Cintas Corporation Announces Fiscal 2023 Third Quarter Results

CINCINNATI--()--Cintas Corporation (Nasdaq: CTAS) today reported results for its fiscal 2023 third quarter ended February 28, 2023. Revenue for the third quarter of fiscal 2023 was $2.19 billion compared to $1.96 billion in last year’s third quarter, an increase of 11.7%. The organic revenue growth rate for the third quarter of fiscal 2023, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 11.8%.

Gross margin for the third quarter of fiscal 2023 was $1,034.0 million compared to $898.2 million in last year’s third quarter, an increase of 15.1%. Gross margin as a percentage of revenue was 47.2% for the third quarter of fiscal 2023 compared to 45.8% in last year's third quarter, an increase of 140 basis points. Energy expenses comprised of gasoline, natural gas and electricity were 15 basis points lower for the third quarter of fiscal 2023 compared to last year's third quarter.

Operating income for the third quarter of fiscal 2023 was $446.8 million compared to $407.6 million in last year's third quarter. Operating income as a percentage of revenue was 20.4% in the third quarter of fiscal 2023 compared to 20.8% in last year's third quarter. Fiscal 2022 third quarter operating income included a $30.2 million gain on an equity method investment transaction. The gain was recorded in selling and administrative expenses. Excluding this gain, fiscal 2023 third quarter operating income as a percentage of revenue of 20.4% compared to 19.3% in last year's third quarter, an increase of 110 basis points.

Net income was $325.8 million for the third quarter of fiscal 2023 compared to $315.4 million in last year's third quarter. Third quarter of fiscal 2023 diluted earnings per share (EPS) was $3.14 compared to $2.97 in last year's third quarter. Fiscal 2022 third quarter diluted EPS contained $0.28 from the gain on an equity method investment transaction, which included a related $0.07 tax rate benefit. Excluding this gain and the related tax benefit, fiscal 2023 third quarter diluted EPS of $3.14 compared to $2.69 in last year's third quarter, an increase of 16.7%.

On December 15, 2022, Cintas paid an aggregate quarterly cash dividend of $117.4 million to shareholders, an increase of 18.6% from the amount paid last December.

Todd M. Schneider, Cintas' President and Chief Executive Officer, stated, "Our financial performance is the result of the exceptional dedication of our employee-partners to helping businesses across North America with their image, safety, cleanliness and compliance. Through innovative solutions and routine service visits, our employee-partners take care of the important tasks that help our customers keep their workplaces running smoothly. This enables our customers to have more time to focus on their business."

Mr. Schneider continued, "Our operating segments continue to execute at a high level. Strong volume growth from new customers and the penetration of existing customers with more products and services resulted in the achievement of double-digit increases in operating income and diluted EPS, excluding the prior year gain and related tax benefit."

Mr. Schneider concluded, "We are increasing our full fiscal year financial guidance. We are raising our annual revenue expectations from a range of $8.67 billion to $8.75 billion to a range of $8.74 billion to $8.80 billion and diluted EPS from a range of $12.50 to $12.80 to a range of $12.70 to $12.90."

The following table provides a comparison of fiscal 2022 revenue and diluted EPS to our updated fiscal 2023 guidance.

 

 

 

 

 

 

 

Fiscal 2023

 

Fiscal 2023

Revenue Guidance

($s in millions)

Fiscal 2022

 

 

 

 

 

Low End
of Range

Growth vs.
Fiscal 2022

 

High End
of Range

Growth vs.
Fiscal 2022

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

7,854.5

 

 

 

 

 

 

$

8,740.0

11.3

%

 

$

8,800.0

12.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2022

 

Fiscal 2023

 

Fiscal 2023

Earnings Per Share Guidance

($s in millions, except EPS)

Operating
Income

 

Tax
Rate

 

EPS

 

Low End
of Range

Growth vs.
Fiscal 2022

 

High End
of Range

Growth vs.
Fiscal 2022

 

 

 

 

 

 

 

 

 

 

 

 

Reported

$

1,587.4

 

 

17.5

%

 

$

11.65

 

 

 

 

 

 

 

Q1 gain on sale of operating assets

 

(12.1

)

 

0.1

%

 

 

(0.09

)

 

 

 

 

 

 

Q3 gain on an equity method investment

 

(30.2

)

 

0.3

%

 

 

(0.28

)

 

 

 

 

 

 

After above items

$

1,545.1

 

 

17.9

%

 

$

11.28

 

 

$

12.70

12.6

%

 

