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) (State or Other Jurisdiction of Incorporation or Organizatio ...

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 ...

Note 4 - Fair Value Measurements | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------|-------|----------------------|----------|-------------------------------|-----------------|------------------|-------|-------|------------------|---------------------------|--------|----------------------------|---------------------|------------------|-------|------------------------| | summarized ...

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]

Part I [Business Overview](index=3&type=section&id=Item%201.%20Business) Cintas provides a wide range of products and services to over one million businesses, primarily in the U.S., Canada, and Latin America, focusing on corporate identity uniforms, facility services, first aid and safety, and fire protection Total Revenue by Segment (Fiscal Years 2021-2023, in thousands) | Segment | 2023 Revenue | 2022 Revenue | 2021 Revenue | | :--- | :--- | :--- | :--- | | Uniform Rental and Facility Services | $6,897,130 | $6,226,980 | $5,689,632 | | First Aid and Safety Services | $951,496 | $832,458 | $784,291 | | All Other | $967,143 | $795,021 | $642,417 | | **Total Revenue** | **$8,815,769** | **$7,854,459** | **$7,116,340** | - Cintas' two reportable operating segments are Uniform Rental and Facility Services and First Aid and Safety Services, with the "All Other" category including Fire Protection Services and Uniform Direct Sale[59](index=59&type=chunk) - As of May 31, 2023, Cintas' operational footprint includes approximately **11,500 local delivery routes**, **461 operational facilities**, and **12 distribution centers**[62](index=62&type=chunk) - The company employed approximately **44,500 people** as of May 31, 2023, with a focus on attracting, retaining, and developing talent[66](index=66&type=chunk) [Risk Factors](index=7&type=section&id=Item%201A.%20Risk%20Factors) The company identifies several significant risks that could adversely affect its business, categorized into business strategy, operations, financial, and legal and regulatory risks - Negative economic conditions such as unemployment, inflation, and recession could adversely affect demand for Cintas' products and services and increase operating costs[74](index=74&type=chunk) - The company operates in highly competitive industries, facing pressure on pricing and competition for acquisitions from national, regional, and local providers[75](index=75&type=chunk) - Extensive reliance on computer systems exposes the company to risks of disruption and cybersecurity attacks, which could impact customer service and result in financial losses[77](index=77&type=chunk)[106](index=106&type=chunk) - Financial risks include the potential for outstanding indebtedness to limit cash flow for business needs and for fluctuations in fuel, energy costs, and foreign currency exchange rates to impact results[109](index=109&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - The company is subject to complex federal and state regulations, including environmental laws, where compliance costs and potential liabilities from legal proceedings could adversely affect financial results[112](index=112&type=chunk)[142](index=142&type=chunk)[470](index=470&type=chunk) [Unresolved Staff Comments](index=12&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - None[117](index=117&type=chunk) [Properties](index=13&type=section&id=Item%202.%20Properties) As of the report date, Cintas occupies 473 facilities across 338 cities, of which 245 are leased, and owns or leases approximately 20,900 vehicles for its route-based services Cintas Facilities Summary | Type of Facility | of Facilities | | :--- | :--- | | Rental Processing Plants | 205 | | Rental Branches | 135 | | First Aid and Safety Facilities | 63 | | All Other Facilities | 53 | | Distribution Centers | 12 | | Manufacturing Facilities | 5 | | **Total** | **473** | - Cintas occupies **473 facilities**, leasing **245** of them, and considers its facilities adequate for their intended use[147](index=147&type=chunk) [Legal Proceedings](index=13&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to various legal proceedings and claims arising from the ordinary course of business, which management believes will not have a material adverse effect - Material legal proceedings are discussed in Note 14, "Litigation and Other Contingencies," of the Notes to Consolidated Financial Statements[149](index=149&type=chunk) - Management does not expect that the aggregate liability from ordinary course legal actions will have a material adverse effect on the company's financial position, results, or cash flows[3](index=3&type=chunk) [Mine Safety