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FORM 8-K
CINTAS CORP - CTAS
Filed: July 16, 2009 (period: July 15, 2009)
Report of unscheduled material events or corporate changes.
Table of Contents
8-K - FORM 8-K - 7/15/09

Item 2.02     Results of Operations and Financial Condition.

Item 9.01.    Financial Statements and Exhibits.

SIGNATURES
EX-99 (EXHIBIT 99 - PRESS RELEASE DATED 7/15/09)
UNITED STATES
                                            SECURITIES AND EXCHANGE COMMISSION
                                                     Washington, D.C. 20549

                                                                 FORM 8-K

                                                       CURRENT REPORT
                               Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)                                                                          July 16, 2009



                                                       CINTAS CORPORATION
                                             (Exact name of registrant as specified in its charter)




               Washington                                      0-11399                                       31-1188630
      (State or other jurisdiction of                   (Commission File Number)                           (IRS Employer
              incorporation)                                                                             Identification No.)


6800 Cintas Boulevard, P.O. Box 625737, Cincinnati, Ohio                                                            45262-5737
(Address of principal executive offices)                                                                             Zip Code


Registrant’s telephone number, including area code                                                                      (513) 459-1200




                                        (Former name or former address, if changed since last report.)

         Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction A.2. below):

           �          Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
           �          Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
           �          Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
           �          Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Source: CINTAS CORP, 8-K, July 16, 2009
Item 2.02 – Results of Operations and Financial Condition.

        On July 15, 2009, the Registrant issued a press release announcing its financial results for the fiscal year ended May 31,
2009. A copy of the press release is furnished as Exhibit 99 to this report and is incorporated herein by reference.

Item 9.01. – Financial Statements and Exhibits.

             Exhibit 99     Press release dated July 15, 2009.



                                                           SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.


                                                                 CINTAS CORPORATION



Date: July 16, 2009                                              By:    /s/ William C. Gale
                                                                        William C. Gale
                                                                        Senior Vice President and Chief Financial
                                                                        Officer




Source: CINTAS CORP, 8-K, July 16, 2009
FOR IMMEDIATE RELEASE

July 15, 2009




                                          Cintas Corporation Announces Fiscal 2009 Results


CINCINNATI, July 15, 2009 -- Cintas Corporation (Nasdaq:CTAS) today reported revenue for its fiscal year ended May 31, 2009, of
$3.8 billion, a 4 percent decrease from the prior fiscal year. Net income for the year was $226 million and earnings per diluted share
were $1.48. For the fourth quarter ended May 31, 2009, revenue was $879 million, a 13 percent decrease from prior year fourth
quarter revenue. Fourth quarter net income was $4 million and earnings per diluted share were $0.03.

The Company announced on May 29, 2009, that, in response to economic conditions, current year results would include a
restructuring, fixed asset impairment and inventory valuation charge. The $54 million after-tax charge was recorded in the fourth
quarter. Excluding this charge, earnings per diluted share were $1.83 for the year and $0.38 for the fourth quarter.

Scott D. Farmer, Chief Executive Officer, stated, "As we mentioned in May, the U.S. economy continues to lose employment at a
rapid rate, directly impacting our customers and prospects. According to the US Department of Labor, the largest calendar year job
loss on record was over 60 years ago when in 1945 the U.S. economy lost 2.75 million jobs. Over the last twelve months, the U.S.
economy has lost approximately 5.5 million jobs, or twice that historical high. During May and June alone, over 800,000 U.S. jobs
were lost."

Mr. Farmer continued, "The severity of these job losses resulted in the need for us to take significant cost reduction measures. We
have continued to right-size our workforce and reduced our operating capacity to reflect current revenue levels. Over the last year we
have also implemented stringent controls over discretionary spending."

Mr. Farmer emphasized, "While market conditions and related job loss are negatively impacting our business, when conditions
improve and jobs are added, we expect to see improvement in our results. Cintas is a market leader in its businesses, has the most
modern infrastructure, remains profitable, continues to generate significant cash flow and has a strong balance sheet."

Despite lower net income, free cash flow for Fiscal 2009 increased $11 million over Fiscal 2008. Using this strong cash flow, the
Company was able to pay off all of its outstanding commercial paper as of May 31, 2009, increase its annual dividend payment to
shareholders and increase its total cash position by over $60 million. In addition, the Company further strengthened its sound balance
sheet, improving its current ratio to over four to one and improving its total debt to total capitalization ratio to 25%.

In closing, Mr. Farmer stated, "Our strong financial position and our commitment to continue to deliver exceptional quality and
service to our customers will provide enhanced opportunities when economic conditions improve."


About Cintas

Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types throughout North
America. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom
supplies, promotional products, first aid, safety, fire protection products and services and document management services for
approximately 800,000 businesses. Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol
CTAS, and is a Nasdaq-100 company and component of the Standard & Poor's 500 Index.




