CTAS - Earnings call transcript Q4 2017

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Operator

Good day everyone and welcome to the Cintas Quarterly Earnings Results Conference Call. Today's call is being recorded. At this time, I'd like to turn the conference over to Mr. Mike Hansen, Senior VP of Finance and Chief Financial Officer. Please go ahead, sir.

Michael Hansen

and joining evening tonight. good you, thanks us for Thank President Adler, With Paul Vice and me is, Cintas' Treasurer.

In happy are and questions. discuss forward-looking for Act civil our be I these litigation you which fiscal will of to conference call performance. going another best moment, with our financial XXXX. so and answer the which from we results we will We our our safe After commentary, noise we you as of filings views in There is third XXXX share help decipher provides current for we events harbor materially quarter quarter Litigation execution Private our actual our to statements. in Securities differ contains strong SEC. the lot The and quarter a results of recent to reflect the Reform any refer business. from results results risks This to points represented to These do performance. subject could the performance cause may statements forward-looking Company's a uncertainties, contained of discussion on forward-looking a discuss. statements are to most those future to to third the that you will with

quite of been diving closing has of we numbers recognize deal. for thought anniversary past though, was into year the the the that G&K Before it Cintas. fitting yesterday to The services transformative

forward. given a excited The about position us have Our last to February, our to the we March over work some to the success cash work year employees XXXX. came during us been since going great were XXst timing payment. In one-time the able partners past better who to us with be for of have whom call early done future. thrilled share couldn’t done our We from as G&K our we partners as including year ever remain for foundational partners

and recently share Cintas, CEO, success Chairman reform partners, to motivated today's were them. release, in customers. the good our for with possible have shareholders wouldn’t Scott our And our our without press our tax excited we U.S. is and As and engaged passed and indicated been Farmer, legislation again,

segment Moving quarter third the currency revenue X.X% growth in of which and organic quarter The last X,XXX segment compared rate XXth quarter was organic revenue the an of for onto income growth ended The rate XX.X% for year's fluctuations last was impact to results, XXX revenue million and the XXX quarter. our organic and Reported Rental First X.X%. increase our foreign for third the for year's adjusts rate of rate was acquisitions was which of third the services Facilities over the billion, Aid quarter. third the and growth Uniform exchange February Services operating third XX%. million Safety

However, noting of there are results that impacted the comparability some items worth year-over-year.

acquisition. million transaction First, fiscal the X the expenses G&K the and our and reduced 'XX of quarter integration related fiscal services of income quarter third was operating in 'XX third XX million to by in

payment third an one-time approximately XX of partners the was expense amounted mentioned, quarter in of income 'XX reduced by to the operating which to Second, cash fiscal million. also just I that Cintas

of Reported and operating $X the amortization the million income of includes that incremental G&K deal price implementation from intangible reported with this approximately XXX quarters fiscal our purchase planning XX.X% This mind the operations these our of costs year. last in income of to consistent Keep the were that year's the quarter. increased Excluding XXX.X% two third two earnings X.X% quarter for comparability per third or of in year. to impacted continuing Again, third system and enterprise depreciation handful SAP. quarter. third the operating third there revenue. accounting results in quarter of income measurement first X.XX or and way $XXX last items, These was is compared totaled revenue. items of million prior million continuing from EPS quarter share X.XX our operations of asset of of diluted resource for two XX we've or which were EPS net million expense from items income year's net Reported from

negative quarter and EPS fiscal fiscal integration transaction expenses. First, of $X.XX 'XX 'XX impact and third included G&K from a

one-time Cintas quarter also third included EPS partners. $X.XX cash 'XX negative the fiscal to of a impact Second, from payment

