Cintas (CTAS) 8-K Cintas Corporation Announces Fiscal 2010 Third Quarter Results

Exhibit 99

FOR IMMEDIATE RELEASE

March 18, 2010

Cintas Corporation Announces Fiscal 2010 Third Quarter Results

CINCINNATI, March 18, 2010 -- Cintas Corporation (Nasdaq:CTAS) today reported results for the third quarter of its fiscal year 2010, which ended on February 28, 2010.  Revenues for the third quarter were $861.8 million and earnings per share were $0.32.  Both third quarter revenues and earnings per share slightly exceeded the top end of the Company’s previously released guidance issued on February 16, 2010.  The third quarter of fiscal year 2010 had one fewer workday than both last year’s fiscal third quarter and the second quarter of this fiscal year.  When adjusting for the one fewer workday in this year’s third quarter, revenues were 3.7% less than last year’s third quarter, an improvement from the 10.2% decline ex perienced in our second quarter ending November 30, 2009, versus the prior year’s second quarter.  Revenues were comparable to the first two quarters of this fiscal year when adjusting for workday differences.

Scott D. Farmer, Chief Executive Officer, stated, “We are encouraged that job losses appear to be moderating from what we saw in calendar year 2009.  However, we believe job recovery will continue to be sluggish and thus our revenues will be slow to return to prior levels.  Despite the weather difficulties and holiday shut downs during our third quarter, our revenues and margins met our internal plan.”

Mr. Farmer continued, “Our expectations for our fourth quarter remain unchanged from our previously released guidance.  We expect revenues to be between $870 and $890 million and earnings per share to be between $0.30 and $0.34.  Our businesses continue to be profitable, generating positive cash flow.  During the third quarter, we increased cash and marketable securities by over $70 million. With total cash and marketable securities of over $550 million at February 28, 2010, our balance sheet is very strong.  Last week, we paid our annual dividend to our shareholders amounting to $0.48 per share, an increase from $0.47 paid last year.  We have increased our dividend every year since going public in 1983.”

Scott Farmer concluded, “We remain confident about the future because of our strong market share position and balance sheet, and most importantly, due to the quality and ability of our employee-partners who have continued their commitment to taking care of our customers and focusing on managing costs.”

About Cintas

Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types primarily throughout North America. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, first aid, safety, fire protection products and services and document management services for approximately 800,000 businesses. Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol CTAS, and is a Nasdaq-100 company and component of the Standard & Poor’s 500 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 fo rward-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 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, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compl iance and remediation, the cost, results and ongoing assessment of internal controls for financial reporting required by the Sarbanes-Oxley Act of 2002, 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, 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, 2009 and in our reports on Forms 10-Q and 8-K. & #160;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.

For additional information, contact:

William C. Gale, Sr. Vice President-Finance and Chief Financial Officer – 513-573-4211

Judy Girty, Executive Assistant to William C. Gale, 513-573-4915

Cintas Corporation

Consolidated Condensed Statements of Income

(Unaudited)

(In thousands except per share data)

	Three Months Ended								Three Months Ended
	February 28, 2010			November 30, 2009			% Chng.		February 28, 2009			% Chng.
Revenue:
Rental uniforms and ancillary products	$	622,458		$	643,597			-3.3	$	674,701			-7.7
Other services		239,354			240,912			-0.6		233,938			2.3
Total revenue	$	861,812		$	884,509			-2.6	$	908,639			-5.2
Costs and expenses:
Cost of rental uniforms and ancillary products	$	356,750		$	363,728			-1.9	$	379,466			-6.0
Cost of other services		145,455			150,934			-3.6		152,736			-4.8
Selling and administrative expenses		275,596			259,406			6.2		257,129			7.2
Legal settlements, net of insurance proceeds		-			4,052			N/A		-			N/A
Operating income	$	84,011		$	106,389			-21.0	$	119,308			-29.6
Interest income		(422	)		(314	)		34.4		(540	)		-21.9
Interest expense		11,575			12,579			-8.0		12,407			-6.7
Income before income taxes	$	72,858		$	94,124			-22.6	$	107,441			-32.2
Income taxes		23,876			36,948			-35.4		35,630			-33.0
Net income	$	48,982		$	57,176			-14.3	$	71,811			-31.8
Per share data:
Basic earnings per share	$	0.32		$	0.37			-13.5	$	0.47			-31.9
Diluted earnings per share	$	0.32		$	0.37			-13.5	$	0.47			-31.9
Weighted average number of shares outstanding		152,869			152,866					152,993
Diluted average number of shares outstanding		152,869			152,866					152,933

