest income | — | — | (24 | ) | (73 | ) | 1 | (96 | ) | ||||||||||||||
Interest expense (income) | — | 29,355 | (1,878 | ) | (38 | ) | — | 27,439 | |||||||||||||||
Income before income taxes | 258,158 | 117,181 | 244,878 | 11,272 | (254,439 | ) | 377,050 | ||||||||||||||||
Income taxes | — | 37,304 | 78,178 | 3,464 | (54 | ) | 118,892 | ||||||||||||||||
Income from continuing operations | 258,158 | 79,877 | 166,700 | 7,808 | (254,385 | ) | 258,158 | ||||||||||||||||
Income from discontinued operations, net of tax | 20,310 | 18,998 | — | 1,941 | (20,939 | ) | 20,310 | ||||||||||||||||
Net income | $ | 278,468 | $ | 98,875 | $ | 166,700 | $ | 9,749 | $ | (275,324 | ) | $ | 278,468 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 137,109 | $ | 17,981 | $ | 112,155 | $ | 7,874 | $ | (138,010 | ) | $ | 137,109 | ||||||||||
Other comprehensive loss, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (11,374 | ) | — | — | (11,374 | ) | 11,374 | (11,374 | ) | ||||||||||||||
Amortization of interest rate lock agreements | (172 | ) | (172 | ) | — | — | 172 | (172 | ) | ||||||||||||||
Change in fair value of available-for-sale securities | (20 | ) | — | — | (20 | ) | 20 | (20 | ) | ||||||||||||||
Other comprehensive loss | (11,566 | ) | (172 | ) | — | (11,394 | ) | 11,566 | (11,566 | ) | |||||||||||||
Comprehensive income (loss) | $ | 125,543 | $ | 17,809 | $ | 112,155 | $ | (3,520 | ) | $ | (126,444 | ) | $ | 125,543 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 140,377 | $ | 55,004 | $ | 79,185 | $ | 5,870 | $ | (140,059 | ) | $ | 140,377 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (7,650 | ) | — | — | (7,650 | ) | 7,650 | (7,650 | ) | ||||||||||||||
Change in fair value of cash flow hedges | 26,390 | 26,390 | — | — | (26,390 | ) | 26,390 | ||||||||||||||||
Amortization of interest rate lock agreements | 385 | 385 | — | — | (385 | ) | 385 | ||||||||||||||||
Change in fair value of available-for-sale securities | 1 | — | — | 1 | (1 | ) | 1 | ||||||||||||||||
Other comprehensive income (loss) | 19,126 | 26,775 | — | (7,649 | ) | (19,126 | ) | 19,126 | |||||||||||||||
Comprehensive income (loss) | $ | 159,503 | $ | 81,779 | $ | 79,185 | $ | (1,779 | ) | $ | (159,185 | ) | $ | 159,503 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 354,320 | $ | 136,511 | $ | 199,326 | $ | 16,579 | $ | (352,416 | ) | $ | 354,320 | ||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | 23,810 | — | — | 23,810 | (23,810 | ) | 23,810 | ||||||||||||||||
Amortization of interest rate lock agreements | (344 | ) | (344 | ) | — | — | 344 | (344 | ) | ||||||||||||||
Other comprehensive income (loss) | 23,466 | (344 | ) | — | 23,810 | (23,466 | ) | 23,466 | |||||||||||||||
Comprehensive income | $ | 377,786 | $ | 136,167 | $ | 199,326 | $ | 40,389 | $ | (375,882 | ) | $ | 377,786 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Net income | $ | 278,468 | $ | 98,875 | $ | 166,700 | $ | 9,749 | $ | (275,324 | ) | $ | 278,468 | ||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (7,535 | ) | — | — | (7,535 | ) | 7,535 | (7,535 | ) | ||||||||||||||
Change in fair value of cash flow hedges | 14,353 | 14,353 | — | — | (14,353 | ) | 14,353 | ||||||||||||||||
Amortization of interest rate lock agreements | 770 | 770 | — | — | (770 | ) | 770 | ||||||||||||||||
