d746041da7917a07f9f3a7ae1a98f9847fb4fdcb36e6e4522e814a8fd51c5827

e487df848c2af85d3d41ea7182e296a27426435b29af43321772d79a2908de4e

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

7e68e0cad666b3c42dbd6142baf92ca043b98503ba1cc03239c98823b6a996e9

Uniform rental and facility services Revenue (USD, thousands)

Other Revenue (USD, thousands)

Total revenue (USD, thousands)

Cost of uniform rental and facility services (USD, thousands)

Cost of other (USD, thousands)

Selling and administrative expenses (USD, thousands)

Operating income (USD, thousands)

Interest income (USD, thousands)

Interest expense (USD, thousands)

Income before income taxes (USD, thousands)

Income taxes (USD, thousands)

Net income (USD, thousands)

Basic earnings per share (USD)

Diluted earnings per share (USD)

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Cash and cash equivalents (USD, thousands)

Accounts receivable, net (USD, thousands)

Inventories, net (USD, thousands)

Uniforms and other rental items in service (USD, thousands)

Income taxes, current (USD, thousands)

Prepaid expenses and other current assets (USD, thousands)

Total current assets (USD, thousands)

Property and equipment, net (USD, thousands)

Investments (USD, thousands)

Goodwill (USD, thousands)

Service contracts, net (USD, thousands)

Operating lease right-of-use assets, net (USD, thousands)

Other assets, net (USD, thousands)

Accounts payable (USD, thousands)

Accrued compensation and related liabilities (USD, thousands)

Accrued liabilities (USD, thousands)

Operating lease liabilities, current (USD, thousands)

Debt due within one year (USD, thousands)

Total current liabilities (USD, thousands)

Debt due after one year (USD, thousands)

Deferred income taxes (USD, thousands)

Operating lease liabilities (USD, thousands)

Total long-term liabilities (USD, thousands)

Common stock, no par value, and paid-in capital (USD, thousands)

Retained earnings (USD, thousands)

Treasury stock (USD, thousands)

Accumulated other comprehensive income (USD, thousands)

Total shareholders’ equity (USD, thousands)

50b6b9dd01add8c0d5f4d009ebd2bfd854b8ab4d5d8234bab2c924b8ba52b515

The **sharp increase** in Operating Cash Flow in Q3 2024 was driven primarily by a **rise in net income** due to strong revenue growth and improved margins, along with **favorable changes in working capital**. Specifically, there was a **smaller negative impact from accounts receivable**, a **turnaround in inventory impacts** from a negative to a positive effect, and a **reduction in the adverse effect of uniforms and other rental items in service**. Additionally, enhanced **operational efficiencies** and an **increase in stock-based compensation expenses** played significant roles in reconciling net income to cash flow improvements.  **[0000723254-24-000018_ctas-20240229.htm:6]** **[0000723254-24-000018_ctas-20240229.htm:32]** 

What drove the sharp increase in Operating Cash Flow in Q3 2024?

The higher annual Operating Cash Flow in FY 2024 was primarily driven by a **higher Net Income**, which increased from **$1,348,010 thousand** in FY 2023 to **$1,571,592 thousand** in FY 2024, and by **favorable changes in working capital**. These working capital improvements included better inventory management—reflected in an improvement of **$95,766 thousand** in FY 2024 compared to a reduction of **$(35,658) thousand** in FY 2023—as well as smaller decreases in both **Accounts Receivable, net** and **Uniforms and Other Rental Items in Service**. Additionally, higher **Depreciation and Amortization** (rising from **$409,162 thousand** in FY 2023 to **$442,384 thousand** in FY 2024) and improved adjustments in **Accrued Liabilities and Other** also played key roles in boosting the operating cash flow, culminating in an overall increase of **$482,000 thousand (30.2%)** in FY 2024.  **[0000723254-24-000036_ctas-20240531.htm:39]** **[0000723254-24-000032_ex992024-5x31.htm:8]** 

What factors contributed to the higher annual Operating Cash Flow in FY 2024?

The lower **Capital Expenditures** in Q1 2025 compared to Q1 2024 were primarily attributed to **timing differences in project execution** and the **completion of certain capital-intensive projects** in the previous period. Additionally, while the company continued to invest in **technology, automation, and processing capacity** to drive long-term growth, these ongoing investments coincided with the strategic timing adjustments that resulted in a roughly **13% reduction** in CapEx. No single explicit reason was provided, but these factors collectively contributed to the lower figures in Q1 2025.  **[0000723254-24-000051_ex992024-8x31.htm:7]** **[0000723254-24-000053_ctas-20240831.htm:5]** **[CTAS_3402081_4]** 

Why were Capital Expenditures lower in Q1 2025 compared to the previous period?