	Nine Months Ended
	February 28, 2010			February 28, 2009			% Chng.
Revenue:
Rental uniforms and ancillary products	$	1,921,693		$	2,107,528			-8.8
Other services		716,197			788,474			-9.2
Total revenue	$	2,637,890		$	2,896,002			-8.9
Costs and expenses:
Cost of rental uniforms and ancillary products	$	1,083,407		$	1,188,370			-8.8
Cost of other services		442,234			491,112			-10.0
Selling and administrative expenses		799,429			829,032			-3.6
Legal settlements, net of insurance proceeds		23,529			-			N/A
Operating income	$	289,291		$	387,488			-25.3
Interest income		(1,095	)		(2,435	)		-55.0
Interest expense		36,192			38,206			-5.3
Income before income taxes	$	254,194		$	351,717			-27.7
Income taxes		94,052			129,432			-27.3
Net income	$	160,142		$	222,285			-28.0
Per share data:
Basic earnings per share	$	1.04		$	1.45			-28.3
Diluted earnings per share	$	1.04		$	1.45			-28.3
Weighted average number of shares outstanding		152,854			152,790
Diluted average number of shares outstanding		152,854			152,790

CINTAS CORPORATION SUPPLEMENTAL DATA

	Three Months Ended						Three Months Ended
	February 28, 2010			November 30, 2009			February 28, 2009
Rental uniforms and ancillary products gross margin		42.7	%		43.5	%		43.8	%
Other services gross margin		39.2	%		37.3	%		34.7	%
Total gross margin		41.7	%		41.8	%		41.4	%
Net margin		5.7	%		6.5	%		7.9	%
Net margin, excluding charges		5.7	%		6.7	%		7.9	%
Depreciation and amortization	$	47,973		$	47,562		$	50,248
Capital expenditures	$	30,836		$	23,273		$	36,826
Debt to total capitalization		24.1	%		24.0	%		25.3	%

	Nine Months Ended
	February 28, 2010			February 28, 2009
Rental uniforms and ancillary products gross margin		43.6	%		43.6	%
Other services gross margin		38.3	%		37.7	%
Total gross margin		42.2	%		42.0	%
Net margin		6.1	%		7.7	%
Net margin, excluding charges		6.6	%		7.7	%
Depreciation and amortization	$	144,440		$	150,142
Capital expenditures	$	78,928		$	132,783
Debt to total capitalization		24.1	%		25.3	%

Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure

The press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission.  To supplement its consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides additional measures of operating results, net earnings and earnings per share adjusted to exclude certain costs, expenses and gains and losses.  The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance as well as prospects for future performance.  A reconciliation of the differences between these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP is shown below.

Management believes earnings per diluted share excluding the legal settlement charge provides investors pertinent information given the one-time nature of these charges.

	Three Months Ended						Three Months Ended
	February 28, 2010		November 30, 2009		% Chng.		February 28, 2009		% Chng.
Income before income taxes	$	72,858	$	94,124		-22.6	$	107,441		-32.2
Excluding:
Legal settlements, net of insurance proceeds		-		4,052				-
Total charges	$	-	$	4,052			$	-
Income before income taxes, excluding charges	$	72,858	$	98,176		-25.8	$	107,441		-32.2
Income taxes, excluding charges		23,876		38,517				35,630
Net income, excluding charges	$	48,982	$	59,659		-17.9	$	71,811		-31.8
Per share data:
Earnings per diluted share, excluding charges	$	0.32	$	0.39		-17.9	$	0.47		-31.9

	Nine Months Ended
	February 28, 2010		February 28, 2009		% Chng.
Income before income taxes	$	254,194	$	351,717		-27.7
Excluding:
Legal settlements, net of insurance proceeds		23,529		-
Total charges	$	23,529	$	-
Income before income taxes, excluding charges	$	277,723	$	351,717		-21.0
Income taxes, excluding charges		102,758		129,432
Net income, excluding charges	$	174,965	$	222,285		-21.3
Per share data:
Earnings per diluted share, excluding charges	$	1.14	$	1.45		-21.4

Computation of Free Cash Flow

	Nine Months Ended February 28,
	2010			2009
Net Cash Provided by Operations	$	429,189		$	339,719
Capital Expenditures	$	(78,928	)	$	(132,783	)
Free Cash Flow	$	350,261		$	206,936

Note: Management uses free cash flow to assess the financial performance of the Company.  Management believes that free cash flow is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue, improve and grow business operations.

