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Acuity Brands to Announce Fiscal 2024 Fourth-Quarter and Full-Year Results on October 1, 2024
GlobeNewswire News Room· 2024-09-05 20:15
Core Viewpoint - Acuity Brands, Inc. is set to announce its fiscal 2024 fourth-quarter and full-year results on October 1, 2024, with a conference call led by CEO Neil Ashe [1]. Company Overview - Acuity Brands, Inc. (NYSE: AYI) is a leading industrial technology company focused on solving problems related to spaces and lighting through innovative products and services [2]. - The company operates through two main segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG) [2]. - Acuity Brands aims for growth by developing new products and services, enhancing customer efficiencies, and increasing market share [2]. Operational Footprint - The company is headquartered in Atlanta, Georgia, and has operations across North America, Europe, and Asia, supported by over 12,000 employees [3].
Here's Why You Should Retain Acuity Brands (AYI) Stock Now
ZACKS· 2024-08-13 16:16
Core Viewpoint - Acuity Brands, Inc. (AYI) is experiencing growth driven by innovation in its diversified product portfolio and a focus on the Intelligent Spaces Group (ISG), despite facing economic uncertainties and high costs [1][2] Growth Drivers - Innovation is a key growth driver, with AYI prioritizing initiatives that expand its lighting control solutions and energy-efficient products, enhancing customer benefits and growth prospects [3] - The company emphasizes differentiated product portfolios, including Made-to-Order, Design Select, and Contractor Select, which cater to various market needs and enhance project design efficiency [4] - AYI is expanding into the refueling sector, developing tailored solutions for service stations, convenience stores, and quick-service restaurants, in addition to its existing offerings [5] - The ISG segment is focused on enhancing the intelligence, safety, and sustainability of spaces, with net sales in this segment rising 15% year over year to $75.7 million, driven by higher sales of Distech products [6] - Strategic margin-driven growth initiatives include acquisitions, joint ventures, and cost-saving measures, with an adjusted operating margin of 17.3% in the third quarter of fiscal 2024, expanding 100 basis points from the previous year [7] Headwinds - AYI operates in a volatile business environment influenced by economic factors such as GDP growth and employment levels, which can impact residential and non-residential construction activities [8] - The company reported a decline in total net sales to $968.1 million, down 3% from $1 billion in the prior-year period, primarily due to lower sales in the ABL segment [8] - High costs associated with the innovation of energy-efficient lighting products, particularly in installation, are increasing the company's cost structure [8]
Acuity Brands Appoints Sach Sankpal to Lead Lighting Business
GlobeNewswire News Room· 2024-07-30 20:15
Executive Appointment - Sach Sankpal has been appointed as President of Acuity Brands Lighting and Lighting Controls (ABL), bringing over 30 years of experience in transformation and innovation [1] - Neil Ashe, Chairman, President, and CEO of Acuity Brands, highlighted Sankpal's positive influence on the company's performance and culture since joining two years ago [1] - Trevor Palmer, the current President of ABL, will be leaving the company after a successful tenure, having led the business through several years of transformation [1] Strategic Vision - The company aims to take Acuity to new heights by adopting innovative approaches and creating a unified lighting organization under Sach Sankpal's leadership [2] - This reorganization is expected to enhance end-to-end process connectivity, accelerate growth, and drive productivity [2] Company Overview - Acuity Brands is a market-leading industrial technology company with two main business segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG) [3] - The company focuses on designing, manufacturing, and bringing to market products and services that solve problems in spaces, light, and other areas [3] - Growth is achieved through the development of innovative products and services, including lighting, lighting controls, building management solutions, and location-aware applications [3] - The company is headquartered in Atlanta, Georgia, with operations across North America, Europe, and Asia, and employs approximately 12,000 associates [4] Media and Investor Contacts - Media inquiries can be directed to April Appling, Vice President of Corporate Communications [6] - Investor inquiries can be directed to Charlotte McLaughlin, Vice President of Investor Relations [6]
