QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the quarterly period ended | February 28, 2023 |
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 | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
November 30, 2017 | November 30, 2016 | November 30, 2017 | November 30, 2016 | |||||||||||||||||||||||||||||||||||
(In thousands except per share data) | (In thousands except per share data) | February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | |||||||||||||||||||||||||||||||||
Revenue: | Revenue: | |||||||||||||||||||||||||||||||||||||
Uniform rental and facility services | $ | 1,308,038 | $ | 1,000,015 | $ | 2,619,822 | $ | 1,994,297 | Uniform rental and facility services | $ | 1,716,165 | $ | 1,553,320 | $ | 5,123,924 | $ | 4,596,767 | |||||||||||||||||||||
Other | 298,403 | 271,062 | 598,122 | 543,430 | Other | 473,821 | 407,222 | 1,407,374 | 1,183,006 | |||||||||||||||||||||||||||||
Total revenue | Total revenue | 2,189,986 | 1,960,542 | 6,531,298 | 5,779,773 | |||||||||||||||||||||||||||||||||
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 | 907,993 | 834,082 | 2,705,486 | 2,430,644 | |||||||||||||||||||||||||||||
Cost of other | 166,112 | 154,361 | 331,399 | 307,487 | Cost of other | 247,962 | 228,306 | 741,222 | 663,078 | |||||||||||||||||||||||||||||
Selling and administrative expenses | 468,084 | 361,415 | 954,367 | 731,118 | Selling and administrative expenses | 587,219 | 490,549 | 1,752,724 | 1,503,117 | |||||||||||||||||||||||||||||
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 | 446,812 | 407,605 | 1,331,866 | 1,182,934 | |||||||||||||||||||||||||||||
Interest income | (291 | ) | (31 | ) | (588 | ) | (96 | ) | Interest income | (373) | (56) | (872) | (168) | |||||||||||||||||||||||||
Interest expense | 29,129 | 13,267 | 59,446 | 27,439 | Interest expense | 28,819 | 22,030 | 85,459 | 65,786 | |||||||||||||||||||||||||||||
Income before income taxes | 206,373 | 187,220 | 425,452 | 377,050 | Income before income taxes | 418,366 | 385,631 | 1,247,279 | 1,117,316 | |||||||||||||||||||||||||||||
Income taxes | 68,636 | 65,270 | 126,607 | 118,892 | Income taxes | 92,539 | 70,183 | 245,470 | 176,020 | |||||||||||||||||||||||||||||
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 | $ | 325,827 | $ | 315,448 | $ | 1,001,809 | $ | 941,296 | |||||||||||||||||||||
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 | $ | 3.19 | $ | 3.04 | $ | 9.82 | $ | 9.05 | |||||||||||||||||||||
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 | $ | 3.14 | $ | 2.97 | $ | 9.65 | $ | 8.84 | |||||||||||||||||||||
Dividends declared per share | $ | 1.62 | $ | 1.33 | $ | 1.62 | $ | 1.33 | Dividends declared per share | $ | 1.15 | $ | 0.95 | $ | 3.45 | $ | 2.85 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands) | February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | |||||||||||||||||||
Net income | $ | 325,827 | $ | 315,448 | $ | 1,001,809 | $ | 941,296 | |||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (7,972) | 5,297 | (37,079) | (26,191) | |||||||||||||||||||
Change in fair value of interest rate lock agreements, net of tax expense of $513, $11,832, $3,364 and $3,022, respectively | 1,501 | 34,567 | 9,829 | 8,828 | |||||||||||||||||||
Amortization of interest rate lock agreements, net of tax benefit of $(512), $(149), $(1,537) and $(445), respectively | (1,521) | (459) | (4,563) | (1,378) | |||||||||||||||||||
Other comprehensive (loss) income, net of tax expense of $1, $11,683, $1,827 and $2,577, respectively | (7,992) | 39,405 | (31,813) | (18,741) | |||||||||||||||||||
Comprehensive income | $ | 317,835 | $ | 354,853 | $ | 969,996 | $ | 922,555 |
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 |
(In thousands except per share data) | February 28, 2023 | May 31, 2022 | |||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 88,563 | $ | 90,471 | |||||||
Accounts receivable, net | 1,133,096 | 1,006,220 | |||||||||
Inventories, net | 531,270 | 472,150 | |||||||||