Source: CINTAS CORP, 8-K, July 16, 2009
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking
statements. Forward-looking statements may be identified by words such as "estimates," "anticipates," "predicts," "projects,"
"plans," "expects," "intends," "target," "forecast," "believes," "seeks," "could," "should," "may" and "will" or the negative versions
thereof and similar words, terms and expressions and by the context in which they are used. Such statements are based upon current
expectations of Cintas and speak only as of the date made. You should not place undue reliance on any forward-looking
statement. We cannot guarantee that any forward-looking statement will be realized. These statements are subject to various risks,
uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or
implied by this Press Release. Factors that might cause such a difference include, but are not limited to, the possibility of greater than
anticipated operating costs including energy costs, lower sales volumes, loss of customers due to outsourcing trends, the performance
and costs of integration of acquisitions, fluctuations in costs of materials and labor including increased medical costs, costs and
possible effects of union organizing activities, failure to comply with government regulations concerning employment discrimination,
employee pay and benefits and employee health and safety, uncertainties regarding any existing or newly-discovered expenses and
liabilities related to environmental compliance and remediation, the cost, results and ongoing assessment of internal controls for
financial reporting required by the Sarbanes-Oxley Act of 2002, the initiation or outcome of litigation, investigations or other
proceedings, higher assumed sourcing or distribution costs of products, the disruption of operations from catastrophic or
extraordinary events, changes in federal and state tax and labor laws and the reactions of competitors in terms of price and
service. Cintas undertakes no obligation to publicly release any revisions to any forward-looking statements or to otherwise update
any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated
developments arising after the date on which such statements are made. A further list and description of risks, uncertainties and other
matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2008 and in our reports on Forms 10-Q and
8-K. The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not
known to us or that we currently believe to be immaterial may also harm our business.


For additional information, contact:

William C. Gale, Sr. Vice President-Finance and Chief Financial Officer - 513-573-4211
Michael L. Thompson, Vice President and Treasurer - 513-573-4133




Source: CINTAS CORP, 8-K, July 16, 2009
Cintas Corporation
                                          Consolidated Condensed Statements of Income
                                                          (Unaudited)
                                              (In thousands except per share data)


                                                     Three Months Ended                        Twelve Months Ended
                                               May 31,     May 31,                       May 31,      May 31,
                                                2009        2008       % Chng.            2009         2008       % Chng.
Revenue:
 Rental uniforms and ancillary products    $     647,487    $   711,728         -9.0 $ 2,755,015       $ 2,834,568     -2.8
 Other services                                  231,196        297,227        -22.2   1,019,670         1,103,332     -7.6
 Total revenue                             $     878,683    $ 1,008,955        -12.9 $ 3,774,685       $ 3,937,900     -4.1

Costs and expenses (income):
 Cost of rental uniforms and ancillary
products                                   $     373,860    $    399,599       -6.4 $ 1,562,230        $ 1,581,618    -1.2
 Cost of other services                          170,472         176,921       -3.6     661,584            674,682    -1.9
 Selling and administrative expenses             253,677         279,116       -9.1   1,082,709          1,104,145    -1.9
 Restructuring Charges                            10,209               -       N/A       10,209                  -    N/A
 Impairment of Long-Lived Assets                  48,888               -       N/A       48,888                  -    N/A

Operating income                           $      21,577    $    153,319       -85.9 $      409,065    $   577,455    -29.2

 Interest income                                    (329)         (1,304)      -74.8         (2,764)        (6,072)   -54.5
 Interest expense                                 12,030          13,371       -10.0         50,236         52,823     -4.9

Income before income taxes                 $       9,876    $    141,252       -93.0 $      361,593    $   530,704    -31.9
Income taxes                                       5,804          51,591       -88.7        135,236        195,299    -30.8
Net income                                 $       4,072    $     89,661       -95.5 $      226,357    $   335,405    -32.5

Per share data:
Basic earnings per share                   $        0.03    $       0.58       -94.8 $         1.48    $      2.15    -31.2
Diluted earnings per share                 $        0.03    $       0.58       -94.8 $         1.48    $      2.15    -31.2

Weighted average number of shares
outstanding                                      152,790         153,686                    152,942        155,678
Diluted average number of shares
outstanding                                      153,199         153,854                    153,366        155,930



                                                            Three Months Ended                  Twelve Months Ended
CINTAS CORPORATION SUPPLEMENTAL                        May 31,    May 31,                   May 31,    May 31,
DATA                                                    2009       2008     % Chng.          2009        2008     % Chng.
Rental uniforms and ancillary products
gross margin                                             42.3%        43.9%                    43.3%         44.2%
Other services gross margin                              26.3%        40.5%                    35.1%         38.9%
Total gross margin                                       38.1%        42.9%                    41.1%         42.7%
Net margin                                                0.5%         8.9%                     6.0%          8.5%

