Cintas Corporation Reports First Quarter Fiscal 2008 Revenue and Earnings and Announces International Expansion

Cintas Corporation (Nasdaq:CTAS) today reported revenue for the first quarter of fiscal 2008 of $969.1 million, a 6.0% increase from the previous year’s first quarter revenue of $914.2 million. Net income was $81.1 million and earnings per diluted share were $0.51. Scott D. Farmer, President and Chief Executive Officer, stated, "Our results for the first quarter are in line with our expectations. Our new sales organization is now fully staffed and operational. We believe that the initial disruption in new business sales caused by the rollout of this new organization is behind us and we are beginning to see an improvement in new business results. We expect the new sales organization to continue to gain strength and momentum, resulting in improving revenue growth as we progress through the rest of our fiscal year.” While net income and earnings per diluted share decreased 4.6% and 3.8%, respectively, as compared to the first quarter of last fiscal year, the results were in line with Company projections. The Company indicated that the investment in the new sales organization has impacted profitability, as expected. Mr. Farmer stated, "The investment in the new organization has been made in order to enhance future growth opportunities. As the amount of new business sold improves under this new organization, we expect our selling costs as a percent of revenue to begin to trend back to more traditional levels.” International Expansion In addition to their first quarter results, Cintas announced that it has expanded internationally. Scott Farmer stated, "I am very pleased to announce that we have acquired Certo Information Management, a privately-held document shredding and storage business located in the Netherlands. We are very excited about the opportunity to now expand our services outside of North America. While the revenue added directly from this acquisition is not material to our operations, our hope and intent is that experience gained from operating this business will provide a platform for further international expansion.” Strong Balance Sheet and Cash Flow The Company’s balance sheet continues to be strong. As of August 31, 2007, the Company’s current assets exceeded current liabilities by over a four to one ratio and debt to total capitalization was 28.2%. The Company’s cash flow from operations continues to be healthy. As of June 1, 2007, the Company adopted FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109. As a result of the implementation of FIN 48, the Company recorded a $14 million decrease to opening retained earnings as of June 1, 2007, and a corresponding tax reserve was established. New Segment Reporting Cintas also announced that beginning this quarter it will increase the number of operating segments reported in the Company’s financial statements. Scott Farmer stated, "Our Document Management business and our First Aid, Safety and Fire business have grown to a sufficient size and scale that we believe reporting these businesses as separate operating segments is appropriate. These emerging businesses, which have historically been included in our "Other Services” operating segment, will now be broken out separately.” As a result of this change, the Company will now report results for five operating segments: Rental Uniforms and Ancillary Products; Uniform Direct Sales; First Aid, Safety and Fire Protection Services; Document Management Services; and Corporate. Outlook Mr. Farmer stated, "Our first quarter results are in line with our expectations for the quarter. Based on these results and the improvement we are beginning to experience in our new business sales, we reiterate our full fiscal year guidance of $3.9 billion to $4.1 billion in revenue and earnings per diluted share of $2.15 to $2.25. Achieving this guidance would allow us to reach our 39th consecutive year of growth in revenue and earnings.” About Cintas Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types predominantly in the United States and Canada. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, first aid and safety products, fire protection 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. The Company has achieved 38 consecutive years of growth in sales and earnings, to date. 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 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. We cannot guarantee that any forward-looking statement will be realized. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ from those set forth in or implied by this news 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 compliance 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, higher assumed sourcing or distribution costs of products, the disruption of operations from catastrophic events, changes in federal and state tax laws and the reactions of competitors in terms of price and service. Cintas undertakes no obligation to update any forward-looking statements whether as a result of new information or to reflect events or circumstances arising after the date on which they are made. You are advised, however, to consult any further disclosures we make on related subjects in our Form 10-Q, 8K and 10-K reports to the SEC. Cintas Corporation Consolidated Condensed Statements of Income (Unaudited) (In thousands except per share data)               Three Months Ended   Aug. 31, 2007   Aug. 31, 2006   % Chng. Revenue:         Rental uniforms and ancillary products $710,354     $687,658     3.3 Other services 258,774     226,503     14.2 Total revenue $969,128     $914,161     6.0           Costs and expenses (income):           Cost of rental uniforms and ancillary products $391,490     $378,300     3.5 Cost of other services 160,266     145,380     10.2 Selling and administrative expenses 276,710     244,128     13.3 Interest income (1,462 )   (1,526 )   -4.2 Interest expense 12,837     12,432     3.3 Total costs and expenses $839,841     $778,714     7.8           Income