Other comprehensive income (loss) | 7,588 | 15,123 | — | (7,535 | ) | (7,588 | ) | 7,588 | |||||||||||||||
Comprehensive income | $ | 286,056 | $ | 113,998 | $ | 166,700 | $ | 2,214 | $ | (282,912 | ) | $ | 286,056 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 42,126 | $ | 83,515 | $ | 110,361 | $ | — | $ | 236,002 | |||||||||||
Marketable securities | — | — | — | 22,732 | — | 22,732 | |||||||||||||||||
Accounts receivable, net | — | 586,992 | 117,106 | 59,457 | — | 763,555 | |||||||||||||||||
Inventories, net | — | 224,217 | 31,994 | 16,620 | (1 | ) | 272,830 | ||||||||||||||||
Uniforms and other rental items in service | — | 562,724 | 81,459 | 49,025 | (18,636 | ) | 674,572 | ||||||||||||||||
Income taxes, current | — | (16,790 | ) | 47,940 | 4,550 | — | 35,700 | ||||||||||||||||
Prepaid expenses and other current assets | — | 7,837 | 29,222 | 999 | — | 38,058 | |||||||||||||||||
Total current assets | — | 1,407,106 | 391,236 | 263,744 | (18,637 | ) | 2,043,449 | ||||||||||||||||
Property and equipment, net | — | 875,883 | 366,041 | 111,235 | — | 1,353,159 | |||||||||||||||||
Investments (1) | 321,083 | 3,598,267 | 947,722 | 1,713,070 | (6,404,479 | ) | 175,663 | ||||||||||||||||
Goodwill | — | — | 2,770,504 | 41,403 | (111 | ) | 2,811,796 | ||||||||||||||||
Service contracts, net | — | 483,985 | — | 81,589 | — | 565,574 | |||||||||||||||||
Other assets, net | 1,766,703 | 557 | 3,489,627 | 13,866 | (5,241,593 | ) | 29,160 | ||||||||||||||||
$ | 2,087,786 | $ | 6,365,798 | $ | 7,965,130 | $ | 2,224,907 | $ | (11,664,820 | ) | $ | 6,978,801 | |||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | (465,247 | ) | $ | (1,458,658 | ) | $ | 2,162,751 | $ | (113,813 | ) | $ | 37,948 | $ | 162,981 | ||||||||
Accrued compensation and related liabilities | — | 101,379 | 6,141 | 5,910 | — | 113,430 | |||||||||||||||||
Accrued liabilities | — | 187,828 | 368,784 | 21,348 | — | 577,960 | |||||||||||||||||
Debt due within one year | — | 300,000 | — | — | — | 300,000 | |||||||||||||||||
Total current liabilities | (465,247 | ) | (869,451 | ) | 2,537,676 | (86,555 | ) | 37,948 | 1,154,371 | ||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||
Debt due after one year | — | 2,533,832 | — | 390 | — | 2,534,222 | |||||||||||||||||
Deferred income taxes | — | — | 492,999 | 46,044 | — | 539,043 | |||||||||||||||||
Accrued liabilities | — | 32,998 | 163,863 | 1,271 | — | 198,132 | |||||||||||||||||
Total long-term liabilities | — | 2,566,830 | 656,862 | 47,705 | — | 3,271,397 | |||||||||||||||||
Total shareholders’ equity | 2,553,033 | 4,668,419 | 4,770,592 | 2,263,757 | (11,702,768 | ) | 2,553,033 | ||||||||||||||||
$ | 2,087,786 | $ | 6,365,798 | $ | 7,965,130 | $ | 2,224,907 | $ | (11,664,820 | ) | $ | 6,978,801 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 48,658 | $ | 17,302 | $ | 103,306 | $ | — | $ | 169,266 | |||||||||||
Marketable securities | — | — | — | 22,219 | — | 22,219 | |||||||||||||||||
Accounts receivable, net | — | 543,769 | 137,881 | 54,358 | — | 736,008 | |||||||||||||||||
Inventories, net | — | 243,677 | 21,466 | 14,461 | (1,386 | ) | 278,218 | ||||||||||||||||
Uniforms and other rental items in service | — | 531,295 | 78,012 | 45,388 | (18,993 | ) | 635,702 | ||||||||||||||||
Income taxes, current | — | 16,173 | 25,138 | 3,009 | — | 44,320 | |||||||||||||||||