Depreciation and amortization                      $     49,964 $     49,456        1.0 $     200,106 $     191,903     4.3
Capital expenditures                               $     27,309 $     45,485      -40.0 $     160,092 $     190,333   -15.9

Debt to total capitalization                             24.9%        29.5%                    24.9%         29.5%




Source: CINTAS CORP, 8-K, July 16, 2009
Rental                            First Aid,
                               Uniforms and                         Safety and
 SUPPLEMENTAL                   Ancillary          Uniform             Fire            Document
SEGMENT DATA                     Products         Direct Sales      Protection        Management         Corporate         Total
For the three months ended May 31, 2009
                    Revenue $        647,487      $     93,841 $         83,038 $           54,317 $                 - $    878,683
               Gross margin $        273,627      $      7,900 $         26,505 $           26,319 $                 - $    334,351
  Selling and administrative
                   expenses $        175,993      $     22,041 $         32,610 $           23,033 $                 - $    253,677
       Restructuring charges $         8,782      $        547 $            564 $              316 $                 - $     10,209
   Impairment of long-lived
                       assets $       44,204      $      4,135 $            543 $                  6 $               - $     48,888
Income (loss) before income
                        taxes $       44,648      $    (18,823) $         (7,212) $          2,964 $         (11,701) $       9,876

For the three months ended May
31, 2008
                   Revenue $              711,728 $    138,953 $        104,549 $           53,725 $                 - $   1,008,955
               Gross margin $             312,130 $     48,207 $         42,344 $           29,754 $                 - $     432,435
  Selling and administrative
                   expenses $             200,149 $     26,504 $         31,999 $           20,464 $                 - $    279,116
Income (loss) before income
                       taxes $            111,981 $     21,703 $         10,345 $            9,290 $         (12,067) $     141,252

As of and for the twelve months ended May
31, 2009
                    Revenue $      2,755,015      $    428,369 $        378,097 $          213,204 $                 - $   3,774,685
               Gross margin $      1,192,785      $    106,033 $        144,180 $          107,873 $                 - $   1,550,871
  Selling and administrative
                    expenses $       769,275      $     98,131 $        127,126 $           88,177 $                 - $   1,082,709
       Restructuring charges $         8,782      $        547 $            564 $              316 $                 - $      10,209
    Impairment of long-lived
                       assets $       44,204      $      4,135 $            543 $                  6 $               - $     48,888
Income (loss) before income
                        taxes $      370,524      $      3,220 $         15,947 $           19,374 $         (47,472) $      361,593
                      Assets $     2,511,902      $    137,709 $        321,400 $          470,619 $         253,809 $     3,695,439

As of and for the twelve months ended May
31, 2008
                    Revenue $      2,834,568      $    517,490 $        403,552 $          182,290 $                 - $   3,937,900
               Gross margin $      1,252,951      $    168,210 $        160,823 $           99,616 $                 - $   1,681,600
  Selling and administrative
                    expenses $       801,691      $    103,444 $        125,185 $           73,825 $                 - $   1,104,145
Income (loss) before income
                       taxes $       451,260      $     64,766 $         35,638 $           25,791 $         (46,751) $      530,704
                      Assets $     2,620,138      $    205,638 $        345,479 $          445,651 $         191,695 $     3,808,601

                          Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure

To supplement its consolidated financial statements presented in accordance with U.S. generally accepted accounting principles
(GAAP), the Company provides additional measures of operatings results, net earnings and earnings per share adjusted to exclude
certain costs, expenses and gains and losses. Also, in addition to measuring its cash flow based upon the classifications established
under GAAP of operating, investing and financing activities, the Company also measures its free cash flow generation. The Company
believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance as well as
prospects for future performance.

The press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and
Exchange Commission. A reconciliation of the differences between these non-GAAP financial measures with the most directly
comparable financial measures calculated in accordance with GAAP follows.




Source: CINTAS CORP, 8-K, July 16, 2009
Reconciliation of Restructuring, Impairment and Inventory Valuation Charge


                                                                                                                 Three Months Ended
                                                                                                                    May 31, 2009

Income Before Income Taxes                                                                                       $                9,876

Excluding:
Restructuring Charge                                                                                             $              10,209
Impairment of Long-Lived Assets (1)                                                                              $              48,888
Inventory Valuation Charge (2)                                                                                   $              27,486

Total Restructuring, Impairment and Inventory Valuation Charge                                                   $              86,583

Income Before Income Taxes, excluding Charge                                                                     $              96,459

Income Taxes, excluding Charge                                                                                   $              38,186

Net Income, excluding Charge                                                                                     $              58,273

Diluted Average Number of Shares Outstanding                                                                                  153,199

Earnings per Diluted Share excluding Charge                                                                      $                 0.38


(1)   Impairment of Long-Lived Assets is an impairment of fixed assets and, to a lesser extent, uniforms and other rental items
      in-service. No impairment was required or made for intangibles or goodwill.

