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Cintas Reports Full-Year, Q-4 Results

Top 40 distributor Cintas (asi/162167) has reported that total revenue for its fiscal year 2017 increased 11% year-over-year to $5.32 billion. The Cincinnati-based company, a leading uniform provider, also increased sales in the fourth quarter, with revenue rising 23.1% to $1.53 billion. The quarter and fiscal year ended May 31.

Cintas Reports Full-Year, Q-4 Results

“Our strong finish to the fiscal year helped us to achieve a seventh consecutive year of organic growth in the mid to high single digits,” said Scott D. Farmer, Cintas’ chairman and CEO. “We continue to grow revenue in multiples of gross domestic product and employment growth.”

For the full fiscal year, Cintas’ organic growth rate, which adjusts for the impacts of acquisitions, foreign currency exchange rate fluctuations and more, was 6.7%.

Meanwhile, operating income for 2017 reached $773.7 million, up 0.6% from last year. Just over $79 million in transaction and integration expenses related to the acquisition of uniform rental company G&K Services negatively impacted full-year operating income, Cintas said.

Year-over-year, both net income and earnings per share increased. Net income was $457.3, up from $448.6 million, while EPS tallied $4.17, up from $4.02.

Despite the full-year gains and Q4 revenue rise, Cintas’ earnings report wasn’t all forward momentum. The company stated that operating income for the fourth quarter of $177.3 million represented an 11.2% decrease from last year’s fourth quarter operating income of $199.8 million. Cintas explained that Q4 operating income was negatively impacted by $63.7 million in transaction and integration expenses related to the G&K acquisition.

Meanwhile, fourth quarter net income and EPS from continuing operations came in at $82.2 million and $0.75. That compared to $115.7 million and $1.06, respectively, in Q4 2016.

With estimated 2016 North American promotional product revenue of $163.3 million, Cintas ranked 11th on Counselor’s 2017 list of the Top 40 largest distributors in the promotional products industry.