Cintas Corp 8-K, filed Jul 13, 2023

Cintas Corp (CTAS)

8-K 2023-07-13 For: 2023-07-13

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Added on April 12, 2026

About this 8-K

Cintas Corp filed this 8-K on July 13, 2023.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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6800 Cintas Boulevard, P.O. Box 625737,
Cincinnati,	Ohio	45262-5737
(Address of Principal Executive Offices)		(Zip Code)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


			Exhibit Number						Description
			99						Press release dated July 13, 2023
			104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


	Three Months Ended
	May 31, 2023		May 31, 2022		% Change
Revenue:
Uniform rental and facility services	$	1,773,206	$	1,630,213	8.8%
Other	511,265		444,473		15.0%
Total revenue	2,284,471		2,074,686		10.1%

Costs and expenses:
Cost of uniform rental and facility services	926,689		885,789		4.6%
Cost of other	269,004		242,702		10.8%
Selling and administrative expenses	617,980		541,759		14.1%

Operating income	470,798		404,436		16.4%

Interest income	(844)		(74)		1,040.5%
Interest expense	25,773		23,058		11.8%

Income before income taxes	445,869		381,452		16.9%
Income taxes	99,668		86,991		14.6%


Net income	$	346,201	$	294,461	17.6%




Basic earnings per share	$	3.39	$	2.87	18.1%




Diluted earnings per share	$	3.33	$	2.81	18.5%

Basic weighted average common shares outstanding	101,788		102,375
Diluted weighted average common shares outstanding	103,418		104,427


	Twelve Months Ended
	May 31, 2023		May 31, 2022		% Change
Revenue:
Uniform rental and facility services	$	6,897,130	$	6,226,980	10.8%
Other	1,918,639		1,627,479		17.9%
Total revenue	8,815,769		7,854,459		12.2%

Costs and expenses:
Cost of uniform rental and facility services	3,632,175		3,316,433		9.5%
Cost of other	1,010,226		905,780		11.5%
Selling and administrative expenses	2,370,704		2,044,876		15.9%

Operating income	1,802,664		1,587,370		13.6%



Interest income	(1,716)		(242)		609.1%
Interest expense	111,232		88,844		25.2%

Income before income taxes	1,693,148		1,498,768		13.0%
Income taxes	345,138		263,011		31.2%


Net income	$	1,348,010	$	1,235,757	9.1%




Basic earnings per share	$	13.21	$	11.92	10.8%




Diluted earnings per share	$	12.99	$	11.65	11.5%

Basic weighted average common shares outstanding	101,645		103,172
Diluted weighted average common shares outstanding	103,377		105,523










	Twelve Months Ended
(In thousands)	May 31, 2023		% of Revenue	May 31, 2022		% of Revenue	Growth vs. Fiscal 2022

Operating income	$	1,802,664	20.4%	$	1,587,370	20.2%	13.6%
Gain on sale of operating assets	—			(12,129)
Gain on equity method investment transaction (1)	—			(30,151)
Operating income excluding above item	$	1,802,664	20.4%	$	1,545,090	19.7%	16.7%


(In thousands)	Uniform Rental and Facility Services		First Aid and Safety Services		All Other		Corporate		Total
For the three months ended May 31, 2023
Revenue	$	1,773,206	$	249,756	$	261,509	$	—	$	2,284,471
Gross margin	$	846,517	$	127,390	$	114,871	$	—	$	1,088,778
Selling and administrative expenses	$	461,621	$	80,312	$	76,047	$	—	$	617,980
Interest income	$	—	$	—	$	—	$	(844)	$	(844)
Interest expense	$	—	$	—	$	—	$	25,773	$	25,773
Income (loss) before income taxes	$	384,896	$	47,078	$	38,824	$	(24,929)	$	445,869

For the three months ended May 31, 2022
Revenue	$	1,630,213	$	218,224	$	226,249	$	—	$	2,074,686
Gross margin	$	744,424	$	100,680	$	101,091	$	—	$	946,195
Selling and administrative expenses	$	413,921	$	68,026	$	59,812	$	—	$	541,759
Interest income	$	—	$	—	$	—	$	(74)	$	(74)
Interest expense	$	—	$	—	$	—	$	23,058	$	23,058
Income (loss) before income taxes	$	330,503	$	32,654	$	41,279	$	(22,984)	$	381,452

For the twelve months ended May 31, 2023
Revenue	$	6,897,130	$	951,496	$	967,143	$	—	$	8,815,769
Gross margin	$	3,264,955	$	482,088	$	426,325	$	—	$	4,173,368
Selling and administrative expenses	$	1,786,198	$	301,398	$	283,108	$	—	$	2,370,704
Interest income	$	—	$	—	$	—	$	(1,716)	$	(1,716)
Interest expense	$	—	$	—	$	—	$	111,232	$	111,232
Income (loss) before income taxes	$	1,478,757	$	180,690	$	143,217	$	(109,516)	$	1,693,148

For the twelve months ended May 31, 2022
Revenue	$	6,226,980	$	832,458	$	795,021	$	—	$	7,854,459
Gross margin	$	2,910,547	$	372,193	$	349,506	$	—	$	3,632,246
Selling and administrative expenses	$	1,557,057	$	265,430	$	222,389	$	—	$	2,044,876
Interest income	$	—	$	—	$	—	$	(242)	$	(242)
Interest expense	$	—	$	—	$	—	$	88,844	$	88,844
Income (loss) before income taxes	$	1,353,490	$	106,763	$	127,117	$	(88,602)	$	1,498,768


	May 31, 2023		May 31, 2022

ASSETS
Current assets:
Cash and cash equivalents	$	124,149	$	90,471

Accounts receivable, net	1,152,993		1,006,220
Inventories, net	506,604		472,150
Uniforms and other rental items in service	1,011,918		916,706
Income taxes, current	—		21,708
Prepaid expenses and other current assets	142,795		124,728
Total current assets	2,938,459		2,631,983

Property and equipment, net	1,396,476		1,323,673

Investments	247,191		242,873
Goodwill	3,056,201		3,042,976
Service contracts, net	346,574		391,638
Operating lease right-of-use assets, net	178,464		170,003
Other assets, net	382,991		344,110
	$	8,546,356	$	8,147,256

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	302,292	$	251,504
Accrued compensation and related liabilities	239,086		236,992
Accrued liabilities	632,504		588,948
Income taxes, current	12,470		—
Operating lease liabilities, current	43,710		43,872
Debt due within one year	—		311,574
Total current liabilities	1,230,062		1,432,890

Long-term liabilities:
Debt due after one year	2,486,405		2,483,932
Deferred income taxes	498,356		473,777
Operating lease liabilities	138,278		129,064
Accrued liabilities	329,269		319,397
Total long-term liabilities	3,452,308		3,406,170

Shareholders’ equity:
Preferred stock, no par value: 100,000 shares authorized, none outstanding	—		—
Common stock, no par value, and paid-in capital: 425,000,000 shares authorized FY 2023: 192,198,938 issued and 101,732,148 outstanding FY 2022: 190,837,921 issued and 101,711,215 outstanding	2,031,542		1,771,917

Retained earnings	9,597,315		8,719,163
Treasury stock: FY 2023: 90,466,790 shares FY 2022: 89,126,706 shares	(7,842,649)		(7,290,801)
Accumulated other comprehensive income	77,778		107,917
Total shareholders’ equity	3,863,986		3,308,196
	$	8,546,356	$	8,147,256