EX-99.1 2 ayi-20240627x8xk_ex991.htm EX-99.1 Document
Press Release
Exhibit 99.1


Investor Contact:
Charlotte McLaughlin
Vice President, Investor Relations
(404) 853-1456
investorrelations@acuitybrands.com

Media Contact:
April Appling
Vice President, Corporate Communications
corporatecommunications@acuitybrands.com

Acuity Brands Reports Fiscal 2024 Third-Quarter Results
Solid Execution Delivers Operating Margin Expansion, EPS Growth and Strong Operating Cash Flow

■Delivered Net Sales of $968M, a 3% Decline Compared to the Prior Year
■Grew Operating Profit to $145M, up 1% Over the Prior Year; Adjusted Operating Profit of $167M, up 3% Over the Prior Year
■Reported Diluted EPS of $3.62, up 10% Over the Prior Year; Adjusted Diluted EPS of $4.15, up 11% Over the Prior Year
■Generated $445M in Year-to-Date Cash Flow from Operations

ATLANTA, June 27 2024 - Acuity Brands, Inc. (NYSE: AYI) (the “Company”), a market-leading industrial technology company, announced net sales of $968.1 million in the third quarter of fiscal 2024 ended May 31, 2024, a decrease of $32.2 million, or 3.2 percent, compared to the prior year.

“In our fiscal 2024 third quarter we delivered solid results as we continued to execute on our strategy,” stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. “We increased our adjusted operating profit, adjusted operating profit margin and adjusted diluted earnings per share. We generated strong free cash flow, and we allocated capital effectively to drive value.”

Operating profit was $145.3 million in the third quarter of fiscal 2024, an increase of $2.0 million, or 1.4 percent, compared to the prior year. Operating profit as a percent of net sales was 15.0 percent in the third quarter of fiscal 2024, an increase of 70 basis points compared to the prior year. Adjusted operating profit was $167.1 million in the third quarter of fiscal 2024, an increase of $4.2 million, or 2.6 percent, compared to the prior year. Adjusted operating profit as a percent of net sales was 17.3 percent in the third quarter of fiscal 2024, an increase of 100 basis points compared to the prior year.
Diluted earnings per share was $3.62 in the third quarter of fiscal 2024, an increase of $0.34, or 10.4 percent, compared to the prior year. Adjusted diluted earnings per share was $4.15 in the third quarter of fiscal 2024, an increase of $0.40, or 10.7 percent, from $3.75 in the prior year.

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Exhibit 99.1
Segment Performance
Acuity Brands Lighting and Lighting Controls (“ABL”)
ABL generated net sales of $898.5 million in the third quarter of fiscal 2024, a decrease of $42.2 million, or 4.5 percent, compared to the prior year.
ABL operating profit was $151.5 million in the third quarter of fiscal 2024, an increase of $1.5 million, or 1.0 percent, compared to the prior year. ABL operating profit as a percent of ABL net sales was 16.9 percent in the third quarter of fiscal 2024, an increase of 100 basis points compared to the prior year. ABL adjusted operating profit was $162.1 million in the third quarter of fiscal 2024, an increase of $2.4 million, or 1.5 percent, compared to the prior year. ABL adjusted operating profit as a percent of ABL net sales was 18.0 percent in the third quarter of fiscal 2024, an increase of 100 basis points compared to the prior year.
Intelligent Spaces Group (“ISG”)
ISG generated net sales of $75.7 million in the third quarter of fiscal 2024, an increase of $9.9 million, or 15.0 percent, compared to the prior year.
ISG operating profit was $12.5 million in the third quarter of fiscal 2024, an increase of $3.9 million compared to the prior year. ISG operating profit as a percent of ISG net sales was 16.5 percent in the third quarter of fiscal 2024, an increase of 340 basis points compared to the prior year. ISG adjusted operating profit was $17.3 million in the third quarter of fiscal 2024, an increase of $4.5 million compared to the prior year. ISG adjusted operating profit as a percent of ISG net sales was 22.9 percent in the third quarter of fiscal 2024, an increase of 340 basis points compared to the prior year.
Cash Flow and Capital Allocation
Net cash from operating activities was $445.1 million for the first nine months of fiscal 2024, a decrease of $26.4 million compared to the prior year.
Year-to-Date, the Company repurchased approximately 454,000 shares of common stock for a total of approximately $89 million.
Today's Call Details
The Company will host a conference call at 8:00 a.m. (ET) today, Thursday, June 27, 2024. 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 website within two hours of the completion of the conference call and will be available on the website 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

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Exhibit 99.1
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 solutions, 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 12,000 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”);" "EBITDA margin;" “adjusted EBITDA;” "Adjusted EBITDA margin". 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.
We also provide “free cash flow” (“FCF”) 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 EBITDA is “net income”, which includes the impact of net interest expense, income taxes, depreciation, and amortization of acquired intangible assets. EBITDA margin is EBITDA divided by net sales for total company. 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

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Exhibit 99.1
acquired intangible assets, share-based payment expense, special charges, and miscellaneous (income) expense, net. Adjusted EBITDA margin is Adjusted EBITDA divided by net sales for total company. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release.
The Company defines FCF as net cash provided by operating activities less purchases of property, plant and equipment. A calculation of this 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. 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.