Prepaid expenses and other current assets | — | 13,234 | 16,188 | 710 | — | 30,132 | |||||||||||||||||
Assets held for sale | — | 23,095 | 15,518 | — | — | 38,613 | |||||||||||||||||
Total current assets | — | 1,419,901 | 311,505 | 243,451 | (20,379 | ) | 1,954,478 | ||||||||||||||||
Property and equipment, net | — | 851,018 | 364,724 | 107,759 | — | 1,323,501 | |||||||||||||||||
Investments (1) | 321,083 | 3,605,457 | 929,657 | 1,711,070 | (6,402,479 | ) | 164,788 | ||||||||||||||||
Goodwill | — | — | 2,742,898 | 39,549 | (112 | ) | 2,782,335 | ||||||||||||||||
Service contracts, net | — | 505,698 | — | 81,290 | — | 586,988 | |||||||||||||||||
Other assets, net | 1,516,463 | 14,705 | 3,489,653 | 11,983 | (5,000,837 | ) | 31,967 | ||||||||||||||||
$ | 1,837,546 | $ | 6,396,779 | $ | 7,838,437 | $ | 2,195,102 | $ | (11,423,807 | ) | $ | 6,844,057 | |||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | (465,247 | ) | $ | (1,596,731 | ) | $ | 2,292,388 | $ | (91,467 | ) | $ | 38,108 | $ | 177,051 | ||||||||
Accrued compensation and related liabilities | — | 94,505 | 42,866 | 12,264 | — | 149,635 | |||||||||||||||||
Accrued liabilities | — | 191,819 | 219,303 | 18,687 | — | 429,809 | |||||||||||||||||
Debt due within one year | — | 362,900 | — | — | — | 362,900 | |||||||||||||||||
Liabilities held for sale | — | 11,457 | — | — | — | 11,457 | |||||||||||||||||
Total current liabilities | (465,247 | ) | (936,050 | ) | 2,554,557 | (60,516 | ) | 38,108 | 1,130,852 | ||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||
Debt due after one year | — | 2,770,234 | — | 390 | — | 2,770,624 | |||||||||||||||||
Deferred income taxes | — | — | 436,613 | 32,715 | — | 469,328 | |||||||||||||||||
Accrued liabilities | — | 28,384 | 140,923 | 1,153 | — | 170,460 | |||||||||||||||||
Total long-term liabilities | — | 2,798,618 | 577,536 | 34,258 | — | 3,410,412 | |||||||||||||||||
Total shareholders’ equity | 2,302,793 | 4,534,211 | 4,706,344 | 2,221,360 | (11,461,915 | ) | 2,302,793 | ||||||||||||||||
$ | 1,837,546 | $ | 6,396,779 | $ | 7,838,437 | $ | 2,195,102 | $ | (11,423,807 | ) | $ | 6,844,057 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 354,320 | $ | 136,511 | $ | 199,326 | $ | 16,579 | $ | (352,416 | ) | $ | 354,320 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||||||
Depreciation | — | 65,942 | 34,789 | 6,847 | — | 107,578 | |||||||||||||||||
Amortization of intangible assets | — | 24,522 | 2,547 | 4,192 | — | 31,261 | |||||||||||||||||
Stock-based compensation | 55,204 | — | — | — | — | 55,204 | |||||||||||||||||
Gain on sale of business | — | (114,581 | ) | 15,521 | — | — | (99,060 | ) | |||||||||||||||
Deferred income taxes | — | — | 40,555 | 1,607 | — | 42,162 | |||||||||||||||||
Changes in current assets and liabilities, net of acquisitions of businesses: | |||||||||||||||||||||||
Accounts receivable, net | — | (42,881 | ) | 20,790 | (2,709 | ) | — | (24,800 | ) | ||||||||||||||
Inventories, net | — | 17,728 | (13,863 | ) | 115 | (1,385 | ) | 2,595 | |||||||||||||||
Uniforms and other rental items in service | — | (29,520 | ) | (112 | ) | (3,305 | ) | (357 | ) | (33,294 | ) | ||||||||||||
Prepaid expenses and other current assets | — | (5,428 | ) | (13,609 | ) | 464 | — | (18,573 | ) | ||||||||||||||