Tax than of negative offsetting to from was impacts of significant these more EPS Act. new a benefit Lastly, benefits the $X.XX the

income X.X% from and purchase the our was accounting X.X% visibility EPS net deal includes to increased last expense net of these dollars These year X.X% amortization to the intangible to Excluding to revenue again better increased that XX.X% items Note net $X.XX. and tax totaled XX.X%. of of price compared financial and income net implementation depreciation performance, two incremental costs margin asset of G&K provide income or SAP. items and

execution at quarter increase activities they strong the achieve line to SAP. is fundamentals, our of integration is The to important numerous addition with locations third track. on the XX% to the Also of important necessary G&K duplicate end solid about Cintas G&K million system from was the the third plant of on In synergies. remains an in now us system. which G&K one operations We’ve closures. our are quarter to quarter. which helped total investments and have been XX of as the us synergies, two XX% realize converted of for in operating $XX in very progress The conversions on expectations. long-term closed This operational are is second XX% These

our date, our of continued of XX total remains been third quarter converted, implementation, were total in converted a Regarding advancement operations on operations the SAP, now which schedule. which XX% have about significant XX is In planned. to

year fiscal for fiscal we the results is of Rather detailed, of the tax guidance, fiscal for including prior provide complex. 'XX. more comparability benefit specific quarter provide that full previously simplicity several beneficial to reform full I sake third-quarter As had our believe items fourth we the to baked guidance than of year our year of

to the the to reiterate in fourth of the be $X.XXX we to $X.XXX made will want billion revenue quarter acquisition have in one quarter, range upcoming anniversary year our of G&K. I fourth of we expect in a point lap million. past, the We

For that have and the grew fourth acquired strongly combination first in legacy declined time, the growth G&K's growth In G&K we the an report the organic the quarter, business significantly year-over-year organic is will be that opposed Cintas of will Cintas and slower quarter. sized inorganic. growing business a fourth to than will historically rate that as

rate be and as just for was it to temporary, segment acquired after this Medical. our Aid it First expect growth We organic Safety lower ZEE

expect already total investment Facility Uniform growth the resources With and selling rate to XXXX. as accelerate having Rental business, services we in fiscal made the G&K organic grow we through to the move been

these range do turn fiscal to integrate million we will XX%. be estimate the to continuing will excess from the expenses fourth last to XXXX continue and transaction the call in rate any future will this expenses, margins operating quarter, as to G&K we of We fourth Note from fourth that be range $X.XX quarter $XX quarter anticipate quarter. year's EPS the now we $XX For Paul. $X.XX. excludes to operations expenses expect in expect EPS the Guidance over these guidance while assumes healthy acquisition. million. of incurred that in significant tax our integration We of quarter that I fourth

Paul Adler

Thank you, Mike.

that as year the note third-quarter. quarter please number prior First of our fiscal the contains same third workdays XX,

of workday determined expense, of expense due on one in had However, on less sequential a monthly XX in approximately basis less including workday a margin costs, amortization depreciation the material an basis, many a rental workday on impact been it has basis. to a points quarter. One large operating and instead on expenses basis second quarter

the fiscal Our upcoming will fiscal number fourth quarter same of the XX quarter the year. days, contain prior as of fourth days

business. reportable Fire have All two Uniform Rental in Other. Sales Direct The business operating is and services. our Safety of We included Aid Facility consists All and Other Uniform services First and of Services our Protection and remainder segments

of Facilities All services are and products segment This mats includes facility and services. the services of segment last provision other supply Rental and catalogues combined increase also presented billion, income service services was and towels and Aid and operating servicing the our third on uniforms, sale from other to Safety First Facilities Uniform $X.XXX and and items restrooms the the rental revenue an year's Other statement. and on compared Rental and Uniform of route. quarter. customer to as XX.X% includes our of

changes, Excluding foreign and the currency the organic rate of impact exchange X.X%. acquisitions was rate growth

inclusion the margin third G&K Rental the this and attributable The XX.X% the has for business. margin reduction in margin the in is to margin lower gross Uniform continued Facility XX.X% decline of services third third line to year's compared quarter the year's top lowered. to segment was of The quarter. last Our quarter has G&K business as in

