Cintas : Reports Third Quarter Fiscal 2022 Revenue and Earnings

Exhibit 99

FOR IMMEDIATE RELEASE

March 23, 2022

Cintas Corporation Announces Fiscal 2022 Third Quarter Results

CINCINNATI, March 23, 2022 -- Cintas Corporation (Nasdaq: CTAS) today reported results for its fiscal 2022 third quarter ended February 28, 2022. Revenue for the third quarter of fiscal 2022 was $1.96 billion compared to $1.78 billion in last year's third quarter, an increase of 10.3%. The organic revenue growth rate for the third quarter of fiscal 2022, which adjusts for the impacts of acquisitions, divestitures and foreign currency exchange rate fluctuations, was 10.0%.

Gross margin for the third quarter of fiscal 2022 was $898.2 million compared to $809.5 million in last year's third quarter. Gross margin as a percentage of revenue was 45.8% for the third quarter of fiscal 2022 compared to 45.6% in last year's third quarter. Energy expenses comprised of gasoline, natural gas and electricity were 45 basis points higher during the third quarter of fiscal 2022 compared to last year's third quarter.

Operating income for the third quarter of fiscal 2022 was $407.6 million compared to $326.5 million in last year's third quarter. Operating income as a percentage of revenue was 20.8% in the third quarter of fiscal 2022 compared to 18.4% in last year's third quarter. Fiscal 2022 third quarter operating income included a $30.2 million gain on an equity method investment transaction. The gain was recorded in selling and administrative expenses. Excluding this gain, fiscal 2022 third quarter operating income as a percentage of revenue was 19.3%, an increase of 90 basis points from last year's third quarter.

Net income was $315.4 million for the third quarter of fiscal 2022 compared to $258.4 million in last year's third quarter. Third quarter of fiscal 2022 diluted earnings per share (EPS) was $2.97 compared to $2.37 in last year's third quarter. Fiscal 2022 third quarter diluted EPS contained $0.28 from the gain on an equity method investment transaction, which included a related $0.07 tax rate benefit. Excluding this gain and the related tax impact, fiscal 2022 third quarter diluted EPS was $2.69 compared to $2.37 in last year's third quarter, a 13.5% increase from last year's diluted EPS.

Fiscal 2022 third quarter net cash provided by operating activities was $393.3 million compared to $331.9 million in last year's third quarter, an increase of 18.5%. During the third quarter of fiscal 2022 and through March 22, 2022, Cintas purchased $584.2 million of Cintas common stock under its buyback program. On March 15, 2022, Cintas paid shareholders an aggregate of $99.0 million in quarterly dividends.

Todd M. Schneider, Cintas' President and Chief Executive Officer, stated, "We are pleased with our third quarter financial results, led by a revenue increase of 10.3%. Excluding the gain previously mentioned, operating income and diluted EPS increased significantly despite inflation. Our financial results are indicative of our strong value proposition. Businesses prioritize image, cleanliness, safety and compliance and, challenged with labor scarcity and rising costs, increasingly count on Cintas to help get them Ready for the Workday®."

Mr. Schneider concluded, "We are increasing our financial guidance. We expect our fiscal 2022 fourth quarter revenue to be in the range of $1.96 billion to $2.02 billion and diluted EPS to be in the range of $2.54 to $2.74. Our fourth quarter fiscal 2022 effective tax rate is expected to be approximately 23.2% compared to a rate of 19.4% for last year's fourth quarter. The expected higher effective tax rate is anticipated to negatively impact fiscal 2022 fourth quarter diluted EPS guidance by approximately $0.14 and diluted EPS growth by approximately 560 basis points. Our financial guidance includes share buybacks through March 22, 2022 but does not include the impact of any future share buybacks."

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.

Cintas will host a live webcast to review the fiscal 2022 third quarter results today at 10:00 a.m., Eastern Time. The webcast will be available to the public on Cintas' website atwww.Cintas.com. A replay of the webcast will be available approximately two hours after the completion of the live call and will remain available for two weeks.

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; 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; 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 viral 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.

