Cintas

Part
01
of seven
Part
01

Cintas: Uniforms & Apparel

Cintas' uniform and apparel business unit provides a broad spectrum of products such as shirts, pants, accessories, and headwear, among others. The main services offered by the business unit are cleanwear and uniform rental services. A high-level overview of the company focusing on the uniform and apparel business unit is presented below.

Products and Services

  • Cintas uniform and apparel business unit’s main products are uniforms including shirts, suiting, accessories such as ties, pants, outwear, culinary, headwear, workwear, and scrubs.
  • The company also provides custom-tailored apparel, flame resistant clothing, and isolation gowns.
  • The business unit also provides services such as clean workwear where the company picks dirty uniforms and delivers cleaned ones as well as uniform rental services.
  • Among the uniforms in the rental program are work shirts, work pants, outwear, women’s garment, chef works, carhartt, cleanroom, scrub, isolation gown, and flame resistant clothing.
  • At the start of the rental program, the customer is assigned 11 garments. The company then picks dirty garments every week and replaces them with clean ones.
  • Customers are also given an opportunity to build their own uniform based on their preferences and job activities.

Financial Data

  • In the 2020, Cintas' uniform rental and facility services accounted for the largest share of the total revenue with $5.6 billion equivalent to 79.7%.
  • In 2019, the segment contributed 80.6% of the total revenue or $5.5 billion.

Announcements

  • A direct link to a new product announcement can be found here.
  • A direct link to a COVID-19-related announcement can be found here.

News Articles

  • A direct link to a news article on Cintas acquisition can be found here.
  • A direct link to a news article on strategic partnership can be found here.
  • A direct link to a news article on divestiture can be found here.
  • A direct link to a news article on the uniform and apparel business unit award can be found here.
  • A direct link to a news article on a new product can be found here.

Competitors

  • Cinta’s main competitors in the uniform and apparel business are Aramark, UniFirst Corporation, Superior Uniform Group, and AmeriPride Services. The companies were identified as competitors because they also focus on the uniform program segment and/or uniform rental services.


Part
02
of seven
Part
02

Cintas: Facility Services

Cintas' Facility Services business unit provides products and services to customers "via local delivery routes originating from rental processing plants and branches." These products and services are designed to improve the reputation of the businesses and keep them safe and clean.

Products and Service Offerings

Financial Data

  • Cintas did not publish any individual financial data for its 'Facility Services' business unit. The 'Facility Services' business unit is reported along with 'Uniform Rental' as a single operational unit in the annual report.
  • According to the 2020 annual report by Cintas, the 'Uniform Rental and Facility Services' unit earned a total revenue of $5,643,494,000 (~$5.643 billion).
  • The 'Uniform Rental and Facility Services' unit contributed to 79.7% of total company revenue in 2020 — down by 0.9% from the previous year.

Major Announcements and Press

News Articles

  • July 14, 2020: Cintas announced its plans to close its Menomonee Falls facility.
  • July 8, 2020: Cintas announced its plans to close its Milwaukee-area facility — acquired as part of a $2.2 billion deal in 2016.
  • September 3, 2020: Cintas Corporation's direct sale and rental distribution centers in Chicago were awarded "Gold level under the TRUE (Total Resource Use and Efficiency) certification system for zero waste."
  • September 8, 2020: "Cintas Survey Shows Majority of Americans Value COVID-19 Precautions"
  • June 29, 2020: "Cintas Launches Annual America’s Best Restroom® Nationwide Contest"
  • July 29, 2020: Cintas sold its linen business to Westwego based Loop Linen Service.
  • May 4, 2020: "Cintas' New Services And Extensive Product Lines Help Businesses Get Back To Work #ReadyTogether"
  • November 9, 2020: "Cintas Earns 2021 Military Friendly® and Military Spouse Friendly® Employer Designations"

Key Competitors in US Market Space

Research Strategy

To find relevant competitors, we ran a deep search of several third part company databases like Owler, CSI Market, Craft.co, and Comparably. We found four competitors of Cintas that provided similar offerings to its "Facility Services" business unit.
Part
03
of seven
Part
03

Cintas: Flame Resistant Clothing

Cintas is one of the biggest companies that offer fire resistant gear and clothing for rental, with over half a million customers as of 2019. They specifically offer products like shirts, pants, jackets, and coveralls. They recently added fire-resistant masks to their product list to help their customers better cope with the COVID-19 pandemic.