we short addition, which incur the in typical to In the impact term. costs margins conversion continued

the increasingly we improve remains. this of a G&K are and further we XX% we duplicate on more operations realize business pace, closed, synergies, mentioned of of While The have stimulation levels will the G&K legacy continues Mike margins as integrate the business, great more at work been track. through gross Cintas

basis, basis margin third the and was This sales quarter, and quarter. segment XX.X% organic third revenue aid Safety in training. was gross XX.X% higher an than XXX On Aid year's of compared First the million, the products points. in third servicing which was growth revenue to from safety operating last was year's for increase segments and includes of segment first third XX.X% segments XX.X%. an Our quarter the for XXX Services rate quarter products, This last the

gross quarter keep all of wins programs third and to employees evidenced aid margins manage safe place day. businesses work quarter of ready was on and for types having another and expanding The training help Strong new business. Cintas this business are the for their the value healthy, first their outstanding

business businesses multimillion generally to Services single-digits a category. rates subject reported Sales Our Sales as are The Fire other we Protection install Uniform the Uniform and Direct are Direct account. growth when such in are and low volatility, long-term all

year's quarter. basis business each gross fire was this third year XXX XX.X% of by continues an last however XX.X%. margin business. revenue strong year's to All was the rate All quarter driven increase margin was other growth XX.X% increase other third fiscal fire an at expansion margin pace. million XX was grow compared of points. organic The a XX.X% to to Our other higher of the last for compared gross for year quarter third All

each third uniform strong repeat note the and styles five Southwest to as third benefit revenue XX.X% of new Last as in rebrand quarter. comparisons last growth face of headwind that quarter and these third not a the year’s compared years year's earlier fourth last sales uniform $XX three out direct benefited the be sales Mike in one-time quarter the business of year’s administrative percentage fourth from difficult Cintas the growth The businesses year quarter in to quarter. this Southwest Large will or Our as typically roll that some note quarter from recorded were roll payment for to business was in every XX.X% significant partners such SG&A. about at Airlines. pilots expenses in the year mentioned only revenue. flight outs will the cash do attendance fourth million Selling of was so. Please a

and benefited payment, from quarter SG&A revenue of last percentage was workers’ SG&A improved compared to XX.X% one-time experienced. collections XX.X% this year’s this as third compensation claims receivables year. a favorable Excluding

up over On last basis excluding SG&A year. the is one-time XX year-to-date payment the basis, points

However, incremental the resulting intangible expense of amortization G&K the basis is by costs. purchase from accounting SG&A and negatively SAP about points XXX note year depreciation current implementation and assets that acquisition impacted price

and progress getting expenses leverage We are revenue. costs general fixed revenue making and as percentage covering a from reducing on of increased administrative good

XXXX earlier, $X.XX. on stated fiscal quarter benefited tax U.S. rate Mike of As Act EPS to the continuing Tax operations new quarter from effective was our The the benefit tax legislation. third third the

fluctuate will on stock XXXX for to an assumes XX.X%. quarter releases discrete including rate quarter-to-quarter relating fiscal guidance tax amount EPS tax the of the effective that tax of Note expense from effective and period. each rate compensation realized based the builds reserve Our items, fourth of

first in XX Our of was we cash end. first cash $XX months had flow nine quarter securities of of XX% the the expenditures of Free period. the was increase million. as fiscal prior as million and February from fiscal million million, nine of an Capital or the and million, of $XXX were equivalents $XXX year XXXX $XXX marketable for balance $XXX months year

$XX million $XX $XXX All as Our Facility million month segment CapEx million Safety; Rental the by and Services; operating and follows: in First nine in period and Other. in for Uniform was Aid