before income taxes $129,287     $135,447     -4.5 Income taxes 48,224     50,485     -4.5 Net income $81,063     $84,962     -4.6             Per share data:           Basic earnings per share $0.51     $0.53     -3.8 Diluted earnings per share $0.51     $0.53     -3.8             Basic shares outstanding 158,771     160,770       Diluted shares outstanding 159,038     161,147       CINTAS CORPORATION SUPPLEMENTAL DATA   Three Months Ended   Aug. 31, 2007   Aug. 31, 2006   % Chng. Rental uniforms and ancillary products gross margin 44.9%   45.0%     Other services gross margin 38.1%   35.8%     Total gross margin 43.1%   42.7%     Net margin 8.4%   9.3%                 Depreciation and amortization $46,222   $42,768   8.1 Capital expenditures $45,344   $36,496   24.2             Debt to total capitalization 28.2%   29.5%     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 August 31, 2007                         Revenue   $710,354   $118,805   $102,256   $37,713   $0     $969,128 Gross margin   $318,864   $36,470   $41,820   $20,218   $0     $417,372 Selling and administrative expenses   $204,071   $25,343   $31,199   $16,097   $0     $276,710 Income (loss) before income taxes   $114,793   $11,127   $10,621   $4,121   ($11,375 )   $129,287 Assets   $2,592,401   $182,278   $332,757   $375,122   $138,272     $3,620,830                           For the three months ended August 31, 2006                         Revenue   $687,658   $116,997   $88,336   $21,170   $0     $914,161 Gross margin   $309,358   $35,693   $34,330   $11,100   $0     $390,481 Selling and administrative expenses   $185,278   $23,790   $25,151   $9,909   $0     $244,128 Income (loss) before income taxes   $124,080   $11,903   $9,179   $1,191   ($10,906 )   $135,447 Assets   $2,519,943   $163,572   $287,521   $238,291   $174,894     $3,384,221 RECONCILIATION TO GAAP MEASURES   Three Months Ended   Aug. 31, 2007   Aug. 31, 2006   % Chng. Income before income taxes $129,287     $135,447     -4.5 Interest income (1,462 )   (1,526 )   -4.2 Interest expense 12,837     12,432     3.3 Earnings before interest and taxes $140,662     $146,353     -3.9 Cintas Corporation Consolidated Condensed Balance Sheets (In thousands except share data)           Aug. 31, 2007 (Unaudited)   May 31, 2007 ASSETS       Current assets:       Cash and cash equivalents $40,841     $35,360   Marketable securities 97,431     120,053   Accounts receivable, net 409,441     408,870   Inventories, net 236,102     231,741   Uniforms and other rental items in service 352,279     344,931   Deferred tax assets 19,912     -   Prepaid expenses 17,896     15,781   Total current assets 1,173,902     1,156,736           Property and equipment, at cost, net 933,233     920,243         Goodwill 1,270,780     1,245,877   Service contracts, net 166,223     171,361   Other assets, net 76,692     76,263             $3,620,830     $3,570,480           LIABILITIES AND SHAREHOLDERS' EQUITY       Current liabilities:       Accounts payable $70,093     $64,622   Accrued compensation & related liabilities 34,517     62,826   Accrued liabilities 124,174     200,686   Income taxes:       Current 27,966     18,584   Deferred -     52,179   Long-term debt due within one year 4,161     4,141   Total current liabilities 260,911     403,038           Long-term liabilities:       Long-term debt due after one year 876,522     877,074   Deferred income taxes 122,884     122,630   Accrued liabilities 116,552     0   Total long-term liabilities 1,115,958     999,704           Shareholders' equity:       Preferred stock, no par value: 100,000 shares authorized, none outstanding   -   -   Common stock, no par value: 425,000,000 shares authorized   FY 2008: 173,057,674 issued and 158,860,351 outstanding   FY 2007: 172,874,195 issued and 158,676,872 outstanding 128,041     120,811   Paid-in capital 55,542     56,909   Retained earnings 2,600,792     2,533,459   Treasury stock FY 2008: 14,197,323; FY 2007: 14,197,323 (580,562 )   (580,562 ) Other accumulated comprehensive income 40,148     37,121   Total shareholders' equity 2,243,961     2,167,738             $3,620,830     $3,570,480   Cintas Corporation Consolidated Condensed Statements of Cash Flows (Unaudited) (In thousands)                   Three Months Ended   Aug. 31, 2007   Aug. 31, 2006 Cash flows from operating activities:               Net income $81,063     $84,962           Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation 35,636     33,078   Amortization of deferred charges 10,586     9,690   Stock-based compensation 2,132     (598 ) Deferred income taxes 17,418     10,772   Change in current assets and liabilities, net of acquisitions of businesses:       Accounts receivable 644     (1,202 ) Inventories (4,293 )   (12,381 ) Uniforms and other rental items in service (7,128 )   (2,311 ) Prepaid expenses (2,117 )   634   Accounts payable 5,435     (11,770 ) Accrued compensation and related liabilities (28,386 )   (2,777 ) Accrued liabilities (77,865 )   (58,777 ) Income taxes payable 24,001     6,524   Net cash provided by operating activities 57,126     55,844           Cash flows from investing activities:               Capital expenditures (45,344 )   (36,496 ) Proceeds from sale or redemption of marketable securities 29,156     66,214   Purchase of marketable securities and investments (6,237 )   (3,527 ) Acquisitions of businesses, net of cash acquired (32,630 )   (25,101 ) Other 177     (1,954 ) Net cash used in investing activities (54,878 )   (864 )         Cash flows from financing activities:               Proceeds from issuance of debt 224,750     252,460   Repayment of debt (225,282 )   (194,283 ) Stock options exercised 7,230     3,403   Repurchase of common stock -     (114,418 ) Other (3,465 )   (6,091 ) Net cash provided by (used in) financing activities 3,233     (58,929 )         Net increase/(decrease) in cash and cash equivalents 5,481     (3,949 ) Cash and cash equivalents at beginning of period 35,360     38,914   Cash and cash equivalents at end of period $40,841     $34,965