Cintas Corporation (NASDAQ:CTAS) Q4 2019 Earnings Conference Call - Final Transcript
Jul 16, 2019 • 05:00 pm ET
First Aid segment gross margin was 47.7% in the fourth quarter compared to 47.0% in last year's fourth quarter, an increase of 70 basis points. First Aid segment gross margins continue to increase with strong top line growth.
As our volume grows, we can negotiate better pricing from vendors. Growth also enables us to improve route density, reducing gasoline and diesel costs and enabling our service teams to spend more time serving and upselling. Our Fire Protection Services and Uniform Direct Sale business -- businesses are reported in the all other category.
Our fire business continues to grow each year at a strong pace. The Uniform Direct Sale business growth rates are generally low single digits, and are subject to volatility such as when we install a multi-million dollar account. Uniform Direct Sale however is a key business for us and its customers are all often significant opportunities to cross-sell and provide products and services from our other business units.
All other revenue was $201.8 million, an increase of 12.7%. The organic growth rate was 11.6% and was driven by 14.3% organic growth in the fire business. All other gross margin was 43.7% for the fourth quarter of this fiscal year, compared to 43.6% for last year's fourth quarter. Selling and administrative expenses as a percentage of revenue were 28.3% in the fourth quarter of fiscal '19 and '18.
Lower labor expense as a percent of revenue was offset by increases in other expenses including stock compensation, insurance, workers' compensation and medical. We are self-insured and therefore subject to some volatility in workers' comp and medical expense from quarter-to-quarter. Our effective tax rate on continuing operations for the fourth quarter of fiscal '19 was 21.7%.
As Mike stated earlier, the tax rate can move from period to period based on discrete events including the amount of stock compensation expense. Our cash and equivalents balance as of May 31st was $96.6 million, operating cash flow in the fourth quarter of fiscal '19 increased 31% from the amount of operating cash flow in the fourth quarter of fiscal '18.
Capital expenditures in the fourth quarter were $68.9 million. Our CapEx by operating segment was as follows : $54.7 million in Uniform Rental and Facility services, $9.6 million in first aid and safety and $4.6 million in all other. We expect fiscal '20 CapEx to be in the range of $280 million to $310 million. As of May 31, total debt was $2.849 billion. $2.537 billion was fixed interest rate debt and $312 million was variable rate debt in the form of a term loan and commercial paper. At May 31st, we were at our targeted leverage of 2 times debt to EBITDA.
That concludes our prepared remarks. We are happy to answer your questions.