Cintas Corporation Announces 21.1% Increase in Quarterly Cash Dividend and New $1.0 Billion Stock Buyback Authorization

Rhea-AI Summary

Cintas Corporation (CTAS) has declared a quarterly cash dividend of $1.15 per share, marking a 21.1% increase, payable on September 15, 2022. The company has consistently raised dividends since its IPO in 1983. Additionally, Cintas announced a new share buyback program allowing for the purchase of up to $1.0 billion in stock, complementing the existing $0.5 billion remaining from a prior program. This brings the total potential buyback to $1.5 billion, reinforcing Cintas' commitment to enhancing shareholder value.

Positive

• Quarterly dividend increased by 21.1% to $1.15 per share.
• Total share buyback program now allows for $1.5 billion in stock purchases.
• Demonstrates strong financial position and commitment to shareholder value.

Negative

• None.

CINCINNATI--(BUSINESS WIRE)-- Cintas Corporation (Nasdaq: CTAS) announced that the Company’s Board of Directors approved a quarterly cash dividend of $1.15 per share of common stock payable on September 15, 2022 to shareholders of record at the close of business on August 15, 2022. This represents a 21.1% increase. Cintas has a strong record of returning capital to its shareholders and has consistently raised its dividend each year since Cintas’ initial public offering 39 years ago in 1983.

Cintas also announced that the Board of Directors approved an additional share buyback program under which the Company may buy up to $1.0 billion of Cintas common stock at market prices. This program is in addition to a current program with $0.5 billion of Cintas common stock remaining. Thus, in total, the Company may buy up to $1.5 billion of Cintas common stock at market prices. The number of shares to be purchased and the timing will be determined at the discretion of the Board of Directors, and purchases may be discontinued at any time.

Scott D. Farmer, Executive Chairman of the Cintas Board of Directors, stated, “We achieved record revenue and earnings per share in our fiscal 2022. Because of our excellent financial results and strong financial position, we are increasing our quarterly dividend. The dividend, accompanied by our share buyback program, continues to demonstrate our commitment to increasing shareholder value.”

Cintas

Cintas Corporation helps more than one million businesses of all types and sizes get Ready^™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe and looking their best. With offerings including uniforms, mats, mops, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety training, Cintas helps customers get Ready for the Workday^®. The Company is also the creator of the Total Clean Program^™ — a first-of-its-kind service that includes scheduled delivery of essential cleaning supplies, hygienically clean laundering, and sanitizing and disinfecting products and services. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “predicts,” “projects,” “plans,” “expects,” “intends,” “target,” “forecast,” “believes,” “seeks,” “could,” “should,” “may” and “will” or the negative versions thereof and similar words, terms and expressions and by the context in which they are used. Such statements are based upon current expectations of Cintas and speak only as of the date made. You should not place undue reliance on any forward-looking statement. We cannot guarantee that any forward-looking statement will be realized. These statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or implied by this Press Release. Factors that might cause such a difference include, but are not limited to, the possibility of greater than anticipated operating costs including energy and fuel costs; lower sales volumes; loss of customers due to outsourcing trends; the performance and costs of integration of acquisitions; fluctuations in costs of materials and labor including increased medical costs; interest rate volatility; costs and possible effects of union organizing activities; failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety; the effect on operations of exchange rate fluctuations, tariffs and other political, economic and regulatory risks; uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation; our ability to meet our goals relating to ESG opportunities, improvements and efficiencies; the cost, results and ongoing assessment of internal controls for financial reporting; the effect of new accounting pronouncements; disruptions caused by the inaccessibility of computer systems data, including cybersecurity risks; the initiation or outcome of litigation, investigations or other proceedings; higher assumed sourcing or distribution costs of products; the disruption of operations from catastrophic or extraordinary events including global health pandemics such as the COVID-19 coronavirus; the amount and timing of repurchases of our common stock, if any; changes in federal and state tax and labor laws; and the reactions of competitors in terms of price and service. Cintas undertakes no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2021 and in our reports on Forms 10-Q and 8-K. The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not known to us, or that we currently believe to be immaterial, may also harm our business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220726006056/en/

J. Michael Hansen, Executive Vice President and Chief Financial Officer - 513-972-2079

Paul F. Adler, Vice President - Treasurer & Investor Relations - 513-972-4195

Source: Cintas Corporation

FAQ

What is the new dividend amount announced by Cintas Corporation?

Cintas announced a quarterly cash dividend of $1.15 per share.

When will Cintas Corporation's new dividend be paid?

The new dividend will be payable on September 15, 2022.

How much can Cintas Corporation buy back in shares?

Cintas has approved a share buyback program allowing for the purchase of up to $1.0 billion in stock.

What is the total amount for Cintas Corporation's buyback program?

Cintas can now buy up to a total of $1.5 billion in common stock.

How many years has Cintas Corporation increased its dividend?

Cintas has consistently raised its dividend each year since its IPO in 1983.