CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) has acquired SITEX, a Kentucky-based, family-owned supplier of uniform and facility service programs. SITEX was founded by the Sights family in Henderson, Kentucky in 1961. Currently, Wes Sights serves as CEO of SITEX, which has five different locations servicing customers in a four-state region, including Illinois, Indiana, Kentucky and Tennessee. “The Sights family has grown SITEX into a strong regional provider of quality apparel and faci ...

Investors might want to bet on Cintas (CTAS) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often find it ...

CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) has been named one of FORTUNE’s 2024 World’s Most Admired Companies, ranking second amongst all companies in the Diversified Outsourcing Services category. This is the 16th time that Cintas has been recognized by FORTUNE for this honor. “We are proud to be recognized by our peers and industry experts as a well-run and successful organization,” said Todd Schneider, Cintas President and CEO. “Being recognized again for this award is a reflecti ...

Consistent sales growth is key, as it’s the foundation of generating profits. Strong revenue generation allows companies to achieve scaling efficiencies, generate continuous shareholder value, and many other clear benefits.And when it comes to top line strength, three companies – Eagle Materials (EXP) , Cintas (CTAS) , and Haemonetics (HAE) – have all meaningfully expanded their revenues over the years.   All three have seen recent positive earnings estimate revisions, reflecting optimism among analysts. Fo ...

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cintas (CTAS) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Cintas is one of 227 companies in the Industrial Products group. The Industrial Products group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuri ...

CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) today appointed Beverly K. Carmichael to its Board of Directors, effective immediately. This appointment expands Cintas’ Board to 11 Directors. “Beverly brings valuable skills and experience in areas that are highly relevant for Cintas today, further enhancing the capabilities of our Board,” said Scott D. Farmer, Cintas Executive Chairman. “Beverly’s outstanding track record building differentiated, high-performance workforce cultures will he ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-11399 Cintas Corporation (Exact name of registrant as specified in its charter) Washington 31-1188630 (State or Other Jurisdiction of Incorp ...

Cintas Corporation (NASDAQ:CTAS) Q2 2024 Earnings Call Transcript December 21, 2023 10:00 AM ET Company Participants Jared Mattingley - VP, Treasurer & IR Todd Schneider - President & CEO Mike Hansen - EVP & CFO Conference Call Participants Ashish Sabadra - RBC Manav Patnaik - Barclays Capital Joshua Chan - UBS Heather Balsky - Bank of America Andy Wittmann - RW Baird George Tong - Goldman Sachs Tim Mulrooney - William Blair Andrew Steinerman - JPMorgan Securities Jasper Bibb - Truist Securities Faiza Alwy ...

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Financial Data and Key Metrics - Q1 2024 total revenue grew 8.1% to $2.34 billion, driven by strong volume growth [27] - Operating income margin increased 110 basis points to a record high of 21.4% [27] - Diluted EPS grew 9.1% to $3.70 compared to $3.39 last year [21] - Gross margin for Q1 2024 was $1.14 billion, up 11% YoY, with gross margin percentage reaching an all-time high of 48.7% [30][61] - Net income for Q1 2024 was $385.1 million, up from $351.7 million last year [21] - Cash flow from operating activities grew 13% YoY, with $138.3 million paid in quarterly dividends, a 17.8% increase [43] Business Line Performance - **Uniform Rental and Facility Services**: Revenue grew 7.6% YoY to $1.83 billion, with gross margin at 48.1% [58][20] - **First Aid and Safety Services**: Revenue grew 11% YoY to $260.7 million, with gross margin at 55.9% [59][20] - **Fire Protection Services**: Revenue grew 14.2% YoY to $174.3 million, with gross margin at 49% [60][20] - **Uniform Direct Sale**: Revenue declined 2.7% YoY to $80.5 million, with gross margin at 38.7% [60][20] Market Performance - The company has a broad-based customer base with no single customer accounting for more than 1% of revenue and no sector exceeding 10% [54] - Strong demand from healthcare, education, and government verticals continues to drive growth in Uniform Rental [93] - The labor market remains tight, with 9.5 million job openings, impacting customer retention and hiring efforts [66][140] Strategic Direction and Industry Competition - The company is focused on expanding its no-program market, which is highly attractive and offers significant growth potential [1][124] - Investments in technology, including SAP implementation and SmartTruck initiatives, are driving operational efficiencies and margin expansion [117][145] - The company is leveraging its strong balance sheet for M&A opportunities, particularly in route-based operating segments [77] - Pricing strategy is returning to historical levels, with a focus on operating margin improvement through multiple levers, not just pricing [18][45] Management Commentary on Operating Environment and Future Outlook - Management remains bullish on the business, citing strong new business pipelines, high customer retention, and effective cross-selling [34][127] - The macro environment remains stable, with no significant changes in customer behavior since the last report [31] - The company is well-positioned for future economic challenges, with a pristine balance sheet and a focus on customer and employee care [12][146] Other Important Information - The company raised its annual revenue guidance to $9.4 billion - $9.52 billion, representing 6.6% - 8% growth, and diluted EPS guidance to $14 - $14.45, representing 7.8% - 11.2% growth [30] - Energy costs were a tailwind in Q1, contributing to margin expansion, but this benefit is expected to be muted for the rest of the fiscal year [50][61] - The company is investing in automation and technology to improve efficiency and customer satisfaction, with CapEx expected to be around 4% of revenue for the year [52][110] Q&A Session Summary Question: New business environment and macro changes [23] - **Answer**: The new business pipeline is strong, with no significant changes in customer behavior. The labor market remains tight, but the company is well-positioned to navigate the environment [31][54] Question: Pricing strategy and volume growth [63] - **Answer**: Pricing is returning to historical levels, with growth driven by new business, cross-selling, and customer retention. The company is focused on making it easier to do business through technology [63][64] Question: Margin expansion and energy costs [36] - **Answer**: Gross margins expanded due to lower energy costs and operational efficiencies. The company expects further margin expansion through revenue growth and cost management [36][61] Question: First Aid and Safety margins [68] - **Answer**: First Aid margins have improved due to strong revenue growth and operational efficiencies. The business is now comparable to Uniform Rental in terms of margins [68][131] Question: CapEx expectations and projects [51] - **Answer**: CapEx is expected to be around 4% of revenue, driven by SAP implementation and SmartTruck initiatives. The company is focused on long-term efficiency gains [52][110] Question: Competitive landscape in Uniform Rental [108] - **Answer**: The Uniform Rental market remains highly competitive, but the company is focused on expanding its share in the no-program market through strong value propositions [124][108] Question: Labor environment and sourcing [140] - **Answer**: The labor market is slightly easier than last year but remains challenging. The company is focused on attracting and retaining top talent through a strong employee value proposition [140][103] Question: Lessons from past recessions [141] - **Answer**: The company performed well during the 2008-2009 recession, selling new business at attractive rates. The current diversified customer base and strong value proposition position the company well for future challenges [141][146] Question: Technology investments and M&A [128] - **Answer**: The company is continuously investing in technology to improve customer experience and operational efficiency. M&A is also a key part of the strategy to enhance capabilities [128][129] Question: Recurring revenue in First Aid and Safety [147] - **Answer**: The First Aid and Safety business has returned to historical levels of recurring revenue, driven by strong demand for health and safety products [147]