Acuity Brands Fiscal 2023 Second-Quarter Result are Profitable
April 6, 2023
- Increased Net Sales 4 Percent Over the Prior Year
- Diluted EPS Increased 21 Percent Over the Prior Year; Adjusted Diluted EPS Increased 19 Percent Over the Prior Year
- Generated Strong Cash Flow from Operations and Continued to Repurchase Shares
Acuity Brands, Inc. announced net sales of $943.6 million in the second quarter of fiscal 2023 ended February 28, 2023, an increase of 3.8 percent, or $34.5 million compared to the prior year.
“We delivered solid performance again in the second quarter of 2023,” stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. “We grew sales in both our lighting and spaces businesses, expanded adjusted operating profit, and grew adjusted diluted earnings per share. We generated strong cash flow from operations and created permanent value for shareholders through repurchases.”
Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc
Operating profit was $111.5 million in the second quarter of fiscal 2023, an increase of $9.2 million, or 9.0 percent, compared to the prior year. Operating profit as a percent of net sales was 11.8 percent in the second quarter of fiscal 2023, an increase of 50 basis points, compared to the prior year.
Adjusted operating profit was $132.1 million in the second quarter of fiscal 2023, an increase of $9.5 million, or 7.7 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 14.0 percent in the second quarter of fiscal 2023, an increase of 50 basis points, compared to the prior year.
Diluted earnings per share was $2.57 in the second quarter of fiscal 2023, an increase of $0.44, or 20.7 percent, compared to the prior year. Adjusted diluted earnings per share was $3.06 in the second quarter of fiscal 2023, an increase of $0.49, or 19.1 percent, from $2.57, compared to the prior year.
Segment Performance
Acuity Brands Lighting and Lighting Controls (“ABL”)
ABL generated net sales of $890.8 million in the second quarter of fiscal 2023, an increase of $27.7 million, or 3.2 percent, compared to the prior year.
ABL operating profit was $123.6 million in the second quarter of fiscal 2023, an increase of $7.1 million, or 6.1 percent, compared to the prior year. ABL operating profit as a percent of ABL net sales was 13.9 percent in the second quarter of fiscal 2023, an increase of 40 basis points from 13.5 percent, compared to the prior year.
ABL adjusted operating profit was $133.3 million in the second quarter of fiscal 2023, an increase of $6.4 million, or 5.0 percent, compared to the prior year. ABL adjusted operating profit as a percent of ABL net sales was 15.0 percent in the second quarter of fiscal 2023, an increase of 30 basis points from 14.7 percent, compared to the prior year.
Intelligent Spaces Group (“ISG”)
ISG generated net sales of $58.2 million in the second quarter of fiscal 2023, an increase of $8.2 million, or 16.4 percent, compared to the prior year.
ISG operating profit was $6.3 million in the second quarter of fiscal 2023, an increase of $5.1 million, compared to the prior year. ISG adjusted operating profit was $10.8 million in the second quarter of fiscal 2023, an increase of $5.2 million, compared to the prior year.
Cash Flow and Capital Allocation
Net cash from operating activities was $306.4 million for the first six months of fiscal 2023, an increase of $179.1 million compared to the prior year due primarily to an improvement in Acuity’s working capital.
During the first half of fiscal 2023, the Company repurchased approximately 0.7 million shares of common stock for a total of $124.1 million.
Conference Call Details
The Company hosted a conference call at 8:00 a.m. (ET), Tuesday, April 4, 2023. Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. 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 is posted to the Investor Relations website and will be available on the website for a limited time.
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