Cintas Flame Resistant Clothing

  • Cintas is one of the biggest companies that offer fire resistant gear and clothing for rental.
  • They specifically offer shirts, pants, jackets, coveralls, enhanced-visibility and high-visibility fire-resistant gear, lab coats, fire-resistant masks, and other fire-resistant PPE equipment.
  • Over half a million people used their fire resistant clothing rental services in 2019.
  • Unfortunately Cintas does not break down its revenue by the different type of products.
  • They did, however note that they generated over $5.6 billion from their uniform rental and facility services in 2020, making roughly 79% of their overall revenue.
  • Some of their biggest competitors include National Safety Apparel, Carhatt, Lakeland Industries, and 3M Companies.

Cintas Flame Resistant Clothing News

  • On May 4, the company noted that it will support the reopening of the economy by offering new fire-resistant protection masks.
  • On May 12, Cintas pledged that it has taken all the necessary steps to provide clean garments for rental.
  • On June 23, the company announced that it has donated 100,000 fire-resistant protection masks to "Matthew 25 Ministries, an international humanitarian aid and disaster relief organization headquartered in Cincinnati, OH."
  • Unfortunately, despite searching through numerous media sites like Business Insider, The New York Times, and the WSJ, we were not able to find any news that pertained to the fire resistant clothing segment of Cintas.
  • We were only able to find news related to Cintas' overall operations such as their report that their short interest by the end of September 2020 dropped by over 14% compared to two weeks prior.
Part
04
of seven
Part
04

Cintas: Training & Compliance

Cintas Training and Compliance business unit provides safety training through instructors, DVDs, and online. They also provided safety management tools for the companies, testings to meet OSHA standards, and a variety of employee-focused courses.

History of Cintas Corp.

  • Cintas Corporation is an American public company founded in Cincinnati, Ohio in 1968, by Richard Farmer.
  • The company is registered in the stock market as NASDAQ:CTAS.
  • They offer products to companies like first aid, safety, uniforms, restroom supplies, floor care, fire extinguishers, testing, and safety and compliance training services.

Products/Services Offered by the Training & Compliance Business Unit

  • Cintas Training and Compliance business unit offers training in different formats like instructor-led training, online training, through DVD, and training support materials, online safety management tools, on-site hearing testing to meet OSHA standards, and training courses.
  • The training courses include CPR, AED, first aid, fall protection, Hazwoper, confined spaces, GHS, Hazcom, hazardous materials, OSHA recordkeeping, emergency preparedness, hearing protection, respiratory protection, forklift, fire extinguisher, workplace violence preparedness, etc.

Financial Data

  • Cintas' annual revenue by the end of the fiscal year of May 2029 was $6.89 billion, with annual growth of 6.5%.
  • Its quarterly revenue was $1.79 billion in 2019.

Major Announcements from the Business Unit in the Past Year

  • In October 2019, Cintas announced the addition of its Fire Extinguisher course as part of the Training and Compliance business unit offering.
  • In May 2020, Cintas presented its #ReadyTogether program, adding products and services designed to help companies prepare their employees to go back to work after the pandemic.
  • Also, in May 2020, Cintas presented its official COVID updates and the confirmation that the company continued operating as an essential business.

Key competitors in the US

  • Ecolab Partner Training was designed to provide training and safety courses for companies.
  • Sysco Services also provides training and safety education for US companies in the food industry.
  • Aramark delivers similar products, like uniforms, and training services.
  • Unifirst also offers online safety and compliance training services to companies.

Research Strategy

News

While Cintas has had multiple news regarding its stock value boost, its revenue, donations, and more, in the past 6-12 months, none of these relate to its Training & Compliance business unit specifically.

To find news articles about their Compliance & Training division, we searched through the company's News site, business database sites, like Crunchbase, and Yahoo Finance for their news' compilations from different business and market sources. We also used filtering tools to conduct an advanced search online and scanned through its social media channels without results. We concluded that the company hasn't made any major announcement regarding changes in its Compliance and Training business unit in the past 6-12 months.

Competitors

To determine Cintas' key competitors in the US market, we searched pre-compiled lists of competitors in websites like Comparably, Craft, Owler, D&B, CSI Markets, Zoominfo, GrowJo, Buyers Guide, and Crunchbase, among another company database, ranking, and analysis websites.

