Cintas Registers Revenue, Income Growth In Fiscal 2021 Fourth Quarter
Cincinnati, Ohio-based Cintas Corporation (PPAI 303547, D12), which operates as a distributor in the promotional products market, has reported financial results for its fiscal 2021 fourth quarter, which ended May 31. The company’s revenue for the fourth quarter of fiscal 2021 was $1.84 billion, compared to $1.62 billion in last year’s fourth quarter. For the fiscal year, revenue was $7.12 billion compared to $7.09 billion for fiscal 2020.
"We are pleased with our fourth-quarter financial results,” says Todd M. Schneider, Cintas' president and CEO. “They conclude a fiscal year of significant accomplishments. These include procuring hard-to-find and potentially lifesaving items such as face masks and gloves, providing hygienically-cleaned health-care scrubs and isolation gowns, and developing services including hand sanitizer dispensing and sanitizing spray services. Additionally, we improved shareholder returns by increasing the dollar amount of dividends paid and completing share repurchases. Finally, we issued our inaugural Environmental, Social and Governance, or ESG, report."
Diluted earnings per share (EPS) were $2.47 in the fourth quarter of fiscal 2021, an increase of 83 percent from last year's fourth quarter diluted EPS of $1.35. Diluted EPS for fiscal 2021 was $10.24 compared to $8.11 in fiscal 2020. Net income from continuing operations was $267.7 million for the fiscal fourth quarter, an increase of 85.2 percent from the same period last year, $144.6 million.
The organic revenue growth rate for the fourth quarter of fiscal 2021, which is adjusted for the impacts of acquisitions, divestitures, foreign currency exchange rate fluctuations and differences in the number of workdays, was 11.5 percent. The organic revenue growth rate for the Uniform Rental and Facility Services reportable operating segment was 13.7 percent. Organic revenue for the First Aid and Safety Services reportable operating segment declined 6.8 percent.
Gross margin for the fourth quarter of fiscal 2021 was $859.1 million compared to $707.8 million in fiscal 2020’s fourth quarter. Gross margin as a percentage of revenue increased 310 basis points to 46.8 percent for fourth quarter compared to 43.7 percent last year. Operating income of $356.4 million increased 71.8 percent from last year’s fourth quarter operating income of $207.4 million. Operating income as a percentage of revenue increased 660 basis points to 19.4 percent compared to 12.8 percent in the fourth quarter of fiscal 2020. Cintas reports that fiscal 2020 fourth quarter’s operating income was affected by many items caused by the COVID-19 pandemic including incremental allowances for doubtful accounts, inventory reserves, employee-partner termination costs, asset impairment charges and lower incentive compensation expense.
“Our prospects for continued growth are great,” says Schneider. “Our value proposition is strong, and we have a vast total addressable market. Also, our continued investment in technology is a competitive advantage. For our fiscal 2022, we expect revenue to be in the range of $7.53 billion to $7.63 billion and diluted EPS to be in the range of $10.35 to $10.75.”