Good day. And welcome to the Cintas quarterly earnings results conference call. Today’s call is being recorded. At this time, I would like to turn the call over to Mr. Bill Gale, Senior Vice President of Finance and Chief Financial Officer. Please go ahead, sir.

Good evening and thank you for joining us to discuss the fourth quarter of fiscal 2010. With me this evening is Cintas’ Vice President and Treasurer, Mike Hansen. Mike Hansen was recently promoted to this position from Corporate Controller to replace Mike Thompson, who has assumed a role in a rental organization as Senior Vice President, Facility Services. We are pleased to report that revenues increased 3.5% from last year’s fourth quarter. Internal growth, adjusting for acquisitions and the one additional workday in this year’s fourth quarter, compared to last year was also positive at 1.9%. After the very difficult economic conditions experienced since the beginning of the recession, this marks our first positive growth period in revenue since our quarter ending August 31, 2008. Our fourth quarter revenue of $909 million was above our previously released guidance of $870 to $890 million. Earnings per share for the quarter were $0.36, compared to last year’s $0.03 per share. Prior year numbers included restructuring and impairment charges of approximately $49 million before tax or $0.35 per share. Current year earnings per share were positively impacted by approximately $0.01 due to the reversal of certain restructuring charges. As we have reported in the last couple of quarters, we continue to see signs of stability with the employment levels of our customers. While customers continue to be hesitant to add employees, we no longer see the significant reductions that occurred during the past couple of years. The result is that our new business is beginning to offset the impact of lost business or stops at existing customers. The pricing environment continues to be very competitive both with the new business, as well as, renewal of existing contracts. We continue to be very pleased with the overall financial condition. During fiscal 2010, we paid…

Thank you, Bill. Total revenue for the fourth quarter of fiscal 2010 of $909 million represented a 3.5% increase from the fourth quarter of last year. This year’s fourth quarter had 66 workdays, one more than last year’s fourth quarter and two more than this year’s third quarter. On an adjusted workday basis, total revenue grew 1.9%, compared to last year’s fourth quarter. Total company internal growth was also 1.9%, an improvement over a third quarter internal growth of negative 3.6%. As compared to this year’s third quarter, revenue increased 2% on an adjusted workday basis. Before discussing the quarter in more detail, please note that our fiscal 2011 workdays will actually be the same as fiscal 2010. That means there will be 66 workdays in Q1, 65 in Q2, 64 in Q3 and 66 in Q4. We have four reportable operating segments. Rental Uniforms and Ancillary Products, Uniform Direct Sales, First Aid, Safety, and Fire Protection Services, and Document Management Services. Uniform Direct Sales, First Aid, Safety and Fire Protection Services, and Document Management Services are combined and presented as other services on the face of the income statement. The Rental Uniforms and Ancillary Products operating segment consists of the rental and servicing of uniforms, mats, towels and other related items. The segment also includes restroom supplies and other facility products and services. Rental Uniforms and Ancillary Products revenue accounted for 71% of company revenue in the fourth quarter, within rental, based on fourth quarter revenue levels, uniform rental accounts for approximately 52% of revenue, dust control, which is mainly entrance mats, accounts for 22%, hygiene, which is mainly restroom supply and cleaning is 11%, shop towel revenue is 6% and linen and other, which is mainly non-person specific garments, such as aprons and butcher coats, is 9%. Rental…

Thank you (Operator instructions) Our first question is John Healy with Northcoast Research. John Healy – Northcoast Research: Good evening, guys.

Hello, John.

Hello, John. John Healy – Northcoast Research: Well, hello. Wondering if you could you talk about the operating environment right now? It’s great to hear that it appears the revenue trends are stabilizing, the business conditions are stabilizing. Could you talk about how you are thinking about revenue growth in 2011, maybe talk about what areas you feel the most bullish on, whether it’s firming in the pricing environment or the new sales or just increased ancillary sales? Maybe talk about where you're thinking it, you're going to see the most improvement in those metrics?

