Stock Monitor: SYNNEX Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 12, 2018 / Active-Investors.com has just released a free earnings report on Cintas Corp. (NASDAQ: CTAS). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CTAS. The Company reported its second quarter fiscal 2018 operating results on December 21, 2017. The uniform rental Company outperformed top- and bottom-line expectations, and raised its revenue and earnings guidance for the fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for SYNNEX Corporation (NYSE: SNX), which also belongs to the Services sector as the Company Cintas. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=SNX

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Cintas most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=CTAS

Earnings Highlights and Summary

For the quarter ended November 30, 2017, Cintas' revenue surged 26.4% to $1.61 billion compared to $1.27 billion in Q2 FY17. The Company's organic revenue growth rate, adjusting for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 7.7%. Cintas' revenue numbers topped analysts' estimates of $1.59 billion.

During Q2 FY18, Cintas' operating income increased 17.3% to $235.21 million from $200.46 million in Q2 FY17. The Company's operating income was negatively impacted by transaction and integration expenses related to the G&K Services, Inc. ("G&K") acquisition of $13 million in the reported quarter and of $3 million in the year ago same period.

Cintas' operating income margin, excluding the G&K transaction and integration expenses, was 15.5% in Q2 FY18 versus 16% in Q2 FY17. The Company's operating margin was negatively impacted by 75 basis points due to the intangible asset amortization expenses resulting from the purchase price accounting of the G&K acquisition. Additionally, Cintas' operating margin was negatively impacted by 25 basis points due to depreciation and implementation costs of the Company's enterprise resource planning (ERP) system.

Cintas' net income from continuing operations was $137.74 million for Q2 FY18, up 12.9% from $121.95 million in Q2 FY17. The Company's diluted earnings per share (EPS) from continuing operations were $1.24 for the reported quarter versus $1.12 for the year ago comparable period. Cintas' EPS for Q2 FY18 and Q2 FY17 included a negative impact of $0.07 and $0.02, respectively, from transaction and integration expenses related to the G&K acquisition. The Company's adjusted earnings were $1.31 per share for the reported quarter, exceeding Wall Street's estimates of $1.26 per share.

Segment Results

During Q2 FY18, Cintas' Uniform Rental and Facility Services segment's revenue surged 30.8% to $1.31 billion compared to $1.00 billion in Q2 FY17. Excluding the impact of acquisitions and foreign currency exchange rate changes, the segment's organic growth rate was 7.3%. The segment's gross margin was 44.7% for the reported quarter, representing a decrease of 20 basis points from 44.9% in the year earlier corresponding quarter.

For Q2 FY18, Cintas' First Aid and Safety Services segment's revenue was $139 million, which was 11.5% higher compared to the year ago same period. On an organic basis, the growth rate for this segment was 10.8%. The segment's gross margin was 46.9% in the reported quarter compared to 46.1% in Q2 FY17, reflecting an increase of 80 basis points.

Financial Position

As of November 30, 2017, Cintas' cash and cash equivalents balance was $236 million, while marketable securities balance was $22 million. Cintas' cash flow from operating activities was $379 million and free cash flow was $246 million in H1 FY18.

For H1 FY18, Cintas' capital expenditure was $132 million. The Company is forecasting capital expenditure to be in the band of $280 million to $300 million for the fiscal year 2018. As of November 30, 2017, Cintas' total debt was $2.83 billion, consisting of $300 million in short-term debt and $2.53 billion in long-term debt. At November 30, 2017, the Company's leverage was 2.5x debt-to-EBITDA.

Outlook

For the fiscal year 2018, Cintas raised its revenue guidance from a range of $6.325 billion - $6.400 billion to a band of $6.365 billion - $6.430 billion, and EPS from continuing operations from a range of $5.30 - $5.38 to a band of $5.39 - $5.46.

Stock Performance Snapshot

January 11, 2018 - At Thursday's closing bell, Cintas's stock climbed 1.07%, ending the trading session at $162.05.

Volume traded for the day: 529.89 thousand shares.

Stock performance in the last month ? up 2.35%; previous three-month period ? up 7.55%; past twelve-month period ? up 40.52%; and year-to-date ? up 3.99%

After yesterday's close, Cintas's market cap was at $17.18 billion.

Price to Earnings (P/E) ratio was at 36.25.

The stock has a dividend yield of 1.00%.

The stock is part of the Services sector, categorized under the Business Services industry. This sector was up 1.4% at the end of the session.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors