Q4 2024 Cintas Corp Earnings Call Transcript
Key Points
- Cintas Corp (CTAS) achieved record fourth-quarter revenue of $2.47 billion, marking an 8.2% increase year-over-year.
- Fourth-quarter gross margin increased by 11.6% to $1.22 billion, with gross margin as a percentage of revenue rising to 49.2%.
- Operating income for the fourth quarter grew by 16.3% to $547.6 million, with an operating margin increase of 160 basis points to 22.2%.
- Fiscal year revenue reached a record $9.6 billion, an 8.9% increase, with organic growth at 8%.
- Cash flow from operating activities exceeded $2 billion for the first time, providing greater flexibility for capital allocation.
- Fiscal '25 will have two fewer workdays compared to fiscal '24, impacting revenue growth rates by approximately 160 basis points in the first and fourth quarters.
- The Fire Protection Services segment will face margin pressure due to the ongoing SAP implementation.
- Uniform Direct Sales experienced a 4.4% decrease in organic revenue growth.
- Net interest expense is expected to increase to approximately $106 million in fiscal '25, up from $95 million in fiscal '24.
- The competitive environment remains highly challenging, with increased competition noted by industry peers.
Good day, everyone, and welcome to the Cintas Corporation announces fiscal 2024 fourth-quarter and full-year results. Today's call is being recorded.
At this time, I would like to turn the meeting over to Mr. Jared Mattingley, Vice President and Treasurer, Investor Relations. Please go ahead, sir.
Thank you, Ross. Thank you for joining us.
With me as Todd Schneider, President and Chief Executive Officer; and Mike Hansen, Executive Vice President and Chief Financial Officer, who will discuss our fiscal '24 fourth quarter and full-year result. After our commentary, we will open the call to questions from analysts.
Private Securities Litigation Reform Act of 1995 provides a Safe Harbor from civil litigation for forward-looking statements. This conference call contains forward-looking statements that reflect the company's current views as to future events and financial performance. These forward-looking statements are subject to risks and uncertainties
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