Uniforms and other rental items in service | 999,029 | 916,706 | |||||||||
Income taxes, current | 2,990 | 21,708 | |||||||||
Prepaid expenses and other current assets | 155,208 | 124,728 | |||||||||
Total current assets | 2,910,156 | 2,631,983 | |||||||||
Property and equipment, net | 1,358,181 | 1,323,673 | |||||||||
Investments | 241,796 | 242,873 | |||||||||
Goodwill | 3,043,578 | 3,042,976 | |||||||||
Service contracts, net | 357,146 | 391,638 | |||||||||
Operating lease right-of-use assets, net | 178,524 | 170,003 | |||||||||
Other assets, net | 376,620 | 344,110 | |||||||||
$ | 8,466,001 | $ | 8,147,256 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 281,649 | $ | 251,504 | |||||||
Accrued compensation and related liabilities | 203,726 | 236,992 | |||||||||
Accrued liabilities | 610,863 | 588,948 | |||||||||
Operating lease liabilities, current | 42,970 | 43,872 | |||||||||
Debt due within one year | 249,053 | 311,574 | |||||||||
Total current liabilities | 1,388,261 | 1,432,890 | |||||||||
Long-term liabilities: | |||||||||||
Debt due after one year | 2,485,952 | 2,483,932 | |||||||||
Deferred income taxes | 496,778 | 473,777 | |||||||||
Operating lease liabilities | 139,107 | 129,064 | |||||||||
Accrued liabilities | 322,647 | 319,397 | |||||||||
Total long-term liabilities | 3,444,484 | 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: | 1,981,610 | 1,771,917 | |||||||||
425,000,000 shares authorized | |||||||||||
FY 2023: 192,031,528 shares issued and 101,672,333 shares outstanding | |||||||||||
FY 2022: 190,837,921 shares issued and 101,711,215 shares outstanding | |||||||||||
Retained earnings | 9,368,678 | 8,719,163 | |||||||||
Treasury stock: | (7,793,136) | (7,290,801) | |||||||||
FY 2023: 90,359,195 shares | |||||||||||
FY 2022: 89,126,706 shares | |||||||||||
Accumulated other comprehensive income | 76,104 | 107,917 | |||||||||
Total shareholders’ equity | 3,633,256 | 3,308,196 | |||||||||
$ | 8,466,001 | $ | 8,147,256 |
Common Stock and Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 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 | |||||||||||||||||||||||||||||||||||
Net income | — | — | 324,293 | — | — | — | 324,293 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive loss, net of tax | — | — | — | (4,028) | — | — | (4,028) | ||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | (117,338) | — | — | — | (117,338) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 25,255 | — | — | — | — | 25,255 | ||||||||||||||||||||||||||||||||||||||||
Vesting of stock-based compensation awards | 9 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 194 | 29,053 | — | — | (66) | (27,975) | 1,078 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | (68) | (28,348) | (28,348) | ||||||||||||||||||||||||||||||||||||||||
Balance at November 30, 2022 | 191,857 | $ | 1,933,145 | $ | 9,160,346 | $ | 84,096 | (90,256) | $ | (7,747,049) | $ | 3,430,538 | |||||||||||||||||||||||||||||||||||
Net income | — | — | 325,827 | — | — | — | 325,827 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive loss, net of tax | — | — | — | (7,992) | — | — | (7,992) | ||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | (117,495) | — | — | — | (117,495) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 23,797 | — | — | — | — | 23,797 | ||||||||||||||||||||||||||||||||||||||||
Vesting of stock-based compensation awards | 3 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 172 | 24,668 | — | — | (54) | (23,852) | 816 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | (49) | (22,235) | (22,235) | ||||||||||||||||||||||||||||||||||||||||
Balance at February 28, 2023 | 192,032 | $ | 1,981,610 | $ | 9,368,678 | $ | 76,104 | (90,359) | $ | (7,793,136) | $ | 3,633,256 |
Common Stock and Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 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 | |||||||||||||||||||||||||||||||||||