Well, John, I think what we are expecting and what our plan calls for is that we are going to continue to see good organic growth in our Document Management business, so that, that will continue to do well. We expect the businesses that are really impacted by employment levels, such as Uniform Rental, Uniform Direct Sales and even First Aid and Safety, to basically show some very modest growth as we go through the year. Reason being, that we are seeing customers at least starting the process of adding some employees in some sectors and therefore needing some uniforms. We're seeing, you know, additional hands in the first aid cabinets. We're seeing some of the hospitality customers, as Mike mentioned. We're looking now to refresh their programs and buy some uniforms but until we see a dramatic increase in employment, I don’t think we’re going to see a dramatic increase in those particular line – in those particular segments. So while we continue to sell new business, the fact that the customers are not reducing head count is going to help us show positive growth albeit at relatively modest rates. John Healy – Northcoast Research: That's helpful. And I was hoping we could talk about the cash flow of the business. Pretty amazing that cash flow you generated in 2010. Can you give us some thoughts about utilizing cash flow? I mean, it appears that you're at an inflection point here where the business is stable and looking up and yet you've done some few things with the balance sheet. Maybe how you're thinking about using cash, whether it's for acquisitions or if there's any thoughts about returning cash to shareholders and increasing the dividend or maybe getting aggressive at buying back stock?

Well, as we've talked about over the last couple of quarters, John, now that we see the economic environment become more predictable, I think we anticipate being more aggressive on looking for good acquisitions in all of our business segments. And I think that would be the first use of cash. But as we said in the last couple of quarters, especially the last quarter, if we can't find a good acquisition that can give the return that we feel as justifiable, I'm sure the board will continue to look at what is the best thing to do for our shareholders, be that resume our share buyback program or more aggressively increase the dividend and that is a constant discussion item that will take place at the board level. Right now, though, you know, we are hopeful that we can find some very good acquisitions that we can deploy this cash with. John Healy – Northcoast Research: Okay. And just last question, I might have missed it, did you guys give a free cash flow guidance number for 2011 or maybe mention what working capital should be?

No, we did not. I think Mike mentioned the CapEx but we don't – we did not predict what was going to happen with working capital. I will tell you that we did bring down our inventory levels quite a bit during the year. And as Mike said in his comments, we now think they are pretty much at the levels that they should be. So we're not going to get that benefit in fiscal ‘11 of another drawdown in inventories. John Healy – Northcoast Research: Okay. Thanks.

We'll go next to Gary Bisbee with Barclays Capital. Gary Bisbee – Barclays Capital: Hi, guys. Good afternoon.

Hi, Gary.

Hi, Gary. Gary Bisbee – Barclays Capital: Any updated thoughts on sort of strategy for storage versus shredding? I know you've been real excited about shredding and taking somewhat more cautious approach on storage. I think in part just due to the fact that it seems to be a much more capital intensive business but it sounds like this acquisition oversees there is more storage and maybe you’re doing more of that there. Any just thoughts on how you're looking at that? Is that a point you want to do in the U.S. as well?

Yes. Well, the acquisition in the U.K. is strictly storage. And we really like that company. It's great management team, gives us a nice presence throughout the United Kingdom and it's a very good business. So we found what we think is a gem and that has been our approach any time we look at storage. If we can find a good acquisition that isn’t ready to all of a sudden require millions of dollars of capital expenditures to expand their capacity, you know, we will entertain that. In the U.K., let me just say that – now, this will give us a platform on which to maybe perhaps launch other products and services as we go forward. In the U.S. and in Canada, we continue to look at potential storage acquisitions, but we also are saying to ourselves that, you know, the opportunities in shredding appear to be more actionable and viable for us right now. So while storage acquisitions might come along, we tend to find most storage, most companies that are selling their storage business really are maxed out in the facilities they have. And so it makes the return on capital not so attractive because we have to inject so much money right upfront to expand their facility. We have looked at starting up some storage operations in a couple of different cities and we've been successful in doing that when you can get a good base customer. So those are some of the – you know, we continue to look for the right things to do, but I would say most of our acquisitions in the U.S. will be more on the shredding side. Gary Bisbee – Barclays Capital: Given how strong cash flow has been in the balance sheet under levered growth to your history, you know, I remember at one point you told us you had, if I remember correctly, 90 different potential businesses you were tossing around as long-term ideas. Is there, is there room for another leg here? I still struggle with the fact that it seems to me other than uniforms, may not be sort of scale acquisition candidates or at least not many of them that really could make a change in your mix. Is there anything else out there that you think you could do in a fashion that would impact the business in the next couple of years?