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Exhibit 99.1
ACUITY BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per-share data)
 May 31, 2024August 31, 2023
 (unaudited)
ASSETS
Current assets: 
Cash and cash equivalents$699.0 $397.9 
Accounts receivable, less reserve for doubtful accounts of $1.5 and $1.3, respectively
512.3 555.3 
Inventories372.3 368.5 
Prepayments and other current assets90.4 73.5 
Total current assets1,674.0 1,395.2 
Property, plant, and equipment, net298.0 297.6 
Operating lease right-of-use assets71.7 84.1 
Goodwill1,096.7 1,097.9 
Intangible assets, net452.9 481.2 
Deferred income taxes0.8 3.0 
Other long-term assets48.8 49.5 
Total assets$3,642.9 $3,408.5 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities: 
Accounts payable$323.3 $285.7 
Current operating lease liabilities19.3 19.7 
Accrued compensation88.0 103.3 
Other current liabilities174.7 186.7 
Total current liabilities605.3 595.4 
Long-term debt496.0 495.6 
Long-term operating lease liabilities63.4 75.5 
Accrued pension liabilities38.8 38.4 
Deferred income taxes42.0 59.0 
Other long-term liabilities142.7 129.2 
Total liabilities1,388.2 1,393.1 
Stockholders’ equity: 
Preferred stock, $0.01 par value per share; 50.0 shares authorized; none issued— — 
Common stock, $0.01 par value per share; 500.0 shares authorized; 54.6 and 54.4 issued, respectively
0.5 0.5 
Paid-in capital1,103.4 1,066.8 
Retained earnings3,795.7 3,505.4 
Accumulated other comprehensive loss(111.9)(112.6)
Treasury stock, at cost, of 23.9 and 23.4 shares, respectively
(2,533.0)(2,444.7)
Total stockholders’ equity2,254.7 2,015.4 
Total liabilities and stockholders’ equity$3,642.9 $3,408.5 

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Exhibit 99.1
ACUITY BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per-share data)
 Three Months EndedNine Months Ended
 May 31, 2024May 31, 2023May 31, 2024May 31, 2023
Net sales$968.1 $1,000.3 $2,808.7 $2,941.8 
Cost of products sold515.9 553.0 1,515.7 1,671.3 
Gross profit452.2 447.3 1,293.0 1,270.5 
Selling, distribution, and administrative expenses306.9 304.0 896.7 899.9 
Special charges— — — 6.9 
Operating profit145.3 143.3 396.3 363.7 
Other (income) expense: 
Interest (income) expense, net(1.8)3.9 (1.0)16.2 
Miscellaneous (income) expense, net(0.5)0.7 1.2 6.1 
Total other (income) expense(2.3)4.6 0.2 22.3 
Income before income taxes147.6 138.7 396.1 341.4 
Income tax expense33.7 33.7 92.4 78.3 
Net income$113.9 $105.0 $303.7 $263.1 
Earnings per share(1):
 
Basic earnings per share$3.70 $3.31 $9.83 $8.22 
Basic weighted average number of shares outstanding30.829 31.682 30.905 32.006 
Diluted earnings per share$3.62 $3.28 $9.67 $8.13 
Diluted weighted average number of shares outstanding31.477 32.011 31.420 32.360 
Dividends declared per share$0.15 $0.13 $0.43 $0.39 
(1) Earnings per share is calculated using unrounded numbers. Amounts in the table may not recalculate exactly due to rounding.

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Exhibit 99.1
ACUITY BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
 Nine Months Ended
 May 31, 2024May 31, 2023
Cash flows from operating activities:
Net income$303.7 $263.1 
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization68.5 70.4 
Share-based payment expense34.9 32.4 
Loss on disposal of property, plant, and equipment0.3 — 
Asset impairment— 4.3 
Loss on sale of a business— 11.2 
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable42.5 123.9 
Inventories(1.2)82.6 
Prepayments and other current assets(16.3)(9.6)
Accounts payable40.4 (53.4)
Other operating activities(27.7)(53.4)
Net cash provided by operating activities445.1 471.5 
Cash flows from investing activities:  
Purchases of property, plant, and equipment(41.0)(48.0)
Acquisition of businesses, net of cash acquired— (35.4)
Other investing activities(3.6)7.0 
Net cash used for investing activities(44.6)(76.4)
Cash flows from financing activities:  
Repayments on credit facility, net of borrowings— (18.0)
Repurchases of common stock(88.7)(216.2)
Proceeds from stock option exercises and other12.0 2.1 
Payments of taxes withheld on net settlement of equity awards(10.4)(13.9)
Dividends paid(13.4)(12.7)
Net cash used for financing activities(100.5)(258.7)
Effect of exchange rate changes on cash and cash equivalents1.1 (0.3)
Net change in cash and cash equivalents301.1 136.1 
Cash and cash equivalents at beginning of period397.9 223.2 
Cash and cash equivalents at end of period$699.0 $359.3 




