Acuity – Acuity Brands Reports Fiscal 2023 First-Quarter Results

Solid Start to 2023 with Strong Sales and EPS Growth

• Increased Net Sales 8 Percent Over the Prior Year
• Diluted EPS Declined 7 Percent Over the Prior Year; Adjusted Diluted EPS Increased 15 Percent Over the Prior Year
• Generated $187M in Cash Flow from Operations and Repurchased 0.5M of Outstanding Shares

 

ATLANTA, Jan. 09, 2023 (GLOBE NEWSWIRE) — Acuity Brands, Inc. (NYSE: AYI) (the “Company”), a market-leading industrial technology company, announced net sales of $997.9 million in the first quarter of fiscal 2023 ended November 30, 2022, an increase of 7.8 percent or $71.8 million, compared to the prior year.

“We delivered solid results in the first quarter of fiscal 2023 as we continued to demonstrate our ability to drive sales growth through product vitality and service in both our lighting and spaces businesses.” stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. “We expanded adjusted operating profit, substantially grew adjusted diluted earnings per share and generated strong cash flow from operations. We again created permanent shareholder value through share repurchases.”

 

Operating profit was $108.9 million in the first quarter of fiscal 2023, a decrease of $6.2 million, or 5.4 percent, compared to the prior year. Operating profit as a percent of net sales was 10.9 percent in the first quarter of fiscal 2023, a decrease of 150 basis points, compared to the prior year. Adjusted operating profit was $140.1 million in the first quarter of fiscal 2023, an increase of $7.1 million, or 5.3 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 14.0 percent in the first quarter of fiscal 2023, a decrease of 40 basis points, compared to the prior year.

Diluted earnings per share was $2.29 in the first quarter of fiscal 2023, a decrease of $0.17, or 6.9 percent, compared to the prior year. Adjusted diluted earnings per share was $3.29 in the first quarter of fiscal 2023, an increase of $0.44, or 15.4 percent, from $2.85, compared to the prior year.

During the first quarter of fiscal 2023, we sold our Sunoptics business and announced plans to eliminate certain custom architectural product lines. As a result, we took charges totaling $22.1 million ($0.52 per diluted share) related to special charges for impairments, severance and a loss on the sale of the Sunoptics business.

 

Segment Performance

Acuity Brands Lighting and Lighting Controls (“ABL”)

ABL generated net sales of $947.1 million in the first quarter of fiscal 2023, an increase of $63.5 million, or 7.2 percent, compared to the prior year.

ABL operating profit was $118.1 million in the first quarter of fiscal 2023, a decrease of $10.0 million, or 7.8 percent, compared to the prior year. ABL operating profit as a percent of ABL net sales was 12.5 percent in the first quarter of fiscal 2023, a decrease of 200 basis points from 14.5 percent, compared to the prior year. ABL adjusted operating profit was $138.8 million in the first quarter of fiscal 2023, an increase of $0.6 million, or 0.4 percent, compared to the prior year. ABL adjusted operating profit as a percent of ABL net sales was 14.7 percent in the first quarter of fiscal 2023, a decrease of 90 basis points from 15.6 percent, compared to the prior year.

Intelligent Spaces Group (“ISG”)

ISG generated net sales of $56.8 million in the first quarter of fiscal 2023, an increase of $10.4 million, or 22.4 percent, compared to the prior year.

ISG operating profit was $7.7 million in the first quarter of fiscal 2023, an increase of $5.7 million, compared to the prior year. ISG adjusted operating profit was $12.1 million in the first quarter of fiscal 2023, an increase of $6.0 million, compared to the prior year.

 

Cash Flow and Capital Allocation

Net cash from operating activities was $186.6 million for the first three months of fiscal 2023, an increase of $102.9 million, compared to the prior year due to an improvement in our working capital.

During the first quarter of fiscal 2023, the Company repurchased approximately 0.5 million shares of common stock for a total of $78 million.

 

Today’s Call Details

The Company is planning to host a conference call at 8:00 a.m. (ET) today, Monday, January 9, 2023. Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. will lead the call. The conference call and earnings release can be accessed via the Investor Relations section of the Company’s website at investors.acuitybrands.com. A replay of the call will also be posted to the Investor Relations site within two hours of the completion of the conference call and will be available on the site for a limited time.

 

ACUITY BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)

 

ACUITY BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per-share data)

 

ACUITY BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)

 

ACUITY BRANDS, INC.
DISAGGREGATED NET SALES
(In millions)

The following tables show net sales by channel for the periods presented:

 

 

ACUITY BRANDS, INC.
Reconciliation of Non-U.S. GAAP Measures

The tables below reconcile certain GAAP financial measures to the corresponding non-GAAP measures for total Company as well as our reportable operating segments (in millions except per share data):

 

Source
Acuity Brands