Gary, yes there are. I would differ a little bit with you. I think there are some good acquisitions of scale in the other businesses, especially in Document Management and in the fire business. So I'm not sure that, you know, that we couldn't get quite a bit of volume, you know, relatively quickly by making a good acquisition there. We have – we continue to test a couple of different things. We also see a opportunity to expand quite a bit in the facility services business that I think will prove out to be a real nice growth vehicle for us. So, you know, the additional leg of the stool that may be less likely in the next year or two, but you could see quite a bit of an expansion or a broadening of some of the services in some of the businesses, especially facilities services. Gary Bisbee – Barclays Capital: And then just one last one for me, when I look to the margins this quarter, how much of that improvement sequentially was just the extra workday? I think I remember a quarter ago you saying you didn't think that would be such a big deal. So was that a big part of this improvement or is it much more, just other things going on?

There's a lot of other things going on there. You know, there's a little bit of that but it wasn't significant. Gary Bisbee – Barclays Capital: Okay. Thank you.

Our next question comes from Scott Schneeberger with Oppenheimer Scott Schneeberger – Oppenheimer: Thanks. Good afternoon, guys.

Hi, Scott.

Good afternoon. Scott Schneeberger – Oppenheimer: I guess, following up on Gary's question, you mentioned that our CapEx is going to be higher this year versus last. You are willing to – is actually starting some storage operations, which may involve a bit of capital. Is that the incremental spending or might it be for SAP, just update you there and other thoughts on why the increase?

The increase will be both in the Document Management business. Because that is a growing business, we will, we will be of course buying trucks and other plant-based equipment as we continue to move some of that business off site into our facilities, shredding our facilities. We'll see some capital expenditures in that Document Management space and we'll also, as it relates to SAP, we are going to be embarking on transition of a couple of our operating systems onto the SAP platform and we do expect that that will increase over the fiscal '10 SAP spend as well. Scott Schneeberger – Oppenheimer: Thanks. That's helpful. Could you also address in the core rental business, verticals – among your top three verticals, what are they and trends? Can you discern on the vertical level, the differentiations? Thanks.

Are you talking in terms of the kind of customer, industry we're serving? Scott Schneeberger – Oppenheimer: Exactly. Yes.

Well, the largest segment, if you lump it all together in NAICS codes, is what we call automotive and automotive related and that encompasses anything from big three auto plans, dealerships, auto repair, oil change, tire change, et cetera. And we've seen pretty stable numbers there. We have not – we don't have a lot of growth there, but we have seen pretty good stability because even though people aren't buying a lot of cars or repairing a lot of the cars they have. So that business has done okay. The second largest segment is what we lump together as hospitality. Some of that is – it’s uniform rental but a lot of it is facility services type products. That services restaurants and hotels and other type of hospitality-type events. So that one has suffered a little bit in the recession, but as Mike indicated, we're seeing it in our direct sale business a pickup in volume there, as actually the employment is starting to pick up in those categories. So after that, manufacturing is kind of a hotchpotch of things, because it encompasses everything from pharmaceutical to food processing, every machinery, et cetera. And while we have seen a slowdown on the outward transfer of jobs outside of the United States, there's really no growth we're seeing in the manufacturing sector right now. It's just finally stabilizing somewhat. Scott Schneeberger – Oppenheimer: Thanks. That's very helpful. And just in direct sales, Gale, fiscal '11, optimistic in that area? If you could single that out, thanks.