The provided documents include the **numerical values** for Q1 2025 (**466,732 thousand**) and Q2 2025 (**441,404 thousand**) but do not include any definitive explanation for the **decline in Operating Cash Flow** in Q2 2025.  **[0000723254-24-000053_ctas-20240831.htm:5]** **[0000723254-25-000003_ctas-20241130.htm:5]** 

What caused the decline in Operating Cash Flow in Q2 2025?

The information indicates that the change in proceeds was primarily due to the **withholding of shares for taxes** during stock option exercises and restricted share vesting. In other words, rather than a jump, the proceeds actually fell from **$479,000** in Q1 2024 to **$231,000** in Q1 2025 as the cash flow statement reflects the impact of tax withholdings.  **[CTAS_3402081_20]** 

What led to the massive jump in proceeds from stock-based compensation awards in Q1 2025?

03999dafc0ef51617478f28b04419c5f302cb612441b1cee14daca0af28756e4

The documents do not indicate that the Basic EPS in Q1 2025 was considered low. In fact, they note that Q1 2025’s Basic EPS of **$1.12** represents a **19.1%** increase over **$0.94** in Q1 2024, and they focus on the positive factors (such as revenue growth, margin expansion, and a lower effective tax rate) that drove this improvement.  **[0000723254-24-000051_ex992024-8x31.htm:5]**  If the question is comparing Q1 2025 to Q4 2024 (where EPS was **$4.06**  **[0000723254-24-000036_ctas-20240531.htm:53]** ), no documents provide an explanation for seasonal or cyclical differences between these quarters.

Why was Basic EPS so low in Q1 2025?

The documents indicate that Basic EPS in Q2 2025 actually increased significantly compared to the prior year rather than dropped. Specifically, documents show that EPS rose from **$0.92 in Q2 2024 to approximately $1.11 (or $1.10)** in Q2 2025, driven by factors such as **revenue growth**, **gross margin expansion**, **operating income growth**, **net income growth**, and the impact of a **four-for-one stock split**.  **[0000723254-24-000057_ex992024-11x30.htm:5]** **[0000723254-25-000003_ctas-20241130.htm:11]**  There is no explanation in the documents attributing this result to a drop in EPS.

Why did Basic EPS drop to 1.10 in Q2 2025?

Based on the documents, there was no sharp decline in dividends declared per share in Q1 2025. In fact, the dividends increased from **$0.3375** in Q1 2024 to **$0.39** in Q1 2025, marking a **15.6% increase**. This increase was driven by the company's ongoing strategy to return capital to shareholders through both dividend increases and share repurchases, a practice it has maintained for **41 consecutive years** since going public.  **[CTAS_3402081_2]** **[0000723254-24-000053_ctas-20240831.htm:2]** **[0000723254-24-000051_ex992024-8x31.htm:1]** 

What drove the sharp decline in dividends declared per share in Q1 2025?

2a3d1ff915c1f765b9cc9d9941939d0ba7b8d1aea8c78b980ae1f07029a1899c

The jump to **342,015** in Q4 2024 was primarily driven by a **30.2%** increase in net cash provided by operating activities—from **$1,597,814 thousand** to **$2,079,781 thousand**—boosting cash from stronger net income and improvements in working capital. This robust inflow more than offset increased cash outflows from both investing activities (with higher capital expenditures and business acquisitions) and financing activities (including dividends paid and share repurchases).  **[0000723254-24-000036_ctas-20240531.htm:39]** **[0000723254-24-000032_ex992024-5x31.htm:8]** 

Why did cash and cash equivalents jump to 342,015 in Q4 2024?

The sharp drop to **101,373 (USD thousands)** in Q1 2025 was primarily due to a **net decrease of $240.6 million**. Despite strong cash generation of **$466.7 million** from operating activities, this was more than offset by **$114.3 million** used in investing activities and a substantial **$592.8 million** used in financing activities—mainly driven by increased share buybacks and higher dividend payments. Additionally, a minor negative effect from exchange rate changes contributed to the decline.  **[0000723254-24-000051_ex992024-8x31.htm:1]** **[0000723254-24-000051_ex992024-8x31.htm:7]** **[0000723254-24-000053_ctas-20240831.htm:25]** 

What caused the sharp drop in cash and cash equivalents to 101,373 in Q1 2025?

The short-term debt increased to **615,702** (USD, thousands) in Q1 2025 because, compared to the previous quarter’s **449,595** (USD, thousands), there was an issuance of **$166,000** thousand in commercial paper, which contributed to the overall rise in debt due within one year.  **[0000723254-24-000053_ctas-20240831.htm:28]** **[0000723254-24-000053_ctas-20240831.htm:14]** **[0000723254-24-000053_ctas-20240831.htm:3]** 

Why did short-term debt rise to 615,702 in Q1 2025?

The documents do not include any details or analysis regarding the factors that drove total debt to **2,657,771** in Q2 2025 [N/A].

Cintas Corp (CTAS)

Financials