Accounts payable | — | 155,461 | (153,831 | ) | (10,176 | ) | (160 | ) | (8,706 | ) | |||||||||||||
Accrued compensation and related liabilities | — | 6,341 | (39,311 | ) | (3,510 | ) | — | (36,480 | ) | ||||||||||||||
Accrued liabilities and other | — | (26,847 | ) | 26,373 | (1,466 | ) | — | (1,940 | ) | ||||||||||||||
Income taxes, current | — | 32,963 | (22,794 | ) | (1,427 | ) | — | 8,742 | |||||||||||||||
Net cash provided by operating activities | 409,524 | 220,211 | 96,381 | 7,211 | (354,318 | ) | 379,009 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (90,497 | ) | (36,875 | ) | (5,094 | ) | — | (132,466 | ) | |||||||||||||
Proceeds from redemption of marketable securities and investments | — | 12,400 | — | 87,859 | — | 100,259 | |||||||||||||||||
Purchase of marketable securities and investments | — | 5,510 | (20,064 | ) | (87,323 | ) | 2,000 | (99,877 | ) | ||||||||||||||
Proceeds from sale of business | — | 127,835 | — | — | — | 127,835 | |||||||||||||||||
Acquisitions of businesses | — | (1,099 | ) | — | — | — | (1,099 | ) | |||||||||||||||
Other, net | (402,385 | ) | 21,470 | 26,771 | 956 | 352,318 | (870 | ) | |||||||||||||||
Net cash (used in) provided by investing activities | (402,385 | ) | 75,619 | (30,168 | ) | (3,602 | ) | 354,318 | (6,218 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Payments of commercial paper, net | — | (50,500 | ) | — | — | — | (50,500 | ) | |||||||||||||||
Repayment of debt | — | (250,000 | ) | — | — | — | (250,000 | ) | |||||||||||||||
Proceeds from exercise of stock-based compensation awards | 28,558 | — | — | — | — | 28,558 | |||||||||||||||||
Repurchase of common stock | (35,697 | ) | — | — | — | — | (35,697 | ) | |||||||||||||||
Other, net | — | (1,862 | ) | — | (20 | ) | — | (1,882 | ) | ||||||||||||||
Net cash used in financing activities | (7,139 | ) | (302,362 | ) | — | (20 | ) | — | (309,521 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 3,466 | — | 3,466 | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (6,532 | ) | 66,213 | 7,055 | — | 66,736 | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 48,658 | 17,302 | 103,306 | — | 169,266 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 42,126 | $ | 83,515 | $ | 110,361 | $ | — | $ | 236,002 |
Cintas Corporation | Corp. 2 | Subsidiary Guarantors | Non- Guarantors | Eliminations | Cintas Corporation Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 278,468 | $ | 98,875 | $ | 166,700 | $ | 9,749 | $ | (275,324 | ) | $ | 278,468 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||||||
Depreciation | — | 52,259 | 22,412 | 4,919 | — | 79,590 | |||||||||||||||||
Amortization of intangible assets | — | 6,847 | 175 | 438 | — | 7,460 | |||||||||||||||||
Stock-based compensation | 39,582 | — | — | — | — | 39,582 | |||||||||||||||||
Gain on Shred-it | — | (23,935 | ) | — | (1,941 | ) | — | (25,876 | ) | ||||||||||||||
Deferred income taxes | — | (9,578 | ) | 5,395 | 350 | — | (3,833 | ) | |||||||||||||||
Changes in current assets and liabilities, net of acquisitions of businesses: | |||||||||||||||||||||||
Accounts receivable, net | — | (36,939 | ) | (6,813 | ) | (1,168 | ) | — | (44,920 | ) | |||||||||||||
Inventories, net | — | (14,038 | ) | 2,871 | (1,593 | ) | (1,856 | ) | (14,616 | ) | |||||||||||||
