November 14, 2001 — CINCINNATI, OH — Cintas Corporation officials say they expect earnings for Q2 and the fiscal year may be lower than previously anticipated.
“Our financial results through October, 2001, cause us to believe that our second quarter and fiscal 2002 results may be slightly below analysts’ expectations,” said Robert J. Kohlhepp, CEO of Cintas. “While we anticipate the revenue from the rental of uniforms and other products will be up a respectable 10 percent, we have experienced an unusual decline in our uniform sales division, which sells highly-customized uniforms to the hospitality, restaurant, gaming, airline and transportation industries. Most of our customers in these business segments are experiencing much lower than normal business since the September 11 attacks. This has caused them to delay their purchase of uniforms. We do not foresee this pattern changing in the short-term.”
Cintas’ other services revenue, which includes primarily the sale of uniforms, is expected to decline approximately 13 percent from the second quarter last fiscal year. Total revenue is expected to approximate $555 to $560 million, up 3 to 4 percent versus the same period a year ago. Because of the disappointing revenue from the sale of uniforms, Cintas profits will also be affected in the quarter. Diluted earnings per share are expected to be in a range of $.33 to $.34 per share compared to $.33 per share last year.
For the fiscal year ending May 31, 2002, the company anticipates revenue in a range of $2.32 to $2.36 billion. This represents an increase over the previous fiscal year of 7 to 9 percent. Earnings per share is expected to be in a range of $1.39 to $1.43, representing an increase of 7 to 10 percent over the previous fiscal year.
Cintas provided uniforms to a wide variety of industries nationwide and provides a range of outsourcing services including entrance mats, sanitation supplies, cleanroom services and first aid and safety products and services.