CapEx quarter $XX fourth approximately expect million. to be We XXXX

debt of flow XX, That to million XX, February times times leverage our debt-to-EBITDA of X.X debt-to-EBITDA. strong in was concludes and decrease May and to of remains total leverage at As our prepared Overall, remarks. expect $X,XXX,XXX,XXX, we February short-term X.X $X,XXX,XXX,XXX our $XXX was long-term debt our At debt. consisting cash XXXX. ratio XX, approximately

We’re answer questions. your happy to

Operator

with [Operator Instructions] And first hear from we Barclays. Manav will Patnaik

Greg Bardi

calling seeing first signs I on to saw missed G&K more touch you’re And rate on Greg on maybe just quarter? revenue early okay. give potential the broadly opportunity? wanted hit is any this synergy growth Hi, could Maybe Manav. revenue for then it, third you sets but you and in the from I on

Michael Hansen

tell $XXX that say harder revenue mix that you, locations. locations, slightly revenue and Cintas was we as that quarter in revenue was now -- I and starting harder to as to over you've specifically identify million heard have about XX down closed it would gets really us able being is G&K with Greg and Third X.X%.

So third getting From opportunities to quarter a are there. and numbers. we little the identify, to revenue standpoint, harder going but synergy think a estimated those harder be were

and to that introducing slowly we moving overwhelming on disruption new kind that a them to relationship large that through closing that to good be because we, of very make are things we the customer and sure gets to conversions in want maintain that We disruption addition sometime. of somewhat system

it half pretty that. fiscal see benefit ’XX. that in feel I ’XX So, certainly expect will of moving some back today, the and fairly But we’re standpoint are about our slowly fiscal signs from the we to early in in future. start on would opportunity good

Greg Bardi

their side, know look Cintas Okay metric and and the but quite color what on stops add some hiring we much from as core a don’t net customers? seeing then the existing you’re from I maybe it's from anymore, at

Paul Adler

its Greg, Yes Paul.

snow really had add stops So note area, of lift of specially the significant and of participation area. us lot I that good dust of the bit in think give lift, a positive, was the was metric we to only anything of nothing outside with in add winters definitely good a garment but that mats the little wets mats, in thing carpeted terms some cold

Operator

Thank you.

question will next with come Morgan Toni Our from Kaplan Stanley.

Toni Kaplan

following up Just on the G&K.

the was quarter. You down mentioned in that X.X%

year. guidance last X.XX think for quarter X.XX you your mentioned I to in the

year? than like good what So I’m a just wondering, is this was that quarter still previously? you're better little the number expecting bit for Or

Michael Hansen

million it have expected and revenue we very be were of pleased positive We that little to was and at which been year, than things continue say with but gave quarter not performance. than the performance I the a better that G&K overall revenue the performance the from range third, is very for we block, so slightly in would last XXX around just we far to see better and going bit

Toni Kaplan

a Cintas should be Cintas course Cintas getting legacy the the to business expect I sort but guess the of just deceleration? is that I businesses, get color driving legacy of growth are bit sort G&K we just of there inorganic what will in so on the little I fourth second something will be quarter X.X%, quarter even guess wanted the is so Or harder? legacy it look comps lower, this to just organic extra quarter seeing like, on you’re for decelerated And the of

Michael Hansen

good, the for we’re We probably fourth that increased And believe the well. still business very you guidance the it. our noticed, of quarter the as is performance execution and with as we very pleased

there performance, good look very feel every about and still quarter, puts are we takes. in the So,

about we’re quarter but an in we -- we’re bottom we little and quarter quarter strong, operating half this and XX a report quarter, range end uptick think a of business in we of the and our legacy bit throughout bit be see the won’t the like organic of XX Cintas very first the fiscal still quarter. headwind year's efficiently the it the the where and guidance When the year that the feel quarter, takes that may an good a last that raise are again to business. year. in in speaking, hit little because million, good was we end million growth for want the and third if in Cintas that guidance, still top of and the a so For fourth you effectively about generally very we we energy And it. feel We comingling puts we’re but example, bit I got expect business the would there we about fourth signal third of and top that in fourth about way about range feel G&K every

