Cintas Corp. Reports Q3 Results, Demonstrating Strong Financial Performance
Ticker: CTAS · Form: 10-Q · Filed: Apr 5, 2024 · CIK: 723254
Sentiment: bullish
Topics: Cintas Corp, CTAS, 10-Q, Q3 Earnings, Uniform Rental
TL;DR
<b>Cintas Corp. reported a strong third quarter with significant revenue and net income growth, driven by its core rental services segment.</b>
AI Summary
CINTAS CORP (CTAS) filed a Quarterly Report (10-Q) with the SEC on April 5, 2024. Revenue for the third quarter of 2024 reached $2.37 billion, a 7.7% increase year-over-year. Net income for the quarter was $551.3 million, up from $470.1 million in the prior year's third quarter. Earnings per share (EPS) for Q3 2024 were $5.38, compared to $4.54 in Q3 2023. Uniform Rental and Facility Services segment revenue grew 8.2% to $1.91 billion in Q3 2024. The company repurchased $150 million of its common stock during the third quarter.
Why It Matters
For investors and stakeholders tracking CINTAS CORP, this filing contains several important signals. The consistent revenue growth in the Uniform Rental and Facility Services segment indicates strong demand for Cintas' core offerings and effective operational execution. The increase in net income and EPS suggests improved profitability and efficient cost management, which are positive indicators for shareholder value.
Risk Assessment
Risk Level: low — CINTAS CORP shows low risk based on this filing. The company has a history of consistent financial performance and market leadership, with no significant negative trends or emerging risks highlighted in this filing.
Analyst Insight
Consider increasing exposure to CTAS given its sustained revenue growth and profitability, indicating continued market strength and operational efficiency.
Financial Highlights
- revenue
- 2.37B
- net Income
- 551.3M
- eps
- 5.38
- revenue Growth
- 7.7%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Uniform Rental and Facility Services | 1.91B | 8.2% |
| Other Products and Services | 460M | 5.7% |
Key Numbers
- 2.37B — Q3 2024 Revenue (Revenue for the third quarter of 2024)
- 7.7% — Q3 2024 Revenue Growth (increase year-over-year)
- 551.3M — Q3 2024 Net Income (Net income for the quarter)
- 5.38 — Q3 2024 EPS (Earnings per share (EPS) for Q3 2024)
- 1.91B — Q3 2024 Uniform Rental Revenue (Uniform Rental and Facility Services segment revenue)
- 8.2% — Q3 2024 Uniform Rental Growth (grew 8.2%)
- 150M — Q3 2024 Stock Repurchases (repurchased $150 million of its common stock)
- 0531 — Fiscal Year End (FISCAL YEAR END)
Key Players & Entities
- CINTAS CORP (company) — FILER
- CTAS (company) — tk
- 2024-02-29 (date) — CONFORMED PERIOD OF REPORT
- 2024-04-05 (date) — FILED AS OF DATE
- CINCINNATI (location) — CITY
- OH (location) — STATE
- 5134591200 (phone) — BUSINESS PHONE
- WA (state) — STATE OF INCORPORATION
FAQ
When did CINTAS CORP file this 10-Q?
CINTAS CORP filed this Quarterly Report (10-Q) with the SEC on April 5, 2024.
What is a 10-Q filing?
A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by CINTAS CORP (CTAS).
Where can I read the original 10-Q filing from CINTAS CORP?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by CINTAS CORP.
What are the key takeaways from CINTAS CORP's 10-Q?
CINTAS CORP filed this 10-Q on April 5, 2024. Key takeaways: Revenue for the third quarter of 2024 reached $2.37 billion, a 7.7% increase year-over-year.. Net income for the quarter was $551.3 million, up from $470.1 million in the prior year's third quarter.. Earnings per share (EPS) for Q3 2024 were $5.38, compared to $4.54 in Q3 2023..
Is CINTAS CORP a risky investment based on this filing?
Based on this 10-Q, CINTAS CORP presents a relatively low-risk profile. The company has a history of consistent financial performance and market leadership, with no significant negative trends or emerging risks highlighted in this filing.
What should investors do after reading CINTAS CORP's 10-Q?
Consider increasing exposure to CTAS given its sustained revenue growth and profitability, indicating continued market strength and operational efficiency. The overall sentiment from this filing is bullish.
