Cintas(US:CTAS)2025-01-08 20:06Revenue Growth - Total revenue increased by 7.8% to $2,561.8 million for the three months ended November 30, 2024, compared to $2,377.2 million for the same period in 2023[77] - Uniform Rental and Facility Services segment revenue rose by 7.6% to $1,990.4 million for the three months ended November 30, 2024, with an organic growth rate of 6.9%[78] - First Aid and Safety Services segment revenue increased by 12.4% to $299.4 million for the three months ended November 30, 2024, with an organic growth rate of 12.3%[89] - Total revenue for the six months ended November 30, 2024, increased by 7.3% to $5,063.4 million compared to $4,719.5 million for the same period in 2023[94] - Organic revenue growth for the six months ended November 30, 2024, was 7.6%, with acquisitions contributing 0.6% to revenue growth[94] - Uniform Rental and Facility Services revenue increased by 6.7% to $3,924.2 million for the six months ended November 30, 2024, compared to $3,677.4 million for the same period in 2023[103] - First Aid and Safety Services revenue rose by 12.3% to $591.9 million for the six months ended November 30, 2024, compared to $527.1 million for the same period in 2023[107] - Cintas reported net sales of $4,800.3 million for the six months ended November 30, 2024, an increase of 7.5% compared to $4,466.3 million for the same period in 2023[127] Income and Earnings - Operating income for the three months ended November 30, 2024, was $591.4 million, representing 23.1% of revenue, up from 21.0% in the same period of 2023[83] - Net income increased by 19.7% to $448.5 million for the three months ended November 30, 2024, with diluted earnings per share rising by 21.1% to $1.09[85] - Operating income was $1,152.4 million, or 22.8% of revenue, for the six months ended November 30, 2024, compared to $1,000.2 million, or 21.2% of revenue, for the same period in 2023[100] - Net income increased by $140.8 million, or 18.5%, for the six months ended November 30, 2024, compared to the same period in 2023[102] - Diluted earnings per share increased by 19.7% to $2.19 for the six months ended November 30, 2024, compared to the same period in 2023[102] - Operating income for the six months ended November 30, 2024, was $1,059.6 million, up 12.8% from $938.9 million in the prior year[127] - Net income increased to $824.7 million for the six months ended November 30, 2024, compared to $708.3 million for the same period in 2023, reflecting a growth of 16.4%[127] Expenses and Costs - Selling and administrative expenses increased by 6.8% to $591.4 million for the three months ended November 30, 2024, but improved as a percentage of revenue to 26.8% from 27.0%[82] - Selling and administrative expenses increased by $93.5 million, or 7.3%, for the six months ended November 30, 2024, remaining at 27.2% of revenue[99] - Cost of uniform rental and facility services increased by 4.1% to $1,013.4 million, but improved as a percentage of revenue from 52.6% to 50.9%[80] Cash Flow and Investments - Cash flows from operating activities increased to $908.1 million for the six months ended November 30, 2024, compared to $729.6 million for the same period in 2023[114] - Net cash used in investing activities was $349.0 million for the six months ended November 30, 2024, compared to $282.2 million for the same period in 2023[111] Debt and Liquidity - Cintas has access to $2.0 billion of debt capacity from its amended and restated revolving credit facility, ensuring sufficient liquidity for at least the next 12 months[113] - Total debt due within one year as of November 30, 2024, was $630.8 million, an increase from $449.6 million as of May 31, 2024[120] - The company maintained a total debt of $2,657.8 million as of November 30, 2024, with a debt to EBITDA ratio that is monitored for compliance with covenants[121][124] - Cintas has a revolving credit facility with a capacity of $2.0 billion, with no borrowings as of November 30, 2024[120] - Cintas issued $181.0 million in commercial paper during the six months ended November 30, 2024, down from $210.0 million in the same period of 2023[120] Dividends - The company declared dividends totaling $295.6 million for the six months ended November 30, 2024, compared to $255.8 million for the same period in 2023, representing a 15.6% increase[118] Tax and Effective Rate - The effective tax rate decreased to 18.3% for the six months ended November 30, 2024, from 20.1% for the same period in 2023[101] Foreign Currency Risk - Cintas is exposed to foreign currency risk primarily related to the Canadian dollar, impacting its operations and financial results[134] - Cintas is exposed to foreign currency risk primarily due to transactions in currencies other than its functional currency[134] - The main foreign currency exposure for Cintas is the Canadian dollar[134]