Press release
Cintas Corporation Provides Update on COVID-19 Impact on Its Business
CINCINNATI--(BUSINESS WIRE)-- Cintas Corporation (Nasdaq: CTAS) today provided an update on the COVID-19 pandemic's impact on its business. Scott D. Farmer,
About this update from Cintas Corporation
[{"type":"text","content":" CINCINNATI--(BUSINESS WIRE)--\nCintas Corporation (Nasdaq: CTAS) today provided an update on the COVID-19 pandemic's impact on its business.\n\nScott D. Farmer, Cintas Chairman and Chief Executive Officer stated, “At the time of our fiscal second quarter earnings conference call in late December, much uncertainty existed. COVID-19 cases were surging. Economic indicators reflected an economic recovery that slowed considerably. Many states and provinces reinstituted temporary economic restrictions in response to rising COVID-19 cases. Vaccines were just beginning to be distributed. All of these items contributed to a lack of clarity regarding their effects on our business in our fiscal third quarter. As a result, we did not provide financial guidance.”\n\nMr. Farmer continued, “After peaking in early January, COVID-19 cases have steadily decreased, and the impacts on our business in our fiscal third quarter, while still significant, are clearer. Therefore, we want to provide a financial update ahead of our third quarter earnings announcement. We expect our third quarter revenue to be in the range of $1.75 billion to $1.76 billion and diluted earnings per share to be in the range of $2.15 to $2.25. Please note that this year's third quarter contains one less workday than last year's third quarter, we expect our third quarter effective tax rate to be in the range of 13% to 15%, and the financial guidance excludes any impact from potentially significant winter storms.”\n\nMr. Farmer concluded, “Cintas continues to provide necessary products and services to our customers to ensure they are READY™ to open their doors with confidence every day. We are proudly providing our customers with clean garments, healthcare scrubs, microfiber towels and mops, disinfectant and sanitizer spray services, restroom supplies, hand sanitizer dispenser services, personal protective equipment including face masks and gloves, and numerous other products and services to help businesses keep their facilities, employees and customers clean and safe.”\n\nCintas’ consolidated balance sheet remains solid, and it currently has significant availability under its credit facility. Cintas is a strong cash flow business and has a track-record of efficient capital allocation. Quarter to date, Cintas has purchased $82.0 million of Cintas stock under its buyback program...