We chose the key competitors from the ones repeated most often across all platforms, located in the market space of the US, and competing with them in the business division we were researching, Training & Compliance.
Part
05
of seven
Part
05

Cintas: Promotional Products

Approximately 2.97% of the Cintas Corporation's annual revenue is generated from the Promotional Products business segment in the United States and North America. In total, the segment generated $173.2 million in revenue in 2018.

Products/Services

  • The products and services under Cintas' Promotional Products business units span various categories, including apparel, bags, drinkware, office supplies, pens, items for tradeshows and events, automotive, computer accessories, eco-friendly products, calendars, healthcare, sport and outdoor equipment, stress balls, watches, key tags, tools and hardware, etc.
  • Using the product search function, one can find products such as adapters, adhesives, air fresheners, appliances, aquariums, beverages, various boards, bodysuits, camcorders, candy, candles, decorations, diving equipment, drones, essential oils, exercise equipment, first aid kits, food, various frames, garden supplies, microphones, microscopes, perfume, pepper spray, record players, and remote controls, among many other items.
  • The Promotional Products section also offers fulfillment services.
  • The Promotional Products segment provides themed offerings. These include themes such as 3D, American, anniversary, automotive, aviation, amusement, different decades (e.g., 50s, 60s, 70s, 80s, and 90s), banking, birthday, bowling, Canadian, decoration, Earth Day, Easter, Fall, fishing, golf, gymnastics, holiday, medieval, military, patriotic, religion, sports, etc.
  • Many of the products available through the Promotional Products segment can be found in what Cintas refers to as The Brand Book.

Financial Data

  • In the year 2018, the Cintas Corporation generated approximately $6.477 billion in revenue, according to its 2020 annual report. Additionally, the company states that "revenue denominated in currencies other than the U.S. dollar represented less than 10% of our consolidated revenue. "
  • It is reasonable to assume that at least 90% (100%-10%) of the company's revenue comes from the United States or North America. Therefore, the Cintas Corporation generates $5.829 billion of its revenue in that specific region.
  • As revealed in a news piece published by ASI Central, the promotional products segment of the Cintas Corporation brought in $173.2 million in 2018. Furthermore, it was the 14th largest distributor within the industry that year, according to Counselor Promogram.
  • Hence, the promotional products segment only accounts for about 2.97% ((173.2 million/5.829 billion) *100) of the Cintas Corporation's annual revenue.

Recent News Articles

  • Here is a link to a February 7, 2020, announcement from ASI Central revealing Cintas Promotional Products division's acquisition of the Doritex Corporation, which offers custom embroidery and branded corporate image apparel.
  • Here is a link to a July 22, 2020, news report from ASI Central listing the "Top 40 Distributors 2020" in the promotional products industry, which includes Centas at number 13.

Key Competitors

  • Promo Marketing Magazine compiles an annual list of the top distributors of promotional products in the United States by total promo sales in the country. For its 2020 list, the distributors included Overture Promotions, Proforma, HALO Branded Solutions, Leaderpromos, and Brand Makers.
  • These five distributors could serve as direct competitors to Cintas' Promotional Products business segment in the United States. Each of the listed competitors are experiencing significant sales increases in the region. Compared to the previous year, the sales growth reported in 2020 for the competitors goes as follows: Overture Promotions (32.25%), Proforma (32.25%), HALO Branded Solutions (30.08%), Leaderpromos (25.88%), Brand Makers (23.31%).
  • Additionally, three of the distributors listed above were ranked in the "Top 40 Distributors 2020" for the promotional products industry, namely Overture Promotions, Proforma, and HALO Branded Solutions.
  • The complete "2020 Top Promotional Products Distributors List" from Promo Marketing can be downloaded here.

Research Strategy:

While the majority of the requested information was readily available, we could not find any major announcements for Cintas' Promotional Products business segment from the past 6 to 12 months. Most of the major announcements we found referred to the Cintas Corporation as a whole, only mentioning that the company supplies promotional products.

To find the links to major announcements from the Promotional Products business segment, we first scoured through the Cintas company website. The news section of the official Cintas website does not contain any announcements or reports on the Promotional Products division. Meanwhile, the press releases section of the website has not had an update since May 2017.

Additionally, we searched through the Cintas Promo Products website to find links to major announcements from the business segment. However, this research path did not yield any relevant results. The 'What's New' portion of the website did not offer announcements on new products. It appears that one needs to acquire an access code from Cintas in order to attain a personalized presentation on new products.

