Earnings Per Share

9 Months Ended

Feb. 28, 2022

Cintas uses the two-class method to calculate basic and diluted earnings per share as a result of outstanding participating securities in the form of restricted stock awards. The following tables set forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to Cintas’ common shares.



	Three Months Ended				Nine Months Ended
Basic Earnings per Share (In thousands except per share data)	February 28, 2022		February 28, 2021		February 28, 2022		February 28, 2021

Net income	$	315,448	$	258,384	$	941,296	$	843,246
Less: income allocated to participating securities	1,581		1,894		4,706		5,908
Income available to common shareholders	$	313,867	$	256,490	$	936,590	$	837,338
Basic weighted average common shares outstanding	103,388		105,264		103,438		104,782

Basic earnings per share	$	3.04	$	2.44	$	9.05	$	7.99



	Three Months Ended				Nine Months Ended
Diluted Earnings per Share (In thousands except per share data)	February 28, 2022		February 28, 2021		February 28, 2022		February 28, 2021

Net income	$	315,448	$	258,384	$	941,296	$	843,246
Less: income allocated to participating securities	1,581		1,894		4,706		5,908
Income available to common shareholders	$	313,867	$	256,490	$	936,590	$	837,338
Basic weighted average common shares outstanding	103,388		105,264		103,438		104,782
Effect of dilutive securities – employee stock options	2,253		2,732		2,458		2,914
Diluted weighted average common shares outstanding	105,641		107,996		105,896		107,696

Diluted earnings per share	$	2.97	$	2.37	$	8.84	$	7.78

For the three months ended February 28, 2022 and 2021, options granted to purchase 0.6 million and 0.1 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. For the nine months ended February 28, 2022 and 2021, options granted to purchase 0.5 million and 0.2 million shares of Cintas common stock, respectively, were excluded from the computation of diluted earnings per share. The exercise prices of these options were greater than the average market price of the common stock (anti-dilutive).

On October 30, 2018, Cintas announced that the Board of Directors authorized a $1.0 billion share buyback program, which was completed during the third quarter of fiscal 2021. On October 29, 2019, we announced that the Board of Directors authorized a $1.0 billion share buyback program, which was completed during the first quarter of fiscal 2022. From the inception of the October 29, 2019 share buyback program through July 2021, Cintas purchased a total of 2.8 million shares of Cintas common stock at an average price of $358.93 per share for a total purchase price of $1.0 billion. On July 27, 2021, Cintas announced that the Board of Directors authorized a new $1.5 billion share buyback program, which does not have an expiration date.

The following tables summarize the share buyback activity by program and period:


	Three Months Ended					Nine Months Ended
	February 28, 2022					February 28, 2022
Buyback Activity (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price

October 29, 2019	—	$	—	$	—	1,590	$	365.41	$	581,220
July 27, 2021	1,386	388.03		537,655		1,386	388.03		537,655
	1,386	$	388.03	$	537,655	2,976	$	375.94	$	1,118,875

Shares acquired for taxes due (1)	50	$	390.60	$	19,460	261	$	394.84	$	102,966

Total repurchase of Cintas common stock				$	557,115				$	1,221,841


	Three Months Ended					Nine Months Ended
	February 28, 2021					February 28, 2021
Buyback Activity (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price

October 30, 2018	190	$	319.88	$	60,877	190	$	319.88	$	60,877
October 29, 2019	66	$	321.51	$	21,080	66	$	321.51	$	21,080
	256	$	320.30	$	81,957	256	$	320.30	$	81,957

Shares acquired for taxes due (1)	4	$	332.73	$	1,151	241	$	301.49	$	72,533

Total repurchase of Cintas common stock				$	83,108				$	154,490

(1) Shares of Cintas stock acquired for employee payroll taxes due on options exercised and vested restricted stock awards.

In addition to the share buyback activity presented above, Cintas acquired shares of Cintas common stock, via non-cash transactions, in connection with net-share settlements of option exercises. During the three and nine months ended February 28, 2022, Cintas acquired less than 0.1 million shares of Cintas common stock via such non-cash transactions at an average price of $391.03 for a total non-cash value of $12.0 million.

In the period subsequent to February 28, 2022, through April 7, 2022, we purchased 0.1 million shares of Cintas common stock at an average price of $368.75 for a total purchase price of $46.5 million. From the inception of the July 27, 2021 program through April 7, 2022, Cintas has purchased 1.5 million shares of Cintas common stock in the aggregate, at an average price of $386.42 per share, for a total purchase price of $584.2 million.