Cintas Corporation (CTAS) is expanding its document management business in the Southwest with the acquisition of Phoenix-based FACS Records Center. The acquisition will help Cintas provide businesses across the country with secure, cost-effective and compliant document management solutions.
FACS Records Center through its off-site records management and storage facility has been providing offsite document storage and retrieval of records management since 1983. Through this acquisition, Cintas has broadened its presence in Arizona. The acquisition is synergistic with Cintas’ document management segment, which provides document shredding, storage and imaging solutions that maintain the highest standards of security.
Cintas reported second-quarter fiscal 2011 results with net earnings of 38 cents per share, in line with the Zacks Consensus Estimate but a cent below year-ago results. Cintas’ total operating revenue for the quarter was $936.6 million versus $884.5 million in the year-ago period, reflecting a growth of 6%. Revenue was ahead of the Zacks Consensus Estimate of $916 million. Organic revenue growth was 4.2% in the quarter.
Cintas’ fiscal 2011 earnings per share guidance stands in the range of $1.55 to $1.63 on revenues of $3.55 billion to $3.75 billion. The Zacks Consensus Estimate for the current quarter is 36 cents. For fiscal 2011, the consensus estimate is at $1.57, at the lower end of the company’s prescribed range.
Cintas is making a steady recovery through consistent increases in revenue. With a sound financial position and strong cash flow, the company is looking for opportunities to improve its long-term profitability. Cintas currently retains a Zacks #2 Rank (short-term Buy rating).
Cincinnati, Ohio-based Cintas provides specialized services to businesses of all types throughout North America. The company designs, manufactures, and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, and first aid and safety products for approximately 800,000 businesses.
Cintas competes with G&K Services Inc. (GKSR) and privately held Alsco, Inc. and ARAMARK Corporation. Cintas operates under two operating segments, Rental Uniforms and Ancillary Products and Other Services. The Other Services segment consists of Uniform Direct Sales, First Aid, Safety and Fire Protection, and Document Management.
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