Cintas Corporation Announces Fiscal 2016 Fourth Quarter and Full Year Results

CINCINNATI–(BUSINESS WIRE)–Cintas Corporation (Nasdaq: CTAS) today reported results for its
fourth quarter and full fiscal year ended May 31, 2016.

Revenue for the fourth quarter of fiscal year 2016 was $1.27 billion, an
increase of 11.3% over the prior year period. Organic growth, which
adjusts for the impacts of acquisitions, foreign currency exchange rate
fluctuations and workday differences, was 6.7%. Operating income for the
fourth quarter of fiscal year 2016 of $202.9 million increased 14.2%
from the prior year period. Operating income margin improved to 16.0%
from 15.6% of revenue in last year’s fourth quarter.

Net income from continuing operations for the fourth quarter of fiscal
2016 was $118.0 million compared to $100.6 million in the prior year
period, and earnings per diluted share (EPS) from continuing operations
for the fourth quarter of fiscal 2016 were $1.08 compared to $0.86 for
last year’s fourth quarter. Fourth quarter of fiscal 2016 net income and
EPS from continuing operations increased 17.3% and 25.6%, respectively,
compared to the prior year period. Net income from continuing operations
as a percent of revenue improved to 9.3% from 8.8% in last fiscal year’s
fourth quarter.

Scott D. Farmer, Cintas’ Chief Executive Officer, stated, “This year we
initiated our first national branding campaign and introduced our new
tagline, Ready for the Workday^TM. This new
tagline communicates the value we provide our customers by addressing
their business needs with our broad range of products and services. Our
fourth quarter results are a reflection of the success of our employees,
whom we call partners, in being READY^TM for our
customers. I’d like to thank our partners for delivering
industry-leading growth rates and operating income margins and a
significant increase in EPS.”

For the fiscal year ended May 31, 2016, revenue was $4.90 billion, an
increase of 9.6% over the prior fiscal year. Organic growth was 6.7%.
Operating income for fiscal year 2016 of $781.7 million increased 12.3%
from the prior fiscal year. Operating income margin improved to 15.9%
from 15.6% of revenue last fiscal year. Net income from continuing
operations was $456.9 million compared to $410.5 million in the prior
year period, and EPS from continuing operations for fiscal 2016 were
$4.09 compared to $3.46 for last fiscal year. Excluding a non-recurring
gain in the first quarter of fiscal 2015 of $13.6 million or EPS of
$0.11, fiscal 2016 net income and EPS from continuing operations
increased 15.1% and 22.1%, respectively, compared to the prior year
period. Net income from continuing operations as a percent of revenue
improved to 9.3% from 8.9% last fiscal year, excluding the prior year
non-recurring gain.

“I am proud to report that we achieved record revenue and EPS in fiscal
year 2016,” added Mr. Farmer. “We have increased EPS by double-digits in
six consecutive years. Our balance sheet and cash flow remain very
strong. In addition, I am pleased with our continued ability to deploy
cash to many priorities. In fiscal 2016, those priorities included capex
and strategic investments like our SAP project and new branding
campaign; acquisitions in our Uniform Rental and Facility Services,
First Aid and Fire businesses; a 23.5% increase in the regular dividend;
and the repurchase of shares under our buyback program at an aggregate
cost of $759.2 million.”

Mr. Farmer concluded, “We expect fiscal 2017 revenue to be in the range
of $5.150 billion to $5.225 billion and fiscal 2017 EPS from continuing
operations to be in the range of $4.35 to $4.45. This guidance does not
include any potential deterioration in the U.S. economy or share
buybacks. It does include our expectations for our continued SAP system
implementation and the impact of one less workday in fiscal 2017
compared to fiscal 2016.”

The table below provides a comparison of fiscal 2016 revenue and EPS
from continuing operations to our fiscal 2017 guidance.

About Cintas

Cintas Corporation helps more than 900,000 businesses of all types and
sizes get Ready™ to open their doors with confidence every day by
providing a wide range of products and services that enhance our
customers’ image and help keep their facilities and employees clean,
safe and looking their best. With products and services including
uniforms, floor care, restroom supplies, first aid and safety products,
fire extinguishers and testing, and safety and compliance training,
Cintas helps customers get Ready for the Workday™. Headquartered
in Cincinnati, Cintas is a publicly held company traded over the Nasdaq
Global Select Market under the symbol CTAS and is a component of the
Standard & Poor’s 500 Index.

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, our
ability to promptly and effectively integrate acquisitions, including
ZEE Medical; our ability to realize any synergies from acquisitions,
including ZEE Medical; the possibility of greater than anticipated
operating costs including energy and fuel costs; lower sales volumes;
loss of customers due to outsourcing trends; the performance and costs
of integration of acquisitions, including the acquisition of ZEE
Medical; 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; the effect on operations of exchange rate fluctuations,
tariffs and other political, economic and regulatory risks;
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; costs of our SAP
system implementation; disruptions caused by the inaccessibility of
computer systems data, including cybersecurity risks; 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; the amount and
timing of repurchases of our common stock, if any; changes in federal
and state tax and labor laws; the reactions of competitors in terms of
price and service; and the finalization of our financial statements for
the year ended May 31, 2016. 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, 2015 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.

Contacts

Cintas Corporation
J. Michael Hansen, Vice President-Finance and
Chief Financial Officer, 513-701-2079
or
Paul F. Adler, Vice
President and Treasurer, 513-573-4195