Uniforms and other rental items in service | — | 754 | (4,182 | ) | 511 | (1,398 | ) | (4,315 | ) | ||||||||||||||
Prepaid expenses and other current assets | — | 412 | (2,411 | ) | 47 | — | (1,952 | ) | |||||||||||||||
Accounts payable | — | 23,367 | (10,857 | ) | 2,831 | 110 | 15,451 | ||||||||||||||||
Accrued compensation and related liabilities | 2,819 | (12,734 | ) | (8,935 | ) | (86 | ) | — | (18,936 | ) | |||||||||||||
Accrued liabilities and other | 139,766 | 3,711 | (148,384 | ) | 41 | — | (4,866 | ) | |||||||||||||||
Income taxes, current | — | (1,635 | ) | 1,460 | 659 | — | 484 | ||||||||||||||||
Net cash provided by operating activities | 460,635 | 87,366 | 17,431 | 14,757 | (278,468 | ) | 301,721 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (85,207 | ) | (60,837 | ) | (9,129 | ) | — | (155,173 | ) | |||||||||||||
Proceeds from redemption of marketable securities | — | — | — | 172,968 | — | 172,968 | |||||||||||||||||
Purchase of marketable securities and investments | — | (4,560 | ) | (28,751 | ) | (102,692 | ) | 17,733 | (118,270 | ) | |||||||||||||
Proceeds from sale of investment in Shred-it | — | 23,935 | — | 1,941 | — | 25,876 | |||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (7,245 | ) | — | (10,533 | ) | — | (17,778 | ) | ||||||||||||||
Other, net | (460,630 | ) | 177,446 | 21,190 | 1,591 | 260,735 | 332 | ||||||||||||||||
Net cash (used in) provided by investing activities | (460,630 | ) | 104,369 | (68,398 | ) | 54,146 | 278,468 | (92,045 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Issuance of commercial paper, net | — | 66,000 | — | — | — | 66,000 | |||||||||||||||||
Proceeds from issuance of debt | — | — | (2,000 | ) | 2,000 | — | — | ||||||||||||||||
Repayment of debt | — | (250,000 | ) | — | — | — | (250,000 | ) | |||||||||||||||
Prepaid short-term debt financing fees | — | (13,495 | ) | — | — | — | (13,495 | ) | |||||||||||||||
Proceeds from exercise of stock-based compensation awards | 19,225 | — | — | — | — | 19,225 | |||||||||||||||||
Repurchase of common stock | (19,230 | ) | — | — | — | — | (19,230 | ) | |||||||||||||||
Other, net | — | (5,572 | ) | — | — | — | (5,572 | ) | |||||||||||||||
Net cash (used in) provided by financing activities | (5 | ) | (203,067 | ) | (2,000 | ) | 2,000 | — | (203,072 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (2,388 | ) | — | (2,388 | ) | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (11,332 | ) | (52,967 | ) | 68,515 | — | 4,216 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 57,893 | 55,392 | 26,072 | — | 139,357 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 46,561 | $ | 2,425 | $ | 94,587 | $ | — | $ | 143,573 |
(In thousands) | 2022 | 2021 | |||||||||
Net cash provided by operating activities | $ | 298,156 | $ | 262,141 | |||||||
Net cash used in investing activities | $ | (86,595) | $ | (84,321) | |||||||
Net cash used in financing activities | $ | (226,199) | $ | (590,084) | |||||||
Cash and cash equivalents at the end of the period | $ | 74,558 | $ | 79,749 | |||||||
(In thousands) | 2017 | 2016 | |||||
Net cash provided by operating activities | $ | 379,009 | $ | 301,721 | |||
Net cash used in investing activities | $ | (6,218 | ) | $ | (92,045 | ) | |
Net cash used in financing activities | $ | (309,521 | ) | $ | (203,072 | ) | |
Cash and cash equivalents at the end of the period | $ | 236,002 | $ | 143,573 | |||
