CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) is an essential business and continues to provide necessary products and services to businesses to ensure they are READY™ to operate in this challenging environment during the COVID-19 pandemic. Specifically, we are providing our customers with clean garments, healthcare scrubs, microfiber towels and mops, disinfectant and sanitizer spray services, restroom supplies, personal protective equipment and numerous other products and services to help businesses keep their facilities clean and safe.
Scott D. Farmer, Cintas Chairman and Chief Executive Officer stated, “Our customers who have remained open need us now more than ever, and our employee-partners are working tirelessly to support them. The many letters from our customers to our employee-partners thanking them for service are additional proof of our customers’ appreciation of Cintas’ support during this difficult time.”
Mr. Farmer continued, “Many of our customers, however, have been closed or are operating in very limited ways. We look forward to them resuming operations and working with them so they can reopen their doors with confidence knowing their facilities are clean, safe and READY™ to serve their customers.”
The mandatory closure, and hopefully temporary, of many businesses has had an impact on our performance, and we have actively managed the business while being careful not to overreact. In early March, we eliminated discretionary spending and instituted a hiring freeze. Since that time, we have reduced executive officer compensation, implemented a wage freeze and have adjusted our workforce with a combination of reductions and furloughs.
Cintas’ consolidated balance sheet remains strong, with significant availability on our credit facility and no debt maturities in the next 12 months. Cintas is a strong cash flow business and has a track-record of cash generation in downturns, including the Great Recession.
Mr. Farmer concluded, “Cintas originated in the Great Depression, when our founders gathered discarded used rags, washed them and returned them to businesses. Cintas was founded on innovation, determination and care for our customers and employees. While the COVID-19 pandemic has been a shock to all of us, we are resilient and will get through this. Our track record supports this: we’ve grown revenue and profit 48 of the past 50 years. I am proud of our employee-partners and thank them for rising to this unprecedented challenge.”
Mr. Farmer and Executive Vice President and Chief Financial Officer Mike Hansen will conduct a conference call to provide a more detailed update on business operations. A live webcast of the call will be available to individual investors and the public beginning at 5:00 p.m., Eastern Time, on Wednesday, May 13, 2020. The webcast will be available at www.Cintas.com. Click on the webcast icon and then follow instructions. For those unable to listen to the live webcast, a replay will be available on the Company's website beginning approximately two hours after the completion of the live call and will remain available for two weeks. Questions concerning the webcast or conference call should be directed to Leisha Smith at firstname.lastname@example.org.
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing a wide range of products and services that enhance our customers’ image and help keep their facilities and employees clean, safe and looking their best. With products and services including uniforms, floor care, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety and compliance training, Cintas helps customers get Ready for the Workday™. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and the Nasdaq-100 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 forward-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, risks inherent with the G&K transaction in the achievement of cost synergies and the timing thereof, including whether the transaction will be accretive and within the expected time frame and the actual amounts of future integration expenses; the possibility of greater than anticipated operating costs including energy and fuel costs; lower sales volumes; loss of customers due to outsourcing trends; the performance and costs of integration of acquisitions, including G&K; 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; the effect on operations of exchange rate fluctuations, tariffs and other political, economic and regulatory risks; uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation; the cost, results and ongoing assessment of internal controls for financial reporting required by the Sarbanes-Oxley Act of 2002; the effect of new accounting pronouncements; costs of our SAP system implementation; disruptions caused by the inaccessibility of computer systems data, including cybersecurity risks; 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 including viral pandemics such as the COVID-19 coronavirus; the amount and timing of repurchases of our common stock, if any; 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, 2019 and in our reports on Forms 10-Q and 8-K. 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.