Acuity Brands Reports Fiscal 2022 First-Quarter Results

Acuity Brands

Jan 10, 2022

Acuity Brands, Inc. (NYSE: AYI) (the “Company”) a market-leading industrial technology company announced net sales of $926.1 million for the first quarter of fiscal 2022 ended November 30, 2021, an increase of $134.1 million or 16.9 percent, compared to the same period in fiscal 2021. Diluted earnings per share “EPS” was $2.46, an increase of 56.7 percent over the prior year.

“I am proud of our performance in the first quarter of fiscal 2022. Our team delivered sales growth of 17%, expanded our operating profit margin by 160 basis points and increased diluted EPS by 57% despite global supply chain challenges and unpredictable market conditions,” stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. “Our performance demonstrates that by prioritizing customers we are driving sales growth and turning that into operating income while continuing to invest in the long-term growth and transformation of the Company.”

Gross profit of $385.8 million for the first quarter of fiscal 2022 increased $53.4 million, or 16.1 percent, over the prior year, driven by revenue growth as well as our ability to largely offset the significant increase in material and freight costs through price increases and product and productivity improvements. Gross profit as a percent of sales was 41.7 percent for the first quarter of fiscal 2022, a decrease of 30 basis points from 42.0 percent over the prior year.

Operating profit of $115.1 million for the first quarter of fiscal 2022 increased $29.4 million, or 34.3 percent over the prior year. Operating profit was 12.4 percent of net sales for the first quarter of fiscal 2022, an increase of 160 basis points from 10.8 percent over the prior year. The improvement in operating profit margin was due primarily to improved leveraging of our operating costs.

Adjusted operating profit of $133.0 million for the first quarter of fiscal 2022 increased $28.8 million, or 27.6 percent over the prior year. Adjusted operating profit was 14.4 percent of net sales for the first quarter of fiscal 2022, an increase of 120 basis points from 13.2 percent in the prior year.

Net income of $87.6 million for the first quarter of fiscal 2022 increased $28.0 million, or 47.0 percent, over the prior year. Diluted earnings per share of $2.46 for the first quarter of fiscal 2022 increased $0.89, or 56.7 percent, from $1.57 in the prior year.

Adjusted net income of $101.3 million increased $24.4 million, or 31.7 percent, over the prior year. Adjusted diluted earnings per share of $2.85 increased $0.82, or 40.4 percent, from $2.03 in the prior year.

Segment Performance

Acuity Brands Lighting and Lighting Controls (“ABL”)

ABL generated net sales of $883.6 million for the first quarter of fiscal 2022, an increase of $130.0 million or 17.3 percent, over the prior year with acquisitions contributing less than 4% to current year sales growth.

– Net sales of $636.8 million in the Independent Sales Network and $90.0 million in the Direct Sales Network increased 13.8 percent and12.4 percent, respectively, over the prior year.

– Sales in the Corporate Accounts channel of $37.0 million increased 61.6 percent over the prior year as large accounts continuing to carry out previously deferred maintenance and renovations.

– Retail sales of $46.9 million declined 16.3 percent over the prior year.

Operating profit was $128.1 million for the first quarter of fiscal 2022, an increase of $29.7 million or 30.2 percent over the prior year. Adjusted operating profit was $138.2 million for the first quarter of fiscal 2022, an increase of $29.9 million or 27.6 percent, over the prior year.

Intelligent Spaces Group (“ISG”)

ISG generated net sales of $46.4 million for the first quarter of fiscal 2022, an increase of $5.6 million or 13.7 percent over the prior year.

Operating profit was $2.0 million for the first quarter of fiscal 2022, an increase of $2.1 million over the prior year. Adjusted operating profit was $6.1 million for the first quarter of fiscal 2022, an increase of $2.4 million or 64.9 percent over the prior year.

Cash Flow and Capital Allocation

Net cash from operating activities of $83.7 million decreased $40.2 million, or 32.4 percent for the first three months of fiscal 2022 compared to the same period in the prior year. This decline primarily reflects the increased working capital to support the growth of the business, timing of income tax payments, and the prior year deferral of withholding taxes under the CARES Act.

During the first three months of 2022, the Company repurchased 0.3 million shares of common stock for a total of $52.8 million at an average price of $175.75 per share. The Company had approximately 3.5 million shares remaining under its most recent share purchase authorization at the end of the first fiscal quarter of 2022. Since May of 2020, the Company has reduced the outstanding share count by approximately 12 percent.

Today’s Call Details

The Company is planning to host a conference call at 8:00 a.m. (ET) today, Friday, January 7th, 2022. 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 www.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.

Source: https://acuitybrands.gcs-web.com/news-releases/news-release-details/acuity-brands-reports-fiscal-2022-first-quarter-results

 

Related Articles


Changing Scene

  • New Mulvey & Banani Appointments for 2022

    November 30, 2022 At Mulvey & Banani, they believe that their success is because of their people, and that people are the most important part of their business. The following individuals have demonstrated excellent aptitude, initiative and leadership amongst their teams. This year, together with their subsidiaries, Mulvey & Banani Audio Visual (MBAV) and Mulvey… Read More…

  • A-Light Wins Two GRANDS PRIX DU DESIGN Awards

    November 29, 2022 A-Light has announced its Relay and Absorb I luminaires have received 2022 GRANDS PRIX DU DESIGN Awards in the 15th edition of the competition. Relay is a PLATINUM winner in the Industrial Design/Lighting Fixture-Indoor category. And Absorb I received GOLD CERTIFICATION in both the Lighting Fixture-Indoor and Product-Acoustic categories. The GRANDS PRIX… Read More…


Design

  • LIT Lighting Design Awards: Capital Park Landscape, Victoria, BC

    LIT Lighting Design Awards: Capital Park Landscape, Victoria, BC

    December 5, 2022 Located in one of Victoria’s most historic neighborhoods, the Capital Park Mixed-Use Development is made up of seven buildings stretching across three lots and is responsible for nearly an entire city block of Victoria’s downtown core. The project took place over the span of three phases and eight years. The first phase… Read More…

  • Smith + Andersen Toronto 2022 IES Award Winning Projects

    Smith + Andersen Toronto 2022 IES Award Winning Projects

    December 5, 2022 This year, the Smith + Andersen Lighting Team received the Toronto IES 2022 Illumination Section Award and the IESNA Illumination Award of Merit for two projects: Grasett Park (Exterior Lighting Design), and St Paul’s Church (Interior Lighting Design). Each of these Toronto-based projects demonstrate a level of design excellence expected by the… Read More…


New Products

  • Stanpro Retro 5 CCT Selectable Downlight

    Stanpro Retro 5 CCT Selectable Downlight

    December 1, 2022 This Retro LED downlight offers a simple and economical retrofit solution for all traditional recessed applications. Easy installed with a quick connects wire and the E26 socket adaptor, this LED downlight is ideal for retrofitting into most of traditional 4″ and 5″-6″ housings, it will be installed in no time. The color… Read More…

  • Eureka Introduces Tangram-Trace Architectural Luminaire

    Eureka Introduces Tangram-Trace Architectural Luminaire

    November 30, 2022 Eureka announced the release of its Tangram-Trace architectural luminaire. Using bold straps and a prismatic lens, Tangram-Trace creates a dramatic aesthetic and provides high quality, diffused linear illumination. It is intended for modern environments such as conference and executive areas, hospitality applications, or reception spaces. Tangram-Trace luminaires are suspended using four-inch-wide straps,… Read More…