$

12.90

14.4

%

  • Fiscal year 2023 operating income is expected to be in the range of $1.77 billion to $1.80 billion compared to $1.55 billion in fiscal year 2022, adjusted to exclude the fiscal 2022 gains in the table above.
  • Fiscal year 2023 interest expense is expected to be approximately $112.0 million compared to $88.8 million in fiscal year 2022, due in part to higher interest rates.
  • Fiscal year 2023 effective tax rate is expected to be 20.7% compared to a rate of 17.9% in fiscal year 2022, after excluding the fiscal 2022 gains in the table above and their related tax impacts from the reported rate of 17.5%.
  • Our diluted EPS guidance includes no future share buybacks.
  • We remain in a dynamic environment that can continue to change. Our guidance assumes a stable economy and excludes significant economic disruptions or downturns.

Cintas

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 products and services that help keep their customers’ facilities and employees clean, safe and looking their best. With offerings including uniforms, mats, mops, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety 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 Nasdaq-100 Index.

Cintas will host a live webcast to review the fiscal 2023 third quarter results today at 10:00 a.m., Eastern Time. The webcast will be available to the public on Cintas' website at www.Cintas.com. A replay of the webcast will be available approximately two hours after the completion of the live call and will remain available for two weeks.

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 Quarterly Report. Factors that might cause such a difference include, but are not limited to, 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; inflationary pressures and fluctuations in costs of materials and labor, including increased medical costs; interest rate volatility; 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; our ability to meet our goals relating to environmental, social and governance (ESG) opportunities, improvements and efficiencies; the cost, results and ongoing assessment of internal controls for financial reporting; the effect of new accounting pronouncements; 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 global health 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, 2022 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.

Cintas Corporation

Consolidated Condensed Statements of Income

(Unaudited)

(In thousands except per share data)

 

 

Three Months Ended

 

February 28,
2023

 

February 28,
2022

 

%
Change

Revenue:

 

 

 

 

 

Uniform rental and facility services

$

1,716,165

 

 

$

1,553,320

 

 

10.5

%

Other

 

473,821

 

 

 

407,222

 

 

16.4

%

Total revenue

 

2,189,986

 

 

 

1,960,542

 

 

11.7

%

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

Cost of uniform rental and facility services

 

907,993

 

 

 

834,082

 

 

8.9

%

Cost of other

 

247,962

 

 

 

228,306

 

 

8.6

%

Selling and administrative expenses

 

587,219

 

 

 

490,549

 

 

19.7

%

 

 

 

 

 

 

Operating income

 

446,812

 

 

 

407,605

 

 

9.6

%

 

 

 

 

 

 

Interest income

 

(373

)

 

 

(56

)

 

566.1

%

Interest expense

 

28,819

 

 

 

22,030

 

 

30.8

%

 

 

 

 

 

 

Income before income taxes

 

418,366

 

 

 

385,631

 

 

8.5

%

Income taxes

 

92,539

 

 

 

70,183

 

 

31.9

%

Net income

$

325,827

 

 

$

315,448

 

 

3.3

%

 

 

 

 

 

 

Basic earnings per share

$

3.19

 

 

$

3.04

 

 

4.9

%

 

 

 

 

 

 

Diluted earnings per share

$

3.14

 

 

$

2.97

 

 

5.7

%

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

101,714

 

 

 

103,388

 

 

 

Diluted weighted average common shares outstanding

 

103,418

 

 

 

105,641

 

 

 

Cintas Corporation

Consolidated Condensed Statements of Income

(Unaudited)

(In thousands except per share data)

 

 

Nine Months Ended

 

February 28,
2023

 

February 28,
2022

 

%
Change

Revenue:

 

 

 

 

 

Uniform rental and facility services

$

5,123,924

 

 

$

4,596,767

 

 

11.5

%

Other

 

1,407,374

 

 

 

1,183,006

 

 

19.0

%

Total revenue

 

6,531,298

 

 

 

5,779,773

 

 

13.0

%

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

Cost of uniform rental and facility services

 

2,705,486

 

 

 

2,430,644

 

 

11.3

%

Cost of other

 

741,222

 

 

 

663,078

 

 

11.8

%

Selling and administrative expenses

 

1,752,724

 

 

 

1,503,117

 

 

16.6

%

 

 

 

 

 

 

Operating income

 

1,331,866

 

 

 

1,182,934

 

 

12.6

%

 

 

 

 

 

 

Interest income

 

(872

)

 

 

(168

)

 

419.0

%

Interest expense

 

85,459

 

 

 

65,786

 

 

29.9

%

 

 

 

 

 

 

Income before income taxes

 

1,247,279

 

 

 

1,117,316

 

 

11.6

%

Income taxes

 

