Cintas Corp revenue rises 10.5% for Q2 fiscal 2007
21 Dec '06
3 min read
Mr. Farmer added, “We continue to implement our new sales structure and now have the new organization in place. Orientation and training of affected partners continues to be on schedule. Once our employee partners become fully oriented and acclimated to their roles, we expect the new organization to drive future improvements in internal growth. The new sales structure is designed to better develop and execute additional cross-selling opportunities and improve sales productivity.”
Strong Balance Sheet: The Company's balance sheet continues to be strong. Despite increased debt levels related to acquisitions made in late fiscal 2006 and the Company's share repurchase program, debt to total capitalization as of November 30, 2006 was only 27.4%. Cash and marketable securities were $172.2 million as of November 30, 2006.
As marketable securities mature, it is the Company's intention to use the funds to reduce its outstanding debt under its commercial paper program, contingent upon other cash needs. Total shareholders' equity was $2.1 billion.
Outlook: Mr. Farmer commented, “Based on our sales results through the second quarter and more consistent energy costs as compared to fiscal 2006, we reiterate our fiscal 2007 guidance which calls for fiscal 2007 revenue of $3.77 to $3.85 billion and diluted earnings per share of $2.10 to $2.20. We expect fiscal 2007 to be another record year at Cintas, which would result in our 38th consecutive yearof growth in sales and earnings.”
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