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Aug 31, 2020

Cintas Q1 2021 Earnings Report

Cintas reported an increase in EPS and net income despite a decrease in revenue.

Key Takeaways

Cintas Corporation reported a decrease in revenue by 3.6% but an increase in earnings per diluted share (EPS) by 19.8% for the first quarter of fiscal year 2021. The COVID-19 pandemic continues to significantly disrupt the economy and Cintas' business.

Revenue for the first quarter of fiscal 2021 was $1.75 billion, a decrease of 3.6% from last year’s first quarter.

Earnings per diluted share (EPS) were $2.78 in the first quarter of fiscal 2021, an increase of 19.8% from last year's first quarter diluted EPS.

Operating income for the first quarter of fiscal 2021 was $349.7 million, an increase of 14.2% from last year’s first quarter.

Net income was $300.0 million for the first quarter of fiscal 2021, an increase of 19.6% from last year's first quarter.

Total Revenue
$1.75B
Previous year: $1.81B
-3.5%
EPS
$0.7
Previous year: $0.58
+20.7%
Gross Margin
47.3%
Previous year: 46.9%
+0.9%
Gross Profit
$826M
Previous year: $849M
-2.7%
Cash and Equivalents
$422M
Previous year: $102M
+312.7%
Free Cash Flow
$281M
Previous year: $212M
+32.6%
Total Assets
$8.04B
Previous year: $7.66B
+5.0%

Cintas

Cintas

Cintas Revenue by Segment

Forward Guidance

Cintas expects second quarter revenue to be in the range of $1.725 billion to $1.750 billion and diluted EPS to be in the range of $2.00 to $2.20.

Positive Outlook

  • Revenue to be in the range of $1.725 billion to $1.750 billion for Q2
  • Diluted EPS to be in the range of $2.00 to $2.20 for Q2
  • Ability to manage the volatility
  • Maintaining focus on long-term objectives
  • Value proposition of getting businesses Ready for the Workday® resonates loudly

Challenges Ahead

  • Visibility to future financial performance remains impaired
  • COVID-19 coronavirus (COVID-19) pandemic remains a significant disruption to the economy
  • Significant disruption to our business
  • Greater than anticipated operating costs including energy and fuel costs
  • Lower sales volumes

Revenue & Expenses

Visualization of income flow from segment revenue to net income