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TheStreet Open House

Acuity Brands Reports Fiscal 2011 Fourth Quarter And Full Year Results

Stock quotes in this article: AYI

Conference Call

As previously announced, the Company will host a conference call to discuss fourth quarter results today, October 5, 2011, at 10:00 a.m. ET. Interested parties may listen to this call live today or hear a replay at the Company's Web site: www.acuitybrands.com.

About Acuity Brands

Acuity Brands, Inc. is a North American market leader and one of the world’s leading providers of luminaires, lighting control systems and related products and services with fiscal year 2011 net sales of $1.8 billion. The Company’s lighting and system control product lines include Lithonia Lighting®, Holophane®, Peerless®, Mark Architectural Lighting™, Hydrel®, American Electric Lighting®, Gotham®, Carandini®, RELOC®, Antique Street Lamps™, Tersen®, Winona® Lighting, Synergy® Lighting Controls, Sensor Switch®, Lighting Control & Design™, Dark to Light®, ROAM®, Sunoptics®, acculamp™ and Healthcare Lighting®. Headquartered in Atlanta, Georgia, Acuity Brands employs approximately 6,000 associates and has operations throughout North America, Europe and Asia. All trademarks referenced are the property of their respective owners.

Forward Looking Information

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that may be considered forward-looking include statements incorporating terms such as "expects," "believes," "intends," “estimates”, “forecasts,” "anticipates," “may,” “should”, and similar terms that relate to future events, performance, or results of the Company and specifically include statements made in this press release regarding: (a) expectation of significant growth potential over the next five years and beyond, solid growth over the next decade for the lighting and lighting-related industry, and the Company’s position to fully participate and ability to outperform the markets it serves; (b) positioning of the Company to deliver short-term performance while investing in and deploying resources to further longer-term profitable growth opportunities; (c) progression of strategies to drive profitable growth; (d) modest growth in the North American lighting market in fiscal 2012 and the potential for continuing volatility in customer demand; (e) volatility in material and component costs and the Company’s continuing pricing strategies efforts to protect margins; (f) intentions to invest approximately $40 million in capital expenditures in fiscal 2012; (g) fiscal 2012 estimated annual tax rate of 34 percent; and (h) the accretive contribution of LED fixtures to the Company’s overall profit margins as the expected decline in LED component costs outpaces the decrease in selling prices of LED fixtures. Please see the other risk factors more fully described in the Company’s SEC filings including the risks discussed in Part I, “Item 1a. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended August 31, 2010. The discussion of those risks is specifically incorporated herein by reference. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events.

 
ACUITY BRANDS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share and per-share data)
    August 31,

2011 (Preliminary)

    2010

 

 
ASSETS
Current Assets:
Cash and cash equivalents $ 170.2 $ 191.0
Accounts receivable, less reserve for doubtful accounts of $1.8 at August 31, 2011 and $2.0 at August 31, 2010 262.6 255.1
Inventories 165.9 149.0
Deferred income taxes 16.0 17.3
Prepayments and other current assets   15.8   13.9
 

Total Current Assets

  630.5   626.3
 
Property, Plant, and Equipment, net 143.2 138.4
Other Long-Term Assets   821.3   738.9
 
Total Assets $ 1,595.0 $ 1,503.6
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $ 203.8 $ 195.0
Other accrued liabilities   127.6   126.3
 
Total Current Liabilities   331.4   321.3
 
Long-Term Debt 353.4 353.3
Other Long-Term Liabilities 153.2 134.6
 
Total Stockholders’ Equity   757.0   694.4
 
Total Liabilities and Stockholders’ Equity $ 1,595.0 $ 1,503.6
               
ACUITY BRANDS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per-share data)
 
Three Months Ended Twelve Months Ended
 

August 31,

2011

(Preliminary)

 

August 31,

2010

(Unaudited)

 

August 31,

2011

(Preliminary)

 

August 31,

2010

Net Sales $ 496.2 $ 444.1 $ 1,795.7 $ 1,626.9
Cost of Products Sold   295.8     259.7   1,065.7   965.4  
 
Gross Profit 200.4 184.4 730.0 661.5
 
Selling, Distribution, and Administrative Expenses 144.6 133.1 541.3 495.4
Special Charge   -     3.3   -   8.4  
 
Operating Profit 55.8 48.0 188.7 157.7
 
Other Expense (Income):
Interest expense, net 7.4 7.4 29.9 29.4
Miscellaneous (income) expense, net (1.7 ) - 1.2 (1.0 )
Loss on early debt extinguishment   -     -   -   10.5  
 
Total Other Expense   5.7     7.4   31.1   38.9  
 
Income from Continuing Operations before Provision for Income Taxes 50.1 40.6 157.6 118.8
Provision for Income Taxes   15.9     13.4   52.1   39.8  
 
Income from Continuing Operations 34.2 27.2 105.5 79.0
Income from Discontinued Operations   -     -   -   0.6  
 
Net Income $ 34.2   $ 27.2 $ 105.5 $ 79.6  
 
 
Earnings Per Share:
 
Basic Earnings per Share from Continuing Operations $ 0.80 $ 0.63 $ 2.46 $ 1.83
Basic Earnings per Share from Discontinued Operations   -     -   -   0.01  
Basic Earnings per Share $ 0.80   $ 0.63 $ 2.46 $ 1.84  
 
Basic Weighted Average Number of Shares Outstanding   42.0     42.4   42.2   42.5  
 