(2)   The inventory valuation charge is included in cost of goods sold. $8,419 of the charge is included in Cost of Rental Uniforms
      and Ancillary Products and $19,067 is included in Cost of Other Services.

Note: Management believes that earnings per diluted share excluding the restructuring, impairment and inventory valuation charge
      provides investors pertinent information given the one-time nature of this change.

                                                  Computation of Free Cash Flow

                                                                                                              Twelve Months
                                                                                                              Ended May 31,
                                                                                                           2009           2008

Net Cash Provided by Operations                                                                       $      523,522    $     542,740

Capital Expenditures                                                                                  $     (160,092) $      (190,333)

Free Cash Flow                                                                                        $      363,430    $     352,407


Note: Management uses free cash flow to assess the financial performance of the Company. Management believes that free cash flow
      is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue, improve
      and grow business operations.




Source: CINTAS CORP, 8-K, July 16, 2009
Cintas Corporation
                                                  Consolidated Condensed Balance Sheets
                                                               (Unaudited)
                                                     (In thousands except share data)


                                                                                          May 31, 2009     May 31, 2008
ASSETS
Current assets:
 Cash and cash equivalents                                                                $     129,745    $      66,224
 Marketable securities                                                                          120,393          125,471
 Accounts receivable, net                                                                       357,678          430,078
 Inventories, net                                                                               202,351          238,669
 Uniforms and other rental items in service                                                     335,447          370,416
 Deferred tax asset                                                                              66,368           39,410
 Prepaid expenses                                                                                17,035           12,068
 Assets held for sale                                                                            15,744                -
Total current assets                                                                          1,244,761        1,282,336

Property and equipment, at cost, net                                                           914,627          974,575

Goodwill                                                                                      1,331,388        1,315,569
Service contracts, net                                                                          124,330          152,757
Other assets, net                                                                                80,333           83,364

                                                                                          $   3,695,439    $   3,808,601

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                                                         $     69,965 $         94,755
 Accrued compensation & related liabilities                                                     48,414           50,605
 Accrued liabilities                                                                           198,488          207,925
 Current income taxes (prepaid) payable                                                        (25,512)          12,887
 Long-term debt due within one year                                                                598            1,070
Total current liabilities                                                                      291,953          367,242

Long-term liabilities:
 Long-term debt due after one year                                                              786,058          942,736
 Deferred income taxes                                                                          149,032          124,184
 Accrued liabilities                                                                            100,987          120,308
Total long-term liabilities                                                                   1,036,077        1,187,228

Shareholders' equity:
 Preferred stock, no par value: 100,000 shares authorized, none outstanding                          -                -
 Common stock, no par value: 425,000,000 shares authorized                                     129,215          129,182
  FY 2009: 173,085,926 issued and 152,790,170 outstanding
  FY 2008: 173,083,426 issued and 153,691,103 outstanding
 Paid-in capital                                                                                 72,364           60,408
 Retained earnings                                                                            2,938,419        2,784,302
 Treasury stock
 FY 2009: 20,295,756; FY 2008: 19,392,323                                                     (797,888)        (772,041)
 Other accumulated comprehensive income (loss):
  Foreign currency translation                                                                   33,505           61,206
  Unrealized loss on derivatives                                                                 (8,207)          (8,815)
  Unrealized loss on available-for-sale securities                                                    1             (111)
Total shareholders' equity                                                                    2,367,409        2,254,131

                                                                                          $   3,695,439    $   3,808,601




Source: CINTAS CORP, 8-K, July 16, 2009
Cintas Corporation
                                           Consolidated Condensed Statements of Cash Flows
                                                            (Unaudited)
                                                           (In thousands)


                                                                                                 Twelve Months Ended
                                                                                                        May 31
                                                                                                 2009           2008
Cash flows from operating activities:

Net income                                                                                   $    226,357     $   335,405

Adjustments to reconcile net income to net cash provided by operating activities:
 Depreciation                                                                                     157,572         148,566
 Amortization of deferred charges                                                                  42,534          43,337
 Impairment of long-lived assets                                                                   48,888               -
 Stock-based compensation                                                                          11,953           7,456
 Deferred income taxes                                                                             (1,174)          1,663
 Change in current assets and liabilities, net of acquisitions of businesses:
  Accounts receivable, net                                                                         71,149         (14,939)
  Inventories, net                                                                                 35,136          (6,100)
  Uniforms and other rental items in service                                                       29,661         (23,854)
  Prepaid expenses                                                                                 (4,949)          3,830
  Accounts payable                                                                                (24,560)         30,567
  Accrued compensation and related liabilities                                                     (2,012)        (12,430)
  Accrued liabilities and other                                                                   (28,991)         20,398
  Income taxes payable                                                                            (38,042)          8,841
   Net cash provided by operating activities                                                      523,522         542,740