 SUPPLEMENTAL SEGMENT DATA

	Rental Uniforms and Ancillary Products		Uniform Direct Sales		First Aid, Safety and Fire Protection		Document Management		Corporate			Total
For the three months ended February 28, 2010
Revenue	$	622,458	$	94,428	$	79,210	$	65,716	$	-		$	861,812
Gross margin	$	265,708	$	27,915	$	31,322	$	34,662	$	-		$	359,607
Selling and administrative expenses	$	201,389	$	19,707	$	29,260	$	25,240	$	-		$	275,596
Interest income	$	-	$	-	$	-	$	-	$	(422	)	$	(422	)
Interest expense	$	-	$	-	$	-	$	-	$	11,575		$	11,575
Income (loss) before income taxes	$	64,319	$	8,208	$	2,062	$	9,422	$	(11,153	)	$	72,858
For the three months ended November 30, 2009
Revenue	$	643,597	$	99,434	$	81,557	$	59,921	$	-		$	884,509
Gross margin	$	279,869	$	29,182	$	30,560	$	30,236	$	-		$	369,847
Selling and administrative expenses	$	187,988	$	18,707	$	27,542	$	25,169	$	-		$	259,406
Legal settlements, net of insurance proceeds	$	-	$	-	$	-	$	-	$	4,052		$	4,052
Interest income	$	-	$	-	$	-	$	-	$	(314	)	$	(314	)
Interest expense	$	-	$	-	$	-	$	-	$	12,579		$	12,579
Income (loss) before income taxes	$	91,881	$	10,475	$	3,018	$	5,067	$	(16,317	)	$	94,124
For the three months ended February 28, 2009
Revenue	$	674,701	$	97,010	$	86,037	$	50,891	$	-		$	908,639
Gross margin	$	295,235	$	23,905	$	33,109	$	24,188	$	-		$	376,437
Selling and administrative expenses	$	184,788	$	23,102	$	28,968	$	20,271	$	-		$	257,129
Interest income	$	-	$	-	$	-	$	-	$	(540	)	$	(540	)
Interest expense	$	-	$	-	$	-	$	-	$	12,407		$	12,407
Income (loss) before income taxes	$	110,447	$	803	$	4,141	$	3,917	$	(11,867	)	$	107,441
For the nine months ended February 28, 2010
Revenue	$	1,921,693	$	283,163	$	250,768	$	182,266	$	-		$	2,637,890
Gross margin	$	838,286	$	84,342	$	97,144	$	92,477	$	-		$	1,112,249
Selling and administrative expenses	$	579,633	$	57,570	$	86,277	$	75,949	$	-		$	799,429
Legal settlements, net of insurance proceeds	$	-	$	-	$	-	$	-	$	23,529		$	23,529
Interest income	$	-	$	-	$	-	$	-	$	(1,095	)	$	(1,095	)
Interest expense	$	-	$	-	$	-	$	-	$	36,192		$	36,192
Income (loss) before income taxes	$	258,653	$	26,772	$	10,867	$	16,528	$	(58,626	)	$	254,194
Assets	$	2,427,309	$	158,229	$	326,496	$	495,779	$	552,096		$	3,959,909
For the nine months ended February 28, 2009
Revenue	$	2,107,528	$	334,528	$	295,059	$	158,887	$	-		$	2,896,002
Gross margin	$	919,158	$	98,133	$	117,675	$	81,554	$	-		$	1,216,520
Selling and administrative expenses	$	593,282	$	76,090	$	94,516	$	65,144	$	-		$	829,032
Interest income	$	-	$	-	$	-	$	-	$	(2,435	)	$	(2,435	)
Interest expense	$	-	$	-	$	-	$	-	$	38,206		$	38,206
Income (loss) before income taxes	$	325,876	$	22,043	$	23,159	$	16,410	$	(35,771	)	$	351,717
Assets	$	2,595,144	$	165,976	$	338,509	$	467,911	$	151,904		$	3,719,444

