Cintas Corp 8-K, filed Sep 23, 2020

Cintas Corp (CTAS)

8-K 2020-09-23 For: 2020-09-20

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Added on April 12, 2026

About this 8-K

Cintas Corp filed this 8-K on September 23, 2020, reporting on events of September 20, 2020.

Items reported

Item 2.02: Financial results
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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☐			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 September 23, 2020
			104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


	Three Months Ended
	August 31, 2020		August 31, 2019		% Change
Revenue:
Uniform rental and facility services	$	1,394,411	$	1,454,527	(4.1)%
Other	352,164		356,612		(1.2)%
Total revenue	1,746,575		1,811,139		(3.6)%

Costs and expenses:
Cost of uniform rental and facility services	715,412		768,676		(6.9)%
Cost of other	204,962		193,321		6.0%
Selling and administrative expenses	476,495		542,996		(12.2)%

Operating income	349,706		306,146		14.2%

Interest income	(64)		(162)		(60.5)%
Interest expense	24,550		27,321		(10.1)%

Income before income taxes	325,220		278,987		16.6%
Income taxes	25,215		28,175		(10.5)%


Net income	$	300,005	$	250,812	19.6%




Basic earnings per share	$	2.86	$	2.40	19.2%




Diluted earnings per share	$	2.78	$	2.32	19.8%

Basic weighted average common shares outstanding	104,110		103,543
Diluted weighted average common shares outstanding	107,129		107,083


	Three Months Ended
	August 31, 2020	August 31, 2019
Uniform rental and facility services gross margin	48.7%	47.2%
Other gross margin	41.8%	45.8%
Total gross margin	47.3%	46.9%
Net income margin	17.2%	13.8%


	Three Months Ended
	August 31, 2020		August 31, 2019
Net cash provided by operations	$	312,292	$	276,901
Capital expenditures	(30,876)		(64,743)
Free cash flow	$	281,416	$	212,158


	Uniform Rental and Facility Services		First Aid and Safety Services		All Other		Corporate		Total
For the three months ended August 31, 2020
Revenue	$	1,394,411	$	204,481	$	147,683	$	—	$	1,746,575
Gross margin	$	678,999	$	82,104	$	65,098	$	—	$	826,201
Selling and administrative expenses	$	363,971	$	63,577	$	48,947	$	—	$	476,495
Interest income	$	—	$	—	$	—	$	(64)	$	(64)
Interest expense	$	—	$	—	$	—	$	24,550	$	24,550
Income (loss) before income taxes	$	315,028	$	18,527	$	16,151	$	(24,486)	$	325,220

For the three months ended August 31, 2019
Revenue	$	1,454,527	$	172,090	$	184,522	$	—	$	1,811,139
Gross margin	$	685,851	$	84,287	$	79,004	$	—	$	849,142
Selling and administrative expenses	$	416,840	$	59,518	$	66,638	$	—	$	542,996
Interest income	$	—	$	—	$	—	$	(162)	$	(162)
Interest expense	$	—	$	—	$	—	$	27,321	$	27,321
Income (loss) before income taxes	$	269,011	$	24,769	$	12,366	$	(27,159)	$	278,987


	August 31, 2020		May 31, 2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	421,542	$	145,402

Accounts receivable, net	866,414		870,369
Inventories, net	488,165		408,898
Uniforms and other rental items in service	756,364		770,411

Prepaid expenses and other current assets	133,692		114,619
Total current assets	2,666,177		2,309,699

Property and equipment, net	1,378,385		1,403,065

Investments	240,431		214,847
Goodwill	2,886,048		2,870,020
Service contracts, net	441,641		451,529
Operating lease right-of-use assets, net	159,120		159,967
Other assets, net	271,579		260,758
	$	8,043,381	$	7,669,885

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	252,513	$	230,995
Accrued compensation and related liabilities	117,577		127,417
Accrued liabilities	406,787		456,653
Income taxes, current	23,251		27,099
Operating lease liabilities, current	43,414		43,031
Debt due within one year	249,808		—
Total current liabilities	1,093,350		885,195

Long-term liabilities:
Debt due after one year	2,290,447		2,539,705
Deferred income taxes	385,149		388,579
Operating lease liabilities	121,727		122,695
Accrued liabilities	547,904		498,509
Total long-term liabilities	3,345,227		3,549,488

Shareholders’ equity:
Preferred stock, no par value: 100,000 shares authorized, none outstanding	—		—
Common stock, no par value: 425,000,000 shares authorized FY 2021: 188,155,836 issued and 104,548,040 outstanding FY 2020: 186,793,207 issued and 103,415,368 outstanding	1,345,233		1,102,689
Paid-in capital	30,155		171,521
Retained earnings	7,596,514		7,296,509
Treasury stock: FY 2021: 83,607,796 shares FY 2020: 83,377,839 shares	(5,251,148)		(5,182,137)
Accumulated other comprehensive loss	(115,950)		(153,380)
Total shareholders’ equity	3,604,804		3,235,202
	$	8,043,381	$	7,669,885


	Three Months Ended
	August 31, 2020		August 31, 2019		Growth %
	A		B		G
Revenue	$	1,746,575	$	1,811,139	(3.6)%
					G=(A-B)/B
	C		D
Workdays in the period	66		65

	E		F		H
Workday adjusted revenue growth	$	1,720,112	$	1,811,139	(5.0)%
	E=(A/C)*D		F=(B/D)*D		H=(E-F)/F

Acquisition and foreign currency exchange impact, net					0.0%

Organic growth					(5.0)%