Cash flows from investing activities:

Capital expenditures                                                                              (160,092)       (190,333)
Proceeds from sale or redemption of marketable securities                                          116,433          45,791
Purchase of marketable securities and investments                                                 (128,402)        (54,498)
Acquisitions of businesses, net of cash acquired                                                   (30,909)       (111,535)
Other                                                                                                 (251)           (400)
   Net cash used in investing activities                                                          (203,221)       (310,975)

Cash flows from financing activities:

Proceeds from issuance of debt                                                                       7,500         295,000
Repayment of debt                                                                                 (164,649)       (232,409)
Stock options exercised                                                                                  -           8,371
Dividends paid                                                                                     (72,207)        (70,831)
Repurchase of common stock                                                                         (25,847)       (191,479)
Other                                                                                                  855         (11,356)
   Net cash used in financing activities                                                          (254,348)       (202,704)

Effect of exchange rate changes on cash and cash equivalents                                        (2,432)          1,803

Net (decrease) in cash and cash equivalents                                                        63,521          30,864
Cash and cash equivalents at beginning of period                                                   66,224          35,360
Cash and cash equivalents at end of period                                                   $    129,745     $    66,224



_______________________________________________
Created by 10KWizard www.10KWizard.com




Source: CINTAS CORP, 8-K, July 16, 2009

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  • 1. FORM 8-K CINTAS CORP - CTAS Filed: July 16, 2009 (period: July 15, 2009) Report of unscheduled material events or corporate changes.
  • 2. Table of Contents 8-K - FORM 8-K - 7/15/09 Item 2.02 Results of Operations and Financial Condition. Item 9.01. Financial Statements and Exhibits. SIGNATURES EX-99 (EXHIBIT 99 - PRESS RELEASE DATED 7/15/09)
  • 3. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 16, 2009 CINTAS CORPORATION (Exact name of registrant as specified in its charter) Washington 0-11399 31-1188630 (State or other jurisdiction of (Commission File Number) (IRS Employer incorporation) Identification No.) 6800 Cintas Boulevard, P.O. Box 625737, Cincinnati, Ohio 45262-5737 (Address of principal executive offices) Zip Code Registrant’s telephone number, including area code (513) 459-1200 (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): � Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) � Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) � Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) � Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Source: CINTAS CORP, 8-K, July 16, 2009
  • 4. Item 2.02 – Results of Operations and Financial Condition. On July 15, 2009, the Registrant issued a press release announcing its financial results for the fiscal year ended May 31, 2009. A copy of the press release is furnished as Exhibit 99 to this report and is incorporated herein by reference. Item 9.01. – Financial Statements and Exhibits. Exhibit 99 Press release dated July 15, 2009. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CINTAS CORPORATION Date: July 16, 2009 By: /s/ William C. Gale William C. Gale Senior Vice President and Chief Financial Officer Source: CINTAS CORP, 8-K, July 16, 2009
  • 5. FOR IMMEDIATE RELEASE July 15, 2009 Cintas Corporation Announces Fiscal 2009 Results CINCINNATI, July 15, 2009 -- Cintas Corporation (Nasdaq:CTAS) today reported revenue for its fiscal year ended May 31, 2009, of $3.8 billion, a 4 percent decrease from the prior fiscal year. Net income for the year was $226 million and earnings per diluted share were $1.48. For the fourth quarter ended May 31, 2009, revenue was $879 million, a 13 percent decrease from prior year fourth quarter revenue. Fourth quarter net income was $4 million and earnings per diluted share were $0.03. The Company announced on May 29, 2009, that, in response to economic conditions, current year results would include a restructuring, fixed asset impairment and inventory valuation charge. The $54 million after-tax charge was recorded in the fourth quarter. Excluding this charge, earnings per diluted share were $1.83 for the year and $0.38 