Disclosures](index=13&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[150](index=150&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=14&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Cintas' common stock trades on the NASDAQ under the symbol "CTAS," with the company declaring quarterly dividends and repurchasing shares under publicly announced programs Dividends Declared per Share | Fiscal Year | Dividend per Share | | :--- | :--- | | 2023 | $4.60 | | 2022 | $3.80 | Issuer Purchases of Equity Securities (Q4 FY2023) | Period | Total Shares Purchased | Average Price Paid per Share | Total Shares Purchased as Part of Publicly Announced Plan | | :--- | :--- | :--- | :--- | | March 1 - 31, 2023 | 23,794 | $458.03 | — | | April 1 - 30, 2023 | 12,400 | $457.50 | — | | May 1 - 31, 2023 | 24,380 | $466.63 | 6,207 | | **Total** | **60,574** | **$461.38** | **6,207** | - As of May 31, 2023, there were approximately **1,300 shareholders of record**, representing an estimated **400,000 beneficial owners**[151](index=151&type=chunk) [Reserved](index=15&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2023, Cintas achieved total revenue of **$8.8 billion**, a **12.2% increase**, with net income rising **9.1% to $1.35 billion**, supported by strong operating cash flow and liquidity Fiscal 2023 vs. 2022 Performance | Metric | Fiscal 2023 | Fiscal 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $8.8B | $7.85B | +12.2% | | Net Income | $1.35B | $1.24B | +9.1% | | Diluted EPS | $12.99 | $11.65 | +11.5% | | Operating Cash Flow | $1.60B | $1.54B | +3.9% | - Organic revenue growth for fiscal 2023 was **12.2%**, driven by increased sales volume, new business, and price increases[160](index=160&type=chunk)[186](index=186&type=chunk) - The Uniform Rental and Facility Services segment revenue grew **10.8% organically**, while the First Aid and Safety Services segment revenue grew **13.1% organically**[161](index=161&type=chunk)[195](index=195&type=chunk) - Net cash from operating activities increased by **$60.2 million** to **$1.60 billion** in FY2023, primarily due to higher net income and favorable changes in working capital[170](index=170&type=chunk) - The company repurchased approximately **2.7 million shares** since the beginning of Q3 FY2022, contributing to the increase in diluted EPS[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Cintas is exposed to market risks primarily from foreign currency fluctuations and changes in interest rates, with foreign operations representing less than **10% of consolidated revenue** - Foreign denominated revenue and profit represent less than **10% of Cintas' consolidated figures**, primarily related to the Canadian dollar[139](index=139&type=chunk)[243](index=243&type=chunk) - A hypothetical **50 basis point (0.5%) change** in short-term interest rates would change Cintas' income before income taxes by approximately **$0.1 million**[219](index=219&type=chunk) [Financial Statements and Supplementary Data](index=27&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements for fiscal years ended May 31, 2023, 2022, and 2021, including management's report on internal controls and the independent auditor's report [Note 1. Significant Accounting Policies](index=37&type=section&id=Note%201.%20Significant%20Accounting%20Policies) This note outlines the significant accounting policies used in preparing the consolidated financial statements, covering principles of consolidation, revenue recognition, and accounting for key assets and liabilities - Rental revenue is recognized as services are performed, while other revenue is recognized when performance obligations are satisfied, with this policy detailed further in Note 2[270](index=270&type=chunk) - Uniforms in service are amortized on a straight-line basis over their useful lives, which range from **18 to 30 months**, while other rental items are amortized over **8 to 60 months**[273](index=273&type=chunk) - Goodwill is tested for impairment annually on March 1 at the reporting unit level, with **no impairment recognized** in fiscal years 2021, 2022, or 2023[333](index=333&type=chunk) [Note 2. Revenue Recognition](index=43&type=section&id=Note%202.%20Revenue%20Recognition) This note disaggregates revenue by operating segment, detailing that approximately **95% of revenue** is recognized over time from route servicing contracts, with the remainder recognized at a point in time Revenue by Segment (FY 2023, in thousands) | Segment | 2023 Revenue | % of Total | | :--- | :--- | :--- | | Uniform Rental and Facility Services | $6,897,130 | 78.2% | | First Aid and Safety Services | $951,496 | 10.8% | | Fire Protection Services | $627,747 | 7.1% | | Uniform Direct Sales | $339,396 | 3.9% | | **Total Revenue** | **$8,815,769** | **100.0%** | - As of May 31, 2023, the company had **$344.1 million** in capitalized contract costs (deferred commissions), with **$94.8 million** amortized as expense during the fiscal year[348](index=348&type=chunk) [Note 6. Debt, Derivatives and Hedging Activities](index=47&type=section&id=Note%206.