Cintas total revenue rise by 6%
Cintas Corporation reported revenue for its fiscal year ended May 31, 2008, of $3.9 billion, a 6 percent increase over the previous fiscal year. Net income for the year was $335 million and earnings per diluted share were $2.15.
For the fourth quarter ended May 31, 2008, revenue was slightly in excess of $1.0 billion, a 5 percent increase over prior year fourth quarter revenue. This marks the first time that Cintas revenue has exceeded one billion dollars for a fiscal quarter. Fourth quarter net income was $90 million and earnings per diluted share were $0.58.
Scott D. Farmer, President and Chief Executive Officer, stated, "I am pleased to announce that we have recently completed our 39th consecutive year of growth in both revenue and earnings. Despite difficult and challenging economic conditions, including significant increases in energy costs, we were able to achieve these positive results. These results could not have been achieved without the continued support of our customers and the hard work and dedication of our 34,000 employee-partners."
Mr. Farmer continued, "Our products and services, which include uniforms, facility services, first aid and fire protection services and document management services, continue to be effective, efficient solutions for businesses of all sizes and types. All of our operating divisions continued to grow in fiscal 2008, demonstrating the value our services provide to our customers."
Cintas also continues to be recognized throughout North America for its social and environmental commitment. Recognition during the fiscal year included being listed in the Top 50 military friendly businesses by G.I. Jobs magazine, receiving the "Governor's Pollution Prevention Award" by the Illinois Department of Natural Resources and receiving the New Jersey Governor's Occupational Safety and Health Award. Cintas was also named among the best employers in Canada for the fourth consecutive year by Canada's Globe and Mail news, and was listed among FORTUNE magazine's list of "America's Most Admired Companies" for the eighth consecutive year.
Cintas continues to be financially sound. Despite significantly higher energy costs in fiscal 2008, the Company maintained gross margins of 43% of revenue and generated operating income of 15% of revenue. The Company also generated free cash flow of $354 million, representing 9% of revenue. Approximately $112 million of this free cash flow was used to make acquisitions, as the Company continued to expand its national footprint and scope.
In addition to acquisitions, $191 million was used to purchase shares under the Company's share buyback program. Since the program's inception the Company has bought back a total of $772 million of its stock, reducing outstanding shares by over 11%. The Company has $228 million in remaining authorization under the program and continues to balance purchases under the program with acquisition opportunities and overall balance sheet management.