Diluted Earnings per Share from Continuing Operations $ 0.79 $ 0.62 $ 2.42 $ 1.79
Diluted Earnings per Share from Discontinued Operations   -     -   -   0.01  
Diluted Earnings per Share $ 0.79   $ 0.62 $ 2.42 $ 1.80  
 
Diluted Weighted Average Number of Shares Outstanding   42.6     43.2   42.8   43.3  
 
Dividends Declared per Share $ 0.13   $ 0.13 $ 0.52 $ 0.52  
       
ACUITY BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
 
Twelve Months Ended
 

August 31,

2011

(Preliminary)

August 31,

2010

 
Cash Provided by (Used for) Operating Activities:
Net income $ 105.5 $ 79.6
Adjust: Gain from Discontinued Operations   -     (0.6 )
Income from Continuing Operations 105.5 79.0
 
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization 40.1 36.5
Noncash compensation expense, net 8.4 9.0
Excess tax benefits from share-based payments (5.3 ) (2.8 )
Loss on early debt extinguishment - 10.5
Loss on the sale or disposal of property, plant, and equipment 0.1 0.5
Asset impairments 0.3 5.1
Deferred income taxes 10.3 7.4
Other non-cash items 0.1 -
Change in assets and liabilities, net of effect of acquisitions, divestitures and effect of exchange rate changes:
Accounts receivable 2.9 (29.2 )
Inventories (5.3 ) (8.6 )
Prepayments and other current assets 0.7 1.8
Accounts payable 5.5 33.5
Other current liabilities 0.5 21.8
Other   (3.0 )   (4.0 )
 
Net Cash Provided by Operating Activities   160.8     160.5  
 
Cash Provided by (Used for) Investing Activities:
Purchases of property, plant, and equipment (23.3 ) (21.9 )
Proceeds from sale of property, plant, and equipment 1.5 0.2
Acquisitions of businesses and intangible assets   (90.4 )   (22.6 )
 
Net Cash Used for Investing Activities   (112.2 )   (44.3 )
 
Cash Provided by (Used for) Financing Activities:
Repayments of long-term debt - (237.9 )
Issuance of long-term debt - 346.5
Repurchases of common stock (61.0 ) (36.1 )
Proceeds from stock option exercises and other 6.5 6.5
Excess tax benefits from share-based payments 5.3 2.8
Dividends paid   (22.6 )   (22.6 )
 
Net Cash (Used for) Provided by Financing Activities   (71.8 )   59.2  
 
Effect of Exchange Rate Changes on Cash   2.4     (3.1 )
 
Net Change in Cash and Cash Equivalents (20.8 ) 172.3
Cash and Cash Equivalents at Beginning of Period   191.0     18.7  
 
Cash and Cash Equivalents at End of Period $ 170.2   $ 191.0  

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

The table below reconciles certain U.S. Generally Accepted Accounting Principles (“GAAP”) financial measures to the corresponding non-GAAP measures, which exclude special charges associated with actions to accelerate the streamlining of the organization, including the consolidation of certain manufacturing facilities and the loss on the early extinguishment of debt. These non-GAAP financial measures, including adjusted operating profit, adjusted operating profit margin, adjusted income from continuing operations, and adjusted diluted earnings per share, are provided to enhance the user’s overall understanding of the Company’s current financial performance. Specifically, the Company believes these non-U.S. GAAP measures provide greater comparability and enhanced visibility into results excluding the impact of the special charges and loss on the early extinguishment of debt. These non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, results prepared in accordance with GAAP.

           
(In millions, except earnings per share data) THREE MONTHS ENDED
August 31,
2011   2010  
    % of Sales % of Sales
Net Sales $ 496.2 $ 444.1
 
Operating Profit (GAAP) $ 55.8 11.2 % $ 48.0 10.8 %
Add-Back: Special Charge   - -     3.3 0.7 %
Adjusted Operating Profit (Non-GAAP) $ 55.8 11.2 % $ 51.3 11.5 %
 
Income from Continuing Operations (GAAP) $ 34.2 $ 27.2
Add-Back: Special Charge   -   2.1
Adjusted Income from Continuing Operations (Non-GAAP) $ 34.2 $ 29.3
 
Diluted Earnings Per Share from Continuing Operations (GAAP) $ 0.79 $ 0.62
Add-Back: Special Charge   -   0.05
Adjusted Diluted Earnings Per Share from Continuing Operations (Non-GAAP) $ 0.79 $ 0.67
         
(In millions, except earnings per share data) TWELVE MONTHS ENDED
August 31,
2011     2010  
    % of Sales % of Sales
Net Sales $ 1,795.7 $ 1,626.9
 
Operating Profit (GAAP) $ 188.7 10.5 % $ 157.7 9.7 %
Add-Back: Special Charge   -

-

 

  8.4 0.5 %
Adjusted Operating Profit (Non-GAAP) $ 188.7 10.5 % $ 166.1 10.2 %
 
Income from Continuing Operations (GAAP) $ 105.5 $ 79.0
Add-Back: Special Charge - 5.5
Add-Back: Loss on Early Extinguishment of Debt   -   6.8
Adjusted Income from Continuing Operations (Non-GAAP) $ 105.5 $ 91.3
 
Diluted Earnings Per Share from Continuing Operations (GAAP) $ 2.42 $ 1.79
Add-Back: Special Charge - 0.13
Add-Back: Loss on Early Extinguishment of Debt   -   0.16
Adjusted Diluted Earnings Per Share from Continuing Operations (Non-GAAP) $ 2.42 $ 2.08




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