ANNUAL MEETING OF SHAREHOLDERS - SHIMMICK CORP

Financial Performance:

• No specific Q2 or Q3 fiscal year 2026 financial metrics (revenue, EPS, margins, cash flow) were disclosed in this transcript, as the event was the Annual Shareholders' Meeting rather than a quarterly earnings call.
• Management noted strong momentum across the business with continued double-digit earnings growth and attractive revenue growth supported by recent investments.
• Deferred revenue, debt levels, and specific balance sheet metrics were not mentioned.

Guidance and Future Outlook:

• Management expressed confidence in the Uniforce transaction closing by the end of the calendar year (2026), pending regulatory approvals.
• Long-term goals include leveraging technology (SAP, Google, Verizon) to optimize operations, reduce material and fuel costs, and enhance customer experience via the "MyCintas" platform.
• Future growth is expected to be driven by increased operational efficiency, data analytics, and the anticipated synergies from the Uniforce merger.

Business Segments and Product Lines:

• Uniform Rental and Facility Services Division: Fully implemented the SAP platform to improve garment sharing visibility and lower material costs.
• First Aid and Safety Division: Also fully implemented the SAP platform.
• Fire Protection Division: Currently piloting the SAP platform.
• New Initiatives: Rollout of "MyCintas" for 24/7 customer billing and communication; proprietary smart truck technology to optimize routes and fuel efficiency.

Market and Competitive Landscape:

• Cintas is a member of SAP's Strategic Customer Program, placing it in the top 1% of SAP customers in North America.
• Strategic partnerships with Google (cloud hosting, AI/ML analytics) and Verizon (resilient network connectivity) are being leveraged to maintain a competitive edge.
• The pending merger with Uniforce aims to create significant long-term value and expand market presence.

Risks and Challenges:

• Regulatory Risk: The Uniforce merger is subject to regulatory clearances from the U.S. Federal Trade Commission (FTC) and the Canadian Competition Bureau.
• Timeline Constraints: Management has agreed to a timing agreement not to consummate the transaction prior to December 11, 2026, unless the FTC closes its investigation earlier.
• Integration Risk: Focus remains on preparing for a smooth integration to realize combined company benefits post-closing.

Management Commentary and Tone:

• Tone was confident, positive, and focused on long-term value creation.
• Management highlighted significant progress in technology implementation (SAP) and strategic partnerships as key drivers of efficiency and growth.
• Chairman Scott Farmer thanked retiring director Melanie Barstad for 15 years of service.

Analyst Questions and Answers:

• Question on Technology Investments: Management detailed the full SAP implementation in Uniform Rental and First Aid/Safety segments and the Fire Protection pilot. They explained how data from SAP, combined with Google and Verizon partnerships, enables advanced analytics, AI, and machine learning to optimize operations, reduce costs, and improve customer service.
• Question on Uniforce Transaction: Management confirmed regulatory compliance certifications were submitted to the FTC and Canadian Competition Bureau. They reiterated the expected closing timeline (end of 2026) and confirmed that both companies will continue to operate independently until the merger closes.

Other Key Points:

• Corporate Governance: The meeting ratified the appointment of Ernst & Young as independent auditor for fiscal year 2027 and approved the reincorporation of the company from Washington to Delaware.
• Board Elections: All nominated directors were elected, with the exception of Melanie Barstad, who is retiring.
• Shareholder Proposal: The shareholder proposal regarding governance by majority voting was voted down; the Board had recommended against it.
• Meeting Logistics: The meeting included standard corporate governance items, including the advisory vote on executive compensation (approved) and the election of inspectors of election.