Net income | — | — | 294,669 | — | — | — | 294,669 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income, net of tax | — | — | — | 3,008 | — | — | 3,008 | ||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | (98,961) | — | — | — | (98,961) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 24,397 | — | — | — | — | 24,397 | ||||||||||||||||||||||||||||||||||||||||
Vesting of stock-based compensation awards | 31 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 317 | 36,302 | — | — | — | — | 36,302 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | (13) | (5,491) | (5,491) | ||||||||||||||||||||||||||||||||||||||||
Balance at November 30, 2021 | 190,476 | $ | 1,686,293 | $ | 8,305,076 | $ | (27,258) | (86,811) | $ | (6,400,984) | $ | 3,563,127 | |||||||||||||||||||||||||||||||||||
Net income | — | — | 315,448 | — | — | — | 315,448 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income, net of tax | — | — | — | 39,405 | — | — | 39,405 | ||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | (98,197) | — | — | — | (98,197) | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 22,794 | — | — | — | — | 22,794 | ||||||||||||||||||||||||||||||||||||||||
Vesting of stock-based compensation awards | 2 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 215 | 20,438 | — | — | (30) | (12,000) | 8,438 | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | (1,436) | (557,115) | (557,115) | ||||||||||||||||||||||||||||||||||||||||
Balance at February 28, 2022 | 190,693 | $ | 1,729,525 | $ | 8,522,327 | $ | 12,147 | (88,277) | $ | (6,970,099) | $ | 3,293,900 |
Nine Months Ended | ||||||||||||||||||
Six Months Ended | ||||||||||||||||||
November 30, 2017 | November 30, 2016 | |||||||||||||||||
(In thousands) | (In thousands) | February 28, 2023 | February 28, 2022 | |||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 354,320 | $ | 278,468 | Net income | $ | 1,001,809 | $ | 941,296 | |||||||||
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 | 190,801 | 184,464 | |||||||||||||
Amortization of intangible assets | 31,261 | 7,460 | ||||||||||||||||
Amortization of intangible assets and capitalized contract costs | Amortization of intangible assets and capitalized contract costs | 113,281 | 112,859 | |||||||||||||||
Stock-based compensation | 55,204 | 39,582 | Stock-based compensation | 75,334 | 83,687 | |||||||||||||
Gain on sale of business | (99,060 | ) | — | |||||||||||||||
Gain on Shred-it | — | (25,876 | ) | |||||||||||||||
Gain on equity method investment transaction | Gain on equity method investment transaction | — | (30,151) | |||||||||||||||
Gain on sale of operating assets | Gain on sale of operating assets | — | (12,129) | |||||||||||||||
Deferred income taxes | 42,162 | (3,833 | ) | Deferred income taxes | 22,001 | 42,652 | ||||||||||||
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 | (132,473) | (99,223) | |||||||||||
Inventories, net | 2,595 | (14,616 | ) | Inventories, net | (60,563) | 2,311 | ||||||||||||
Uniforms and other rental items in service | (33,294 | ) | (4,315 | ) | Uniforms and other rental items in service | (85,991) | (77,584) | |||||||||||
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 | (116,842) | (77,450) | |||||||||||||||
Accounts payable | (8,706 | ) | 15,451 | Accounts payable | 32,851 | 6,168 | ||||||||||||
Accrued compensation and related liabilities | (36,480 | ) | (18,936 | ) | Accrued compensation and related liabilities | (32,666) | (28,400) | |||||||||||
Accrued liabilities and other | (1,940 | ) | (4,866 | ) | Accrued liabilities and other | 17,856 | (17,717) | |||||||||||
Income taxes, current | 8,742 | 484 | Income taxes, current | 18,793 | (43,728) | |||||||||||||
Net cash provided by operating activities | 379,009 | 301,721 | Net cash provided by operating activities | 1,044,191 | 987,055 | |||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||
Capital expenditures | (132,466 | ) | (155,173 | ) | Capital expenditures | (224,116) | (165,851) | |||||||||||
