Cintas Company (Nasdaq: CTAS) right now supplied an update on the COVID-19 pandemic’s affect on its business enterprise.
Scott D. Farmer, Cintas Chairman and Chief Government Officer mentioned, “At the time of our fiscal next quarter earnings conference contact in late December, significantly uncertainty existed. COVID-19 conditions had been surging. Economic indicators mirrored an economic restoration that slowed noticeably. Many states and provinces reinstituted temporary financial constraints in response to increasing COVID-19 scenarios. Vaccines ended up just beginning to be distributed. All of these things contributed to a deficiency of clarity pertaining to their outcomes on our business in our fiscal 3rd quarter. As a outcome, we did not provide monetary assistance.”
Mr. Farmer continued, “Immediately after peaking in early January, COVID-19 situations have steadily reduced, and the impacts on our company in our fiscal 3rd quarter, while continue to sizeable, are clearer. For that reason, we want to supply a financial update ahead of our third quarter earnings announcement. We assume our third quarter income to be in the selection of $1.75 billion to $1.76 billion and diluted earnings for every share to be in the vary of $2.15 to $2.25. Remember to notice that this year’s 3rd quarter has a single less workday than previous year’s third quarter, we assume our third quarter successful tax rate to be in the variety of 13% to 15%, and the monetary steerage excludes any impression from probably considerable winter storms.”
Mr. Farmer concluded, “Cintas continues to deliver essential products and solutions and providers to our consumers to be certain they are READY™ to open their doorways with self-confidence each and every day. We are proudly furnishing our shoppers with clean clothes, health care scrubs, microfiber towels and mops, disinfectant and sanitizer spray solutions, restroom provides, hand sanitizer dispenser providers, personalized protective tools together with deal with masks and gloves, and a lot of other merchandise and solutions to help corporations preserve their facilities, staff and clients cleanse and protected.”
Cintas’ consolidated harmony sheet continues to be sound, and it presently has significant availability underneath its credit score facility. Cintas is a strong cash flow organization and has a keep track of-file of successful capital allocation. Quarter to date, Cintas has procured $82. million of Cintas stock under its buyback application. On January 19, 2021, the Company’s Board of Administrators accepted a $.75 for every share quarterly dividend payable on March 15, 2021 to shareholders of history as of February 15, 2021.
Following this push launch, Cintas intends to return to its standard quarterly fiscal reporting cadence. The Company will announce in March its total fiscal third quarter effects for the time period finished February 28, 2021 and carry out a convention phone to handle these success.
Cintas Corporation can help additional than a single million businesses of all kinds and dimensions get READY™ to open up their doorways with self-assurance each individual day by providing a wide array of products and solutions and companies that boost our customers’ impression and assistance hold their facilities and personnel thoroughly clean, risk-free and on the lookout their finest. With products and solutions and services together with uniforms, floor treatment, restroom provides, very first support and basic safety merchandise, fire extinguishers and tests, and basic safety and compliance education, Cintas aids consumers get Prepared for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 business traded about the Nasdaq World Choose Market under the image CTAS and is a component of both equally the Regular & Poor’s 500 Index and the Nasdaq-100 Index.
Caution Relating to Ahead-On the lookout STATEMENTS
The Non-public Securities Litigation Reform Act of 1995 provides a risk-free harbor from civil litigation for forward-hunting statements. Ahead-searching statements might be discovered by words these as “estimates,” “anticipates,” “predicts,” “tasks,” “programs,” “expects,” “intends,” “goal,” “forecast,” “believes,” “seeks,” “could,” “should,” “may” and “will” or the destructive variations thereof and identical text, terms and expressions and by the context in which they are made use of. These kinds of statements are based on existing anticipations of Cintas and talk only as of the date produced. You need to not position undue reliance on any ahead-seeking assertion. We can not promise that any forward-looking statement will be realized. These statements are issue to many risks, uncertainties, perhaps inaccurate assumptions and other things that could cause true benefits to differ from all those set forth in or implied by this Press Release. Things that may cause these kinds of a big difference involve, but are not constrained to, the finalization of our money benefits as of and for the quarter finished February 28, 2021, which could differ from the estimates furnished herein the risk of better than anticipated functioning expenses which include electrical power and fuel charges reduce sales volumes reduction of buyers owing to outsourcing tendencies the overall performance and expenses of integration of acquisitions fluctuations in expenditures of products and labor such as greater health-related fees charges and feasible effects of union arranging functions failure to comply with authorities polices relating to employment discrimination, personnel pay out and advantages and worker overall health and safety the result on operations of trade price fluctuations, tariffs and other political, financial and regulatory risks uncertainties regarding any present or newly-discovered expenses and liabilities connected to environmental compliance and remediation the cost, results and ongoing assessment of interior controls for fiscal reporting demanded by the Sarbanes-Oxley Act of 2002 the outcome of new accounting pronouncements disruptions induced by the inaccessibility of computer system techniques knowledge, which includes cybersecurity risks the initiation or outcome of litigation, investigations or other proceedings increased assumed sourcing or distribution charges of items the disruption of functions from catastrophic or extraordinary gatherings which includes viral pandemics these types of as the COVID-19 coronavirus the amount of money and timing of repurchases of our prevalent inventory, if any adjustments in federal and point out tax and labor regulations and the reactions of competitors in conditions of price and support. Cintas undertakes no obligation to publicly launch any revisions to any forward-searching statements or to otherwise update any forward-on the lookout statements whether as a result of new info or to replicate events, circumstances or any other unanticipated developments arising following the day on which this sort of statements are designed. A even further record and description of risks, uncertainties and other matters can be uncovered in our Once-a-year Report on Form 10-K for the year ended May possibly 31, 2020 and in our stories on Forms 10-Q and 8-K. The threats and uncertainties described herein are not the only types we may perhaps face. Supplemental pitfalls and uncertainties presently not recognized to us, or that we now believe to be immaterial, may well also harm our organization.
See resource version on businesswire.com: https://www.businesswire.com/news/house/20210215005410/en/
J. Michael Hansen, Government Vice President and Chief Economical Officer – 513-972-2079
Paul F. Adler, Vice President – Treasurer & Investor Relations – 513-972-4195