filings.toolsItem 6. Selected Financial Data
10K characters. Original on sec.gov ·
Item 6. Selected Financial Data
Five-Year Financial Summary
(In thousands except per share and percentage data)
| Fiscal Years Ended May 31, | 2016(1) | 2017(1)(3) | 2018(1) | 2019(1)(2) | 2020(1)(2) | Compound Annual Growth (2016-2020) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 4,795,772 | $ | 5,323,381 | $ | 6,476,632 | $ | 6,892,303 | $ | 7,085,120 | 10.2% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Income, Continuing Operations | 448,605 | 457,286 | 783,932 | 882,635 | 876,360 | 18.2% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Income (Loss), Discontinued Operations | 244,915 | 23,422 | 58,654 | 2,346 | (323) | (80.9)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Income | $ | 693,520 | $ | 480,708 | $ | 842,586 | $ | 884,981 | $ | 876,037 | 6.0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic Earnings Per Share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Continuing Operations | $ | 4.08 | $ | 4.27 | $ | 7.24 | $ | 8.23 | $ | 8.36 | 19.6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations | 2.22 | 0.22 | 0.54 | 0.02 | 0.00 | (100.0)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic Earnings Per Share | $ | 6.30 | $ | 4.49 | $ | 7.78 | $ | 8.25 | $ | 8.36 | 7.3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted Earnings Per Share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Continuing Operations | $ | 4.02 | $ | 4.17 | $ | 7.03 | $ | 7.97 | $ | 8.11 | 19.2% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations | 2.19 | 0.21 | 0.53 | 0.02 | 0.00 | (100.0)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted Earnings Per Share | $ | 6.21 | $ | 4.38 | $ | 7.56 | $ | 7.99 | $ | 8.11 | 6.9% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends Per Share | $ | 1.05 | $ | 1.33 | $ | 1.62 | $ | 2.05 | $ | 2.55 | 24.8% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Assets (4) | $ | 4,098,815 | $ | 6,844,057 | $ | 6,958,214 | $ | 7,436,662 | $ | 7,669,885 | 17.0% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' Equity | $ | 1,842,659 | $ | 2,302,793 | $ | 3,016,526 | $ | 3,002,721 | $ | 3,235,202 | 15.1% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on Average Equity (5) | 23.8 | % | 22.1 | % | 29.5 | % | 29.3 | % | 28.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt | $ | 1,294,422 | $ 3,133,524(6) | $ | 2,535,309 | $ | 2,849,771 | $ | 2,539,705 |
(1)In accordance with the applicable accounting guidance for the disposal of long-lived assets and discontinued operations, the results of discontinued operations have been excluded from continuing operations for all periods presented. Please see Note 16 entitled Discontinued Operations of "Notes to Consolidated Financial Statements" for additional information.
(2)In accordance with the applicable accounting guidance for revenue from contracts with customers, Cintas capitalizes commission expenses and amortizes them on a straight-line basis over the expected period of benefit. The current and noncurrent assets related to capitalized contract costs included in the consolidated balance sheet at May 31, 2020, totaled $76.2 million and $227.1 million, respectively, and at May 31, 2019, totaled $69.6 million and $206.0 million, respectively. Historical periods presented prior to fiscal 2019 do not include capitalized contract costs, and as a result, the information may not be comparable. Please see Note 2 entitled Revenue Recognition of "Notes to Consolidated Financial Statements" for additional information.
(3)Includes G&K Services, Inc. (G&K) results of operations from March 21, 2017 through May 31, 2017, as a result of Cintas' acquisition of G&K in fiscal 2017. Historical periods presented prior to fiscal 2017 do not include G&K, and as a result, the information may not be comparable.
(4)In accordance with the applicable accounting guidance for leases, Cintas records operating leases on the consolidated balance sheet. At May 31, 2020, total assets include $160.0 million of operating lease right-of-use assets, net. Historical periods presented prior to fiscal 2020 do not include operating leases on the consolidated balance sheet, and as a result, the information may not be comparable. See Note 1 entitled Significant Accounting Policies and Note 8 entitled Leases of "Notes to Consolidated Financial Statements" for additional information on the adoption of this new guidance.
(5)Return on average equity is computed as net income from continuing operations divided by the average of shareholders' equity. We believe that disclosure of this non-GAAP financial measure gives management and shareholders a good indication of Cintas' historical performance.
(6)Includes issuance of approximately $2.1 billion in debt to fund the G&K acquisition. Please see Note 7 entitled Debt and Derivatives of "Notes to Consolidated Financial Statements" for additional information.
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