• Increased Net Sales 8 Percent Over the Prior Year
• Diluted EPS Declined 7 Percent Over the Prior Year; Adjusted Diluted EPS Increased 15 Percent Over the Prior Year
• Generated $187M in Cash Flow from Operations and Repurchased 0.5M of Outstanding Shares

ATLANTA, Jan. 09, 2023 (GLOBE NEWSWIRE) -- Acuity Brands, Inc. (NYSE: AYI) (the "Company"), a market-leading industrial technology company, announced net sales of $997.9 million in the first quarter of fiscal 2023 ended November 30, 2022, an increase of 7.8 percent or $71.8 million, compared to the prior year.

"We delivered solid results in the first quarter of fiscal 2023 as we continued to demonstrate our ability to drive sales growth through product vitality and service in both our lighting and spaces businesses." stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. "We expanded adjusted operating profit, substantially grew adjusted diluted earnings per share and generated strong cash flow from operations. We again created permanent shareholder value through share repurchases."

Operating profit was $108.9 million in the first quarter of fiscal 2023, a decrease of $6.2 million, or 5.4 percent, compared to the prior year. Operating profit as a percent of net sales was 10.9 percent in the first quarter of fiscal 2023, a decrease of 150 basis points, compared to the prior year. Adjusted operating profit was $140.1 million in the first quarter of fiscal 2023, an increase of $7.1 million, or 5.3 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 14.0 percent in the first quarter of fiscal 2023, a decrease of 40 basis points, compared to the prior year.

Diluted earnings per share was $2.29 in the first quarter of fiscal 2023, a decrease of $0.17, or 6.9 percent, compared to the prior year. Adjusted diluted earnings per share was $3.29 in the first quarter of fiscal 2023, an increase of $0.44, or 15.4 percent, from $2.85, compared to the prior year.

During the first quarter of fiscal 2023, we sold our Sunoptics business and announced plans to eliminate certain custom architectural product lines. As a result, we took charges totaling $22.1 million ($0.52 per diluted share) related to special charges for impairments, severance and a loss on the sale of the Sunoptics business.

Segment Performance

Acuity Brands Lighting and Lighting Controls ("ABL")

ABL generated net sales of $947.1 million in the first quarter of fiscal 2023, an increase of $63.5 million, or 7.2 percent, compared to the prior year.

ABL operating profit was $118.1 million in the first quarter of fiscal 2023, a decrease of $10.0 million, or 7.8 percent, compared to the prior year. ABL operating profit as a percent of ABL net sales was 12.5 percent in the first quarter of fiscal 2023, a decrease of 200 basis points from 14.5 percent, compared to the prior year. ABL adjusted operating profit was $138.8 million in the first quarter of fiscal 2023, an increase of $0.6 million, or 0.4 percent, compared to the prior year. ABL adjusted operating profit as a percent of ABL net sales was 14.7 percent in the first quarter of fiscal 2023, a decrease of 90 basis points from 15.6 percent, compared to the prior year.

Intelligent Spaces Group ("ISG")

ISG generated net sales of $56.8 million in the first quarter of fiscal 2023, an increase of $10.4 million, or 22.4 percent, compared to the prior year.

ISG operating profit was $7.7 million in the first quarter of fiscal 2023, an increase of $5.7 million, compared to the prior year. ISG adjusted operating profit was $12.1 million in the first quarter of fiscal 2023, an increase of $6.0 million, compared to the prior year.

Cash Flow and Capital Allocation

Net cash from operating activities was $186.6 million for the first three months of fiscal 2023, an increase of $102.9 million, compared to the prior year due to an improvement in our working capital.

During the first quarter of fiscal 2023, the Company repurchased approximately 0.5 million shares of common stock for a total of $78 million.

Today's Call Details

The Company is planning to host a conference call at 8:00 a.m. (ET) today, Monday, January 9, 2023. 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 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.

About Acuity Brands

Acuity Brands, Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces, light, and more things to come. Through our two business segments, Acuity Brands Lighting and Lighting Controls (“ABL”) and the Intelligent Spaces Group (“ISG”), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives.

We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management systems, and location-aware applications. We achieve customer-focused efficiencies that allow us to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals.