Marketable securities at the end of the period | $ | 22,732 | $ | — |
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
Buyback Activity (In thousands except per share data) | Shares | Avg. Price per Share | Purchase Price | Shares | Avg. Price per Share | Purchase Price | ||||||||||||||||||||||||||||||||
October 29, 2019 | — | $ | — | $ | — | 1,590 | $ | 365.41 | $ | 581,220 | ||||||||||||||||||||||||||||
July 27, 2021 | 532 | 396.39 | 210,751 | — | — | — | ||||||||||||||||||||||||||||||||
July 26, 2022 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
532 | $ | 396.39 | $ | 210,751 | 1,590 | $ | 365.41 | $ | 581,220 | |||||||||||||||||||||||||||||
Shares acquired for taxes due (1) | 270 | $ | 405.93 | $ | 109,583 | 198 | $ | 394.19 | $ | 78,015 | ||||||||||||||||||||||||||||
Total repurchase of Cintas common stock | $ | 320,334 | $ | 659,235 |
Paid Dividends | ||||||||||||||||||||
Declaration Date (In millions except per share data) | Record Date | Payment Date | Dividend Per Share | Total Amount | ||||||||||||||||
Three months ended August 31, 2022 | ||||||||||||||||||||
April 12, 2022 | May 16, 2022 | June 15, 2022 | $ | 0.95 | $ | 97.7 | ||||||||||||||
Three months ended August 31, 2021 | ||||||||||||||||||||
April 13, 2021 | May 15, 2021 | June 15, 2021 | $ | 0.75 | $ | 79.1 | ||||||||||||||
Accrued Dividends | ||||||||||||||||||||
As of August 31, 2022 | ||||||||||||||||||||
July 26, 2022 (1) | August 15, 2022 | September 15, 2022 | $ | 1.15 | $ | 117.5 | ||||||||||||||
As of August 31, 2021 | ||||||||||||||||||||
July 27, 2021 (1) | August 13, 2021 | September 15, 2021 | $ | 0.95 | $ | 98.8 | ||||||||||||||
(In thousands) | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | August 31, 2022 | May 31, 2022 | ||||||||||||||||||||||||
Debt due within one year | |||||||||||||||||||||||||||||
Commercial paper | 2.69 | % | (1) | 2023 | 2023 | $ | 457,200 | $ | 261,200 | ||||||||||||||||||||
Senior notes (2) | 2.78 | % | 2013 | 2023 | 50,272 | 50,380 | |||||||||||||||||||||||
Debt issuance costs | (5) | (6) | |||||||||||||||||||||||||||
Total debt due within one year | $ | 507,467 | $ | 311,574 | |||||||||||||||||||||||||
Debt due after one year | |||||||||||||||||||||||||||||
Senior notes (3) | 3.11 | % | 2015 | 2025 | $ | 50,881 | $ | 50,965 | |||||||||||||||||||||
Senior notes | 3.45 | % | 2022 | 2025 | 400,000 | 400,000 | |||||||||||||||||||||||
Senior notes | 3.70 | % | 2017 | 2027 | 1,000,000 | 1,000,000 | |||||||||||||||||||||||
Senior notes | 4.00 | % | 2022 | 2032 | 800,000 | 800,000 | |||||||||||||||||||||||
Senior notes | 6.15 | % | 2007 | 2037 | 250,000 | 250,000 | |||||||||||||||||||||||
Debt issuance costs | (16,279) | (17,033) | |||||||||||||||||||||||||||
Total debt due after one year | $ | 2,484,602 | $ | 2,483,932 |
(In thousands) | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | November 30, 2017 | May 31, 2017 | |||||||||
Debt due within one year | ||||||||||||||
Senior notes | 6.13 | % | 2008 | 2018 | $ | 300,000 | $ | 300,000 | ||||||
Commercial paper | 1.24 | % | (1) | Various | Various | — | 50,500 | |||||||
Current portion of term loan | 2.00 | % | (1) | 2017 | 2018 | — | 12,500 | |||||||
Debt issuance costs | — | (100 | ) | |||||||||||
Total debt due within one year | $ | 300,000 | $ | 362,900 | ||||||||||