for the fourth quarter. Scott D. Farmer, Chief Executive Officer, stated, "As we mentioned in May, the U.S. economy continues to lose employment at a rapid rate, directly impacting our customers and prospects. According to the US Department of Labor, the largest calendar year job loss on record was over 60 years ago when in 1945 the U.S. economy lost 2.75 million jobs. Over the last twelve months, the U.S. economy has lost approximately 5.5 million jobs, or twice that historical high. During May and June alone, over 800,000 U.S. jobs were lost." Mr. Farmer continued, "The severity of these job losses resulted in the need for us to take significant cost reduction measures. We have continued to right-size our workforce and reduced our operating capacity to reflect current revenue levels. Over the last year we have also implemented stringent controls over discretionary spending." Mr. Farmer emphasized, "While market conditions and related job loss are negatively impacting our business, when conditions improve and jobs are added, we expect to see improvement in our results. Cintas is a market leader in its businesses, has the most modern infrastructure, remains profitable, continues to generate significant cash flow and has a strong balance sheet." Despite lower net income, free cash flow for Fiscal 2009 increased $11 million over Fiscal 2008. Using this strong cash flow, the Company was able to pay off all of its outstanding commercial paper as of May 31, 2009, increase its annual dividend payment to shareholders and increase its total cash position by over $60 million. In addition, the Company further strengthened its sound balance sheet, improving its current ratio to over four to one and improving its total debt to total capitalization ratio to 25%. In closing, Mr. Farmer stated, "Our strong financial position and our commitment to continue to deliver exceptional quality and service to our customers will provide enhanced opportunities when economic conditions improve." About Cintas Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types throughout North America. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, first aid, safety, fire protection products and services and document management services for approximately 800,000 businesses. Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol CTAS, and is a Nasdaq-100 company and component of the Standard & Poor's 500 Index. Source: CINTAS CORP, 8-K, July 16, 2009
  • 6. CAUTION CONCERNING FORWARD-LOOKING STATEMENTS The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. Forward-looking statements may be identified by words such as "estimates," "anticipates," "predicts," "projects," "plans," "expects," "intends," "target," "forecast," "believes," "seeks," "could," "should," "may" and "will" or the negative versions thereof and similar words, terms and expressions and by the context in which they are used. Such statements are based upon current expectations of Cintas and speak only as of the date made. You should not place undue reliance on any forward-looking statement. We cannot guarantee that any forward-looking statement will be realized. These statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or implied by this Press Release. Factors that might cause such a difference include, but are not limited to, the possibility of greater than anticipated operating costs including energy costs, lower sales volumes, loss of customers due to outsourcing trends, the performance and costs of integration of acquisitions, fluctuations in costs of materials and labor including increased medical costs, costs and possible effects of union organizing activities, failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, the cost, results and ongoing assessment of internal controls for financial reporting required by the Sarbanes-Oxley Act of 2002, the initiation or outcome of litigation, investigations or other proceedings, higher assumed sourcing or distribution costs of products, the disruption of operations from catastrophic or extraordinary events, changes in federal and state tax and labor laws and the reactions of competitors in terms of price and service. Cintas undertakes no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2008 and in our reports on Forms 10-Q and 8-K. The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not known to us or that we currently believe to be immaterial may also harm our business. For additional information, contact: William C. Gale, Sr. Vice President-Finance and Chief Financial Officer - 513-573-4211 Michael L. Thompson, Vice President and Treasurer - 513-573-4133 Source: CINTAS CORP, 8-K, July 16, 2009