Acuity Brands, Inc. is based in Atlanta, Georgia, with operations across North America, Europe, and Asia. The Company is powered by more than 13,000 dedicated and talented associates. Visit us at www.acuitybrands.com

Non-GAAP Financial Measures

This news release includes the following non-generally accepted accounting principles ("GAAP") financial measures: “adjusted operating profit” and “adjusted operating profit margin” for total company and by segment; “adjusted net income;” “adjusted diluted EPS;” “earnings before interest, taxes, depreciation, and amortization (“EBITDA”);” “adjusted EBITDA;” and “free cash flow” (“FCF”)”. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company's current financial performance and prospects for the future. Specifically, management believes that these non-GAAP measures provide useful information to investors by excluding or adjusting items for amortization of acquired intangible assets, share-based payment expense, loss on sale of business, and special charges associated with continued efforts to streamline the organization and integrate recent acquisitions. FCF is provided to enhance the reader’s understanding of the Company’s ability to generate additional cash from its business. Management typically adjusts for these items for internal reviews of performance and uses the above non-GAAP measures for baseline comparative operational analysis, decision making, and other activities. Management believes these non-GAAP measures provide greater comparability and enhanced visibility into the Company’s results of operations as well as comparability with many of its peers, especially those companies focused more on technology and software. Non-GAAP financial measures included in this news release should be considered in addition to, and not as a substitute for or superior to, results prepared in accordance with GAAP.

The most directly comparable GAAP measures for adjusted operating profit and adjusted operating profit margin for total company and by segment are “operating profit” and “operating profit margin,” respectively, for total company and by segment, which include the impact of amortization of acquired intangible assets, share-based payment expense, and special charges. Adjusted operating profit margin is adjusted operating profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted net income and adjusted diluted EPS are “net income” and “diluted EPS,” respectively, which include the impact of amortization of acquired intangible assets, loss on sale of business, share-based payment expense, and special charges. Adjusted diluted EPS is adjusted net income divided by diluted weighted average shares outstanding. The most directly comparable GAAP measure for FCF is “net cash provided by operating activities less purchases of property, plant and equipment.” The most directly comparable GAAP measure for EBITDA is “net income”, which includes the impact of net interest expense, income taxes, depreciation, and amortization of acquired intangible assets. The most directly comparable GAAP measure for adjusted EBITDA is “net income”, which includes the impact of net interest expense, income taxes, depreciation, amortization of acquired intangible assets, share-based payment expense, special charges, and miscellaneous (income) expense, net. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release. The Company’s non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for GAAP financial measures. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items.

Forward-Looking Information

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements use words such as “expect,” “believe,” “intend,” “anticipate,” “indicative,” “projection,” “predict,” “plan,” “may,” “could,” “should,” “would,” “potential,” and words of similar meaning, as well as other words or expressions referencing future events, conditions, or circumstances. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to the Company’s plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in this release include, without limitation, statements relating to generating permanent value, and our full-year fiscal 2023 guidance and expected financial performance. Forward-looking statements are not guarantees of future performance. Our forward-looking statements are based on our current beliefs, expectations, and assumptions, which may not prove to be accurate, and are subject to known and unknown risks and uncertainties, many of which are outside of our control. These risks and uncertainties could cause actual results to differ materially from our historical experience and management’s present expectations or projections. These risks and uncertainties are discussed in our filings with the U.S. Securities and Exchange Commission, including our most recent annual report on Form 10-K (including, but not limited to, Part I, Item 1a Risk Factors), quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. You are cautioned not to place undue reliance on any forward-looking statements. Except as required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, or otherwise.

ACUITY BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)

ACUITY BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per-share data)

⁽¹⁾ Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding.

ACUITY BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)

ACUITY BRANDS, INC.
DISAGGREGATED NET SALES
(In millions)

The following tables show net sales by channel for the periods presented:

ACUITY BRANDS, INC.
Reconciliation of Non-U.S. GAAP Measures

The tables below reconcile certain GAAP financial measures to the corresponding non-GAAP measures for total Company as well as our reportable operating segments (in millions except per share data):

⁽¹⁾ Amortization expense for fiscal 2023 includes accelerated amortization of $4.0 million for certain discontinued brands.

⁽¹⁾ Amortization expense for fiscal 2023 includes accelerated amortization of $4.0 million for certain discontinued brands.

Investor Contact:
Charlotte McLaughlin
Vice President, Investor Relations
(404) 853-1456
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Media Contact:
Cathy Lewandowski
Senior Manager, External Communications
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