Debt due after one year | ||||||||||||||
Senior notes | 4.30 | % | 2012 | 2022 | $ | 250,000 | $ | 250,000 | ||||||
Senior notes | 2.90 | % | 2017 | 2022 | 650,000 | 650,000 | ||||||||
Senior notes | 3.25 | % | 2013 | 2023 | 300,000 | 300,000 | ||||||||
Senior notes (2) | 2.78 | % | 2013 | 2023 | 52,337 | 52,554 | ||||||||
Senior notes (3) | 3.11 | % | 2015 | 2025 | 52,476 | 52,645 | ||||||||
Senior notes | 3.70 | % | 2017 | 2027 | 1,000,000 | 1,000,000 | ||||||||
Senior notes | 6.15 | % | 2007 | 2037 | 250,000 | 250,000 | ||||||||
Long-term portion of term loan | 2.00 | % | (1) | 2017 | 2022 | — | 237,500 | |||||||
Debt issuance costs | (20,591 | ) | (22,075 | ) | ||||||||||
Total debt due after one year | $ | 2,534,222 | $ | 2,770,624 |
Rating Agency | Outlook | Commercial Paper | Long-term Debt | |||||||||||||||||
Standard & Poor’s | Stable | A-2 | ||||||||||||||||||
Moody’s Investors Service | Stable | P-2 | A3 |
Three Months Ended | ||||||||||||||
Summarized Consolidated Condensed Statement of Income (In thousands) | August 31, 2022 | August 31, 2021 | ||||||||||||
Net sales to unrelated parties | $ | 2,046,494 | $ | 1,788,303 | ||||||||||
Net sales to non-guarantors | $ | 2,828 | $ | 1,493 | ||||||||||
Operating income | $ | 427,521 | $ | 380,322 | ||||||||||
Net income | $ | 342,321 | $ | 320,957 |
Summarized Consolidated Condensed Balance Sheets (In thousands) | August 31, 2022 | May 31, 2022 | ||||||||||||
ASSETS | ||||||||||||||
Receivables due from non-obligor subsidiaries | $ | 9,690 | $ | 11,759 | ||||||||||
Total other current assets | $ | 2,559,715 | $ | 2,427,494 | ||||||||||
Total other noncurrent assets | $ | 5,097,949 | $ | 5,081,265 | ||||||||||
LIABILITIES | ||||||||||||||
Amounts due to non-obligor subsidiaries | $ | 3,846 | $ | 11,383 | ||||||||||
Current liabilities | $ | 1,568,885 | $ | 1,388,310 | ||||||||||
Noncurrent liabilities | $ | 3,373,716 | $ | 3,346,851 |
Period (In millions, except share and per share data) | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of the publicly announced plan (1) | Maximum approximate dollar value of shares that may yet be purchased under the plan (1) | |||||||||
September 1 - 30, 2017 (2) | 957 | $ | 136.10 | — | $ | 500.0 | |||||||
October 1 - 31, 2017 (3) | 1,261 | $ | 149.04 | — | $ | 500.0 | |||||||
November 1 - 30, 2017 (4) | 2,232 | $ | 152.03 | — | $ | 500.0 | |||||||
Total | 4,450 | $ | 147.76 | — | $ | 500.0 |
Period (In millions, except share and per share data) | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of the publicly announced plan (1) | Maximum approximate dollar value of shares that may yet be purchased under the plan (1) | |||||||||||||||||||
June 1 - 30, 2022 (2) | 539,081 | $ | 396.20 | 531,671 | $ | 465.9 | |||||||||||||||||
July 1 - 31, 2022 (3) | 195,972 | $ | 399.53 | — | $ | 1,465.9 | |||||||||||||||||
August 1 - 31, 2022 (4) | 66,571 | $ | 427.45 | — | $ | 1,465.9 | |||||||||||||||||
Total | 801,624 | $ | 399.61 | 531,671 | $ | 1,465.9 |
Cover Page Interactive Data File (formatted as Inline XBRL | ||||||||
CINTAS CORPORATION | ||||||||||||||||||||
(Registrant) | ||||||||||||||||||||
Date: | /s/ | J. Michael Hansen | ||||||||||||||||||
J. Michael Hansen | ||||||||||||||||||||
(Principal Financial and Accounting Officer) |