245,470

 

 

 

176,020

 

 

39.5

%

Net income

$

1,001,809

 

 

$

941,296

 

 

6.4

%

 

 

 

 

 

 

Basic earnings per share

$

9.82

 

 

$

9.05

 

 

8.5

%

 

 

 

 

 

 

Diluted earnings per share

$

9.65

 

 

$

8.84

 

 

9.2

%

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

101,589

 

 

 

103,438

 

 

 

Diluted weighted average common shares outstanding

 

103,363

 

 

 

105,896

 

 

 

CINTAS CORPORATION SUPPLEMENTAL DATA

Gross Margin and Net Income Margin Results

 

 

Three Months Ended

Nine Months Ended

 

February 28,
2023

February 28,
2022

February 28,
2023

February 28,
2022

 

 

 

 

Uniform rental and facility services gross margin

47.1%

46.3%

47.2%

47.1%

Other gross margin

47.7%

43.9%

47.3%

43.9%

Total gross margin

47.2%

45.8%

47.2%

46.5%

Net income margin

14.9%

16.1%

15.3%

16.3%

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 condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides the additional non-GAAP financial measures of operating income, earnings per diluted share and cash flow. 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 measure calculated in accordance with GAAP are shown in the tables below.

Operating Income Results

 

 

Three Months Ended

(In thousands)

February 28,
2023

% of
Revenue

 

February 28,
2022

% of
Revenue

Growth vs.
Fiscal 2022

 

 

 

 

 

 

 

Operating income

$

446,812

20.4

%

 

$

407,605

 

20.8

%

9.6

%

Gain on equity method investment (1)

 

 

 

 

(30,151

)

 

 

Operating income excluding above item

$

446,812

20.4

%

 

$

377,454

 

19.3

%

18.4

%

 

 

 

 

 

 

 

 

Nine Months Ended

 

February 28,
2023

% of
Revenue

 

February 28,
2022

% of
Revenue

Growth vs.
Fiscal 2022

Operating income

$

1,331,866

20.4

%

 

$

1,182,934

 

20.5

%

12.6

%

Gain on sale of operating assets

 

 

 

 

(12,129

)

 

 

Gain on equity method investment (1)

 

 

 

 

(30,151

)

 

 

Operating income excluding above item

$

1,331,866

20.4

%

 

$

1,140,654

 

19.7

%

16.8

%

(1)

 

In connection with the acquisition of the remaining interest in an equity method investment during the third quarter of fiscal 2022, the Company was required by U.S. GAAP to remeasure its existing interest in the equity method investment at its acquisition-date fair value and recognize the resulting gain in operating income.

Earnings Per Share Results

 

 

Three Months Ended

 

February 28,
2023

 

February 28,
2022

Growth vs.
Fiscal 2022

 

 

 

 

 

Diluted EPS

$

3.14

 

$

2.97

 

5.7

%

Gain on equity method investment transaction (1)

 

 

 

(0.21

)

 

Tax benefit on equity method investment transaction (1)

 

 

 

(0.07

)

 

Diluted EPS excluding above item

$

3.14

 

$

2.69

 

16.7

%

 

 

 

 

 

 

Nine Months Ended

 

February 28,
2023

 

February 28,
2022

Growth vs.
Fiscal 2022

Diluted EPS

$

9.65

 

$

8.84

 

9.2

%

Pre-tax gain and the related tax benefit on sale of certain operating assets

 

 

 

(0.09

)

 

Gain on equity method investment transaction (1)

 

 

 

(0.21

)

 

Tax benefit on equity method investment transaction (1)

 

 

 

(0.07

)

 

Diluted EPS excluding above item

$

9.65

 

$

8.47

 

13.9

%

(1)

 

In connection with the acquisition of the remaining interest in an equity method investment during the third quarter of fiscal 2022, the Company was required by U.S. GAAP to remeasure its existing interest in the equity method investment at its acquisition-date fair value and recognize the resulting gain in operating income. The gain taxed at the statutory tax rate resulted in an earnings per share benefit of $0.21. However, the actual tax rate associated with the transaction was significantly lower than the statutory tax rate resulting in an additional earnings per share benefit of $0.07.    

