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TheStreet Open House

Acuity Brands Reports Fiscal 2012 Third Quarter Results

Conference Call

As previously announced, the Company will host a conference call to discuss third quarter results today, July 2, 2012, 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 lighting solutions for both indoor and outdoor applications. With fiscal year 2011 net sales of $1.8 billion, Acuity Brands employs approximately 6,000 associates and is headquartered in Atlanta, Georgia with operations throughout North America, and in Europe and Asia. The Company’s lighting solutions are sold under various brands, including Lithonia Lighting®, Holophane®, Peerless®, Gotham®, Mark Architectural Lighting™, Winona® Lighting, Healthcare Lighting®, Hydrel®, American Electric Lighting®, Carandini®, Antique Street Lamps™, Tersen®, Sunoptics®, Sensor Switch®, Lighting Control & Design™, Synergy® Lighting Controls, Pathway Connectivity™, Dark to Light®, ROAM®, RELOC® Wiring Solutions, and acculamp®.

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,” “remain,” 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) forecasted effective tax rate for fiscal 2012; (b) estimated additional costs and the total pre-tax special charge associated with the facility closure; (c) projected annualized pre-tax savings associated with the facility closure, including the timing of the realization of such savings; (d) expectation of solid growth for the lighting and lighting-related industry and the Company’s position to fully participate; (e) existence of opportunities that will allow the Company to outperform the markets it serves; (f) expectation of modest growth in the U.S. non-residential construction market through fiscal 2013; and (g) expectation that the North American lighting market will continue to outpace the growth rate of new construction and the potential for continuing volatility in customer demand. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the historical experience of Acuity Brands and management's present expectations or projections. These risks and uncertainties include, but are not limited to, customer and supplier relationships and prices; competition; ability to realize anticipated benefits from initiatives taken and timing of benefits; market demand; litigation and other contingent liabilities; and economic, political, governmental, and technological factors affecting the Company. Please see the other risk factors more fully described in the Company’s SEC filings including 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, 2011. 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.
CONSOLIDATED BALANCE SHEETS
(In millions, except share and per-share data)
    August 31,
May 31, 2012 2011
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 228.3 $ 170.2
Accounts receivable, less reserve for doubtful accounts of $1.7 at May 31, 2012 and $1.8 at August 31, 2011 269.6 262.6
Inventories 168.7 165.9
Deferred income taxes 15.3 16.0
Prepayments and other current assets   22.2     15.8  
Total Current Assets   704.1     630.5  
Property, Plant, and Equipment, at cost:
Land 6.9 8.4
Buildings and leasehold improvements 113.4 121.2
Machinery and equipment   360.4     355.3  
Total Property, Plant, and Equipment 480.7 484.9
Less - Accumulated depreciation and amortization   348.3     341.7  
Property, Plant, and Equipment, net   132.4     143.2  
Other Assets:
Goodwill 554.0 559.2
Intangible assets 233.5 234.2
Deferred income taxes 1.8 2.0
Other long-term assets   30.7     28.3  
Total Other Assets   820.0     823.7  
Total Assets $ 1,656.5   $ 1,597.4  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $ 202.7 $ 203.8
Accrued compensation 40.4 45.0
Accrued pension liabilities, current 1.2 1.2
Other accrued liabilities   86.8     81.4  
Total Current Liabilities   331.1     331.4  
Long-Term Debt 353.5 353.4
Accrued Pension Liabilities, less current portion 52.6 60.5
Deferred Income Taxes 38.5 36.4
Self-Insurance Reserves, less current portion 7.2 7.3
Other Long-Term Liabilities 54.6 51.4
Stockholders’ Equity:
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued - -
Common stock, $0.01 par value; 500,000,000 shares authorized; 51,454,820 issued and 41,735,565 outstanding at May 31, 2012; and 50,956,137 issued and 41,488,882 outstanding at August 31, 2011 0.5 0.5
Paid-in capital 697.8 680.3
Retained earnings 607.6 541.0
Accumulated other comprehensive loss items (66.8 ) (53.8 )
Treasury stock, at cost, 9,719,255 shares at May 31, 2012 and 9,467,255 shares at August 31, 2011   (420.1 )   (411.0 )
Total Stockholders’ Equity   819.0     757.0  
Total Liabilities and Stockholders’ Equity $ 1,656.5   $ 1,597.4  
 
       
ACUITY BRANDS, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per-share data)
 
Three Months Ended Nine Months Ended
May 31, 2012 May 31, 2011 May 31, 2012 May 31, 2011
Net Sales $ 487.5 $ 458.3 $ 1,419.5 $ 1,299.5
Cost of Products Sold   285.5     268.6   841.9     769.9
Gross Profit 202.0 189.7 577.6 529.6
Selling, Distribution, and Administrative Expenses 142.8 139.5 419.5 396.7
Special Charge   1.9     -   11.2     -
Operating Profit 57.3 50.2 146.9 132.9
Other Expense (Income):
Interest Expense, net 7.7 7.5 23.1 22.5
Miscellaneous (Income) Expense, net   (2.7 )   0.9   (4.5 )   2.9
Total Other Expense   5.0     8.4   18.6     25.4
Income before Provision for Income Taxes 52.3 41.8 128.3 107.5
Provision for Income Taxes   18.7     14.7   45.2     36.2
Net Income $ 33.6   $ 27.1 $ 83.1   $ 71.3
 
