Andrew J. Whitman

Andrew J. Whitman inquired about the competitive environment and its effect on Cintas's price realization, particularly in light of competitors' volume-chasing, and asked about the M&A funnel and the likelihood of capital deployment for M&A matching last fiscal year's levels.

Answer

President and CEO Todd Schneider affirmed Cintas operates in a highly competitive environment but focuses on acquiring new 'no-programmer' customers, which still account for over two-thirds of new business. He emphasized Cintas's value proposition and culture as competitive advantages. Regarding M&A, he noted a strong quarter and year but highlighted the unpredictable and lumpy nature of M&A, reiterating Cintas's opportunistic approach to capital allocation, valuing people and customers from acquisitions.

Andrew J. Whitman asked about the competitive environment, particularly regarding competitors' volume-chasing strategies, and its impact on Cintas's price realization. He also inquired about the M&A funnel and the potential for capital deployment similar to last fiscal year.

Answer

Todd Schneider, President and CEO, acknowledged the competitive landscape but emphasized Cintas's focus on acquiring 'no-programmers' (over two-thirds of new customers) and leveraging its value proposition and culture for high retention. Regarding M&A, he highlighted Cintas's balanced capital allocation strategy and opportunistic approach, noting that M&A is unpredictable but remains a key strategic component, with a continuous focus on building the pipeline and valuing acquired people and customers.