Acuity Brands Appoints Sach Sankpal to Lead Lighting Business
Newsfilter· 2024-07-30 20:15
Executive Appointment - Sach Sankpal has been appointed as President of Acuity Brands Lighting and Lighting Controls (ABL), bringing over 30 years of experience in transformation and innovation [1] - Trevor Palmer, the current President of ABL, will be leaving the company after a successful tenure [1] Strategic Direction - The company aims to connect processes more effectively end-to-end under Sach Sankpal's leadership to accelerate growth and drive productivity [2] - Acuity Brands is focused on doing things differently to take the company to new places [2] Company Overview - Acuity Brands is a market-leading industrial technology company with two business segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG) [3] - The company designs, manufactures, and brings to market products and services that make a valuable difference in people's lives [3] - Growth is achieved through innovative new products and services, customer-focused efficiencies, and aggressive capital deployment [3] Global Operations - Acuity Brands is based in Atlanta, Georgia, with operations across North America, Europe, and Asia [4] - The company is powered by approximately 12,000 dedicated and talented associates [4]
Acuity Brands (AYI) Q3 Earnings Top Estimates, Revenues Lag
ZACKS· 2024-06-28 16:10
Core Insights - Acuity Brands, Inc. (AYI) reported mixed results for Q3 fiscal 2024, with earnings exceeding estimates while revenues fell short [1][2] - The company achieved a 17th consecutive quarter of earnings surpassing the Zacks Consensus Estimate, driven by a focus on margins and cash generation [1][2] Financial Performance - Adjusted earnings per share (EPS) were $4.15, beating the consensus estimate of $4.10 by 1.2% and increasing 10.7% from $3.75 a year ago [2] - Net sales totaled $968.1 million, missing the consensus mark of $995.4 million by 2.7% and declining 3% year-over-year due to lower volumes [2] Segment Performance - Acuity Brands Lighting and Lighting Controls (ABL) saw net sales decline 4.5% year-over-year to $898.5 million, below the estimate of $925.3 million [3] - The Independent Sales Network's sales decreased 7.1% to $637.1 million, while Direct Sales Network sales fell 6.6% to $97 million [3] - Retail sales dropped 4.8% to $45.7 million, but Corporate Accounts channel sales increased 36.3% to $60.5 million [3] - Adjusted operating profit for ABL rose 1.5% to $162.1 million, with an adjusted operating margin up 100 basis points to 18% [3] Intelligent Spaces Group - Intelligent Spaces Group (ISG) generated net sales of $75.7 million, a 15% increase year-over-year, with adjusted operating profit rising 35.2% to $17.3 million [4] - Adjusted operating margin for ISG improved by 340 basis points to 22.9% [4] Operating Highlights - Overall adjusted operating profit increased 2.6% to $167.1 million, with an adjusted operating margin of 17.3%, up 100 basis points [5] - Adjusted EBITDA rose 2.5% to $180 million, with an adjusted EBITDA margin expanding 100 basis points to 18.6% [5] Financial Position - As of the end of Q3, cash and cash equivalents stood at $699 million, up from $397.9 million at the end of fiscal 2023 [6] - Long-term debt slightly increased to $496 million from $495.6 million [6] - Cash provided by operating activities for the first nine months of fiscal 2024 totaled $445.1 million, down from $471.5 million in the prior-year period [6] - Free cash flow decreased 4.6% year-over-year to $404.1 million [6] - The company repurchased nearly 454,000 shares for $89 million during the first nine months of fiscal 2024 [6] Outlook - For fiscal 2024, AYI expects net sales in the range of $3.7 billion to $4 billion, compared to $3.95 billion reported in fiscal 2023 [7] - Adjusted EPS guidance was raised to a range of $14.75 to $15.50, up from a prior projection of $13 to $14.50 [7]
Acuity Brands(AYI) - 2024 Q3 - Earnings Call Transcript
2024-06-27 14:35