Well, I'm cautiously optimistic. I don't foresee a lot of new casinos and new hotels being opened, but I do foresee a slight uptick in employment levels, which will require uniforms. And the fact that so many of these institutions have really stopped buying things over the last couple years, they have got to start spending money to refurbish some of their programs. So, we, we feel like there will be an increase in sales in that category, but we're still probably a ways from returning to the heyday of that particular segment. Scott Schneeberger – Oppenheimer: Thanks very much.

Our next question comes from Ashwin Shirvaikar with Citigroup. Phil Stiller – Citigroup: Hi, this is Phil Stiller on for Ashwin. Thanks for taking my questions. I just had a question on the rental business. Can you talk about the amount of revenue growth, return to net units? How you guys think about incremental profitability of each dollar that you get?

Well, it depends where it comes from. If it comes from an existing customer and we already have the truck stopping there, it is very profitable business. We often also are able to use garments that are in our stockroom. So the amortization of those garments continue, whether they are in service or not until they are fully amortized. If it is from new business, new customers, in the short run, you don't get a lot of profit from that, but as that customer evolves and after the selling costs have been absorbed and the injection of the new garments, those customers become more profitable as we go forward. Right now, I would say our thoughts are that there's going to be, not a lot of growth within existing customers, but there will be some new customers, either that we're going to get from competitors or that we're going to convince that should entertain the uniform rental program. So there will be a little bit of margin pressure from the new customers, but in the long run, they are certainly with five-year contracts, very attractive business. Phil Stiller – Citigroup: Does your guidance assume margin contraction in the rental unit for this year?

No. No, it assumes, as Mike said, varies from either very modest increases in some of the costs like medical benefits and energy to essentially kind of flat and with higher revenue growth, a little bit more leverage so that's kind of the range that we gave you at the upper end is, okay, the top line's going to grow a little stronger and, again, as I said, the mix, even in that assumption is that most of it is going to come from new business as opposed to increases in existing customers. Phil Stiller – Citigroup: Okay. And then just lastly on the, across the balance sheet, I know you guys just want to keep some potential M&A. But is there a certain number that you guys want to keep on the sidelines for that? And how much do you need to operate the business on a daily basis?

Well, I mean, we would have no problem operating the business with no cash in the balance sheet, because we have such good access to commercial paper that we can fund our operating needs quite well. We would be easily – easily able to absorb a billion dollar-plus acquisition if the right opportunity came along. With our $500 million plus cash hoard, as well as our line of credit with commercial paper of about $600 million, we could easily go out and sell more debt on the markets. So I don't think there would be any concern on that at all. We're just waiting now to see if the right opportunity comes along and if not, we'll figure out other ways to get that cash deployed for our shareholders. Phil Stiller – Citigroup: Okay. Thank you.

We'll go next to Vance Edelson with Morgan Stanley. Vance Edelson – Morgan Stanley: Hi. Thanks for taking the questions. Regarding the selling environment, you pointed out for a couple quarters now how it's taking some increased sales effort to penetrate existing customers and so forth. Can you say that the environment has gotten at all eased here during the fourth quarter? And I guess a related question, is there anything you could tell us about demand trends during the quarter, the monthly progression?

Well, the – I will say the job growth in the private sector and in the businesses to which uniform rental plays a big part certainly helped. We are still certainly not seeing a lot of jobs coming back. And so the environment is still pretty difficult. We expect that throughout fiscal '11, the job growth is going to continue to be pretty sluggish. And so we don't necessarily think that the environment is going to get much easier, but we do think that as we saw in the fourth quarter, we think it's going to be some very slow, sluggish growth and hopefully no contraction of jobs. Vance Edelson – Morgan Stanley: Okay. That's helpful. And another M&A question – regarding the candidate that you are tracking? Which direction would say domestic valuations are currently having, is there any sense that attractive pricing that exists now might not last, making this possibly the time to make some more moves?

