OREANDA-NEWS. Cintas Corporation (Nasdaq: CTAS) today reported results for its third quarter of fiscal year 2016 ended February 29, 2016.

Revenue for the third quarter of fiscal year 2016 was $1.216 billion, an increase of 9.7% over the prior year period. Organic growth, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 6.8%.

Operating income for the third quarter of fiscal year 2016 of $193.0 million increased 11.1% from the prior year period. Operating income margin improved to 15.9% from 15.7% of revenue in last year’s third quarter.

Net income from continuing operations for the third quarter of fiscal year 2016 was $117.3 million compared to $100.3 million in the prior year period, and earnings per diluted share (EPS) from continuing operations for the third quarter of fiscal year 2016 were $1.05 compared to $0.85 for the prior year period. Third quarter of fiscal 2016 net income and EPS from continuing operations increased 16.9% and 23.5%, respectively, compared to the prior year period. Net income from continuing operations as a percent of revenue improved to 9.6% from 9.0% in last fiscal year’s third quarter. 

Since the beginning of fiscal year 2016, Cintas repurchased about 5.7 million shares under its buyback program at an aggregate cost of $482.9 million, including $100.0 million of repurchases in the third quarter. At the end of the third quarter, Cintas still has $280.0 million available under the current Board of Directors stock repurchase authorization.

Scott D. Farmer, Cintas’ Chief Executive Officer, stated, “We recently initiated our first national branding campaign and introduced our new tagline, Ready for the WorkdayTM. This new tagline speaks to the value we provide our customers in helping them prepare for their workdays, and we’re excited about the energy surrounding this campaign.  Our third quarter results are a reflection of the success we’ve had in getting our customers Ready for the WorkdayTM.”  Fiscal 2016 third quarter organic growth was 6.1% for the Uniform Rental and Facility Services reportable operating segment and 11.9% for the First Aid and Safety Services segment.  Mr. Farmer added, “We continue to reach new businesses and add value to existing customers by addressing their specific needs with our innovative products and services.  Our organic growth rates remain strong and well in excess of gross domestic product and employment growth.  Our employees, whom we call partners, have done an outstanding job of being READYTM for our customers.”

As a result of our third quarter results, we are updating our annual guidance. We expect fiscal 2016 revenue to be in the range of $4.860 billion to $4.890 billion and fiscal 2016 EPS from continuing operations to be in the range of $3.98 to $4.03. This guidance does not include any potential deterioration in the U.S. economy or share buybacks.