Thu, Apr 3, 8:08 PM (23 days ago)
**Cintas Corporation (CTAS) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $2,609.2 million (up 8.4% YoY), driven by organic growth (7.9%), acquisitions (0.9%), and foreign currency fluctuations (-0.4%). - **Operating Income:** $609.9 million (up 17.1% YoY), with a margin of 23.4%. - **Net Income:** $463.5 million (up 16.6% YoY), with diluted EPS of $1.13 (up 17.7% YoY). - **Cash Flow:** Operating cash flow of $1,530.2 million (up 10.4% YoY). **Segment Performance:** - **Uniform Rental and Facility Services:** Revenue up 7.7% to $2,021.1 million, with a gross margin of 50.0%. - **First Aid and Safety Services:** Revenue up 14.9% to $301.8 million, with a gross margin of 57.0%. **Profit Margins and Cash Flow:** - **Gross Margin:** Improved due to efficient inventory usage and routing. - **Operating Margin:** Increased to 23.4% from 21.6% YoY. - **Net Margin:** Improved to 17.8% from 16.5% YoY. - **Cash Flow from Operations:** Strong at $1,530.2 million, supporting investments and shareholder returns. **Earnings Changes and Trends:** - **Revenue Growth:** Driven by new business, product penetration, and price increases. - **Cost Management:** Efficient inventory usage and routing initiatives contributed to margin expansion. - **Share Buybacks:** $678.1 million spent on buybacks, with 2.7 million shares repurchased. **Future Operations and Uncertainties:** - **Acquisitions:** Continued focus on strategic acquisitions to drive growth. - **Investments:** Ongoing investments in technology and infrastructure. - **Economic Uncertainties:** Potential impacts from inflation, interest rates, and global trade policies. **Management Discussion:** - **Strategy:** Focus on increasing penetration in existing markets and broadening the customer base. - **Outlook:** Positive, with expectations of continued growth and margin expansion. - **Risks:** Include operational costs, customer retention, and integration of acquisitions. **Liquidity and Capital Resources:** - **Cash Position:** Strong, with $243.4 million in cash and cash equivalents. - **Debt:** $2,486.6 million in long-term debt, with a revolving credit facility of $2.0 billion. - **Dividends:** $453.7 million paid out in dividends, with a declared dividend of $0.39 per share. **Market Risks:** - **Interest Rates:** Exposure managed through interest rate locks. - **Foreign Currency:** Primarily exposed to the Canadian dollar. **Controls and Procedures:** - **Disclosure Controls:** Effective as of February 28, 2025. - **Internal Controls:** No material changes affecting financial reporting. **Legal and Other Contingencies:** - **Litigation:** Ongoing, with a tentative settlement of $45.0 million for a contract dispute. - **Forward-Looking Statements:** Subject to risks and uncertainties, including economic conditions and regulatory changes.