Earnings Per Share

3 Months Ended

Aug. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share 

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 ended August 31:

Basic Earnings per Share (In thousands except per share data)	2023		2022
Net income	$	385,085	$	351,689
Less: net income allocated to participating securities	1,560		1,520
Net income available to common shareholders	$	383,525	$	350,169
Basic weighted average common shares outstanding	101,895		101,428
Basic earnings per share	$	3.76	$	3.45

Diluted Earnings per Share (In thousands except per share data)	2023		2022
Net income	$	385,085	$	351,689
Less: net income allocated to participating securities	1,560		1,520
Net income available to common shareholders	$	383,525	$	350,169
Basic weighted average common shares outstanding	101,895		101,428
Effect of dilutive securities – employee stock options	1,677		1,909
Diluted weighted average common shares outstanding	103,572		103,337
Diluted earnings per share	$	3.70	$	3.39

For the three months ended August 31, 2023 and 2022, options granted to purchase 0.2 million and 0.8 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 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. 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 table summarizes the share buyback activity by program and period for the three months ended August 31:

	2023					2022
Buyback Activity (In thousands except per share data)	Shares	Avg. Price per Share		Purchase Price		Shares	Avg. Price per Share		Purchase Price
July 27, 2021	—	$	—	$	—	532	$	396.39	$	210,751
July 26, 2022	—	—		—		—	—		—
	—	$	—	$	—	532	$	396.39	$	210,751
Shares acquired for taxes due (1)	145	$	503.20	$	73,276	270	$	405.93	$	109,583
Total repurchase of Cintas common stock				$	73,276				$	320,334

(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. The following table summarizes Cintas' non-cash share buyback activity for the three months ended August 31:

	2023					2022
(In thousands except per share data)	Shares	Avg. Price per Share		Non-Cash Value		Shares	Avg. Price per Share		Non-Cash Value
Non-cash transaction activity	118	$	502.24	$	59,212	193	$	411.93	$	79,591

In the period subsequent to August 31, 2023, through October 5, 2023, we purchased 0.5 million shares of Cintas common stock at an average price of $482.59 for a total purchase price of $225.5 million. From the inception of the July 27, 2021 program through October 5, 2023, Cintas has purchased 3.2 million shares of Cintas common stock in the aggregate, at an average price of $400.08 per share, for a total purchase price of $1.3 billion. Cintas has made no purchases under the July 26, 2022 share buyback program.