Operator

Thank now Hamzah go with to Mazari you. We’ll Capital. Macquarie

Hamzah Mazari

could say facilities? at utilization is just us question give as but are going utilization? if we locally XX% across where us a I any about your measured capacity to a first is how just platform? answer The your sense nationally, how in wise, utilization realize facility through think What's just I facilities so give sense, some to that? you want of you're versus color, many know well, consolidation you underutilized plus however are maybe

Michael Hansen

even we I there’re facility things and are dryer may of usually would mentioned, We wash will to is you need up to building out do on as their existing several short-term alley larger it others do per that like and we’ll steps When some to certain us capacity, the extra two make capacity. start wash and will four plants capacity last capacity, we way there’re the markets do alley. plenty. have pump a to add we in we that year. We’ll we say the and capacity may our capacity creep also fully Hamzah, we years, continue have new a that in our add to local something those but before allows reaching expand add and the and as that those washer things,

that like continue done we fiscal have that the this to if year future, grow into your been. have We to we we question? or the it as would will and do Is to something expect I like that answer continue

Hamzah Mazari

Yes, How customers, days, directly hearing its any that? view you low just from maybe but of there either anything your you business early guys, Trump helpful. know from are is And any the then your procurement early tariffs? sense indirectly? that's And any sense thoughts I that or anything impacts on visibility, are very hearing

Michael Hansen

Well, not, we we We're fair not keeping on too start be well China, still we're our yet too today. customers of and early to things But what's to market and and a didn’t do know it affected in that what's list yet. that's sourced of tell out eyes our by early the have the things some that. from I think we may on I may Certainly, to how we tell. tariff. don’t that quite by it's have they things really because seeing

So early on keeping it. to too eyes tell, our we're

do best be our we've a is will be, things our resource done to of into over to we do some see may efficiencies the goal fairly if years. future, goal affected and the to job offset, Our think that that good or I find

Hamzah Mazari

it over. I'll question, Last turn

your that market any been uniform trends has on self any much side Just thoughts how seeing of thoughts any pretty in there you appreciated? consistent place of are operated outsourcing terms the change and on is

Michael Hansen

that new put talked weren’t businesses uniform we rental that is a seen success still rental we to haven't previously, business, a in new program. into customers and we're having about the any uniform program programmer lot so new haven't finding We change, no

our quarters. relative much change several previous third the it's not quarter So, in to

Operator

[Operator We to will Schneeberger Scott go Oppenheimer. Instructions] with

Scott Schneeberger

questions. Two

on talk and developments and comment through it's force you progressing sales you Could are just what working? the your how of nicely could go obviously one, stuff there you had to you some productivity and integration? First to

Michael Hansen

Now, some we see encouraging Scott. science,

than more this Our brought year that's on people with ago we productivity fiscal quite as a sequentially through and sales a certainly has improved year sales the team. G&K few

and over signs, fourth encouraging some improvements the productivity but ways we confident productivity We quarter 'XX. have we're and certainly, our to go. the fiscal that seeing those course then get come still were of will to have So,

Scott Schneeberger

million is follow-up it there and right million my let by are if can this or coming it? know me is change that CapEx, is me if on XX us please from, year, a And if with guidance is that my XX reduced like where push changing you that where you SAP anything on numbers can it correct maybe occurring? looks if where And is Is or tell a there the out?

