Cintas Corporation Announces 26.7% Increase in Quarterly Dividend and New $1.5 Billion Stock Buyback Authorization
July 27 2021 - 3:05PM
Business Wire
Cintas Corporation (Nasdaq: CTAS) announced that the
Company’s Board of Directors approved a quarterly cash dividend of
$0.95 per share of common stock payable on September 15, 2021 to
shareholders of record at the close of business on August 13, 2021.
This represents a 26.7% increase over the Company's previous
quarterly dividend. Cintas has a strong record of returning capital
to its shareholders and has consistently raised its dividend each
year since Cintas’ initial public offering 38 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 $1.5 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.
Todd M. Schneider, Cintas’ President and Chief Executive
Officer, stated, “We achieved record revenue and earnings per share
in our fiscal 2021. Given our excellent financial results and
strong financial position, we are pleased to announce an increase
in the 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; 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, 2020 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210727005887/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
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