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 Podcast Collaboration with Lighting Controls Association and NAILD

    March 24, 2023 The National Association of Innovative Lighting Distributors (NAILD) and the Lighting Controls Association have announced a collaboration on a new podcast seeking to raise awareness and expertise in lighting controls. About the Podcast Produced every two weeks for audio listening on popular apps or watching on a dedicated YouTube channel, it is hosted by… Read More…

  • DLC Non-Energy Benefits

    Evaluating the Non-Energy Benefits of Advanced Networked Lighting Controls

    March 24, 2023 The Benefits As energy efficient LED technology has become mainstream, the quantifiable gains from controlling smaller lighting loads may appear to have diminished at first glance. The truth is, while direct energy savings from controls alone represents a smaller portion of savings compared to the savings from LEDs, the use of networked… Read More…


Design

  • Light at Night and the Inequality Gap: Progress and Challenges

    Light at Night and the Inequality Gap: Progress and Challenges

    March 9, 2023 In December 2021, the DLC hosted a webinar that explored issues related to “Bridging the Inequality Gap” in outdoor nighttime lighting. The conversation introduced research on how lighting contributes to discrimination and inequity in underrepresented communities, and generated heightened interest among attendees. To follow up on the research and work presented, the DLC sat… Read More…

  • LIT Design Awards Light Art Project Winner: Integral Group

    LIT Design Awards Light Art Project Winner: Integral Group

    December 19, 2022 Prize(s) Winners in Light Art Project Company Integral Group Lead Designers Ellie Niakan + Catherine Chan Photo Credits Catherine Chan Completion Date December 21, 2021 Project Location New Westminster, British Columbia, Canada Although appearing as solitary, trees are connected to one another through vast underground systems known as mycorrhizal networks. Through these hidden systems—a symbiotic relationship between plants… Read More…


New Products

  • Introducing LED-integrated Wine Rack System from MP Lighting

    Introducing LED-integrated Wine Rack System from MP Lighting

    March 23, 2023 Wine enthusiasts, sommeliers, and casual appreciators alike can all agree: wine is delicate. The naturally occurring chemicals in the wine can be disturbed by many environmental factors, mainly heat, lighting, and vibrations. To aid in the prevention of these factors spoiling the wine, wine racks can be installed. LED-integrated wine rack systems… Read More…

  • Punctuate with Hyphen. New architectural luminaire system by Fluxwerx

    Punctuate with Hyphen. New architectural luminaire system by Fluxwerx

    March 23, 2023 Fluxwerx makes a break from the ordinary with the launch of Hyphen—a family of discrete recessed and surface luminaires to design, define and leave your mark. With Portal, Fluxwerx pushed past conventional downlights and cylinders in our drive to give designers new and differentiated aesthetic options with innovative optics that maximize visual… Read More…