Computation of Free Cash Flow

 

 

Nine Months Ended

(In thousands)

February 28,
2023

 

February 28,
2022

 

 

 

 

Net cash provided by operations

$

1,044,191

 

 

$

987,055

 

Capital expenditures

 

(224,116

)

 

 

(165,851

)

Free cash flow

$

820,075

 

 

$

821,204

 

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

 

(In thousands)

Uniform Rental
and Facility
Services

 

First Aid
and Safety
Services

 

All
Other

 

Corporate

 

Total

For the three months ended February 28, 2023

 

 

 

 

 

 

 

 

Revenue

$

1,716,165

 

$

231,605

 

$

242,216

 

$

 

 

$

2,189,986

 

Gross margin

$

808,172

 

$

119,408

 

$

106,451

 

$

 

 

$

1,034,031

 

Selling and administrative expenses

$

448,177

 

$

72,137

 

$

66,905

 

$

 

 

$

587,219

 

Interest income

$

 

$

 

$

 

$

(373

)

 

$

(373

)

Interest expense

$

 

$

 

$

 

$

28,819

 

 

$

28,819

 

Income (loss) before income taxes

$

359,995

 

$

47,271

 

$

39,546

 

$

(28,446

)

 

$

418,366

 

 

 

 

 

 

 

 

 

 

 

For the three months ended February 28, 2022

 

 

 

 

 

 

 

 

Revenue

$

1,553,320

 

$

212,958

 

$

194,264

 

$

 

 

$

1,960,542

 

Gross margin

$

719,238

 

$

94,204

 

$

84,712

 

$

 

 

$

898,154

 

Selling and administrative expenses

$

363,248

 

$

67,900

 

$

59,401

 

$

 

 

$

490,549

 

Interest income

$

 

$

 

$

 

$

(56

)

 

$

(56

)

Interest expense

$

 

$

 

$

 

$

22,030

 

 

$

22,030

 

Income (loss) before income taxes

$

355,990

 

$

26,304

 

$

25,311

 

$

(21,974

)

 

$

385,631

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended February 28, 2023

 

 

 

 

 

 

 

 

Revenue

$

5,123,924

 

$

701,740

 

$

705,634

 

$

 

 

$

6,531,298

 

Gross margin

$

2,418,438

 

$

354,698

 

$

311,454

 

$

 

 

$

3,084,590

 

Selling and administrative expenses

$

1,324,577

 

$

221,086

 

$

207,061

 

$

 

 

$

1,752,724

 

Interest income

$

 

$

 

$

 

$

(872

)

 

$

(872

)

Interest expense

$

 

$

 

$

 

$

85,459

 

 

$

85,459

 

Income (loss) before income taxes

$

1,093,861

 

$

133,612

 

$

104,393

 

$

(84,587

)

 

$

1,247,279

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended February 28, 2022

 

 

 

 

 

 

 

 

Revenue

$

4,596,767

 

$

614,234

 

$

568,772

 

$

 

 

$

5,779,773

 

Gross margin

$

2,166,123

 

$

271,513

 

$

248,415

 

$

 

 

$

2,686,051

 

Selling and administrative expenses

$

1,143,136

 

$

197,404

 

$

162,577

 

$

 

 

$

1,503,117

 

Interest income

$

 

$

 

$

 

$

(168

)

 

$

(168

)

Interest expense

$

 

$

 

$

 

$

65,786

 

 

$

65,786

 

Income (loss) before income taxes

$

1,022,987

 

$

74,109

 

$

85,838

 

$

(65,618

)

 

$

1,117,316

 

Cintas Corporation

Consolidated Condensed Balance Sheets

(In thousands except per share data)

 

 

February 28,
2023

 

May 31,
2022

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

88,563

 

 

$

90,471

 

Accounts receivable, net

 

1,133,096

 

 

 

1,006,220

 

Inventories, net

 

531,270

 

 

 

472,150

 

Uniforms and other rental items in service

 

999,029

 

 

 

916,706

 

Income taxes, current

 

2,990

 

 

 

21,708

 

Prepaid expenses and other current assets

 

155,208

 

 

 

124,728

 

Total current assets

 

2,910,156

 

 

 

2,631,983

 

 

 

 

 

Property and equipment, net

 

1,358,181

 

 

 

1,323,673

 

 

 

 

 

Investments

 

241,796

 

 

 

242,873

 

Goodwill

 

3,043,578

 

 

 

3,042,976

 

Service contracts, net

 

357,146

 

 

 

391,638

 

Operating lease right-of-use assets, net

 

178,524

 

 

 

170,003

 

Other assets, net

 

376,620

 

 

 

344,110

 

 

$

8,466,001

 

 

$

8,147,256

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

281,649

 

 

$

251,504

 

Accrued compensation and related liabilities

 

203,726

 

 

 

236,992

 

Accrued liabilities

 

610,863

 

 

 

588,948

 

Operating lease liabilities, current

 

42,970

 

 

 

43,872

 

Debt due within one year

 

249,053

 

 

 

