Home / Knowledge / News / Apparel/Garments / Cintas Q3'FY14 revenue grows 5.1%
Cintas Q3'FY14 revenue grows 5.1%
20
Mar '14
Cintas Corporation reported results for its third quarter ended February 28, 2014. Revenue for the third quarter was $1.13 billion, representing a 5.1% increase compared to last year’s third quarter. Adjusting for one more workday in this year’s third quarter compared to last year’s third quarter, revenue grew 3.5%. 
 
Organic growth, which adjusts for the impact of acquisitions and the one additional workday, was 3.1%. This organic growth rate reflects the impact of a weaker Canadian dollar relative to the U.S. dollar and the difficult year-over-year comparison due to our Uniform Direct Sales operating segment having the largest uniform program roll-out in the Company’s history during last year’s third quarter. These items negatively impacted organic growth by 0.5% and 1.7%, respectively.
 
The Company’s operating income of $150.2 million was a 12.9% increase as compared to $133.0 million in last year’s third quarter. Net income increased 13.2% to $84.6 million as compared to $74.7 million in last year’s third quarter. Earnings per diluted share (EPS) for the third quarter were $0.69, a 15.0% increase over the $0.60 EPS in last year’s third quarter.
 
Scott D. Farmer, Chief Executive Officer, stated, “Despite the impact of the severe winter weather which affected our customers and our operations, as well as the weaker Canadian dollar, we were able to grow earnings at a double-digit rate. We are pleased with our results for the quarter and our fiscal year to date achieved by the hard work and dedication of our employees, who we call partners.”
 
Mr. Farmer concluded, “We are updating our fiscal 2014 guidance based on our third quarter results. We expect fiscal 2014 revenue in the range of $4.550 billion to $4.575 billion and EPS in the range of $2.75 to $2.79. This guidance assumes no deterioration in the U.S. economy and does not consider any additional share buybacks.”
 
The Company announced an agreement with the shareholders of Shred-it International Inc. (Shred-it) to combine Cintas’ Document Shredding business with Shred-it’s Document Shredding business. Under the agreement, Cintas and Shred-it will each contribute its document shredding business to a newly formed partnership that will be owned 42% by Cintas and 58% by the shareholders of Shred-it.
 
The combined entity will operate under the Shred-it brand and is expected to have annual revenue in excess of $600 million. In addition to its 42% ownership of the partnership, Cintas will receive approximately $180 million in cash at the closing of the transaction which is expected to occur before May 31, 2014. The updated guidance above does not include any impact of this transaction.

Cintas Corporation

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search