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Exhibit 99.1
ACUITY BRANDS, INC.
DISAGGREGATED NET SALES
(In millions)

The following tables show net sales by channel for the periods presented:
Three Months Ended
May 31, 2024May 31, 2023Increase (Decrease)Percent Change
ABL:
Independent sales network$637.1 $686.0 $(48.9)(7.1)%
Direct sales network97.0 103.9 (6.9)(6.6)%
Retail sales45.7 48.0 (2.3)(4.8)%
Corporate accounts60.5 44.4 16.1 36.3 %
Original equipment manufacturer and other58.2 58.4 (0.2)(0.3) %
Total ABL898.5 940.7 (42.2)(4.5)%
ISG75.7 65.8 9.9 15.0 %
Eliminations(6.1)(6.2)0.1 (1.6)%
Total$968.1 $1,000.3 $(32.2)(3.2)%
Nine Months Ended
May 31, 2024May 31, 2023Increase (Decrease)Percent Change
ABL:
Independent sales network$1,874.6 $1,995.0 $(120.4)(6.0)%
Direct sales network287.4 305.0 (17.6)(5.8)%
Retail sales147.7 148.3 (0.6)(0.4)%
Corporate accounts140.1 147.5 (7.4)(5.0)%
Original equipment manufacturer and other168.6 182.8 (14.2)(7.8) %
Total ABL2,618.4 2,778.6 (160.2)(5.8)%
ISG208.0 180.8 27.2 15.0 %
Eliminations(17.7)(17.6)(0.1)0.6 %
Total$2,808.7 $2,941.8 $(133.1)(4.5)%

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Exhibit 99.1
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):
Three Months Ended
 May 31, 2024May 31, 2023Increase (Decrease)Percent Change
Net sales$968.1 $1,000.3 $(32.2)(3.2)%
Operating profit (GAAP)$145.3 $143.3 $2.0 1.4  %
Percent of net sales (GAAP)15.0 %14.3 %70 bps
Add-back: Amortization of acquired intangible assets10.0 9.2 
Add-back: Share-based payment expense11.8 10.4 
Adjusted operating profit (Non-GAAP)$167.1 $162.9 $4.2 2.6 %
Percent of net sales (Non-GAAP)17.3 %16.3 %100 bps
Net income (GAAP)$113.9 $105.0 $8.9 8.5  %
Add-back: Amortization of acquired intangible assets10.0 9.2 
Add-back: Share-based payment expense11.8 10.4 
Total pre-tax adjustments to net income21.8 19.6 
Income tax effects(5.0)(4.5)
Adjusted net income (Non-GAAP)$130.7 $120.1 $10.6 8.8 %
Diluted earnings per share (GAAP)$3.62 $3.28 $0.34 10.4  %
Adjusted diluted earnings per share (Non-GAAP)$4.15 $3.75 $0.40 10.7 %
Net income (GAAP)$113.9 $105.0 $8.9 8.5 %
Percent of net sales (GAAP)11.8 %10.5 %130 bps
Interest (income) expense, net(1.8)3.9 
Income tax expense33.7 33.7 
Depreciation12.9 12.7 
Amortization of acquired intangible assets10.0 9.2 
EBITDA (Non-GAAP)168.7 164.5 4.2 2.6  %
Percent of net sales (Non-GAAP)17.4 %16.4 %100 bps
Share-based payment expense11.8 10.4 
Miscellaneous expense (income), net(0.5)0.7 
Adjusted EBITDA (Non-GAAP)$180.0 $175.6 $4.4 2.5 %
Percent of net sales (Non-GAAP)18.6 %17.6 %100 bps

