Upcoming AWS Coverage on Priceline Group

LONDON, UK / ACCESSWIRE / January 4, 2017 / Active Wall St. announces its post-earnings coverage on Cintas Corp. (NASDAQ: CTAS). The Company released its second quarter fiscal 2017 financial results on December 22, 2016. The uniform and office maintenance supply Company's sales and earnings grew on a y-o-y basis. The Company also raised its FY17 revenue guidance. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Cintas' competitors within the Business Services space, The Priceline Group Inc. (NASDAQ: PCLN), is estimated to report earnings on February15, 2017. AWS will be initiating a research report on Priceline Group in the coming days.

Today, AWS is promoting its earnings coverage on CTAS; touching on PCLN. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=CTAS

http://www.activewallst.com/registration-3/?symbol=PCLN

Earnings Reviewed

For the three months ended November 30, 2016, Cintas reported revenue of $1.30 billion, an increase of 6.4% over Q2 FY16. The organic growth rate, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 5.7%. Organic growth for company's Uniform Rental and Facility Services segment accelerated to a rate of 6.5%. The Company's revenue numbers topped market expectations of revenue of $1.29 billion.

During Q2 FY17, Cintas' gross margin improved to 44.1% from 43.3% in Q2 FY16. Gross margin of the Uniform Rental and Facility Services segment improved to 44.7%, an increase of 80 basis points compared to the year earlier same quarter.

Scott D. Farmer, Cintas' Chairman and Chief Executive Officer, stated:

"This is our 13th consecutive quarter of year-over-year gross margin improvement."

Cintas' operating income for Q2 FY17 totaled $203 million, an increase of 1.3% from Q2 FY16. Operating income margin was 15.6% in the reported quarter compared to 16.4% in the year earlier corresponding quarter. The Company's Q2 FY17 operating income included $3.3 million (0.3% of second quarter revenue) of transaction expenses related to the previously announced agreement to acquire G&K Services, Inc.

Cintas' net income from continuing operations for Q2 FY17 was $123 million compared to $115 million in Q2 FY16. The Company's earnings per diluted share from continuing operations for the reported quarter were $1.13 which included a negative $0.02 impact from G&K transaction expenses compared to $1.03 in last year's second quarter. Q2 FY17 net income and EPS from continuing operations increased 6.9% and 9.7%, respectively, compared to Q2 FY16.

Cintas' Q2 FY17 net income was $140.4 million, or $1.29 per share, compared to $345.1 million, or $3.06 per share, a year earlier. Earnings, adjusted to account for discontinued operations, were $1.15 per share. The Company's results came in below Wall Street's expectations of adjusted earnings of $1.16 per share.

Balance Sheet

As of November 30, 2016, Cintas' short-term debt was comprised of commercial paper in the amount of $66 million. On December 02, 2016, the Company paid an annual dividend of $1.33 per share, an increase of 26.7% over last year's annual dividend. Cintas has increased this dividend for 33 consecutive years since it went public in 1983.

During Q3 FY16, Cintas entered into an interest rate lock agreement with a notional value of $550 million for a forecasted debt issuance. In anticipation of debt issuance for the closing of the G&K acquisition, and to protect Cintas from rising interest rates, the Company recently entered into interest rate lock agreements with a notional value of $950 million.

Cintas cash balance as of November 30 was $143 million, with no marketable securities as of quarter end. Cash flow from operating activities as of November 30, 2016, increased 14% on an YTD basis from the prior year's comparable period. Capital expenditures for Q2 FY17 were approximately $76 million. The Company expects CapEx for FY17 to be in the range of $290 million to $310 million.

Outlook

For FY17, Cintas expects FY17 revenue to be in the range of $5.180 billion to $5.225 billion compared to its previous outlook of $5.16 billion to $5.225 billion. The Company is projecting FY17 EPS from continuing operations to be in the range of $4.57 to $4.65. This guidance does not include any future financial impact from our acquisition of G&K, including transaction expenses.

Stock Performance

At the close of trading session on January 03rd, 2017, Cintas' share price finished at $116.32, slightly advancing 0.66%. A total volume of 859.08 thousand shares exchanged hands, which was higher than the 3 months average volume of 683.29 thousand shares. The stock has advanced 18.41% and 33.45% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have gained 0.66%. The stock is trading at a PE ratio of 25.22 and has a dividend yield of 0.90%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS 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.

AWS 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@activewallst.com. Rohit Tuli, a CFA® charterholder (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 AWS. AWS 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

AWS, 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. AWS, 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, AWS, 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 AWS 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://www.activewallst.com/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@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

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

SOURCE: Active Wall Street