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 | (4,618) | (6,024) | |||||||||||||||
Proceeds from sale of operating assets, net of cash disposed | Proceeds from sale of operating assets, net of cash disposed | — | 15,347 | |||||||||||||||
Acquisitions of businesses, net of cash acquired | (1,099 | ) | (17,778 | ) | Acquisitions of businesses, net of cash acquired | (32,983) | (150,844) | |||||||||||
Other, net | (870 | ) | 332 | Other, net | (6,894) | (8,939) | ||||||||||||
Net cash used in investing activities | (6,218 | ) | (92,045 | ) | Net cash used in investing activities | (268,611) | (316,311) | |||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||
(Payments) issuance of commercial paper, net | (50,500 | ) | 66,000 | (Payments) issuance of commercial paper, net | (62,200) | 559,210 | ||||||||||||
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 | 2,941 | 117,636 | |||||||||||||
Dividends paid | Dividends paid | (332,421) | (276,922) | |||||||||||||||
Repurchase of common stock | (35,697 | ) | (19,230 | ) | Repurchase of common stock | (370,917) | (1,221,841) | |||||||||||
Other, net | (1,882 | ) | (5,572 | ) | Other, net | (11,996) | (6,657) | |||||||||||
Net cash used in financing activities | (309,521 | ) | (203,072 | ) | Net cash used in financing activities | (774,593) | (1,078,574) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 3,466 | (2,388 | ) | Effect of exchange rate changes on cash and cash equivalents | (2,895) | (1,674) | ||||||||||||
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 | (1,908) | (409,504) | |||||||||||||||
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 | $ | 88,563 | $ | 84,136 |
(In thousands) | November 30, 2017 | May 31, 2017 | (In thousands) | February 28, 2023 | May 31, 2022 | |||||||||||||
Raw materials | $ | 16,231 | $ | 17,528 | Raw materials | $ | 26,440 | $ | 19,071 | |||||||||
Work in process | 23,199 | 17,951 | Work in process | 59,342 | 34,280 | |||||||||||||
Finished goods | 233,400 | 242,739 | Finished goods | 445,488 | 418,799 | |||||||||||||
$ | 272,830 | $ | 278,218 | $ | 531,270 | $ | 472,150 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||
(In thousands) | February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | ||||||||||||||||||||||||||||||||||||||||
Uniform Rental and Facility Services | $ | 1,716,165 | 78.4 | % | $ | 1,553,320 | 79.2 | % | $ | 5,123,924 | 78.5 | % | $ | 4,596,767 | 79.5 | % | ||||||||||||||||||||||||||||
First Aid and Safety Services | 231,605 | 10.6 | % | 212,958 | 10.9 | % | 701,740 | 10.7 | % | 614,234 | 10.6 | % | ||||||||||||||||||||||||||||||||
Fire Protection Services | 155,762 | 7.1 | % | 128,727 | 6.6 | % | 454,211 | 7.0 | % | 380,199 | 6.6 | % | ||||||||||||||||||||||||||||||||
Uniform Direct Sales | 86,454 | 3.9 | % | 65,537 | 3.3 | % | 251,423 | 3.8 | % | 188,573 | 3.3 | % | ||||||||||||||||||||||||||||||||
Total revenue | $ | 2,189,986 | 100.0 | % | $ | 1,960,542 | 100.0 | % | $ | 6,531,298 | 100.0 | % | $ | 5,779,773 | 100.0 | % |
(In thousands) | 2023 | 2022 | |||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 37,103 | $ | 36,923 | |||||||
Operating lease right-of-use assets obtained in exchange for new and renewed operating lease liabilities | $ | 42,900 | $ | 17,452 | |||||||
Operating lease right-of-use assets acquired in business combinations | $ | — | $ | 17,734 |
February 28, 2023 | May 31, 2022 | ||||||||||
Weighted-average remaining lease term - operating leases | 5.43 years | 5.40 years | |||||||||
Weighted-average discount rate - operating leases | 2.75% | 2.20% |
(In thousands) | ||||||||
2023 (remaining three months) | $ | 12,310 | ||||||
2024 | 45,627 | |||||||
2025 | 37,790 | |||||||
2026 | 30,830 | |||||||
2027 | 22,314 | |||||||
Thereafter | 47,856 | |||||||
Total payments | 196,727 | |||||||
Less interest | (14,650) | |||||||
Total present value of lease payments | $ | 182,077 |
As of February 28, 2023 | |||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||
