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Aug 31, 2021

Cintas Q1 2022 Earnings Report

Cintas reported an increase in revenue and earnings per share for the first quarter of fiscal year 2022.

Key Takeaways

Cintas Corporation announced its fiscal 2022 first-quarter results, with revenue increasing by 8.6% to $1.90 billion and diluted earnings per share rising by 11.9% to $3.11.

Revenue for Q1 2022 was $1.90 billion, an 8.6% increase compared to Q1 2021.

Diluted earnings per share (EPS) for Q1 2022 were $3.11, an 11.9% increase compared to Q1 2021.

Operating income for Q1 2022 increased by 12.7% to $394.1 million.

Cintas is raising its annual revenue expectations from a range of $7.53 billion to $7.63 billion to a range of $7.58 billion to $7.67 billion and diluted EPS from a range of $10.35 to $10.75 to a range of $10.60 to $10.90.

Total Revenue
$1.9B
Previous year: $1.75B
+8.6%
EPS
$0.78
Previous year: $0.7
+11.4%
Organic Rev Growth
8.6%
Gross Margin
47.6%
Previous year: 47.3%
+0.6%
Op Income Margin
20.8%
Gross Profit
$903M
Previous year: $826M
+9.3%
Cash and Equivalents
$79.7M
Previous year: $422M
-81.1%
Free Cash Flow
$213M
Previous year: $281M
-24.2%
Total Assets
$7.86B
Previous year: $8.04B
-2.3%

Cintas

Cintas

Cintas Revenue by Segment

Forward Guidance

Cintas is increasing its fiscal 2022 financial guidance. The company is raising its annual revenue and diluted EPS expectations.

Positive Outlook

  • Annual revenue expectations raised to a range of $7.58 billion to $7.67 billion.
  • Diluted EPS expectations raised to a range of $10.60 to $10.90.
  • Company is navigating an unsettled environment.
  • Company is focusing on providing businesses with the products and services needed to help our customers get Ready for the Workday®.
  • Company looks forward to another successful fiscal year.

Challenges Ahead

  • Fiscal 2022 effective tax rate is expected to be approximately 19.5% compared to a rate of 13.7% for fiscal 2021.
  • Higher effective tax rate negatively impacts fiscal 2022 diluted EPS guidance by about $0.77 and diluted EPS growth by about 760 basis points.
  • Guidance does not include the impact of any future share buybacks or potential tax reform.
  • Guidance assumes an uneven economic recovery caused by the surging COVID-19 delta variant.
  • Guidance does not contemplate significant COVID-19 pandemic-related setbacks such as stay-at-home orders and other restrictions, commonly referred to as lockdowns.

Revenue & Expenses

Visualization of income flow from segment revenue to net income