%20Debt%2C%20Derivatives%20and%20Hedging%20Activities) This note details the company's outstanding debt, derivatives, and hedging activities, including approximately **$2.5 billion in long-term debt** and a **$2.0 billion revolving credit facility** Outstanding Debt as of May 31, 2023 (in thousands) | Debt Instrument | Maturity | Amount | | :--- | :--- | :--- | | Senior notes | 2025 | $450,630 | | Senior notes | 2027 | $1,000,000 | | Senior notes | 2032 | $800,000 | | Senior notes | 2037 | $250,000 | | Less: Debt issuance costs | - | ($14,225) | | **Total Debt** | | **$2,486,405** | - The company has a **$2.0 billion revolving credit facility** maturing in March 2027, with **no borrowings outstanding** as of May 31, 2023[384](index=384&type=chunk) - Cintas was in compliance with all debt covenants for all periods presented[385](index=385&type=chunk) [Note 8. Income Taxes](index=49&type=section&id=Note%208.%20Income%20Taxes) This note provides a detailed analysis of the company's income tax expense, deferred tax assets and liabilities, and uncertain tax positions, with an effective tax rate of **20.4% for fiscal 2023** Income Tax Expense Reconciliation (in thousands) | Description | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Income taxes at U.S. federal statutory rate | $355,561 | $314,741 | $270,427 | | Permanent differences | ($59,502) | ($85,413) | ($101,870) | | State and local income taxes, net | $46,245 | $33,547 | $27,304 | | Other | $2,834 | $136 | ($19,080) | | **Total Income Tax Expense** | **$345,138** | **$263,011** | **$176,781** | - The effective tax rate was **20.4%** for fiscal 2023, compared to **17.5%** for fiscal 2022[191](index=191&type=chunk) - As of May 31, 2023, total unrecognized tax benefits were **$29.3 million**, which, if recognized, would favorably impact the effective tax rate[420](index=420&type=chunk) [Note 9. Employee Benefit Plans](index=52&type=section&id=Note%209.%20Employee%20Benefit%20Plans) This note describes the company's various employee benefit plans, including a frozen defined benefit pension plan and a 401(k) and ESOP plan, with **$99.1 million in contributions** made in fiscal 2023 Pension Plan Funded Status (in thousands) | Status | May 31, 2023 | May 31, 2022 | | :--- | :--- | :--- | | Projected benefit obligation | $77,739 | $84,546 | | Fair value of plan assets | $60,038 | $66,723 | | **Funded status (Net Liability)** | **($17,701)** | **($17,823)** | - The company's contribution to its Partners' Plan (401(k) and ESOP) was **$99.1 million** in fiscal 2023, up from **$85.0 million** in fiscal 2022[402](index=402&type=chunk) [Note 11. Stock-Based Compensation](index=56&type=section&id=Note%2011.%20Stock-Based%20Compensation) This note details the company's stock-based compensation plans, primarily the 2016 Equity and Incentive Compensation Plan, with total compensation cost of **$103.6 million in fiscal 2023** - Total stock-based compensation cost recognized was **$103.6 million** in FY2023, **$109.3 million** in FY2022, and **$112.0 million** in FY2021[432](index=432&type=chunk) - As of May 31, 2023, there were **4.4 million stock options outstanding** with a weighted average exercise price of **$278.01**[409](index=409&type=chunk) - There were **686,630 unvested restricted stock awards outstanding** as of May 31, 2023, with a weighted average grant price of **$392.02**[477](index=477&type=chunk) - The remaining unrecognized compensation cost related to unvested awards at May 31, 2023 was **$251.8 million**, to be recognized over a weighted-average period of **2.20 years**[411](index=411&type=chunk) [Note 13. Operating Segment Information](index=60&type=section&id=Note%2013.%20Operating%20Segment%20Information) This note provides detailed financial information for Cintas' reportable operating segments, showing Uniform Rental and Facility Services as the largest contributor with **$6.9 billion in revenue** and **$1.48 billion in income before taxes** for fiscal 2023 Segment Performance - Fiscal Year 2023 (in thousands) | Segment | Revenue | Income Before Income Taxes | Total Assets | | :--- | :--- | :--- | :--- | | Uniform Rental and Facility Services | $6,897,130 | $1,478,757 | $7,176,257 | | First Aid and Safety Services | $951,496 | $180,690 | $703,226 | | All Other | $967,143 | $143,217 | $542,724 | | Corporate | — | ($109,516) | $124,149 | | **Total** | **$8,815,769** | **$1,693,148** | **$8,546,356** | [Note 14 - Litigation and Other Contingencies](index=61&type=section&id=Note%2014%20-%20Litigation%20and%20Other%20Contingencies) This note describes material litigation beyond the ordinary course of business, including class action lawsuits, for which liability is currently not probable or estimable - The company is a defendant in a class action lawsuit (City of Laurel, Mississippi