2024 Q3 Form 10-Q Financial Statement

#000072325424000053 Filed on October 04, 2024

View on sec.gov

Income Statement

Concept 2024 Q3
Revenue $2.502B
YoY Change 6.8%
Cost Of Revenue $1.249B
YoY Change 4.05%
Gross Profit $1.252B
YoY Change 9.68%
Gross Profit Margin 50.05%
Selling, General & Admin $691.1M
YoY Change 7.81%
% of Gross Profit 55.19%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $73.84M
YoY Change 9.21%
% of Gross Profit 5.9%
Operating Expenses $691.1M
YoY Change 7.81%
Operating Profit $561.0M
YoY Change 12.08%
Interest Expense -$24.37M
YoY Change -199.29%
% of Operating Profit -4.34%
Other Income/Expense, Net
YoY Change
Pretax Income $536.7M
YoY Change 12.64%
Income Tax $84.63M
% Of Pretax Income 15.77%
Net Earnings $452.0M
YoY Change 17.39%
Net Earnings / Revenue 18.07%
Basic Earnings Per Share $1.12
Diluted Earnings Per Share $1.10
COMMON SHARES
Basic Shares Outstanding 403.4M shares
Diluted Shares Outstanding 410.5M shares

Balance Sheet

Concept 2024 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $101.4M
YoY Change 15.07%
Cash & Equivalents $101.4M
Short-Term Investments
Other Short-Term Assets $1.249B
YoY Change 3.78%
Inventory $399.1M
Prepaid Expenses
Receivables $1.294B
Other Receivables $0.00
Total Short-Term Assets $3.043B
YoY Change 1.87%
LONG-TERM ASSETS
Property, Plant & Equipment $1.555B
YoY Change 8.02%
Goodwill $3.224B
YoY Change 3.82%
Intangibles
YoY Change
Long-Term Investments $325.7M
YoY Change 22.01%
Other Assets $419.3M
YoY Change 5.08%
Total Long-Term Assets $6.025B
YoY Change 5.11%
TOTAL ASSETS
Total Short-Term Assets $3.043B
Total Long-Term Assets $6.025B
Total Assets $9.069B
YoY Change 4.0%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $395.9M
YoY Change 25.8%
Accrued Expenses $717.1M
YoY Change 21.05%
Deferred Revenue
YoY Change
Short-Term Debt $0.00
YoY Change
Long-Term Debt Due $615.7M
YoY Change
Total Short-Term Liabilities $1.985B
YoY Change 69.82%
LONG-TERM LIABILITIES
Long-Term Debt $2.026B
YoY Change -18.19%
Other Long-Term Liabilities $561.5M
YoY Change 13.16%
Total Long-Term Liabilities $3.062B
YoY Change -11.83%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.985B
Total Long-Term Liabilities $3.062B
Total Liabilities $5.047B
YoY Change 8.73%
SHAREHOLDERS EQUITY
Retained Earnings $10.91B
YoY Change 10.85%
Common Stock $2.416B
YoY Change 13.87%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.021B
YoY Change
Total Liabilities & Shareholders Equity $9.069B
YoY Change 4.0%

Cashflow Statement

Concept 2024 Q3
OPERATING ACTIVITIES
Net Income $452.0M
YoY Change 17.39%
Depreciation, Depletion And Amortization $73.84M
YoY Change 9.21%
Cash From Operating Activities $466.7M
YoY Change 38.52%
INVESTING ACTIVITIES
Capital Expenditures $92.92M
YoY Change -12.91%
Acquisitions $9.436M
YoY Change -83.04%
Other Investing Activities $4.851M
YoY Change 403.74%
Cash From Investing Activities -$114.3M
YoY Change -32.68%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $614.8M
YoY Change 739.02%
Debt Paid & Issued, Net $0.00
YoY Change -100.0%
Cash From Financing Activities -$592.8M
YoY Change 192.92%
NET CHANGE
Cash From Operating Activities $466.7M
Cash From Investing Activities -$114.3M
Cash From Financing Activities -$592.8M
Net Change In Cash -$240.6M
YoY Change 568.02%
FREE CASH FLOW
Cash From Operating Activities $466.7M
Capital Expenditures $92.92M
Free Cash Flow $373.8M
YoY Change 62.35%

Facts In Submission

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Litigation and Other Contingencies<div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Cintas is subject to legal proceedings, insurance receipts, legal settlements and claims arising from the ordinary course of its business, including personal injury, customer contract, environmental and employment claims. In the opinion of management, the aggregate liability, if any, with respect to such ordinary course of business actions will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows of Cintas. Cintas is party to additional litigation not considered in the ordinary course of business, including the litigation discussed below. </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company is a defendant in a purported class action lawsuit, </span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">City of Laurel, Mississippi v. Cintas Corporation No. 2</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, filed on March 12, 2021. This is a contract dispute whereby plaintiffs allege that Cintas breached its contracts with participating public agencies and seek, among other things, contract-based damages. In March 2024, an agreement in principle was reached with the plaintiff which would require a one-time monetary payment related to the contract dispute of $45.0 million, which was accrued for and included in accrued liabilities on the consolidated condensed balance sheet at August 31, 2024. The amount reserved for this matter did not have a material impact on the consolidated condensed statements of income for any period presented. The Company will also make certain future investments such as people and technology. These future investments are not expected to be material to the Company. The tentative settlement remains subject to confirmatory discovery and approval of the U.S. District Court for the District of Nevada, however, we do not anticipate any material changes in the amounts reflected in the consolidated condensed financial statements.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company, the Board of Directors, Scott Farmer (Executive Chairman) and the Investment Policy Committee are defendants in a purported class action, filed on December 13, 2019, pending in the U.S. District Court for the Southern District of Ohio alleging violations of The Employee Retirement Income Security Act of 1974 (ERISA). The lawsuit asserts that the defendants improperly managed the costs of the employee retirement plan, breached their fiduciary duties in failing to investigate and select lower cost alternative funds and failed to monitor and control the employee retirement plan’s recordkeeping costs. In November 2023, an agreement in principle was reached with the plaintiffs, which would require a payment of an immaterial amount that would be covered by the Company's insurance. The settlement received final approval by the U.S. District Court for the Southern District of Ohio in August 2024.</span></div>
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