Cintas Corporation

Consolidated Balance Sheets

(In thousands except share data)

ASSETS	February 28, 2010			May 31, 2009
	(Unaudited)
Current assets:
Cash & cash equivalents	$	406,503		$	129,745
Marketable securities		145,593			120,393
Accounts receivable, net		356,453			357,678
Inventories, net		167,814			202,351
Uniforms and other rental items in service		321,964			335,447
Income taxes, current		16,088			25,512
Deferred tax asset		68,165			66,368
Prepaid expenses		17,421			17,035
Assets held for sale		15,744			15,744
Total current assets		1,515,745			1,270,273
Property and equipment, at cost, net		894,578			914,627
Goodwill		1,352,096			1,331,388
Service contracts, net		109,402			124,330
Other assets, net		88,088			80,333
	$	3,959,909		$	3,720,951
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	80,406		$	69,965
Accrued compensation and related liabilities		55,702			48,414
Accrued liabilities		302,543			198,488
Long-term debt due within one year		598			598
Total current liabilities		439,249			317,465
Long-term liabilities:
Long-term debt due after one year		785,595			786,058
Deferred income taxes		162,989			149,032
Accrued liabilities		96,888			100,987
Total long-term liabilities		1,045,472			1,036,077
Shareholders' equity:
Preferred stock, no par value:		-			-
100,000 shares authorized, none outstanding
Common stock, no par value:		132,058			129,215
425,000,000 shares authorized  FY10: 173,207,493 issued and 152,869,848 outstanding  FY09: 173,085,926 issued and 152,790,170 outstanding
Paid-in capital		80,978			72,364
Retained earnings		3,024,601			2,938,419
Treasury stock:  FY10:  20,337,645 shares  FY09:  20,295,756 shares		(798,848	)		(797,888	)
Other accumulated comprehensive income (loss):
Foreign currency translation		43,937			33,505
Unrealized loss on derivatives		(7,568	)		(8,207	)
Unrealized gain on available-for-sale securities		30			1
Total shareholders' equity		2,475,188			2,367,409
	$	3,959,909		$	3,720,951

Cintas Corporation

Consolidated Condensed Statement of Cash Flows

(Unaudited)

(In thousands)

	Nine Months Ended
Cash flows from operating activities:	February 28, 2010			February 28, 2009
Net income	$	160,142		$	222,285
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		113,834			118,119
Amortization of deferred charges		30,606			32,023
Stock-based compensation		11,323			8,904
Deferred income taxes		11,945			9,052
Change in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net		10,785			42,118
Inventories, net		31,900			(16,427	)
Uniforms and other rental items in service		14,223			12,998
Prepaid expenses		(240	)		(5,802	)
Accounts payable		15,167			(22,247	)
Accrued compensation and related liabilities		8,414			(3,250	)
Accrued liabilities and other		11,507			(45,734	)
Income taxes payable		9,583			(12,320	)
Net cash provided by operating activities		429,189			339,719
Cash flows from investing activities:
Capital expenditures		(78,928	)		(132,783	)
Proceeds from sale or redemption of marketable securities		34,011			92,061
Purchase of marketable securities and investments		(69,819	)		(94,985	)
Acquisitions of businesses, net of cash acquired		(41,375	)		(29,381	)
Other		3,804			(428	)
Net cash used in investing activities		(152,307	)		(165,516	)
Cash flows from financing activities:
Proceeds from issuance of debt		-			7,500
Repayment of debt		(464	)		(164,510	)
Exercise of stock-based compensation awards		2,843			-
Repurchase of common stock		(960	)		(25,847	)
Other		(3,237	)		736
Net cash used in financing activities		(1,818	)		(182,121	)
Effect of exchange rate changes on cash and cash equivalents		1,694			(4,055	)
Net increase (decrease) in cash and cash equivalents		276,758			(11,973	)
Cash and cash equivalents at beginning of period		129,745			66,224
Cash and cash equivalents at end of period	$	406,503		$	54,251