  • 7. Cintas Corporation Consolidated Condensed Statements of Income (Unaudited) (In thousands except per share data) Three Months Ended Twelve Months Ended May 31, May 31, May 31, May 31, 2009 2008 % Chng. 2009 2008 % Chng. Revenue: Rental uniforms and ancillary products $ 647,487 $ 711,728 -9.0 $ 2,755,015 $ 2,834,568 -2.8 Other services 231,196 297,227 -22.2 1,019,670 1,103,332 -7.6 Total revenue $ 878,683 $ 1,008,955 -12.9 $ 3,774,685 $ 3,937,900 -4.1 Costs and expenses (income): Cost of rental uniforms and ancillary products $ 373,860 $ 399,599 -6.4 $ 1,562,230 $ 1,581,618 -1.2 Cost of other services 170,472 176,921 -3.6 661,584 674,682 -1.9 Selling and administrative expenses 253,677 279,116 -9.1 1,082,709 1,104,145 -1.9 Restructuring Charges 10,209 - N/A 10,209 - N/A Impairment of Long-Lived Assets 48,888 - N/A 48,888 - N/A Operating income $ 21,577 $ 153,319 -85.9 $ 409,065 $ 577,455 -29.2 Interest income (329) (1,304) -74.8 (2,764) (6,072) -54.5 Interest expense 12,030 13,371 -10.0 50,236 52,823 -4.9 Income before income taxes $ 9,876 $ 141,252 -93.0 $ 361,593 $ 530,704 -31.9 Income taxes 5,804 51,591 -88.7 135,236 195,299 -30.8 Net income $ 4,072 $ 89,661 -95.5 $ 226,357 $ 335,405 -32.5 Per share data: Basic earnings per share $ 0.03 $ 0.58 -94.8 $ 1.48 $ 2.15 -31.2 Diluted earnings per share $ 0.03 $ 0.58 -94.8 $ 1.48 $ 2.15 -31.2 Weighted average number of shares outstanding 152,790 153,686 152,942 155,678 Diluted average number of shares outstanding 153,199 153,854 153,366 155,930 Three Months Ended Twelve Months Ended CINTAS CORPORATION SUPPLEMENTAL May 31, May 31, May 31, May 31, DATA 2009 2008 % Chng. 2009 2008 % Chng. Rental uniforms and ancillary products gross margin 42.3% 43.9% 43.3% 44.2% Other services gross margin 26.3% 40.5% 35.1% 38.9% Total gross margin 38.1% 42.9% 41.1% 42.7% Net margin 0.5% 8.9% 6.0% 8.5% Depreciation and amortization $ 49,964 $ 49,456 1.0 $ 200,106 $ 191,903 4.3 Capital expenditures $ 27,309 $ 45,485 -40.0 $ 160,092 $ 190,333 -15.9 Debt to total capitalization 24.9% 29.5% 24.9% 29.5% Source: CINTAS CORP, 8-K, July 16, 2009
  • 8. Rental First Aid, Uniforms and Safety and SUPPLEMENTAL Ancillary Uniform Fire Document SEGMENT DATA Products Direct Sales Protection Management Corporate Total For the three months ended May 31, 2009 Revenue $ 647,487 $ 93,841 $ 83,038 $ 54,317 $ - $ 878,683 Gross margin $ 273,627 $ 7,900 $ 26,505 $ 26,319 $ - $ 334,351 Selling and administrative expenses $ 175,993 $ 22,041 $ 32,610 $ 23,033 $ - $ 253,677 Restructuring charges $ 8,782 $ 547 $ 564 $ 316 $ - $ 10,209 Impairment of long-lived assets $ 44,204 $ 4,135 $ 543 $ 6 $ - $ 48,888 Income (loss) before income taxes $ 44,648 $ (18,823) $ (7,212) $ 2,964 $ (11,701) $ 9,876 For the three months ended May 31, 2008 Revenue $ 711,728 $ 138,953 $ 104,549 $ 53,725 $ - $ 1,008,955 Gross margin $ 312,130 $ 48,207 $ 42,344 $ 29,754 $ - $ 432,435 Selling and administrative expenses $ 200,149 $ 26,504 $ 31,999 $ 20,464 $ - $ 279,116 Income (loss) before income taxes $ 111,981 $ 21,703 $ 10,345 $ 9,290 $ (12,067) $ 141,252 As of and for the twelve months ended May 31, 2009 Revenue $ 2,755,015 $ 428,369 $ 378,097 $ 213,204 $ - $ 3,774,685 Gross margin $ 1,192,785 $ 106,033 $ 144,180 $ 107,873 $ - $ 1,550,871 Selling and administrative expenses $ 769,275 $ 98,131 $ 127,126 $ 88,177 $ - $ 1,082,709 Restructuring charges $ 8,782 $ 547 $ 564 $ 316 $ - $ 10,209 Impairment of long-lived assets $ 44,204 $ 4,135 $ 543 $ 6 $ - $ 48,888 Income (loss) before income taxes $ 370,524 $ 3,220 $ 15,947 $ 19,374 $ (47,472) $ 361,593 Assets $ 2,511,902 $ 137,709 $ 321,400 $ 470,619 $ 253,809 $ 3,695,439 As of and for the twelve months ended May 31, 2008 Revenue $ 2,834,568 $ 517,490 $ 403,552 $ 182,290 $ - $ 3,937,900 Gross margin $ 1,252,951 $ 168,210 $ 160,823 $ 99,616 $ - $ 1,681,600 Selling and administrative expenses $ 801,691 $ 103,444 $ 125,185 $ 73,825 $ - $ 1,104,145 Income (loss) before income taxes $ 451,260 $ 64,766 $ 35,638 $ 25,791 $ (46,751) $ 530,704 Assets $ 2,620,138 $ 205,638 $ 345,479 $ 445,651 $ 191,695 $ 3,808,601 Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure To supplement its consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides additional measures of operatings results, net earnings and earnings per share adjusted to exclude certain costs, expenses and gains and losses. Also, in addition to measuring its cash flow based upon the classifications established under GAAP of operating, investing and financing activities, the Company also measures its free cash flow generation. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance as well as prospects for future performance. The press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of the differences between these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follows. Source: CINTAS CORP, 8-K, July 16, 2009