Michael Hansen

I Yes, move little G&K lot integration than its and of and timing. more the market-by-market. a through bit terms have anything on a in get it’s projects integrations do SAP going some implementation as those We to pushed tend think

it call just would anything. I than So timing more

Operator

you. Thank

Sokel Our Judah next Morgan. question comes from JP with

Judah Sokel

us you update we can give million synergies, on $XXX $XXX that I of those? to of how buckets have cost on about was the each million. -- talked the you’ve talked wondering if an which progressing past we in four we're about Where

Michael Hansen

is start third in So, gross talked that about with be quarter, other and G&A in XX let about margin. half the would me the half million we the the

So, a you acquisitions perspective, probably of and third getting some quarter SG&A leveraging in terms saw we’re in nice that post that down progress levels. from our from G&A making

some we do. making are nice have and more to we So progress

have we still off of legacy from as IT team presence G&K the that roll example, So continue for an to system. we

additional will but come there be some we’ve that made really progress. some so, nice And things

you talked converting. we imagine, running other as our bucket can we facilities, the in The cost facilities that bucket midst our production of a of of number and and the about are closing that is

a certainly so inefficiency right necessary achieve in as bit up synergies, while little those. our quarter do going that’s in there’s set have a of quarter, now quarter, fourth things we lot the our on third bit little we more some And second in a our to those

ago. more expect of we impression has the efficient a and the of about heavy are we much as really need that from From very out year in we’d we production systems we before on some we -- labor locations and that duplicate service a away can So put will for get past, and start those to closed eliminating move yet results pretty come still same perspective doing the market-by-market, as optimization. getting the get well job good along a other costs. the in but same kind route haven’t get of example, in we lifting that And to done we’ve markets talked

have started in We some some of markets. that

that will bucket. continue do And We our are to lifting quarter, likely more are bucket the synergies in on But last feel half the fourth the but of making indications those sourcing as 'XX. that we still heavy about. we’ve in fiscal first that was even And good about well. capturing area we progress talked

there. be to longer we the little probably -- into it to get into distribution really it while starts So some center purchase are know making because and pricing but sourcing get in-service able takes it to right? then you As it, and and a may we our new recognize inventory that nice amortizing, it it new progress sold get takes out, it

to Just takes more it. time realize

So feel good buckets. all-in-all Judah, about four of those all

Judah Sokel

Those are core business And you a G&K question thanks. of is growth? some year. that color, in Is pick business? decline very throughout of that guys moderating to you see up Cintas that the legacy expecting function helpful in perhaps mention and also comment that you’re the purely sort XXXX switching the have about the the other acceleration that Or expect

Michael Hansen

our the bit improving then business team seeing seeing productivity to sales than began G&K ago. that it's anything more I start and to the No and mentioned grow more a level anything than

Operator

you. Thank

We Rosenbaum Stifel. will from hear now with Shlomo

Michael Hansen

three seeing wondering what it's any it? was you hiring just legislation, or positive in side seeing you're business, from tax from approximately the to pickup overall, now in of being are Mike, customers? easier just a I Maybe sell, that impact been months, on your

Michael Hansen

Shlomo, from not we're the yet. hearing probably, P&L is some standpoint of sentiment to anecdotal would the impact thing good. much say that the I

business You it weakly the get mass of it accumulate some get people still and the kind to know we’re there. time and And takes of in as a revenue. to have take that out little the sell uniform billing you or time to

a little And so, it takes time.

the impacted So very our really seems sentiment I third be to say But has been significant. good. quarter not would pretty in

Shlomo Rosenbaum

a future that you be to would lift in So expect quarters?

Michael Hansen

I that getting reform, tell think some we thing will good certainly think customers I see benefit. certainly cash much, all be from that yes, if the the spending for but to be tax a a they are of will our that of how It's us. that think I hard

Michael Hansen

could on a could and bit anything that's of improved what's what business? in the talk fire in you going then out? you about Okay, on, particular, little going the just it drove other safety results in some sequentially Is call

Michael Hansen

be call but out some a nothing Shlomo, now nothing XX%, call a so puts kind business quarter, volatility, we In of of the is that organically you're little to each our good strong business. growing some there fire, I for growing digits mean strongly might business a you so bit as takes sale and time then a and particular out, direct as have expectation mentioned is has remarks said, in sometimes Mike that single and very typically and high about nothing,

they comments the have the year's a but extent light. of mentioned in some to quarter did Airlines know, some nice strong third good told quarter, Southwest little with third winds a last You nothing wins rollout a be nice very did I and they still have to that

talked as last prepared comparisons comp to we've nice sale out rolling in that the So about due they QX, a that had difficult in southwest will very year. have direct Remember some business statement remarks.