Also, we searched through the official social media handles of Cintas, including the company's Facebook, Twitter, LinkedIn, and YouTube accounts. Though we came across numerous announcements from the Cintas Corporation in the past 6 to 12 months on its social media handles, none of them exclusively focused on the Promotional Products business segment.
Part
06
of seven
Part
06

Cintas: First Aid & Safety

The first aid and safety business unit of Cintas' offers a myriad of products including first aid kits, thermometers, gloves, safety glasses, cardiac emergency equipment, among others.

Products / Services offering

  • Cintas' "First Aid & Safety" unit provides workplace clients with a whole range of solutions including; first aid supplies, safety and PPE supplies, AED and emergencies, training and compliance solutions, eyewash stations, and office water cooler products.
    • Some of the products offered under first aid supplies include; first aid kits, first aid cabinets, thermometers, emergency kits, antiseptics, and ointments, etc.
    • The safety and PPE segment of Cintas' first aid and safety unit offers personal protective equipment to help businesses keep employees safe and remain compliant. Some of the products offered include safety cabinets, gloves, safety glasses, hard hats, earplugs, respirators, disposable clothing, gas detectors, spill kits, etc.
    • The AED and emergency offering focuses on workplace emergencies that are related to sudden cardiac arrest. Besides offering AED (Automated External Defibrillators) products which are critical devices in the event of a cardiac emergency, Cintas' also services AEDs and keeps them up to date. Some of the products offered by the company include; Zoll AED 3, Zoll AED Plus, Phillips Heartstart AED, AED supplies, etc.
    • Cintas' also offers on-site and online safety training programs and courses. Additionally, Cintas' also provides DIY training materials and online access to training materials.
    • In addition to providing plumbed eyewash units and eye and skin wash flushing stations, Cintas' also provides eyewash station cleaning and servicing.
    • Cintas' also offers workplace hydration solutions including the new WaterBreak cleaner systems.

Financial data

  • According to the September report, the first aid and safety business unit of Cintas' managed to generate revenues of $709 million in the 2020 fiscal year which ended May 31st. The report shows increasing revenues from 2018 when the company's first aid and safety segment generated revenues of $565 million. In 2019, the segment generated $619 million in revenues.
  • Here are Cintas' overall earnings in 2018, 2019, and 2020; $6.477 billion, $6.892 billion, and $7.085 billion respectively.
  • The following represent the first aid and safety revenue percentages in relation to the overall revenues and their respective years; 8.7% in 2018, 9.0% in 2019, and 10.0% in 2020.

Major announcements

  • A direct link to a Covid-19 related announcement can be found here.
  • Here is a direct link to an announcement of Cintas' new services and product lines.
  • Here is a direct link to an announcement of the new sanitizer dispenser line; "Germ-X" by Cintas'.

Recent news articles.

  • Here is a direct link to a news article on the impact of COVID-19 on Cintas' First Aid and Safety segment sales.
  • Here is a direct link to a news article on Cintas' new product and service lines.
  • Here is a direct link to a news article on Cintas' donations in relation to Covid-19.
  • Here is a direct link to a news article on Cintas' support for the American Diabetes Association.
  • Here is a direct link to a news article on the award of Cintas' first aid and safety business unit.
  • Here is a direct link to a news article on the launch of a new product.

Key competitors in the US market.

Part
07
of seven
Part
07

Cintas: Fire Protection

Cintas was founded in 1968 by Richard T. Farmer; the company products and services include uniforms, mats, mops, restroom supplies, first aid and safety products, fire extinguishers and testing, and training and compliance courses for customers in the United States, Canada, Latin America, Europe and Asian markets.

Products And Services

Financial Data

Major Announcements

  • Cintas Fire Protection Segment has not undergone any M&A activity in the past 12 months. This was inferred after searching through the segment's press releases, media sites and company-wide news.

Recent News Articles

  • During the National Fire Protection Week in 2019, Cintas Corporation helped raise awareness of the importance of knowing the basics about fire extinguishers, where they are located for quick access and how to use them if a fire emergency occurs.
  • In November 2019, Spruce Point Capital Management published a short report on company Cintas, accusing the company fraud.
  • Cintas was investigated for fraud by Block & Leviton LLP for violations of federal securities laws after it was found that the company was having workers conduct fire and safety inspections without proper licenses or permits.

Key Competitors

Sources
Sources

From Part 01
From Part 02
From Part 04
From Part 06