311,574

 

Total current liabilities

 

1,388,261

 

 

 

1,432,890

 

 

 

 

 

Long-term liabilities:

 

 

 

Debt due after one year

 

2,485,952

 

 

 

2,483,932

 

Deferred income taxes

 

496,778

 

 

 

473,777

 

Operating lease liabilities

 

139,107

 

 

 

129,064

 

Accrued liabilities

 

322,647

 

 

 

319,397

 

Total long-term liabilities

 

3,444,484

 

 

 

3,406,170

 

 

 

 

 

Shareholders’ equity:

 

 

 

Preferred stock, no par value:

 

 

 

 

 

100,000 shares authorized, none outstanding

Common stock, no par value, and paid-in capital:

 

1,981,610

 

 

 

1,771,917

 

425,000,000 shares authorized

FY 2023: 192,031,528 issued and 101,672,333 outstanding

FY 2022: 190,837,921 issued and 101,711,215 outstanding

Retained earnings

 

9,368,678

 

 

 

8,719,163

 

Treasury stock:

 

(7,793,136

)

 

 

(7,290,801

)

FY 2023: 90,359,195 shares

FY 2022: 89,126,706 shares

Accumulated other comprehensive income

 

76,104

 

 

 

107,917

 

Total shareholders’ equity

 

3,633,256

 

 

 

3,308,196

 

 

$

8,466,001

 

 

$

8,147,256

 

Cintas Corporation

Consolidated Condensed Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

Nine Months Ended

 

February 28,
2023

 

February 28,
2022

Cash flows from operating activities:

 

 

 

Net income

$

1,001,809

 

 

$

941,296

 

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation

 

190,801

 

 

 

184,464

 

Amortization of intangible assets and capitalized contract costs

 

113,281

 

 

 

112,859

 

Stock-based compensation

 

75,334

 

 

 

83,687

 

Gain on equity method investment transaction

 

 

 

 

(30,151

)

Gain on sale of operating assets

 

 

 

 

(12,129

)

Deferred income taxes

 

22,001

 

 

 

42,652

 

Change in current assets and liabilities, net of acquisitions of businesses:

 

 

 

Accounts receivable, net

 

(132,473

)

 

 

(99,223

)

Inventories, net

 

(60,563

)

 

 

2,311

 

Uniforms and other rental items in service

 

(85,991

)

 

 

(77,584

)

Prepaid expenses and other current assets and capitalized contract costs

 

(116,842

)

 

 

(77,450

)

Accounts payable

 

32,851

 

 

 

6,168

 

Accrued compensation and related liabilities

 

(32,666

)

 

 

(28,400

)

Accrued liabilities and other

 

17,856

 

 

 

(17,717

)

Income taxes, current

 

18,793

 

 

 

(43,728

)

Net cash provided by operating activities

 

1,044,191

 

 

 

987,055

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(224,116

)

 

 

(165,851

)

Purchases of investments

 

(4,618

)

 

 

(6,024

)

Proceeds from sale of operating assets, net of cash disposed

 

 

 

 

15,347

 

Acquisitions of businesses, net of cash acquired

 

(32,983

)

 

 

(150,844

)

Other, net

 

(6,894

)

 

 

(8,939

)

Net cash used in investing activities

 

(268,611

)

 

 

(316,311

)

 

 

 

 

Cash flows from financing activities:

 

 

 

(Payments) issuance of commercial paper, net

 

(62,200

)

 

 

559,210

 

Repayment of debt

 

 

 

 

(250,000

)

Proceeds from exercise of stock-based compensation awards

 

2,941

 

 

 

117,636

 

Dividends paid

 

(332,421

)

 

 

(276,922

)

Repurchase of common stock

 

(370,917

)

 

 

(1,221,841

)

Other, net

 

(11,996

)

 

 

(6,657

)

Net cash used in financing activities

 

(774,593

)

 

 

(1,078,574

)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(2,895

)

 

 

(1,674

)

 

 

 

 

Net decrease in cash and cash equivalents

 

(1,908

)

 

 

(409,504

)

Cash and cash equivalents at beginning of period

 

90,471

 

 

 

493,640

 

Cash and cash equivalents at end of period

$

88,563

 

 

$

84,136

 

 

Contacts

J. Michael Hansen, Executive Vice President and Chief Financial Officer - 513-972-2079

Paul F. Adler, Vice President - Treasurer & Investor Relations - 513-972-4195

Contacts

J. Michael Hansen, Executive Vice President and Chief Financial Officer - 513-972-2079

Paul F. Adler, Vice President - Treasurer & Investor Relations - 513-972-4195