For additional information, contact:

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

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

Cintas Corporation

Consolidated Condensed Balance Sheets

(In thousands except per share data)

February 28, 2022

May 31, 2021

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents Accounts receivable, net Inventories, net

$

84,136

$ 493,640

1,004,632 901,710

486,750 481,797

881,734 810,104

Uniforms and other rental items in service Income taxes, current

66,047 22,282

Prepaid expenses and other current assets

163,442 133,776

• Total current assets 2,686,741 2,843,309

• Property and equipment, net 1,312,176 1,318,438

Investments Goodwill

Service contracts, net

259,930 3,032,738

274,616 2,913,069

402,366 408,445

167,995 168,532

Operating lease right-of-use assets, net Other assets, net

306,654 310,414

$

8,168,600

$

8,236,823

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

235,051 $ 230,786

Accrued compensation and related liabilities Accrued liabilities

212,481 241,469

622,797 518,910

Operating lease liabilities, current Debt due within one year

44,105 43,850

1,509,056 899,070

• Total current liabilities 2,623,490 1,934,085

  Long-term liabilities:

• Debt due after one year 1,343,513 1,642,833

131,224 130,774

Deferred income taxes Operating lease liabilities Accrued liabilities

430,695 386,647

345,778 454,637

Total long-term liabilities

2,251,210

2,614,891

Shareholders' equity:

Preferred stock, no par value: 100,000 shares authorized, none outstanding

-

-

• Common stock, no par value, and paid-in capital: 1,729,525 1,516,202 425,000,000 shares authorized

  FY 2022: 190,693,424 issued and 102,415,971 outstanding FY 2021: 189,071,185 issued and 104,061,391 outstanding

• Retained earnings 8,522,327 7,877,015

Treasury stock:

(6,970,099)

(5,736,258)

FY 2022: 88,277,453 shares FY 2021: 85,009,794 shares

Accumulated other comprehensive income

12,147

30,888

Total shareholders' equity

3,293,900 3,687,847

$

8,168,600

$ 8,236,823

Cintas Corporation

Consolidated Condensed Statements of Cash Flows

(Unaudited)

(In thousands)

Nine Months Ended

February 28, 2022

February 28, 2021

Cash flows from operating activities: Net income

$

941,296 $ 843,246

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

184,464 182,132

Amortization of intangible assets and capitalized contract costs Stock-based compensation

112,859 107,689

83,687 83,421

Gain on equity method investment transaction Gain on sale of operating assets

(30,151)

-

(12,129) (21,861)

Deferred income taxes

42,652 (36,259)

Change in current assets and liabilities, net of acquisitions of businesses:

Accounts receivable, net

(99,223) (63,178)

Inventories, net

2,311 (123,678)

Uniforms and other rental items in service

(77,584) (6,269)

(77,450) (76,971)

Prepaid expenses and other current assets and capitalized contract costs Accounts payable

6,168 5,113

(28,400) 97,474

Accrued compensation and related liabilities Accrued liabilities and other

(17,717) (1,357)

Income taxes, current

(43,728) (84,687)

Net cash provided by operating activities

987,055

904,815

Cash flows from investing activities:

Capital expenditures (165,851) (100,410)Purchases of investments

Proceeds from sale of operating assets, net of cash disposed Acquisitions of businesses, net of cash acquired

(6,024) (7,873)

15,347

32,490

(150,844) (7,570)

Other, net

(8,939) (5,301)

Net cash used in investing activities

(316,311) (88,664)

Cash flows from financing activities: Issuance of commercial paper, net Repayment of debt

Proceeds from exercise of stock-based compensation awards Dividends paid

559,210 (250,000) 117,636

- - 120,049

(276,922) (371,818)

(1,221,841) (154,490)

Repurchase of common stock Other, net

(6,657) (3,836)

Net cash used in financing activities

(1,078,574) (410,095)

Effect of exchange rate changes on cash and cash equivalents

(1,674) 2,153

Net (decrease) increase in cash and cash equivalents

(409,504) 408,209

Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

493,640 145,402

$

84,136

$ 553,611

Cintas Corporation

Consolidated Condensed Statements of Income

(Unaudited)

(In thousands except per share data)

Three Months EndedRevenue:

Uniform rental and facility services Other

Total revenue

Costs and expenses:

Cost of uniform rental and facility services 834,082

Cost of other 228,306

Selling and administrative expenses 490,549

Operating income 407,605

Interest income (56)

Interest expense 22,030

Income before income taxes 385,631

Income taxes 70,183

Net income

Basic earnings per share

Diluted earnings per share

Diluted weighted average common shares outstanding 105,641

Basic weighted average common shares outstanding 103,388

$

February 28,	February 28,	%
2022	2021	Change
1,417,865	9.6%
359,191	13.4%
1,777,056	10.3%
761,850	9.5%
205,690	11.0%
483,048	1.6%
326,468	24.9%
(87)	(35.6)%
24,552	(10.3)%
302,003	27.7%
43,619	60.9%
258,384	22.1%
2.44	24.6%
2.37	25.3%
105,264
107,996

1,553,320 407,222 1,960,542

$ $ $

315,448

3.04 2.97

$

$ $ $