Cash and cash equivalents | $ | 88,563 | $ | — | $ | — | $ | 88,563 | |||||||||||||||
Other assets, net: | |||||||||||||||||||||||
Interest rate lock agreements | — | 70,071 | — | 70,071 | |||||||||||||||||||
Total assets at fair value | $ | 88,563 | $ | 70,071 | $ | — | $ | 158,634 | |||||||||||||||
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) | February 28, 2023 | May 31, 2022 | |||||||||
Cash surrender value of insurance policies | $ | 237,423 | $ | 237,136 | |||||||
Other investments | 4,373 | 5,737 | |||||||||
Total investments | $ | 241,796 | $ | 242,873 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Basic Earnings per Share (In thousands except per share data) | February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | |||||||||||||||||||
Net income | $ | 325,827 | $ | 315,448 | $ | 1,001,809 | $ | 941,296 | |||||||||||||||
Less: net income allocated to participating securities | 1,351 | 1,581 | 4,155 | 4,706 | |||||||||||||||||||
Net income available to common shareholders | $ | 324,476 | $ | 313,867 | $ | 997,654 | $ | 936,590 | |||||||||||||||
Basic weighted average common shares outstanding | 101,714 | 103,388 | 101,589 | 103,438 | |||||||||||||||||||
Basic earnings per share | $ | 3.19 | $ | 3.04 | $ | 9.82 | $ | 9.05 |
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 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Diluted Earnings per Share (In thousands except per share data) | February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | |||||||||||||||||||
Net income | $ | 325,827 | $ | 315,448 | $ | 1,001,809 | $ | 941,296 | |||||||||||||||
Less: net income allocated to participating securities | 1,351 | 1,581 | 4,155 | 4,706 | |||||||||||||||||||
Net income available to common shareholders | $ | 324,476 | $ | 313,867 | $ | 997,654 | $ | 936,590 | |||||||||||||||
Basic weighted average common shares outstanding | 101,714 | 103,388 | 101,589 | 103,438 | |||||||||||||||||||
Effect of dilutive securities – employee stock options | 1,704 | 2,253 | 1,774 | 2,458 | |||||||||||||||||||
Diluted weighted average common shares outstanding | 103,418 | 105,641 | 103,363 | 105,896 | |||||||||||||||||||
Diluted earnings per share | $ | 3.14 | $ | 2.97 | $ | 9.65 | $ | 8.84 |
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 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
February 28, 2023 | February 28, 2023 | |||||||||||||||||||||||||||||||||||||
Buyback Activity (In thousands except per share data) | Shares | Avg. Price per Share | Purchase Price | Shares | Avg. Price per Share | Purchase Price | ||||||||||||||||||||||||||||||||
July 27, 2021 | — | $ | — | $ | — | 544 | $ | 395.97 | $ | 215,434 | ||||||||||||||||||||||||||||
July 26, 2022 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
— | $ | — | $ | — | 544 | $ | 395.97 | $ | 215,434 | |||||||||||||||||||||||||||||
Shares acquired for taxes due (1) | 49 | $ | 448.79 | $ | 22,235 | 375 | $ | 414.23 | $ | 155,483 | ||||||||||||||||||||||||||||
Total repurchase of Cintas common stock | $ | 22,235 | $ | 370,917 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
February 28, 2022 | February 28, 2022 | |||||||||||||||||||||||||||||||||||||
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 | 1,386 | 388.03 | 537,655 | 1,386 | 388.03 | 537,655 | ||||||||||||||||||||||||||||||||
1,386 | $ | 388.03 | $ | 537,655 | 2,976 | $ | 375.94 | $ | 1,118,875 | |||||||||||||||||||||||||||||
Shares acquired for taxes due (1) | 50 | $ | 390.60 | $ | 19,460 | 261 | $ | 394.84 | $ | 102,966 | ||||||||||||||||||||||||||||
Total repurchase of Cintas common stock | $ | 557,115 | $ | 1,221,841 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
February 28, 2023 | February 28, 2023 | |||||||||||||||||||||||||||||||||||||
(In thousands except per share data) | Shares | Avg. Price per Share | Non-Cash Value | Shares | Avg. Price per Share | Non-Cash Value | ||||||||||||||||||||||||||||||||
