Cintas Profits on Drop in Energy Prices in 2023

CINCINNATI -- Cintas Corporation has reported a 12 percent increase in revenue for fiscal 2023, reaching more than $8.8 billion.

The company also reported a fourth quarter profit of $346 million, or $3.39 a share, on sales of $2.28 billion, compared to a profit of $294 million, or $2.87 a share, on sales of $2.07 billion in the same period last year.

The organic revenue growth rate for the fourth quarter of fiscal 2023, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 10.3%.

Gross margin for the fourth quarter of fiscal 2023 was $1 billion compared to $946.2 million in last year’s fourth quarter, an increase of 15.1%. Gross margin as a percentage of revenue was 47.7% for the fourth quarter of fiscal 2023 compared to 45.6% in last year's fourth quarter, an increase of 210 basis points. Energy expenses comprised of gasoline, natural gas and electricity were 65 basis points lower for the fourth quarter of fiscal 2023 compared to last year's fourth quarter.

On June 15, 2023, Cintas paid an aggregate quarterly cash dividend of $117.6 million to shareholders, an increase of 20.6% from the amount paid last June.

"We are pleased with our fourth quarter financial results,” said Todd M. Schneider, Cintas' President and CEO. “They conclude a very successful fiscal year, which included double-digit growth in revenue, operating income and diluted EPS. Our business continues to demonstrate momentum as we can provide nearly every business across North America a product or service to help them build a better workday.

“All businesses care about image, safety, cleanliness and compliance, and businesses continue to outsource to Cintas in order to concentrate on their core competency. Through innovative solutions and routine service visits, our employee-partners take care of the important tasks that help our customers keep their workplaces running smoothly."

Schneider said, "For our fiscal 2024, we expect revenue to be in the range of $9.35 billion to $9.50 billion and diluted EPS to be in the range of $13.85 to $14.35.

Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS. It is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.

The company has assets of $8.5 billion, and liabilities of $4.7 billion.

For more on Cintas, go to www.Cintas.com.