Cintas Corporation (NASDAQ:CTAS) Q1 2021 Earnings Conference Call - Final Transcript

Sep 23, 2020 • 10:00 am ET


Cintas Corporation (NASDAQ:CTAS) Q1 2021 Earnings Conference Call - Final Transcript


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Good day everyone and welcome to the Cintas' Quarterly Earnings Results Conference. Today's call is being recorded.

At this time, I'd like to turn the call over to Paul Adler, Cintas' Vice President, Treasurer and Investor Relations. Please go ahead.

Paul F. Adler

Thanks April, and good morning and thank you for joining us. With me today is Scott Farmer, Cintas' Chairman of the Board and Chief Executive Officer; Todd Schneider, Executive Vice President and Chief Operating Officer; and Mike Hansen, Executive Vice President and Chief Financial Officer. We will discuss our first quarter results for fiscal 2021. After our commentary, we will be happy to answer questions.

The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor from civil litigation for forward-looking statements. This conference call contains forward-looking statements, that reflect the company's current views as to future events and financial performance. These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially, from those we may discuss. I refer you to the discussion on these points, contained in our most recent filings with the SEC.

I'll now turn the call over to Scott Farmer.

Scott D. Farmer

Thank you, Paul. This continues to be a challenging time for our employees, who we call partners, are doing all they can do to keep our customers' places of business clean, safe and ready for the workday. Our employee partners have remained diligent in their care of our customers, providing essential products and services. And they remain diligent in their care of each other, and we can't thank them enough, for their truly impressive achievements.

Before we get into the financial results, I'd like to provide you with some examples of our interactions with our customers in the first quarter of our fiscal year, so you have a better understanding of our business. The hospital system in Michigan provided isolation gowns to their staff and laundered them in the hospital. These garments are fluid resistant protective clothing worn by doctors and nurses. The hospitals had difficulty staffing the laundry and suffered quality issues. The hospital system, a no programmer as we call it, decided to outsource to procurement and laundering to Cintas, so they could concentrate on patient care.

Another no programmer, a dental alliance with 55 locations in three states, signed with us for scrubs in a rental program for 550 wearers. Due to their satisfaction with the service, they are in discussions with us to add facility services products and First Aid Supplies. In California, one university system with many campuses signed a multi-year agreement for hand sanitizer service. In addition, our first aid business is providing them with a $0.5 million of hard to find gloves. Through another university system in California, our first Aid division is providing over 1 million face masks.

A restaurant chain, that has been a customer since 2007, had been struggling in the first few months of the pandemic. In talking with the customer, we listened and were empathetic and adjusted for