Date: March 15, 2023
Participants
* John Enright – Chief Executive Officer
* Scott A. Mingo – Chief Financial Officer
* Michael D. Patchell – Chief Operating Officer
Presentation
Operator
Good day, ladies and gentlemen, and welcome to the Cintas Corporation Full Year 2023 Earnings Conference Call. [Operator Instructions]
John Enright
Good morning. Thank you for joining us today. It’s my pleasure to be here with Scott Mingo, our CFO; and Mike Patchell, our COO, to discuss our full year 2023 results.
GAAP Highlights
We delivered solid results in Fiscal 2023 despite a challenging economic environment. Our diluted earnings per share for the year were $15.44, an increase of 10.1% over last fiscal year. Our revenue increased 18.5% to a record $8.4 billion for the year, driven by strong growth in our uniform rental and facility services segments.
Scott Mingo
Our total revenue growth of 18.5% for the year was driven by a combination of organic growth and acquisitions. Organic revenue growth was 14.4%, primarily driven by price increases and volume growth in both our uniform rental and facility services segments.
Mike Patchell
In our uniform rental segment, we saw continued strong demand for our services, particularly in the healthcare, hospitality, manufacturing, and food service industries. We also benefited from the full-year impact of acquisitions completed in the prior year.
Adjusted EBITDA
Our adjusted EBITDA increased 15.1% to a record $2.1 billion for the year, driven by strong revenue growth and cost control initiatives.
Cash Flow
Our operating cash flow increased $450 million to a record $1.5 billion for the year, reflecting strong earnings and working capital management initiatives.
Capital Returns
We returned approximately $1.6 billion to shareholders through dividends and share repurchases in Fiscal 2023. We increased our quarterly dividend by 10% in September 2022 to $1.12 per share, and we have now increased our dividend for 38 consecutive years.
Outlook
Looking ahead to Fiscal 2024, we expect to continue to drive organic growth through our focus on operational excellence and customer satisfaction. We are also excited about the opportunities to drive incremental growth through acquisitions.
John Enright
In conclusion, I am pleased with our performance in Fiscal 2023 and excited about the future of Cintas. Our strong financial position, experienced team, and commitment to innovation will enable us to continue to generate value for our shareholders.
Thank you for your time.
Q&A
**Analyst 1**
What are your expectations for organic growth in Fiscal 2024?
**Scott Mingo**
We expect organic growth in the mid-single digits for Fiscal 2024.
**Analyst 2**
What are your plans for acquisitions?
**John Enright**
We are always looking for opportunities to acquire businesses that are a good fit with our existing operations. We see a lot of attractive targets in the fragmented facility services market.
**Analyst 3**
What are the biggest challenges facing the uniform rental industry?
**Mike Patchell**
The biggest challenges facing the uniform rental industry are rising labor costs and supply chain disruptions.
Closing Remarks
John Enright
Thank you for your questions and for joining us today. We look forward to updating you on our progress next quarter.
Kind regards
S. Sing