Non-cash transaction activity | 54 | $ | 445.60 | $ | 23,852 | 313 | $ | 419.78 | $ | 131,418 | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
February 28, 2022 | February 28, 2022 | |||||||||||||||||||||||||||||||||||||
Shares | Avg. Price per Share | Non-Cash Value | Shares | Avg. Price per Share | Non-Cash Value | |||||||||||||||||||||||||||||||||
Non-cash transaction activity | 30 | $ | 391.03 | $ | 12,000 | 30 | $ | 391.03 | $ | 12,000 |
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 | 13,370 | 6,642 | 756 | 20,768 | |||||||||||||||||||
Foreign currency translation | (18,466) | (1,636) | (64) | (20,166) | |||||||||||||||||||
Balance as of February 28, 2023 | $ | 2,630,003 | $ | 290,775 | $ | 122,800 | $ | 3,043,578 |
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 | 5,679 | 1,823 | 1,154 | 8,656 | |||||||||||||||||||||||||||||
Service contracts amortization | (21,946 | ) | (1,927 | ) | (2,364 | ) | (26,237 | ) | Service contracts amortization | (32,454) | (3,845) | (3,267) | (39,566) | |||||||||||||||||||||||||
Foreign currency translation | 3,748 | 99 | — | 3,847 | Foreign currency translation | (3,432) | (150) | — | (3,582) | |||||||||||||||||||||||||||||
Balance as of November 30, 2017 | $ | 511,757 | $ | 28,645 | $ | 25,172 | $ | 565,574 | ||||||||||||||||||||||||||||||
Balance as of February 28, 2023 | Balance as of February 28, 2023 | $ | 319,427 | $ | 21,972 | $ | 15,747 | $ | 357,146 |
As of February 28, 2023 | As of May 31, 2022 | |||||||||||||||||||||||||||||||||||||
(In thousands) | Carrying Amount | Accumulated Amortization | Net | Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||
Service contracts | $ | 1,001,864 | $ | 644,718 | $ | 357,146 | $ | 1,001,311 | $ | 609,673 | $ | 391,638 | ||||||||||||||||||||||||||
Capitalized contract costs (1) | $ | 637,891 | $ | 389,140 | $ | 248,751 | $ | 551,582 | $ | 319,358 | $ | 232,224 | ||||||||||||||||||||||||||
Noncompete and consulting agreements | 51,563 | 45,131 | 6,432 | 50,637 | 43,775 | 6,862 | ||||||||||||||||||||||||||||||||
Other | 142,813 | 21,376 | 121,437 | 125,941 | 20,917 | 105,024 | ||||||||||||||||||||||||||||||||
Total other assets, net | $ | 832,267 | $ | 455,647 | $ | 376,620 | $ | 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 three months) | $ | 37,864 | ||||||
2024 | 142,394 | |||||||
2025 | 127,831 | |||||||
2026 | 107,040 | |||||||
2027 | 87,552 | |||||||
Thereafter | 203,474 | |||||||
Total future amortization expense | $ | 706,155 |
(In thousands) | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | February 28, 2023 | May 31, 2022 | ||||||||||||||||||||||||
Debt due within one year | |||||||||||||||||||||||||||||
Commercial paper | 4.79 | % | (1) | 2023 | 2023 | $ | 199,000 | $ | 261,200 | ||||||||||||||||||||
Senior notes (2) | 2.78 | % | 2013 | 2023 | 50,054 | 50,380 | |||||||||||||||||||||||
Debt issuance costs | (1) | (6) | |||||||||||||||||||||||||||
Total debt due within one year | $ | 249,053 | $ | 311,574 | |||||||||||||||||||||||||
Debt due after one year | |||||||||||||||||||||||||||||
Senior notes (3) | 3.11 | % | 2015 | 2025 | $ | 50,714 | $ | 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 | (14,762) | (17,033) | |||||||||||||||||||||||||||
Total debt due after one year | $ | 2,485,952 | $ | 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 |
February 28, 2023 | May 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
Fiscal Year of Issuance (in thousands) | Other assets, net | Other assets, net | ||||||||||||||||||||||||||||||||||||||||||
2022 | $ | 25,654 | $ | 18,331 | ||||||||||||||||||||||||||||||||||||||||
2020 | $ | 44,417 | $ | 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 |
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 | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (9,901) | 7,394 | — | (2,507) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1,521) | — | (1,521) | |||||||||||||||||||
Net current period other comprehensive (loss) income | (9,901) | 5,873 | — | (4,028) | |||||||||||||||||||