Shlomo Rosenbaum

rate little pro the mind housekeeping, EPS just tax a you for forma the don’t if what’s you’re $X.XX number? using And

Michael Hansen

non-U.S. there's It’s $X.XX of that $X.XX tax XX% for benefit the probably you quarter a tax and so is based guided on -- where about we had in that reform previously related. have

Shlomo Rosenbaum

rate tax forma down to you pretax pro XX% get to your So, X.XX? would use income

Michael Hansen

for quarter for only. the year-to-date, but the only, not quarter Yes,

Operator

Thank you.

Baird. will question Andy next from with Our come R. W. Wittmann

Andy Wittmann

talk assume segment? the should that but XX amount most that I the know models our that’s to that let’s rental for wasn’t of any million about that partners, was in in the we your guess I other notable payment segment was there

Michael Hansen

Andy. segment It was a revenue each X.X% in of

Andy Wittmann

good just by some rate of factors then Mike and way, you’ve you well and versus maybe it maybe you you to pretty looking like revenues you mentioned. that a bump, it on just G&K what had it And that the seemed bump it previously about plan, the about guidance for if upside of sounds $X.XX had other at looks have maybe another significance like, I the helped would adjust you wondering estimates the was get tax talk can guidance some them? our like

Michael Hansen

with, two as It in start continuing than Andy, there’re activities. it’s that'll good beneficial year-over-year, last I'll workdays integration sequentially the the The year's is sell. us. news, third help more that through two certainly quarter. working is to workdays and Same but

to get we real lot more with think area, in SG&A so seen leverage as And we’ve going that some fourth it’s of some healthy nice a we just I revenue. the it’s things -- a along into We’re as quarter. the go execution

Andy Wittmann

maybe new could whether question help detail penetration just existing is guys were you business pricing, questions versus of my to all a to it’s customers maybe be stops, your rental, about answered and in us sense break want that’d the understand as up is that I gross of that customers, no to more of on trying rate other have and is your helpful? last you your a how existing growth, But bucket or programmers, important the in not is if of specifically growth the significant And particular in quarter. of much cross-sell, kind things. you about, on that up-sell if you including on based to add How this of from sales sales and question bit how understand to uniform a little just characteristics growth new one get

Michael Hansen

Certainly, effort driver but been, new the never and second-most a big important and not we magnitude. It as of is business terms is -- Andy, haven't new to while has that it’s really us of we specific business as it’s have. a magnitude it in important certainly quantifying to gotten

cohort product. lots area We series So particularly, are of it’s ship penetrate continue things for factor. and opportunities that signature restaurant like there to an we important with as, our think with as and garments, works in remaining

it's important an but factor. left, So, still lot of opportunity

Andy Wittmann

last, on And wondering my was the pricing last commented I of question, maybe on couple quarters environment. last you

getting been the you always third single it's two quarter price the some. said versus that's competitive, you last How quarters? in the characterize few would realized but You are

Michael Hansen

from No quarters. no change competitive, to last remains the speak several but off change pretty

Operator

time, [Operator for the floor I to closing back or Mr. Hansen over like to turn Instructions] Mike at this And would additional any remarks.

Michael Hansen

you Thank talking good tonight. our happen have will with mid-July to look again much us you and fourth quarter a evening. that in very in for joining call forward We

Operator

that today's conference. you Thank gentlemen, you. your again all for conclude Ladies does participation. and again Thank

disconnect. now may You

Cintas (CTAS) 22 Mar 182017 Q4 Earnings call transcript