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Exhibit 99.1
Three Months Ended
ABLMay 31, 2024May 31, 2023Increase (Decrease)Percent Change
Net sales$898.5 $940.7 $(42.2)(4.5)%
Operating profit (GAAP)$151.5 $150.0 $1.5 1.0  %
Add-back: Amortization of acquired intangible assets6.6 6.1 
Add-back: Share-based payment expense4.0 3.6 
Adjusted operating profit (Non-GAAP)$162.1 $159.7 $2.4 1.5 %
Operating profit margin (GAAP)16.9 %15.9 %100 bps
Adjusted operating profit margin (Non-GAAP)18.0 %17.0 %100 bps
Three Months Ended
ISGMay 31, 2024May 31, 2023Increase (Decrease)Percent Change
Net sales$75.7 $65.8 $9.9 15.0 %
Operating profit (GAAP)$12.5 $8.6 $3.9 45.3 %
Add-back: Amortization of acquired intangible assets3.4 3.1 
Add-back: Share-based payment expense1.4 1.1 
Adjusted operating profit (Non-GAAP)$17.3 $12.8 $4.5 35.2 %
Operating profit margin (GAAP)16.5 %13.1 %340 bps
Adjusted operating profit margin (Non-GAAP)22.9 %19.5 %340 bps

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Exhibit 99.1
(In millions, except per share data)Nine Months Ended
 May 31, 2024May 31, 2023Increase (Decrease)Percent Change
Net sales$2,808.7 $2,941.8 $(133.1)(4.5)%
Operating profit (GAAP)$396.3 $363.7 $32.6 9.0 %
Percent of net sales (GAAP)14.1 %12.4 %170 bps
Add-back: Amortization of acquired intangible assets (1)
29.9 32.1 
Add-back: Share-based payment expense34.9 32.4 
Add-back: Special charges— 6.9 
Adjusted operating profit (Non-GAAP)$461.1 $435.1 $26.0 6.0 %
Percent of net sales (Non-GAAP)16.4 %14.8 %160 bps
Net income (GAAP)$303.7 $263.1 $40.6 15.4 %
Add-back: Amortization of acquired intangible asset (1)
29.9 32.1 
Add-back: Share-based payment expense34.9 32.4 
Add-back: Loss on sale of a business— 11.2 
Add-back: Special charges— 6.9 
Total pre-tax adjustments to net income64.8 82.6 
Income tax effect(14.9)(19.1)
Adjusted net income (Non-GAAP)$353.6 $326.6 $27.0 8.3 %
Diluted earnings per share (GAAP)$9.67 $8.13 $1.54 18.9 %
Adjusted diluted earnings per share (Non-GAAP)$11.25 $10.09 $1.16 11.5 %
Net income (GAAP)$303.7 $263.1 $40.6 15.4 %
Percent of net sales (GAAP)10.8 %8.9 %190 bps
Interest expense, net(1.0)16.2 
Income tax expense92.4 78.3 
Depreciation38.6 38.3 
Amortization29.9 32.1 
EBITDA (Non-GAAP)463.6 428.0 35.6 8.3 %
Percent of net sales (Non-GAAP)16.5 %14.5 %200 bps
Share-based payment expense34.9 32.4 
Miscellaneous expense, net1.2 6.1 
Special charges— 6.9 
Adjusted EBITDA (Non-GAAP)$499.7 $473.4 $26.3 5.6 %
Percent of net sales (Non-GAAP)17.8 %16.1 %170 bps
(1) Amortization expense for the first nine months of fiscal 2023 includes accelerated amortization of $4.0 million for certain discontinued brands.

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Exhibit 99.1
Nine Months Ended
ABLMay 31, 2024May 31, 2023Increase (Decrease)Percent Change
Net sales$2,618.4 $2,778.6 $(160.2)(5.8)%
Operating profit (GAAP)$421.3 $391.7 $29.6 7.6 %
Add-back: Amortization of acquired intangible assets (1)
19.7 22.8 
Add-back: Share-based payment expense11.3 10.4 
Add-back: Special charges— 6.9 
Adjusted operating profit (Non-GAAP)$452.3 $431.8 $20.5 4.7 %
Operating profit margin (GAAP)16.1 %14.1 %200 bps
Adjusted operating profit margin (Non-GAAP)17.3 %15.5 %180 bps
(1) Amortization expense for the first nine months of fiscal 2023 includes accelerated amortization of $4.0 million for certain discontinued brands.
Nine Months Ended
ISGMay 31, 2024May 31, 2023Increase (Decrease)Percent Change
Net sales$208.0 $180.8 $27.2 15.0 %
Operating profit (GAAP)$26.9 $22.7 $4.2 18.5 %
Add-back: Amortization of acquired intangible assets10.2 9.3 
Add-back: Share-based payment expense4.8 3.9 
Adjusted operating profit (Non-GAAP)$41.9 $35.9 $6.0 16.7 %
Operating profit margin (GAAP)12.9 %12.6 %30 bps
Adjusted operating profit margin (Non-GAAP)20.1 %19.9 %20 bps
Nine Months Ended
 May 31, 2024May 31, 2023Increase (Decrease)Percent Change
Net cash provided by operating activities (GAAP)$445.1 $471.5 $(26.4)(5.6)%
Less: Purchases of property, plant, and equipment(41.0)(48.0)
Free cash flow (Non-GAAP)$404.1 $423.5 $(19.4)(4.6)%





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