v. Cintas) alleging breach of contract, for which liability is not probable nor estimable[414](index=414&type=chunk) - A separate class action alleges violations of ERISA regarding the management of the employee retirement plan; the defendants deny liability and a legal contingency is not probable or estimable[456](index=456&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=62&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[415](index=415&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of May 31, 2023, with no material changes to internal control over financial reporting - Based on an evaluation as of May 31, 2023, Cintas' management concluded that the company's disclosure controls and procedures were effective[30](index=30&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended May 31, 2023, that have materially affected, or are reasonably likely to materially affect, these controls[458](index=458&type=chunk) [Other Information](index=62&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[491](index=491&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=62&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[6](index=6&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=63&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The information required for this item, concerning directors, executive officers, and corporate governance, is incorporated by reference from Cintas' definitive proxy statement - Required information is incorporated by reference from the company's Proxy Statement[7](index=7&type=chunk) [Executive Compensation](index=63&type=section&id=Item%2011.%20Executive%20Compensation) The information required for this item, concerning executive compensation, is incorporated by reference from Cintas' definitive proxy statement - Required information is incorporated by reference from the company's Proxy Statement[460](index=460&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=63&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership and equity compensation plans is incorporated by reference from the Proxy Statement Equity Compensation Plan Information as of May 31, 2023 | Plan Category | Number of shares to be issued upon exercise of outstanding options | Weighted average exercise price of outstanding options | Number of shares remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by shareholders | 4,427,752 | $278.01 | 5,412,885 | | Equity compensation plans not approved by shareholders | — | — | — | | **Total** | **4,427,752** | **$278.01** | **5,412,885** | [Certain Relationships and Related Transactions, and Director Independence](index=63&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The information required for this item, concerning related party transactions and director independence, is incorporated by reference from Cintas' definitive proxy statement - Required information is incorporated by reference from the company's Proxy Statement[488](index=488&type=chunk) [Principal Accountant Fees and Services](index=63&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) The information required for this item, concerning principal accountant fees and services, is incorporated by reference from Cintas' definitive proxy statement - Required information is incorporated by reference from the company's Proxy Statement[9](index=9&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=64&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Form 10-K report, including corporate governance documents and material contracts - The report includes financial statements for the three years ended May 31, 2023, and Schedule II: Valuation and Qualifying Accounts and Reserves[463](index=463&type=chunk) - Exhibits filed with the report include Restated Articles of Incorporation, various debt indentures, credit agreements, and numerous management compensatory contracts and plans[11](index=11&type=chunk)[492](index=492&type=chunk) Schedule II: Allowance for Doubtful Accounts (in thousands) | Fiscal Year Ended | Balance at Beginning of Year | Additions | Deductions | Balance at End of Year | | :--- | :--- | :--- | :--- | :--- | | May 31, 2021 | $35,433 | $27,517 | $50,853 | $12,097 | | May 31, 2022 | $12,097 | $30,278 | $29,457 | $12,918 | | May 31, 2023 | $12,918 | $40,817 | $38,809 | $14,926 | [Form 10-K Summary](index=66&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[451](index=451&type=chunk) [Signatures](index=67&type=section&id=Signatures) The report is duly signed on July 27, 2023, by the company's principal executive and financial officers, as well as other directors, in accordance with the requirements of the Securities Exchange Act of 1934 - The Form 10-K report was signed on **July 27, 2023**[452](index=452&type=chunk) - Signatories include Todd M. Schneider (President, CEO, and Director) and J. Michael Hansen (EVP and CFO), among other directors[14](index=14&type=chunk)