Q1FY16 revenues climb 8.8% at Cintas
Revenue for the first fiscal quarter ended August 31, 2015 at Cintas; a provider of uniform services climbed 8.8 per cent over the same quarter of the prior fiscal.
“Revenue for the first quarter of fiscal 2016 amounted to $1.20 billion, an increase of 8.8 per cent over a fiscal ago period,” a Cintas press release stated.
Organic growth, which adjusts for the impacts of acquisitions, workday differences and foreign currency exchange rate fluctuations, was 6.8 per cent.
Operating income for the reporting quarter was $185.5 million, up 13.5 per cent from the previous fiscal's first quarter, while operating margin improved 70 bps year on year to 15.5 per cent.
Net income from continuing operations for the first quarter of fiscal 2016 totaled to $106.2 million, as compared to $105.9 million in the first quarter of fiscal 2015.
Earnings per diluted share (EPS) from continuing operations for the quarter under review were $0.93 as against $0.89 for the first quarter of last fiscal.
According to Cintas, first quarter of fiscal 2015 net income and EPS from continuing operations was positively impacted by a gain from the sale of stock in an equity method investment.
Excluding this benefit to net income of $13.6 million or EPS of $0.11, first quarter of fiscal 2016 net income and EPS from continuing operations surged 15.1 and 19.2 per cent, respectively year on year.
Net income from continuing operations as a percent of revenue improved fifty basis points to 8.9 per cent from 8.4 per cent of revenue in the earlier fiscal's same quarter, excluding the prior fiscal period gain.
CEO Scott Farmer said, “We continue to focus on both adding new customers and providing existing customers with additional products and services,”
“Our revenue and earnings growth is the result of the consistently strong performance of our employees, whom we call partners,” Farmer added.
During August and till September 23, 2015, Cintas purchased 2.9 million shares of common stock and this buyback had no impact on first quarter EPS but is expected to benefit full fiscal EPS by $0.05.
Since the beginning of fiscal 2016, Cintas informed that around 4.5 million shares of common stock have been purchased at an aggregate cost of $381.2 million.
As of September 23, 2015, Cintas had $381.8 million available under the current board of directors stock repurchase authorisation.
Cintas updated its annual guidance and now expects fiscal 2016 revenue to be in the range of $4.80 billion to $4.88 billion and EPS from continuing operations to be in the range of $3.79 to $3.88.
“This guidance does not include any EPS impact from the announced agreement to sell our investment in Shred-it, which has not yet closed,” it explained. (AR)
Fibre2Fashion News Desk – India