  • 9. Reconciliation of Restructuring, Impairment and Inventory Valuation Charge Three Months Ended May 31, 2009 Income Before Income Taxes $ 9,876 Excluding: Restructuring Charge $ 10,209 Impairment of Long-Lived Assets (1) $ 48,888 Inventory Valuation Charge (2) $ 27,486 Total Restructuring, Impairment and Inventory Valuation Charge $ 86,583 Income Before Income Taxes, excluding Charge $ 96,459 Income Taxes, excluding Charge $ 38,186 Net Income, excluding Charge $ 58,273 Diluted Average Number of Shares Outstanding 153,199 Earnings per Diluted Share excluding Charge $ 0.38 (1) Impairment of Long-Lived Assets is an impairment of fixed assets and, to a lesser extent, uniforms and other rental items in-service. No impairment was required or made for intangibles or goodwill. (2) The inventory valuation charge is included in cost of goods sold. $8,419 of the charge is included in Cost of Rental Uniforms and Ancillary Products and $19,067 is included in Cost of Other Services. Note: Management believes that earnings per diluted share excluding the restructuring, impairment and inventory valuation charge provides investors pertinent information given the one-time nature of this change. Computation of Free Cash Flow Twelve Months Ended May 31, 2009 2008 Net Cash Provided by Operations $ 523,522 $ 542,740 Capital Expenditures $ (160,092) $ (190,333) Free Cash Flow $ 363,430 $ 352,407 Note: Management uses free cash flow to assess the financial performance of the Company. Management believes that free cash flow is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue, improve and grow business operations. Source: CINTAS CORP, 8-K, July 16, 2009
  • 10. Cintas Corporation Consolidated Condensed Balance Sheets (Unaudited) (In thousands except share data) May 31, 2009 May 31, 2008 ASSETS Current assets: Cash and cash equivalents $ 129,745 $ 66,224 Marketable securities 120,393 125,471 Accounts receivable, net 357,678 430,078 Inventories, net 202,351 238,669 Uniforms and other rental items in service 335,447 370,416 Deferred tax asset 66,368 39,410 Prepaid expenses 17,035 12,068 Assets held for sale 15,744 - Total current assets 1,244,761 1,282,336 Property and equipment, at cost, net 914,627 974,575 Goodwill 1,331,388 1,315,569 Service contracts, net 124,330 152,757 Other assets, net 80,333 83,364 $ 3,695,439 $ 3,808,601 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 69,965 $ 94,755 Accrued compensation & related liabilities 48,414 50,605 Accrued liabilities 198,488 207,925 Current income taxes (prepaid) payable (25,512) 12,887 Long-term debt due within one year 598 1,070 Total current liabilities 291,953 367,242 Long-term liabilities: Long-term debt due after one year 786,058 942,736 Deferred income taxes 149,032 124,184 Accrued liabilities 100,987 120,308 Total long-term liabilities 1,036,077 1,187,228 Shareholders' equity: Preferred stock, no par value: 100,000 shares authorized, none outstanding - - Common stock, no par value: 425,000,000 shares authorized 129,215 129,182 FY 2009: 173,085,926 issued and 152,790,170 outstanding FY 2008: 173,083,426 issued and 153,691,103 outstanding Paid-in capital 72,364 60,408 Retained earnings 2,938,419 2,784,302 Treasury stock FY 2009: 20,295,756; FY 2008: 19,392,323 (797,888) (772,041) Other accumulated comprehensive income (loss): Foreign currency translation 33,505 61,206 Unrealized loss on derivatives (8,207) (8,815) Unrealized loss on available-for-sale securities 1 (111) Total shareholders' equity 2,367,409 2,254,131 $ 3,695,439 $ 3,808,601 Source: CINTAS CORP, 8-K, July 16, 2009
  • 11. Cintas Corporation Consolidated Condensed Statements of Cash Flows (Unaudited) (In thousands) Twelve Months Ended May 31 2009 2008 Cash flows from operating activities: Net income $ 226,357 $ 335,405 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 157,572 148,566 Amortization of deferred charges 42,534 43,337 Impairment of long-lived assets 48,888 - Stock-based compensation 11,953 7,456 Deferred income taxes (1,174) 1,663 Change in current assets and liabilities, net of acquisitions of businesses: Accounts receivable, net 71,149 (14,939) Inventories, net 35,136 (6,100) Uniforms and other rental items in service 29,661 (23,854) Prepaid expenses (4,949) 3,830 Accounts payable (24,560) 30,567 Accrued compensation and related liabilities (2,012) (12,430) Accrued liabilities and other (28,991) 20,398 Income taxes payable (38,042) 8,841 Net cash provided by operating activities 523,522 542,740 Cash flows from investing activities: Capital expenditures (160,092) (190,333) Proceeds from sale or redemption of marketable securities 116,433 45,791 Purchase of marketable securities and investments (128,402) (54,498) Acquisitions of businesses, net of cash acquired (30,909) (111,535) Other (251) (400) Net cash used in investing activities (203,221) (310,975) Cash flows from financing activities: Proceeds from issuance of debt 7,500 295,000 Repayment of debt (164,649) (232,409) Stock options exercised - 8,371 Dividends paid (72,207) (70,831) Repurchase of common stock (25,847) (191,479) Other 855 (11,356) Net cash used in financing activities (254,348) (202,704) Effect of exchange rate changes on cash and cash equivalents (2,432) 1,803 Net (decrease) in cash and cash equivalents 63,521 30,864 Cash and cash equivalents at beginning of period 66,224 35,360 Cash and cash equivalents at end of period $ 129,745 $ 66,224 _______________________________________________ Created by 10KWizard www.10KWizard.com Source: CINTAS CORP, 8-K, July 16, 2009