Cintas (NASDAQ: CTAS) on Thursday announced its fiscal 2014 and third-quarter results. The company had a number of remarkable improvements, which includes a 13.2 percent increase in net income and a 15 percent increase in earnings per share or EPS. Shares of the company were down 1.06 percent or $0.64 per share to $59.59 in the normal trading session.
Cintas had its revenue for the third-quarter increase 5.1 percent to $1.13 billion, when compared to the third quarter of last year.
Scott D. Farmer, Chief Executive Officer, stated, “Despite the impact of the severe winter weather which affected our customers and our operations, as well as the weaker Canadian dollar, we were able to grow earnings at a double-digit rate. We are pleased with our results for the quarter and our fiscal year to date achieved by the hard work and dedication of our employees, who we call partners.”
Cintas also had its operating income jump to $150.2 million, representing a 12.9 percent increase year-over-year. Net income also jumped a whopping 13.2 percent to $84.6 million as compared to last year’s $74.7 million.
Farmer continued, “We are updating our fiscal 2014 guidance based on our third quarter results. We expect fiscal 2014 revenue in the range of $4.550 billion to $4.575 billion and EPS in the range of $2.75 to $2.79. This guidance assumes no deterioration in the U.S. economy and does not consider any additional share buybacks.”
Earlier in the day, Cintas announced a partnership with the shareholders of Shred-it International to combine Cintas’ Document Shredding business with Shred-it’s Document Shredding business. Both of the companies will form a new business and 42 percent will be owned by Cintas and 58 percent by the shareholders of Shred-it.
The combined entity will operate under the Shred-it brand and is expected to have annual revenue in excess of $600 million. On top of its 42 percent stake in the new entity, Cintas is expected to receive $180 million in cash.
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