Cintas(US:CTAS)2025-10-08 18:16Revenue Growth - Total revenue increased by 8.7% to $2,718.1 million for the three months ended August 31, 2025, compared to $2,501.6 million for the same period in 2024[66] - Organic revenue growth rate was 7.8%, with acquisitions contributing an additional 0.9%[67] - Revenue from the Uniform Rental and Facility Services segment rose by 8.1% to $2,091.1 million, with an organic growth rate of 7.3%[68] - Other revenue, including First Aid and Safety Services, increased by 10.4% to $627.1 million, with an organic growth rate of 9.6%[69] - Net sales to unrelated parties increased to $2,582.5 million for the three months ended August 31, 2025, up from $2,372.6 million in 2024, representing an increase of approximately 8.8%[99] Income and Profitability - Operating income was $617.9 million, representing 22.7% of revenue, an increase from 22.4% in the prior year[73] - Net income for the three months ended August 31, 2025, was $491.1 million, an increase of 8.7% compared to the same period in 2024[76] - Operating income rose to $576.7 million for the three months ended August 31, 2025, compared to $513.1 million in the same period of 2024, reflecting a growth of about 12.4%[99] Cash Flow and Capital Expenditures - Cash flows from operating activities were $414.5 million, down from $460.4 million in the previous year, primarily due to unfavorable changes in working capital[87] - Capital expenditures for the three months ended August 31, 2025, were $102.0 million, compared to $92.9 million in 2024[88] Tax and Debt Management - The effective tax rate increased to 17.6% for the three months ended August 31, 2025, from 15.8% in 2024[75] - Total debt due after one year was $2,425.8 million as of August 31, 2025, with senior notes having interest rates ranging from 3.70% to 6.15%[93] - Cintas maintained compliance with all debt covenants for all periods presented, ensuring liquidity and operational stability[94] Financing Activities - Net cash used in financing activities decreased to $424.0 million for the three months ended August 31, 2025, from $591.3 million in the same period of 2024, primarily due to reduced share buyback activity[89] - Cintas repurchased a total of 5.4 million shares at an average price of $185.01 per share, totaling $1.0 billion, since the inception of the July 26, 2022 share buyback program through September 2025[90] - The Board declared dividends of $0.39 per share for the three months ended August 31, 2025, totaling $157.8 million, compared to $0.3375 per share and $138.2 million for the same period in 2024[91] Liquidity and Credit Ratings - Cintas has access to $2.0 billion of debt capacity from its revolving credit facility, ensuring sufficient liquidity for at least the next 12 months[86] - As of August 31, 2025, Cintas had a commercial paper rating of A-2 from Standard & Poor's and a long-term debt rating of A[95] - The company anticipates continued access to commercial paper and long-term debt markets to fund cash requirements, contingent on maintaining favorable credit ratings[95] Foreign Currency Exposure - Cintas is exposed to foreign currency risk primarily from transactions in currencies other than its functional currency[107] - The main foreign currency exposure for Cintas is the Canadian dollar[107]