Free Research Report as Cintas’ Quarterly Revenues Surged 26.6% and Adjusted EPS Gained 22.3%

LONDON, UK / ACCESSWIRE / April 24, 2018 / Active-Investors.com has just released a free earnings report on Cintas Corp. (NASDAQ: CTAS). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CTAS. The Company reported its third quarter fiscal 2018 operating and financial results on March 21, 2018. The uniform rental Company beat top- and bottom-line expectations, and also provided guidance for the upcoming quarter. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Cintas most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=CTAS

Earnings Highlights and Summary

For the third quarter of the fiscal year 2018 , Cintas’ revenues were approximately $1.59 billion, reflecting an increase of 26.6% versus Q3 FY17. The Company’s organic revenue growth rate, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 7.8%. Cintas’ revenue numbers exceeded analysts’ estimates of $1.57 billion.

During Q3 FY18, Cintas’ operating income increased 4.2% to $200 million from $192 million in Q3 FY17. The Company’s operating income was reduced by $10 million in Q3 FY18 and by $9 million in Q3 FY17 by transaction and integration expenses related to the G&K Services, Inc. (G&K) acquisition. The Company’s reported quarter operating income was also impacted by a one-time cash payment to Cintas’ employees following the enactment of the Tax Cuts and Jobs Act 2017 (TCJA) which was signed into legislation in December 2017. The one-time cash payment to employees amounted to approximately $40 million.

Cintas reported a net income from continuing operations of approximately $295.8 million, or $2.66 per diluted share, in Q3 FY18 compared to $117.0 million, or $1.06 per diluted share, in Q3 FY17. The Company’s reported quarter results included a positive impact of $1.59 per share from the TCJA, largely due to a one-time revaluation of deferred tax assets and liabilities, offset by a negative impact of $0.06 per share from transaction and a negative impact of $0.24 per share from the one-time cash payment to employees.

On a non-GAAP basis, Cintas recorded diluted earnings per share (EPS) of $1.37 in Q3 FY18 compared to $1.12 in Q3 FY17, reflecting a growth of 22.3%. The Company’s EPS beat Wall Street’s estimates of $1.24.

Segment Details

During Q3 FY18, Cintas’ Uniform Rental and Facility Services segment’s revenues surged 30.0% to $1.28 billion on a y-o-y basis. Excluding the impact of acquisitions and foreign currency exchange rate changes, the segment’s organic growth rate was 6.5%. The Uniform Rental and Facility Services segment gross margin was 44.1% in Q3 FY18 compared to 45.1% in Q3 FY17, attributable to the inclusion of the lower margin G&K business.

For Q3 FY18, Cintas’ First Aid and Safety Services segment’s operating revenues advanced 10.5% to $137 million. On an organic basis, the segment’s growth rate was 10.0%. The segment’s gross margin was 46.9% in Q3 FY18 compared to 44.8% in Q3 FY17, reflecting an increase of 210 basis points.

Cash Matters

As of February 28, 2018, Cintas’ cash and cash equivalents were $152 million, and marketable securities were $33 million. Cintas’ free cash flow was $464 million in the first nine months of the fiscal year 2018, an increase of $200 million, or 75%, on a y-o-y basis.

As of February 28, 2018, Cintas’ total debt was $2.72 billion, consisting of $187 million in short-term debts and $2.54 billion of long-term debts. At February 28, 2018, the Company’s leverage was 2.3x debt-to-EBITDA.

Outlook

For the fourth quarter of the fiscal year 2018, Cintas is forecasting revenues to be in the range of $1.625 billion to $1.645 billion. The Company is expecting earnings from continuing operations to increase and be in the band of $1.64 per share to $1.69 per share.

Stock Performance Snapshot

April 23, 2018 – At Monday’s closing bell, Cintas’ stock ended the trading session flat at $173.12.

Volume traded for the day: 344.46 thousand shares.

Stock performance in the last month – up 6.14%; previous three-month period – up 4.83%; past twelve-month period – up 40.59%; and year-to-date – up 11.10%

After yesterday’s close, Cintas’ market cap was at $18.60 billion.

Price to Earnings (P/E) ratio was at 27.09.

The stock has a dividend yield of 0.94%.

The stock is part of the Services sector, categorized under the Business Services industry.

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