Acuity Brands (AYI) Q1 Earnings Beat, Adjusted EBITDA Up Y/Y

Core Insights - Acuity Brands, Inc. (AYI) reported strong first-quarter fiscal 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate, marking the 15th consecutive quarter of earnings beats [1][2] Financial Performance - Adjusted earnings per share were $3.72, surpassing the consensus estimate of $3.09 by 20.4% and increasing 13.1% from $3.29 in the prior year [2] - Net sales reached $934.7 million, exceeding the consensus mark of $924.5 million by 1.1%, although this represented a 6.3% decline year-over-year due to lower volumes [2] Segment Analysis - Acuity Brands Lighting and Lighting Controls (ABL) saw net sales decline 7.5% year-over-year to $876.4 million, while the Independent Sales Network and Direct Sales Network also experienced declines of 7.2% and 8.5%, respectively [3] - Retail sales increased by 11.4% to $55.6 million, while Corporate Accounts sales fell 15.5% to $41.5 million [3] - The Original Equipment Manufacturer and other channels reported a 16.6% decline in sales to $56.7 million [3] - Adjusted operating profit for ABL increased 10.8% to $153.8 million, with an adjusted operating margin up 280 basis points to 17.5% [3] Operating Highlights - Overall adjusted operating profit rose 9.9% to $153.9 million, with an adjusted operating margin of 16.5%, up 250 basis points year-over-year [5] - Adjusted EBITDA increased by 9% to $166.7 million compared to the previous year [5] Cash Flow and Financial Position - At the end of the fiscal first quarter, cash and cash equivalents were $513.3 million, up from $397.9 million at the end of fiscal 2023 [6] - Long-term debt remained stable at $495.7 million [6] - Cash provided by operating activities totaled $190 million, an increase from $186.6 million in the prior year, while free cash flow rose 4.2% to $175.4 million [6] - The company repurchased nearly 0.3 million shares for $50 million during the quarter [6] Fiscal 2024 Outlook - For fiscal 2024, AYI expects net sales to be in the range of $3.7 billion to $4 billion, compared to $3.95 billion reported in fiscal 2023 [7] - Adjusted earnings per share are projected to be between $13 and $14.50, compared to $14.05 in fiscal 2023 [8]