Organic growth and benefits from tax reform were among the factors that contributed to Top 40 distributor Cintas (asi/162167) reporting increases in total revenue, net income and diluted earnings per share during the third quarter of its fiscal 2018, which ended Feb. 28, the company announced Thursday. Third-quarter revenue rose 26.6% over the prior year’s Q3 to nearly $1.59 billion. Net income tallied $302 million, up 156% from the comparable period in fiscal 2017. Diluted EPS reached $2.71, up from $1.07 last year. “Cintas shareholders wanted to see continued success in a strong business environment. The company didn't disappoint, with better numbers than most expected and a solid outlook for the future,” according to The Motley Fool, a multimedia financial services company.

Cintas said federal tax reform played a significant role in increasing EPS. During Q3, revaluation of deferred tax assets and liabilities allowed by the Tax Cuts and Jobs Act, enacted federally in December, increased Cintas’ diluted earnings per share by $1.59 – about $175 million. “Even after accounting for the one-time benefit, adjusted earnings of $1.37 per share topped the consensus forecast among those following the stock for $1.27 per share,” according to The Motley Fool.

Ongoing expenses tied to the transaction and integration of the $2.2 billion acquisition of G&K Services, Inc., a deal cemented in March 2017, chipped $0.06 off diluted EPS, while another $0.24 was detracted in the form of a one-time cash payment to employees. The approximately $40 million expense was an initiative to include employees in the financial benefits realized through tax reform, said Cintas Chairman/CEO Scott D. Farmer. Cintas said EPS from continuing operations added up to $2.66. EPS from discontinued operations was $0.05.

Meanwhile, Cintas reported that overall quarterly organic revenue growth, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 7.8%. Revenue generated from acquisitions drove the remainder of the Q3 sales gain, analysts said. Organic sales growth in Cintas’ First Aid & Safety Services segment was 10%, while the Uniform Rental & Facility Services business segment increased 6.5%. “When you add in acquisitions, revenue from uniform rental and facility services soared by roughly 30%, “ The Motley Fool noted. At nearly $1.3 billion in sales, the Uniform Rental & Facility Services segment accounted for the majority of Cintas’ third quarter revenue. Promotional product sales were not broken out.

According to Cintas, net income from continuing operations was nearly $296 million. Income from discontinued operations, net of tax, was $6.3 million. “We are pleased to report strong third quarter financial results,” Farmer said.

Still, given uncertainty over additional tax reform implications, Cintas held off on providing investors with guidance on what its full fiscal year results will be, opting instead to focus specifically on the fourth quarter. “We expect fourth quarter revenue to be in the range of $1.625 billion to $1.645 billion,” Farmer said.

With estimated 2016 North American promotional product revenue of $163.3 million, Cintas ranked 11th on Counselor’s most recent list of the largest distributors in the industry.