Financial Data and Key Metrics Changes - In Q3 2024, Acuity Brands generated net sales of $968 million, which was $32 million, or 3% below the prior year due to lower sales in the Lighting and Lighting Controls business [17] - Adjusted operating profit increased by $4 million year-over-year despite a $32 million decline in sales, with an adjusted operating profit margin of 17.3%, up 100 basis points from the previous year [18] - Adjusted diluted earnings per share rose to $4.15, an increase of $0.40, or 11% over the prior year [18] Business Line Data and Key Metrics Changes - In the Lighting and Lighting Controls business, net sales were $899 million, a decrease of 5%, but adjusted operating profit increased to $162 million with an adjusted operating profit margin of 18%, a 100 basis point improvement [18] - The Intelligent Spaces business reported net sales of $76 million, a 15% increase, with adjusted operating profit at $17 million and an adjusted operating profit margin of 22.9%, a 340 basis point improvement [19] Market Data and Key Metrics Changes - The order rate in the lighting business continued to grow year-over-year, with orders exceeding shipments, leading to a backlog that will be addressed in upcoming quarters [15][26] - The corporate accounts business showed strength due to a large retail relight project, while the C&I channel remained consistent across the country [30] Company Strategy and Development Direction - The company is focused on returning the Lighting and Lighting Controls business to growth while expanding margins and generating strong free cash flow [15][60] - Acuity Brands is entering new verticals such as refueling and horticulture, aiming to leverage its existing product portfolio to capture market opportunities [9][10] - The company continues to invest in technology and product vitality to enhance service levels and productivity, which are key drivers for margin improvement [39][57] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about future performance, highlighting the diversity of the portfolio as a strength [27] - The company is addressing production challenges that led to a backlog, with expectations to resolve these issues in the near term [53][54] - Management noted that while the market is not uniformly strong, the company is outperforming historical performance metrics [48] Other Important Information - Acuity Brands generated $445 million in cash flow from operating activities year-to-date and invested $41 million in capital expenditures [19][20] - The company increased its dividend per share by 15% and repurchased approximately 454,000 shares for about $89 million [20][43] Q&A Session Summary Question: Inquiry about gross margin performance and Design Select deployment - Management indicated that margin expansion is a multi-year process driven by product vitality and service level improvements, with Design Select pacing as expected [22][24] Question: Clarification on order rate growth and market trends - Management confirmed that order rates have been consistent, with backlog building due to unmet production targets, and expressed optimism about future growth [25][26] Question: Discussion on entering the refueling market - Management explained that the refueling vertical was previously overlooked but is now seen as an attractive opportunity due to limited competition and market size [34][35] Question: Inquiry about SG&A spending and leverage - Management acknowledged increased SG&A as part of operational investments, with expectations for leverage as the business returns to growth [37][39] Question: Discussion on cash deployment and M&A pipeline - Management highlighted a robust pipeline for small and medium-sized acquisitions, focusing on opportunities that align with strategic goals [42][45] Question: Clarification on production issues and revenue impact - Management clarified that production challenges were not alarming and stemmed from labor ramp-up issues, with expectations to resolve these in the upcoming quarters [53][54]
Acuity Brands(AYI) - 2024 Q3 - Earnings Call Presentation
2024-06-27 14:35
Fiscal 2024 Third Quarter Performance - Acuity Brands' net sales decreased by 3% to $968 million in Q3'24 compared to $1 billion in Q3'23 [9] - Adjusted diluted earnings per share increased by 11% to $4.15 in Q3'24 compared to $3.75 in Q3'23 [9] - Adjusted operating profit increased by 3% to $167 million in Q3'24 compared to $163 million in Q3'23 [9] - Year-to-date cash flow from operations decreased by 6% to $445 million [9] Segment Performance - ABL (Acuity Brands Lighting and Lighting Controls) net sales decreased [17] - ISG (Intelligent Spaces Group) net sales increased by 15% to $76 million in Q3'24 compared to $66 million in Q3'23 [15] - ISG adjusted operating profit increased by 35% to $17 million in Q3'24 compared to $13 million in Q3'23 [15] - ISG adjusted operating profit margin increased by 340 bps to 229% in Q3'24 compared to 195% in Q3'23 [15] Fiscal 2024 Outlook - The company projects net sales to be in the range of $37 billion to $40 billion [17] - Adjusted diluted EPS is expected to be in the range of $1475 to $1550 [17]
Acuity Brands (AYI) Reports Q3 Earnings: What Key Metrics Have to Say
ZACKS· 2024-06-27 14:31
