Cintas Corporation (NASDAQ:CTAS) Q3 2016 Earnings Conference Call - Preliminary Transcript
Mar 22, 2016 • 05:00 pm ET
thank our employees, whom we call partners, for an outstanding job. We are proud of our strong financial results. We expect fiscal 2016 to be our sixth consecutive year of double-digit increases in EPS.
Our organic growth rates are well in excess of the growth rates in US gross domestic product and employment, and we continue to both sell new accounts and add value to existing customers by addressing their specific business needs.
We have distinct competitive advantages. Our corporate culture which guides and drives everything that we do. Our innovative and expansive product line that is comprised of many proprietary products that cannot be offered by our competition. And an unmatched scale that provides unique leveraging opportunities, global sourcing capabilities and the best and broadest service structure in North America.
These competitive advantages have led to our history of strong financial results and have made us the clear leader in our industry. We are significantly larger than our competitors. We are growing faster and our margins are better.
These strong financial results, our unmatched scale and our focus on the long-term, allow us to invest in ways not possible for our competitors. We are continuously engaged in the research and development of new products and services. This is evident in the breadth of the product and service offerings compared to others in the industry.
We are able to embark on a national branding campaign visible on television. Our new tagline, Ready for the Workday, speaks to the value we provide our customers in helping them prepare for their workdays.
This campaign is resulting in greater brand awareness to assist with cross selling efforts. It's also energizing our partners who are now even more ready for our customers. And we are able to make transformative investments, such as our conversion to the SAP system. I'll discuss the status of the SAP project in a few minutes, after Paul provides more third quarter details.
But these investments will continue to strengthen our industry leading position and ensure that we continue into the future helping many, many businesses get Ready for the Workday.
I'll now turn the call over to Paul for additional information.
Thank you, Mike. First please note that there were 65 workdays in this year's third quarter, the same number of days as last year's third quarter. However, this year's fourth quarter will have 66 workdays compared to only 65 in last year's fourth quarter. In total, fiscal year 2016 will have 262 workdays, 2 more than in fiscal 2015.
Finally, note that our next fiscal year of 2017 will have one less day than this year. We estimate that this one less day will negatively impact fiscal 2017 total revenue growth by about 40 to 50 basis points in comparison to fiscal 2016.
As Mike stated, total revenue increased organically by 6.8% in the third quarter. This solid growth rate was driven largely by new business wins, penetration of existing customers with more products and services and strong