Cintas Corporation reported results for its second quarter ended November 30, 2013. Revenue for the second quarter was $1.14 billion, representing a 7.9% increase compared to last year’s second quarter. Organic growth, which adjusts for the impact of acquisitions, compared to last year’s second quarter, was 7.1%.
The Company’s operating income of $153.0 million was a 10.0% increase as compared to last year’s second quarter. Net income increased 8.8% to $84.9 million as compared to $78.0 million in last year’s second quarter. Earnings per diluted share (EPS) for the second quarter were $0.70, an 11.1% increase over the $0.63 EPS in last year’s second quarter.
The effective tax rate for the second quarter of fiscal 2013 was 36.5%, which reflected the positive impact of certain revised tax regulations. This year’s second quarter effective tax rate was 37.9%. We expect the effective tax rate for the entire 2014 fiscal year to be approximately 37.3%.
Scott D. Farmer, Chief Executive Officer, stated, “We are pleased with our results for the quarter and our fiscal year to date. Our services continue to be valued by our customers, and our new business generation remains very strong. While some signs of economic growth are beginning to appear, our customers continue to be cautious in adding employees or making any significant capital investment in their businesses.”
Mr. Farmer added, “Last week, we paid our annual dividend to our shareholders amounting to $0.77 per share, a 20.3% increase from last year’s dividend of $0.64 per share. This was the 31st consecutive year in which we have raised our dividend, which is every year since we went public.”
Mr. Farmer concluded, “Based on our second quarter results and our view of the U.S. economic climate, we are updating our fiscal 2014 guidance with revenue in the range of $4.525 billion to $4.575 billion and EPS to be in the range of $2.73 to $2.79. This guidance assumes no deterioration in the U.S. economy and does not consider any additional share buybacks.”
Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types primarily throughout North America. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, first aid, safety, fire protection products and services and document management services for over one million businesses.