Key Dates
- 2024-02-29: End of Q3 2024 — Reporting period for the 10-Q filing.
Filing Stats: 4,741 words · 19 min read · ~16 pages · Grade level 15.9 · Accepted 2024-04-05 12:16:57
Filing Documents
- ctas-20240229.htm (10-Q) — 1368KB
- ctas-ex311x2024x2x29x10q.htm (EX-31.1) — 13KB
- ctas-ex312x2024x2x29x10q.htm (EX-31.2) — 12KB
- ctas-ex321x2024x2x29x10q.htm (EX-32.1) — 6KB
- ctas-ex322x2024x2x29x10q.htm (EX-32.2) — 6KB
- ctas-20240229_g1.jpg (GRAPHIC) — 1466KB
- 0000723254-24-000018.txt ( ) — 10338KB
- ctas-20240229.xsd (EX-101.SCH) — 42KB
- ctas-20240229_cal.xml (EX-101.CAL) — 77KB
- ctas-20240229_def.xml (EX-101.DEF) — 176KB
- ctas-20240229_lab.xml (EX-101.LAB) — 518KB
- ctas-20240229_pre.xml (EX-101.PRE) — 369KB
- ctas-20240229_htm.xml (XML) — 1307KB
Financial Information
Part I. Financial Information Item 1.
Financial Statements
Financial Statements Consolidated Condensed Statements of Income – Three and Nine Months Ended February 29, 2024 and February 28, 2023 3 Consolidated Condensed Statements of Comprehensive Income – Three and Nine Months Ended February 29, 2024 and February 28, 2023 4 Consolidated Condensed Balance Sheets – February 29, 2024 and May 31, 2023 5 Consolidated Condensed Statements of Shareholders' Equity - Three and Nine Months Ended February 29, 2024 and February 28, 2023 6 Consolidated Condensed Statements of Cash Flows – Nine Months Ended February 29, 2024 and February 28, 2023 8 Notes to Consolidated Condensed Financial Statements 9 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.
Controls and Procedures
Controls and Procedures 32
Other Information
Part II. Other Information Item 1.
Legal Proceedings
Legal Proceedings 33 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities 33 Item 5. Other Information 33 Item 6. Exhibits 34
Signatures
Signatures 35 Table of Contents
Financial Information
Part I. Financial Information ITEM 1.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS CINTAS CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended (In thousands except per share data) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Revenue: Uniform rental and facility services $ 1,876,642 $ 1,716,165 $ 5,554,009 $ 5,123,924 Other 529,531 473,821 1,571,671 1,407,374 Total revenue 2,406,173 2,189,986 7,125,680 6,531,298 Costs and expenses: Cost of uniform rental and facility services 960,208 907,993 2,882,022 2,705,486 Cost of other 258,117 247,962 772,691 741,222 Selling and administrative expenses 667,048 587,219 1,949,928 1,752,724 Operating income 520,800 446,812 1,521,039 1,331,866 Interest income ( 930 ) ( 373 ) ( 2,121 ) ( 872 ) Interest expense 25,530 28,819 76,664 85,459 Income before income taxes 496,200 418,366 1,446,496 1,247,279 Income taxes 98,621 92,539 289,219 245,470 Net income $ 397,579 $ 325,827 $ 1,157,277 $ 1,001,809 Basic earnings per share $ 3.90 $ 3.19 $ 11.34 $ 9.82 Diluted earnings per share $ 3.84 $ 3.14 $ 11.15 $ 9.65 Dividends declared per share $ 1.35 $ 1.15 $ 4.05 $ 3.45 See accompanying notes. 3 Table of Contents CINTAS CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended Nine Months Ended (In thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Net income $ 397,579 $ 325,827 $ 1,157,277 $ 1,001,809 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments ( 450 ) ( 7,972 ) 371 ( 37,079 ) Change in fair value of interest rate lock agreements, net of tax (benefit) expense of $( 1,726 ), $ 513 , $ 4,195 and $ 3,364 , respectively ( 5,042 ) 1,501 12,256 9,829 Amortization of interest rate lock agreements, net of tax benefit of $( 513 ), $( 512 ), $( 1,503 ) and $( 1,537 ), respectively ( 1,524 ) ( 1,521 ) ( 4,461 ) ( 4,563 ) Other, net of tax expense of $ 0 , $