Earnings Per Share:        
Basic Earnings per Share $ 0.80   $ 0.63 $ 1.97   $ 1.66
Basic Weighted Average Number of Shares Outstanding   41.6     42.5   41.4     42.3
Diluted Earnings per Share $ 0.79   $ 0.62 $ 1.95   $ 1.63
Diluted Weighted Average Number of Shares Outstanding   42.0     43.1   41.9     42.9
Dividends Declared per Share $ 0.13   $ 0.13 $ 0.39   $ 0.39
 
 
ACUITY BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In Millions)
  Nine Months Ended
May 31, 2012   May 31, 2011
Cash Provided by (Used for) Operating Activities:
Net income $ 83.1   $ 71.3  
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization 29.7 29.7
Share-based compensation expense, net 6.8 5.2
Excess tax benefits from share-based payments (4.3 ) (5.1 )
Loss on the sale or disposal of property, plant, and equipment 0.2 0.1
Asset impairments 0.1 0.1
Deferred income taxes (0.8 ) (1.4 )
Other non-cash items 0.1 -
Change in assets and liabilities, net of effect of acquisitions, and effect of exchange rate changes:
Accounts receivable (9.8 ) 10.2
Inventories (3.7 ) (17.6 )
Prepayments and other current assets (2.1 ) 0.6
Accounts payable 0.2 (10.1 )
Other current liabilities 6.0 (2.9 )
Other   (2.7 )   1.5  
Net Cash Provided by Operating Activities   102.8     81.6  
Cash Provided by (Used for) Investing Activities:
Purchases of property, plant, and equipment (18.8 ) (17.4 )
Proceeds from sale of property, plant, and equipment - 1.3
Acquisitions of business and intangible assets, net of cash acquired   (3.8 )   (90.4 )
Net Cash Used for Investing Activities   (22.6 )   (106.5 )
Cash Provided by (Used for) Financing Activities:
Repurchases of common stock (9.2 ) (2.9 )
Proceeds from stock option exercises and other 6.5 5.8
Excess tax benefits from share-based payments 4.3 5.1
Dividends paid   (16.5 )   (16.9 )
Net Cash Used for Financing Activities   (14.9 )   (8.9 )
Effect of Exchange Rate Changes on Cash   (7.2 )   3.6  
Net Change in Cash and Cash Equivalents 58.1 (30.2 )
Cash and Cash Equivalents at Beginning of Period   170.2     191.0  
Cash and Cash Equivalents at End of Period $ 228.3   $ 160.8  
 
 

ACUITY BRANDS, INC.

Reconciliation of Non-U.S. GAAP Measures

 
The tables below reconciles certain 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. These non-GAAP financial measures, including adjusted operating profit, adjusted operating profit margin, adjusted net income, 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 by excluding the impact of the special charges. 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.
 
(Unaudited)
(In millions, except per-share data) THREE MONTHS ENDED
May 31, 2012   May 31, 2011
  % of Sales   % of Sales
Net Sales $ 487.5 $ 458.3
 
Operating Profit (GAAP) $ 57.3 11.8 % $ 50.2 11.0 %
Add-Back: Special Charge   1.9 0.3 %   - -  
Adjusted Operating Profit (Non-GAAP) $ 59.2 12.1 % $ 50.2 11.0 %
 
Net Income (GAAP) $ 33.6 $ 27.1
Add-Back: Special Charge, net of tax   1.2   -
Adjusted Net Income (Non-GAAP) $ 34.8 $ 27.1
 
Diluted Earnings Per Share (GAAP) $ 0.79 $ 0.62
Add-Back: Special Charge, net of tax   0.03   -
Adjusted Diluted Earnings Per Share (Non-GAAP) $ 0.82 $ 0.62
 
 
(In millions, except per-share data) NINE MONTHS ENDED
May 31, 2012 May 31, 2011
% of Sales % of Sales
Net Sales $ 1,419.5 $ 1,299.5
 
Operating Profit (GAAP) $ 146.9 10.3 % $ 132.9 10.2 %
Add-Back: Special Charge   11.2 0.8 %   - -  
Adjusted Operating Profit (Non-GAAP) $ 158.1 11.1 % $ 132.9 10.2 %
 
Net Income (GAAP) $ 83.1 $ 71.3

Add-Back: Special Charge, net of tax

 

7.5

  -
Adjusted Net Income (Non-GAAP) $

90.6

$ 71.3
 
Diluted Earnings Per Share (GAAP) $ 1.95 $ 1.63

Add-Back: Special Charge, net of tax

  0.18   -
Adjusted Diluted Earnings Per Share (Non-GAAP) $ 2.13 $ 1.63




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