Acuity Brands(US:AYI)2022-06-29 16:00Financial Performance - Net sales for the three months ended May 31, 2022, increased by $160.9 million, or 17.9%, to $1.06 billion compared to $899.7 million in the prior-year period[138]. - Gross profit for the same period was $445.1 million, representing a 15.1% increase from $386.6 million in the prior year[138]. - Net income for the three months ended May 31, 2022, was $105.7 million, a 23.3% increase from $85.7 million in the prior year[138]. - For the first nine months of fiscal 2022, net sales increased by $427.5 million, or 17.3%, to $2.90 billion compared to $2.47 billion in the prior-year period[153]. - Gross profit for the first nine months of fiscal 2022 increased by $154.5 million, or 14.6%, to $1.21 billion, with a gross profit margin decrease of 100 basis points to 41.8%[154]. - Operating profit for the first nine months of fiscal 2022 was $360.1 million, an increase of $65.3 million, or 22.2%, compared to $294.8 million in the prior-year period[156]. - Net income for the first nine months of fiscal 2022 increased by $60.4 million, or 29.0%, to $268.6 million, with diluted earnings per share rising by $2.00 to $7.66[160]. Cash Flow and Investments - Cash generated from operating activities during the nine months ended May 31, 2022, was $165.7 million, a decrease of $150.5 million compared to $316.2 million in the prior-year period[122]. - The cash position at May 31, 2022, was $318.2 million, a decrease of $173.1 million from August 31, 2021[121]. - The company invested $38.0 million in property, plant, and equipment during the nine months ended May 31, 2022, compared to $30.6 million in the prior year[128]. - The company expects to invest approximately 1.5% of net sales on capital expenditures during fiscal 2022[128]. - The company repurchased 2.3 million shares of common stock for $405.1 million during the first nine months of fiscal 2022[132]. Segment Performance - ABL segment net sales for Q3 fiscal 2022 increased by $158.4 million, or 18.6%, to $1.01 billion, driven by price increases and higher volumes[148]. - ISG segment net sales for Q3 fiscal 2022 increased by $2.9 million, or 5.2%, to $58.3 million, primarily due to strong demand and price increases[150]. - ABL net sales for the nine months ended May 31, 2022, increased by 17.7% to $2,755.1 million compared to $2,340.4 million in the prior-year period[162]. - ISG net sales for the nine months ended May 31, 2022, increased by 10.9% to $154.7 million compared to $139.5 million in the prior-year period[163]. - Acquisitions contributed approximately 3% to ABL's sales increase compared to the prior year, reflected in the other sales channel[162]. - Sales in the independent and direct network channels increased due to recent price increases and higher volumes, while retail channel sales were relatively flat[162]. Profitability Metrics - Operating profit for Q3 fiscal 2022 was $142.7 million, an increase of $24.6 million, or 20.8%, compared to $118.1 million in the prior-year period[141]. - The increase in ABL's operating profit was primarily due to higher sales, partially offset by increased material, labor, and freight costs[163]. - Operating profit for ABL was $394.2 million, representing a margin of 14.3%, an increase of $67.3 million from $326.9 million (14.0% margin) in the prior-year period[163]. - ISG operating profit was $12.4 million, up from $7.9 million in the prior-year period, reflecting an increase of $4.5 million[163]. Tax and Market Risks - The effective income tax rate for the first nine months of fiscal 2022 was 22.2%, a decrease from 23.1% in the prior-year period[159]. - The company is exposed to market risks from fluctuations in interest rates, foreign exchange rates, and commodity prices, with no material changes reported[168]. Forward-Looking Statements - Forward-looking statements indicate expectations regarding financial performance, market demand, and potential impacts from economic conditions and global events[166]. - Management continues to evaluate critical accounting estimates, including revenue recognition and inventory valuation, which could impact reported financial results[164].