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Earnings per Share
 9 Months Ended
Feb. 29, 2012
Earnings per Share  
Earnings per Share

4.             Earnings per Share

 

The following table sets forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to Cintas’ common shares:

 

(In thousands except per share data)

 

Three Months Ended

 

Nine Months Ended

 

 

February 29,

 

February 28,

 

February 29,

 

February 28,

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

Basic Earnings per Share

 

 

 

 

 

 

 

 

Net income

 

$

76,035

 

$

59,070

 

$

219,023

 

$

176,213

 

 

 

 

 

 

 

 

 

Less dividends to:

 

 

 

 

 

 

 

 

Common shares

 

$

---

 

$

---

 

$

70,055

 

$

71,197

Unvested shares

 

---

 

---

 

765

 

615

Total dividends

 

$

---

 

$

---

 

$

70,820

 

$

71,812

 

 

 

 

 

 

 

 

 

Undistributed net income

 

$

76,035

 

$

59,070

 

$

148,203

 

$

104,401

 

 

 

 

 

 

 

 

 

Less: net income allocated to participating unvested securities

 

556

 

316

 

1,096

 

564

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

75,479

 

$

58,754

 

$

147,107

 

$

103,837

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

129,735

 

145,303

 

130,261

 

147,686

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

Common shares – distributed earnings

 

$

0.00

 

$

0.00

 

$

0.54

 

$

0.49

Common shares – undistributed earnings

 

0.58

 

0.41

 

1.13

 

0.70

Total common shares

 

$

0.58

 

$

0.41

 

$

1.67

 

$

1.19

 

 

 

 

 

 

 

 

 

Unvested shares - distributed earnings

 

$

0.00

 

$

0.00

 

$

0.54

 

$

0.49

Unvested shares - undistributed earnings

 

0.58

 

0.41

 

1.13

 

0.70

Total unvested shares

 

$

0.58

 

$

0.41

 

$

1.67

 

$

1.19

 

(In thousands except per share data)

 

Three Months Ended

 

Nine Months Ended

 

 

February 29,

 

February 28,

 

February 29,

 

February 28,

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

Diluted Earnings per Share

 

 

 

 

 

 

 

 

Net income

 

$  

76,035

 

$ 

59,070

 

$

219,023

 

$

176,213

 

 

 

 

 

 

 

 

 

Less dividends to:

 

 

 

 

 

 

 

 

Common shares

 

$  

---

 

$ 

---

 

$

70,055

 

$

71,197

Unvested shares

 

---

 

---

 

765

 

615

Total dividends

 

$  

---

 

$ 

---

 

$

70,820

 

$

71,812

 

 

 

 

 

 

 

 

 

Undistributed net income

 

$  

76,035

 

$ 

59,070

 

$

148,203

 

$

104,401

 

 

 

 

 

 

 

 

 

Less: net income allocated to participating unvested securities

 

556

 

316

 

1,096

 

564

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$  

75,479

 

$ 

58,754

 

$

147,107

 

$

103,837

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

129,735

 

145,303

 

130,261

 

147,686

 

 

 

 

 

 

 

 

 

Effect of dilutive securities – employee stock options

 

210

 

---

 

60

 

---

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

129,945

 

145,303

 

130,321

 

147,686

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

Common shares – distributed earnings

 

$  

0.00

 

$ 

0.00

 

$

0.54

 

$

0.49

Common shares – undistributed earnings

 

0.58

 

0.41

 

1.13

 

0.70

Total common shares

 

$  

0.58

 

$ 

0.41

 

$

1.67

 

$

1.19

 

 

 

 

 

 

 

 

 

Unvested shares - distributed earnings

 

$  

0.00

 

$ 

0.00

 

$

0.54

 

$

0.49

Unvested shares - undistributed earnings

 

0.58

 

0.41

 

1.13

 

0.70

Total unvested shares

 

$  

0.58

 

$ 

0.41

 

$

1.67

 

$

1.19

 

For the three months ended February 29, 2012 and February 28, 2011, 1.1 million and 3.5 million options granted to purchase shares of Cintas common stock were excluded from the computation of diluted earnings per share, respectively. For the nine months ended February 29, 2012 and February 28, 2011, 2.1 million and 3.6 million options granted to purchase shares of Cintas common stock were excluded from the computation of diluted earnings per share, respectively. The exercise prices of these options were greater than the average market price of the common stock (anti-dilutive).

 

On October 26, 2010, we announced that the Board of Directors authorized an additional $500.0 million share buyback program at market prices.  We completed the October 26, 2010 share buyback program by purchasing 8.1 million shares of Cintas common stock in June and July 2011 for an aggregate purchase price of $259.5 million.  From the inception of the October 26, 2010 share buyback program through July 29, 2011, Cintas purchased a total of 15.8 million shares of Cintas common stock at an average price of $31.70 per share for a total aggregate purchase price of $500.0 million.  On October 18, 2011, we announced that the Board of Directors authorized a new $500.0 million share buyback program at market prices.  This new share buyback program does not have an expiration date, and purchases will be made at the discretion of the Board of Directors.