Balance at November 30, 2022 | (12,101) | 97,974 | (1,777) | 84,096 | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (7,972) | 1,501 | — | (6,471) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1,521) | — | (1,521) | |||||||||||||||||||
Net current period other comprehensive loss | (7,972) | (20) | — | (7,992) | |||||||||||||||||||
Balance at February 28, 2023 | $ | (20,073) | $ | 97,954 | $ | (1,777) | $ | 76,104 |
(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) Income 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) | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (7,472) | 10,940 | — | 3,468 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (460) | — | (460) | |||||||||||||||||||
Net current period other comprehensive (loss) income | (7,472) | 10,480 | — | 3,008 | |||||||||||||||||||
Balance at November 30, 2021 | 10,351 | (33,966) | (3,643) | (27,258) | |||||||||||||||||||
Other comprehensive income before reclassifications | 5,297 | 34,567 | — | 39,864 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (459) | — | (459) | |||||||||||||||||||
Net current period other comprehensive income | 5,297 | 34,108 | — | 39,405 | |||||||||||||||||||
Balance at February 28, 2022 | $ | 15,648 | $ | 142 | $ | (3,643) | $ | 12,147 |
(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 | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(In thousands) | February 28, 2023 | February 28, 2022 | February 28, 2023 | February 28, 2022 | ||||||||||||||||||||||
Amortization of interest rate locks | $ | 2,033 | $ | 608 | $ | 6,100 | $ | 1,823 | Interest expense | |||||||||||||||||
Tax expense | (512) | (149) | (1,537) | (445) | Income taxes | |||||||||||||||||||||
Amortization of interest rate locks, net of tax | $ | 1,521 | $ | 459 | $ | 4,563 | $ | 1,378 | ||||||||||||||||||
(In thousands) | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Corporate (1) | Total | ||||||||||||||||||||||||
For the three months ended February 28, 2023 | |||||||||||||||||||||||||||||
Revenue | $ | 1,716,165 | $ | 231,605 | $ | 242,216 | $ | — | $ | 2,189,986 | |||||||||||||||||||
Income (loss) before income taxes | $ | 359,995 | $ | 47,271 | $ | 39,546 | $ | (28,446) | $ | 418,366 | |||||||||||||||||||
For the three months ended February 28, 2022 | |||||||||||||||||||||||||||||
Revenue | $ | 1,553,320 | $ | 212,958 | $ | 194,264 | $ | — | $ | 1,960,542 | |||||||||||||||||||
Income (loss) before income taxes | $ | 355,990 | $ | 26,304 | $ | 25,311 | $ | (21,974) | $ | 385,631 | |||||||||||||||||||
As of and for the nine months ended February 28, 2023 | |||||||||||||||||||||||||||||
Revenue | $ | 5,123,924 | $ | 701,740 | $ | 705,634 | $ | — | $ | 6,531,298 | |||||||||||||||||||
Income (loss) before income taxes | $ | 1,093,861 | $ | 133,612 | $ | 104,393 | $ | (84,587) | $ | 1,247,279 | |||||||||||||||||||
Total assets | $ | 7,150,227 | $ | 694,777 | $ | 532,434 | $ | 88,563 | $ | 8,466,001 | |||||||||||||||||||
As of and for the nine months ended February 28, 2022 | |||||||||||||||||||||||||||||
Revenue | $ | 4,596,767 | $ | 614,234 | $ | 568,772 | $ | — | $ | 5,779,773 | |||||||||||||||||||
Income (loss) before income taxes | $ | 1,022,987 | $ | 74,109 | $ | 85,838 | $ | (65,618) | $ | 1,117,316 | |||||||||||||||||||
Total assets | $ | 7,022,646 | $ | 668,475 | $ | 393,343 | $ | 84,136 | $ | 8,168,600 |
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 | ||||||||||||||
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) | 2023 | 2022 | |||||||||
Net cash provided by operating activities | $ | 1,044,191 | $ | 987,055 | |||||||
Net cash used in investing activities | $ | (268,611) | $ | (316,311) | |||||||
Net cash used in financing activities | $ | (774,593) | $ | (1,078,574) | |||||||
Cash and cash equivalents at the end of the period | $ | 88,563 | $ | 84,136 | |||||||
(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 | $ | — |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
