Earnings Per Share

3 Months Ended

Aug. 31, 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 for the three months ending August 31:


Basic Earnings per Share (In thousands except per share data)	2022		2021



Net income	$	351,689	$	331,179
Less: income allocated to participating securities	1,520		1,765
Income available to common shareholders	$	350,169	$	329,414
Basic weighted average common shares outstanding	101,428		103,295

Basic earnings per share	$	3.45	$	3.19


Diluted Earnings per Share (In thousands except per share data)	2022		2021



Net income	$	351,689	$	331,179
Less: income allocated to participating securities	1,520		1,765
Income available to common shareholders	$	350,169	$	329,414
Basic weighted average common shares outstanding	101,428		103,295
Effect of dilutive securities – employee stock options	1,909		2,649
Diluted weighted average common shares outstanding	103,337		105,944

Diluted earnings per share	$	3.39	$	3.11

For the three months ended August 31, 2022 and 2021, options granted to purchase 0.8 million and 0.1 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 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. On July 27, 2021, Cintas announced that the Board of Directors authorized a $1.5 billion share buyback program, which does not have an expiration date. From the inception of the July 27, 2021 share buyback program through August 31, 2022, Cintas purchased a total of 2.7 million shares of Cintas common stock at an average price of $385.66 per share for a total purchase price of $1.0 billion. On July 26, 2022, Cintas announced that the Board of Directors authorized a new $1.0 billion share buyback program, which does not have an expiration date.

The following tables summarize the share buyback activity by program for the three months ended August 31:


	2022					2021
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	532	396.39		210,751		—	—		—
July 26, 2022	—	—		—		—	—		—
	532	$	396.39	$	210,751	1,590	$	365.41	$	581,220

Shares acquired for taxes due (1)	270	$	405.93	$	109,583	198	$	394.19	$	78,015

Total repurchase of Cintas common stock				$	320,334				$	659,235

(1) Shares of Cintas common 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 months ended August 31, 2022, Cintas acquired 0.2 million shares of Cintas common stock via such non-cash transactions at an average price of $411.93 for a total non-cash value of $79.6 million.