Core Insights - Acuity Brands reported $968.1 million in revenue for the quarter ended May 2024, reflecting a year-over-year decline of 3.2% and an EPS of $4.15, up from $3.75 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $995.41 million by 2.74%, while the EPS exceeded the consensus estimate of $4.10 by 1.22% [1] Revenue Performance - Revenues- Eliminations: Reported at -$6.10 million, better than the average estimate of -$7.32 million, representing a year-over-year change of -1.6% [2] - Revenues- Acuity Brands Lighting (ABL): Reported at $898.50 million, below the average estimate of $918.92 million, showing a year-over-year decline of 4.5% [2] - Revenues- Intelligent Spaces Group (ISG): Reported at $75.70 million, slightly below the estimated $76.42 million, but reflecting a year-over-year increase of 15.1% [2] Profit Metrics - Adjusted operating profit for Intelligent Spaces Group: Reported at $17.30 million, exceeding the average estimate of $14.25 million [2] - Adjusted operating profit for Acuity Brands Lighting: Reported at $162.10 million, slightly above the average estimate of $161.47 million [2] Stock Performance - Acuity Brands shares have returned -5.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of +3.4% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]
Acuity Brands (AYI) Q3 Earnings Surpass Estimates
ZACKS· 2024-06-27 12:11
Company Performance - Acuity Brands reported quarterly earnings of $4.15 per share, exceeding the Zacks Consensus Estimate of $4.10 per share, and up from $3.75 per share a year ago, representing an earnings surprise of 1.22% [1] - The company posted revenues of $968.1 million for the quarter ended May 2024, which was 2.74% below the Zacks Consensus Estimate and down from $1 billion in the same quarter last year [1] - Over the last four quarters, Acuity Brands has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [1] Stock Performance and Outlook - Acuity Brands shares have increased by approximately 17.1% since the beginning of the year, outperforming the S&P 500's gain of 14.9% [2] - The current consensus EPS estimate for the upcoming quarter is $4.26 on revenues of $1.04 billion, and for the current fiscal year, it is $15.43 on revenues of $3.88 billion [4] Industry Context - The Building Products - Lighting industry, to which Acuity Brands belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges ahead [5] - The performance of Acuity Brands may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [5]
Acuity Brands(AYI) - 2024 Q3 - Quarterly Results
2024-06-27 11:30
[Acuity Brands Fiscal 2024 Third-Quarter Results](index=1&type=section&id=Acuity%20Brands%20Fiscal%202024%20Third-Quarter%20Results) The company reported a slight revenue decline in Q3 fiscal 2024 but demonstrated strong profitability and earnings growth [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported a slight revenue decline but achieved higher operating profit and significant growth in diluted earnings per share Q3 Fiscal 2024 Key Financial Metrics (YoY) | Metric | Q3 FY2024 | Q3 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $968.1M | $1,000.3M | -3.2% | | Operating Profit | $145.3M | $143.3M | +1.4% | | Adjusted Operating Profit | $167.1M | $162.9M | +2.6% | | Diluted EPS | $3.62 | $3.28 | +10.4% | | Adjusted Diluted EPS | $4.15 | $3.75 | +10.7% | - The company successfully expanded its operating profit margin by **70 basis points** to **15.0%** and its adjusted operating profit margin by **100 basis points** to **17.3%** compared to the prior year[2](index=2&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Performance was mixed, with the ABL segment's sales decline offset by margin improvement and strong growth from the ISG segment [Acuity Brands Lighting and Lighting Controls (ABL)](index=2&type=section&id=Acuity%20Brands%20Lighting%20and%20Lighting%20Controls%20(ABL)) The ABL segment saw a modest sales decrease but improved its operating profit margin through effective cost management ABL Segment Q3 FY2024 Performance (YoY) | Metric | Q3 FY2024 | Q3 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $898.5M | $940.7M | -4.5% | | Operating Profit | $151.5M | $150.0M | +1.0% | | Operating Profit Margin | 16.9% | 15.9% | +100 bps | | Adjusted Operating Profit | $162.1M | $159.7M | +1.5% | [Intelligent Spaces Group (ISG)](index=2&type=section&id=Intelligent%20Spaces%20Group%20(ISG)) The ISG segment delivered robust double-digit sales growth and a significant expansion in operating profit margin ISG Segment Q3 FY2024 Performance (YoY) | Metric | Q3 FY2024 | Q3 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $75.7M | $65.8M | +15.0% | | Operating Profit | $12.5M | $8.6M | +45.3% | | Operating Profit Margin | 16.5% | 13.1% | +340 bps | | Adjusted Operating Profit | $17.3M | $12.8M | +35.2% | [Cash Flow and Capital Allocation](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) The company generated strong operating cash flow and continued to return capital to shareholders through share repurchases - Net cash from operating activities for the first nine months of fiscal 2024 was **$445.1 million**, compared to $471.5 million in the same period of the prior year[6](index=6&type=chunk)[23](index=23&type=chunk) - Year-to-date, the company has repurchased approximately **454,000 shares** of common stock for about **$89 million**[6](index=6&type=chunk) [Disaggregated Net Sales](index=9&type=section&id=Disaggregated%20Net%20Sales) Sales performance varied by channel, with a decline in the Independent sales network partially offset by strong growth in Corporate accounts Q3 2024 Net Sales by Channel (YoY % Change) | Segment / Channel | Q3 2024 Sales | % Change | | :--- | :--- | :--- | | **ABL Total** | **$898.5M** | **-4.5%** | | Independent sales network | $637.1M | -7.1% | | Direct sales network | $97.0M | -6.6% | | Retail sales | $45.7M | -4.8% | | Corporate accounts | $60.5M | +36.3% | | **ISG Total** | **$75.7M** | **+15.0%** | | **Total Company** | **$968.1M** | **-3.2%** | [Financial Statements](index=6&type=section&id=Financial%20Statements) The unaudited condensed consolidated financial statements reflect a stronger balance sheet and year-over-year net income growth [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statement shows stable gross profit despite lower net sales, leading to higher net income and diluted EPS for the quarter Q3 Fiscal 2024 Income Statement Highlights (in millions) | Line Item | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Net Sales | $968.1 | $1,000.3 | | Gross Profit | $447.3 | $447.3 | | Operating Profit | $145.3 | $143.3 | | Net Income | $113.9 | $105.0 | - Diluted earnings per share for Q3 2024 increased to **$3.62** from $3.28 in Q3 2023[20](index=20&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet highlights a significant increase in cash and cash equivalents, strengthening the company's overall liquidity Balance Sheet Highlights (in millions) | Account | May 31, 2024 | August 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $699.0 | $397.9 | | Total current assets | $1,674.0 | $1,395.2 | | Total assets | $3,642.9 | $3,408.5 | | Total current liabilities | $605.3 | $595.4 | | Total liabilities | $1,388.2 | $1,393.1 | | Total stockholders' equity | $2,254.7 | $2,015.4 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated substantial cash from operations, funding investments and shareholder returns while increasing its cash balance Nine Months Ended May 31 Cash Flow Summary (in millions) | Cash Flow Activity | FY2024 | FY2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $445.1 | $471.5 | | Net cash used for investing activities | ($44.6) | ($76.4) | | Net cash used for financing activities | ($100.5) | ($258.7) | | **Net change in cash** | **$301.1** | **$136.1** | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section details the adjustments made to bridge GAAP results to non-GAAP measures like adjusted operating profit - Management uses non-GAAP measures like adjusted operating profit and adjusted diluted EPS to provide a clearer view of core operational performance by excluding certain items[10](index=10&type=chunk)[11](index=11&type=chunk) Q3 2024 Reconciliation of Operating Profit (in millions) | Description | Amount | | :--- | :--- | | **Operating profit (GAAP)** | **$145.3** | | Add-back: Amortization of acquired intangible assets | $10.0 | | Add-back: Share-based payment expense | $11.8 | | **Adjusted operating profit (Non-GAAP)** | **$167.1** | [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) This section outlines the company's business structure, defines non-GAAP measures, and includes forward-looking statement disclaimers - Acuity Brands is an industrial technology company operating through two business segments: **Acuity Brands Lighting and Lighting Controls (ABL)** and the **Intelligent Spaces Group (ISG)**[8](index=8&type=chunk)[9](index=9&type=chunk) - The report includes non-GAAP financial measures to enhance understanding of the company's financial performance, excluding items like amortization and share-based payment expense[10](index=10&type=chunk) - The press release contains forward-looking statements that are subject to risks and uncertainties, and the company undertakes no obligation to update them[15](index=15&type=chunk)