Cintas Corporation Announces Fiscal 2011 First Quarter Results

Cintas Corporation CTAS today reported its results for the first quarter of its fiscal year 2011. Revenue for the quarter, which ended August 31, 2010, was $924 million, representing a 3.6% increase compared to last year's first quarter. When adjusting for the impact of acquisitions, the organic revenue growth was 2.8%. Net income and earnings per diluted share for the quarter were $61 million and $0.40, respectively. Last year's net income and earnings per diluted share were $54 million and $0.35, respectively. Last year's first quarter results included a legal settlement, net of insurance proceeds, which reduced net income and earnings per diluted share by $12 million and $0.08, respectively. First quarter earnings per diluted share were positively impacted by $0.03 due to the resolution of several tax audits which we anticipated would be resolved later in the fiscal year. The resolution of these tax audits during the first quarter resulted in an effective tax rate of 30.8%. We expect tax rates to be higher in subsequent quarters resulting in an annual rate of approximately 37.3%.