Cintas Corporation (CTAS) has reported a 0.57 percent rise in profit for the quarter ended Feb. 28, 2017. The company has earned $118 million, or $1.07 a share in the quarter, compared with $117.34 million, or $1.05 a share for the same period last year.
Revenue during the quarter grew 5.35 percent to $1,281.14 million from $1,216.08 million in the previous year period. Gross margin for the quarter expanded 107 basis points over the previous year period to 44.21 percent. Total expenses were 84.80 percent of quarterly revenues, up from 84.13 percent for the same period last year. That has resulted in a contraction of 67 basis points in operating margin to 15.20 percent.
Operating income for the quarter was $194.70 million, compared with $192.95 million in the previous year period.
Third quarter gross margin improved to 44.2% from 43.1% last year. Scott D. Farmer, Cintas' chairman and chief executive officer, stated, "This is our 14th consecutive quarter of year-over-year gross margin improvement. This and our industry-leading revenue growth are indicative of a healthy company with significant opportunities ahead. I thank our employees, whom we call partners, for the continuous commitment to improvement that leads to best-in-class execution and results." Third quarter gross margin for the Uniform Rental and Facility Services segment improved to 45.0%, an increase of 100 basis points compared to last year's third quarter. The First Aid and Safety Services segment third quarter gross margin improved to 44.8%, an increase of 260 basis points compared to last year's third quarter primarily due to the realization of synergies from the acquisition of ZEE Medical in fiscal 2016.
Operating cash flow improves significantly
Cintas Corporation has generated cash of $483.76 million from operating activities during the nine month period, up 62.80 percent or $186.60 million, when compared with the last year period.
The company has spent $165.48 million cash to meet investing activities during the nine month period as against cash inflow of $201.78 million in the last year period
The company has spent $307.63 million cash to carry out financing activities during the nine month period as against cash outgo of $594.32 million in the last year period.
Cash and cash equivalents stood at $147.24 million as on Feb. 28, 2017, down 53.27 percent or $167.87 million from $315.12 million on Feb. 29, 2016.
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