I don't see any pressure real upward on prices and valuations. In fact, if anything, I think some sellers may consider some of the tax consequences, awaiting much longer to sell their business, that they are not going to get. The government's going to get a little bit more piece of any gain that they have. So I would hope that we might see some opportunities present themselves soon. Vance Edelson – Morgan Stanley: Okay. Got it. And just one more question. As you look for new customers to spur growth, are there any existing customers that because of their reduced needs, during the sluggish economy are just not as profitable and really not worth servicing anymore? Is it that you would be better off shedding them? Is there any shrinkage of your customer base as a result?

Vance, I would say that generally speaking, unless a customer just gets down to only maybe one or two people in uniform, they still remain profitable. It's only when they get down to such a low level that, we have in our contracts a minimum stop charge. And it sometimes becomes just not viable for the customer to continue to obtain the service. Even the small customer, though, with our pretty extensive route structure, it's still profitable to service them. So I don't think we really have that situation that you're envisioning. Vance Edelson – Morgan Stanley: Okay. Got it. And then maybe just one more. I might have missed it with, but with direct sales showing better growth and actually quite strong growth the past year, is this what you would expect to see at this point in the recovery? Is it a conscious decision on your part to emphasize that, or is the marketplace at all changing?

I think the market is reacting again because the hospitality sector, which is primarily what our direct sale business serves, has shown some light recently. And I think that's what you're seeing. Vance Edelson – Morgan Stanley: Got it.

It's been so long since so many of those customers have refreshed their program, as Bill said that some spending is bound to come sooner or later. And keep in mind, in that segment, we're still well below where we were couple years ago. So it's – We've still got a long way to go to see the spending return in that segment. Vance Edelson – Morgan Stanley: Right. It makes sense. All right. Thanks, guys.

Our next question comes from Chris McGinnis with Sidoti & Company. Chris McGinnis – Sidoti & Company: Good afternoon. My question's been answered. Thank you very much.

(Operator instructions) We'll go next to Vishnu Lekraj with Morningstar. Vishnu Lekraj – Morningstar: How's it going, guys?

Hello, Vishnu, well. Vishnu Lekraj – Morningstar: I want to dig down little deeper into the pressing environment. I know you've been saying that things are improving a little bit. But are you still seeing pricing concessions in terms of current customers and perhaps the concessions for maybe customers you're going after?

We're seeing – First off, I don't think Mike or I really said the pricing improvement is improving. We're staying saying it's still pretty competitive and we see it both in terms of new customers, no programmers are getting into the service because they are working with multiple providers. And we're also seeing it on any renewal of existing contracts, either with our customers or with our competitors' customers. So to get – Cintas, along with the other uniform rental providers and facility services providers are still trying to keep the routes relatively full and their plants operating nearer to capacity than not, so you're continuing to see aggressive pricing. Vishnu Lekraj – Morningstar: Right. Okay. When you talk about slow growth or sluggish growth over here for fiscal 2011, is that assuming that employment trends as they currently are, are going to be pulled forward, or do you expect a gradual improvement in these trends? How should we view this in terms of employment affecting your business going forward?

Our guidance. The guidance that we gave you, basically if you take the upper end of the guidance, what we're saying is we would see modest improvement in employment. If you take the lower end of the guidance, we're saying you're going to see no improvement in employment, it’s just basically speaking. Vishnu Lekraj – Morningstar: Makes sense. One more question here in Document Management, when we try to think about the growth within this segment, is that going to mainly come more from overseas, your operations overseas or are you going to do basically the balance of domestic overseas? How is that going to mix flow?

The significant amount of business that we do in that segment is still in the U.S. and that will continue to grow very nicely. The overseas volume is still relatively small, but we see good growth opportunities and we see some nice acquisition opportunities in that business. So I think what, what you're going to see is the predominance of the growth will come domestically, but the foreign stuff certainly is going to be additive to it. Vishnu Lekraj – Morningstar: Great. All right. Thank you.

We have no further questions in queue at this time. (Operator instructions) We have no further questions in queue, sir.

All right. Well, we appreciate everyone joining us today. And we'll look forward to talking to you in the latter part of September, when we discuss our first quarter fiscal 2011 results.

This concludes today's conference. Thank you for your participation.