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 | 544 | 395.97 | 215,434 | 1,386 | 388.03 | 537,655 | ||||||||||||||||||||||||||||||||
July 26, 2022 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
544 | $ | 395.97 | $ | 215,434 | 2,976 | $ | 375.94 | $ | 1,118,875 | |||||||||||||||||||||||||||||
Shares acquired for taxes due (1) | 375 | $ | 414.23 | $ | 155,483 | 261 | $ | 394.84 | $ | 102,966 | ||||||||||||||||||||||||||||
Total repurchase of Cintas common stock | $ | 370,917 | $ | 1,221,841 |
Paid Dividends | ||||||||||||||||||||
Declaration Date (In millions except per share data) | Record Date | Payment Date | Dividend Per Share | Total Amount | ||||||||||||||||
Nine months ended February 28, 2023 | ||||||||||||||||||||
April 12, 2022 | May 16, 2022 | June 15, 2022 | $ | 0.95 | $ | 97.7 | ||||||||||||||
July 26, 2022 | August 15, 2022 | September 15, 2022 | 1.15 | 117.3 | ||||||||||||||||
October 25, 2022 | November 15, 2022 | December 15, 2022 | 1.15 | 117.4 | ||||||||||||||||
$ | 3.25 | $ | 332.4 | |||||||||||||||||
Nine months ended February 28, 2022 | ||||||||||||||||||||
April 13, 2021 | May 15, 2021 | June 15, 2021 | $ | 0.75 | $ | 79.1 | ||||||||||||||
July 27, 2021 | August 13, 2021 | September 15, 2021 | 0.95 | 98.8 | ||||||||||||||||
October 26, 2021 | November 15, 2021 | December 15, 2021 | 0.95 | 99.0 | ||||||||||||||||
$ | 2.65 | $ | 276.9 | |||||||||||||||||
Accrued Dividends | ||||||||||||||||||||
As of February 28, 2023 | ||||||||||||||||||||
January 10, 2023 (1) | February 15, 2023 | March 15, 2023 | $ | 1.15 | $ | 117.5 | ||||||||||||||
As of February 28, 2022 | ||||||||||||||||||||
January 12, 2022 (1) | February 15, 2022 | March 15, 2022 | $ | 0.95 | $ | 98.2 | ||||||||||||||
(In thousands) | Interest Rate | Fiscal Year Issued | Fiscal Year Maturity | February 28, 2023 | May 31, 2022 | ||||||||||||||||||||||||
Debt due within one year | |||||||||||||||||||||||||||||
Commercial paper | 4.79 | % | (1) | 2023 | 2023 | $ | 199,000 | $ | 261,200 | ||||||||||||||||||||
Senior notes (2) | 2.78 | % | 2013 | 2023 | 50,054 | 50,380 | |||||||||||||||||||||||
Debt issuance costs | (1) | (6) | |||||||||||||||||||||||||||
Total debt due within one year | $ | 249,053 | $ | 311,574 | |||||||||||||||||||||||||
Debt due after one year | |||||||||||||||||||||||||||||
Senior notes (3) | 3.11 | % | 2015 | 2025 | $ | 50,714 | $ | 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 | (14,762) | (17,033) | |||||||||||||||||||||||||||
Total debt due after one year | $ | 2,485,952 | $ | 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 |
Nine Months Ended | ||||||||||||||
Summarized Consolidated Condensed Statements of Income (In thousands) | February 28, 2023 | February 28, 2022 | ||||||||||||
Net sales to unrelated parties | $ | 6,173,518 | $ | 5,445,091 | ||||||||||
Net sales to non-guarantors | $ | 10,942 | $ | 6,019 | ||||||||||
Operating income | $ | 1,295,304 | $ | 1,143,398 | ||||||||||
Net income | $ | 975,010 | $ | 912,248 |
Summarized Consolidated Condensed Balance Sheets (In thousands) | February 28, 2023 | May 31, 2022 | ||||||||||||
ASSETS | ||||||||||||||
Receivables due from non-obligor subsidiaries | $ | 6,757 | $ | 11,759 | ||||||||||
Total other current assets | $ | 2,702,118 | $ | 2,427,494 | ||||||||||
Total other noncurrent assets | $ | 5,160,280 | $ | 5,081,265 | ||||||||||
LIABILITIES | ||||||||||||||
Amounts due to non-obligor subsidiaries | $ | 717 | $ | 11,383 | ||||||||||
Current liabilities | $ | 1,350,475 | $ | 1,388,310 | ||||||||||
Noncurrent liabilities | $ | 3,390,352 | $ | 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) | |||||||||||||||||||
December 1 - 31, 2022 (2) | 14,257 | $ | 457.04 | — | $ | 1,461.2 | |||||||||||||||||
January 1 - 31, 2023 (3) | 22,011 | $ | 447.05 | — | $ | 1,461.2 | |||||||||||||||||
February 1 - 28, 2023 (4) | 13,276 | $ | 442.81 | — | $ | 1,461.2 | |||||||||||||||||
Total | 49,544 | $ | 448.79 | — | $ | 1,461.2 |
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) |