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Acuity Brands Reports Fiscal 2012 Fourth Quarter And Full Year Results

Stocks in this article: AYI

Conference Call

As previously announced, the Company will host a conference call to discuss fourth quarter results today, October 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 2012 net sales of over $1.9 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”, 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) estimated future pre-tax special charges and manufacturing inefficiencies associated with the facility closure; (b) projected annualized pre-tax savings associated with streamlining activities, including the timing of the realization of such savings; (c) expectation of solid growth over the next decade for the lighting and lighting-related industry and the Company’s position to fully participate; (d) existence of opportunities that will allow the Company to outperform the markets it serves; (e) third-party forecasts for modest growth in the U.S. non-residential construction market through fiscal 2013; and (f) third-party forecasts for the growth rate of the North American lighting market are estimated to be in the mid-single digit range 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
    August 31,
2012    
(Preliminary) 2011
 
 
ASSETS
Current Assets:
Cash and cash equivalents $ 284.5 $ 170.2
Accounts receivable, less reserve for doubtful accounts of $1.4 at August 31, 2012 and $1.8 at August 31, 2011 263.8 262.6
Inventories 194.1 165.9
Deferred income taxes 13.0 16.0
Prepayments and other current assets   23.6   15.8
 
Total Current Assets   779.0   630.5
 
Property, Plant, and Equipment, net 139.2 143.2
 
Other Long-Term Assets   818.7   823.7
 
Total Assets $ 1,736.9 $ 1,597.4
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $ 232.7 $ 203.8
Other accrued liabilities   132.1   127.6
 
Total Current Liabilities   364.8   331.4
 
Long-Term Debt 353.5 353.4
Other Long-Term Liabilities 184.6 155.6
Total Stockholders’ Equity   834.0   757.0
 
Total Liabilities and Stockholders’ Equity $ 1,736.9 $ 1,597.4
 
 
ACUITY BRANDS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per-share data)
               
Three Months Ended August 31, Twelve Months Ended August 31,
2012 2012
(Preliminary) 2011 (Preliminary) 2011
(Unaudited)
Net Sales $ 514.3 $ 496.2 $ 1,933.7 $ 1,795.7
Cost of Products Sold   303.8   295.8     1,145.7     1,065.7
 
Gross Profit 210.5 200.4 788.0 730.0
 
Selling, Distribution, and Administrative Expenses 147.2 144.6 566.7 541.3
Special Charge   2.1   -     13.3     -
 
Operating Profit 61.2 55.8 208.0 188.7
 
Other Expense (Income):
Interest expense, net 7.6 7.4 30.7 29.9

Miscellaneous expense (income), net

  2.8   (1.7 )   (1.7 )   1.2
Total Other Expense   10.4   5.7     29.0     31.1
Income before Provision for Income Taxes 50.8 50.1 179.0 157.6
Provision for Income Taxes   17.5   15.9     62.7     52.1
 
Net Income $ 33.3 $ 34.2   $ 116.3   $ 105.5
 
 
Earnings Per Share:
 
Basic Earnings per Share $ 0.78 $ 0.80   $ 2.75   $ 2.46
 
Basic Weighted Average Number of Shares Outstanding  

41.6

  42.0     41.4     42.2
 
Diluted Earnings per Share $ 0.78 $ 0.79   $ 2.72   $ 2.42
 
Diluted Weighted Average Number of Shares Outstanding   42.1   42.6     41.9     42.8
 
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
 
2012
(Preliminary) 2011
Cash Provided by (Used for) Operating Activities:
Net income $ 116.3 $ 105.5
 
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization 39.8 40.1
Noncash compensation expense, net 10.4 8.4
Excess tax benefits from share-based payments (4.9 ) (5.3 )
Loss on the sale or disposal of property, plant, and equipment 0.5 0.4
Asset impairments 0.3 0.3
Deferred income taxes 6.2 10.3
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 (2.3 ) 2.9
Inventories (28.6 ) (5.3 )
Prepayments and other current assets (2.2 ) 0.7
Accounts payable 29.6 5.5
Other current liabilities 9.7 0.5
Other   (2.6 )   (3.0 )
 
Net Cash Provided by Operating Activities   172.2     161.1  
 
Cash Provided by (Used for) Investing Activities:
Purchases of property, plant, and equipment (31.4 ) (23.3 )
Proceeds from sale of property, plant, and equipment 0.1 1.2
Acquisitions of businesses and intangible assets   (3.8 )   (90.4 )
 
Net Cash Used for Investing Activities   (35.1 )   (112.5 )
 
Cash Provided by (Used for) Financing Activities:
Repurchases of common stock (9.2 ) (61.0 )
Proceeds from stock option exercises and other 7.6 6.5
Excess tax benefits from share-based payments 4.9 5.3
Dividends paid   (22.0 )   (22.6 )
 

Net Cash Used for Financing Activities

  (18.7 )   (71.8 )
 
Effect of Exchange Rate Changes on Cash   (4.1 )   2.4  
 
Net Change in Cash and Cash Equivalents 114.3 (20.8 )
Cash and Cash Equivalents at Beginning of Period   170.2     191.0  
 
Cash and Cash Equivalents at End of Period $ 284.5   $ 170.2  
 
 

ACUITY BRANDS, INC.

Reconciliation of Non-U.S. GAAP Measures

The tables below reconcile 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 additional expenses associated with the consolidation and closure of certain manufacturing facilities. These non-GAAP financial measures, including adjusted gross profit, adjusted gross profit margin, 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 those expenses. 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,
2012       2011
(Preliminary)     % of Sales     % of Sales
Net Sales $ 514.3 $ 496.2
 
Gross Profit (GAAP) $ 210.5 40.9 % $ 200.4 40.4 %
Add-Back: Manufacturing Inefficiencies Related to Facility Closing 3.2

 

% -

 

Add-Back: Abandonment of Inventory  

1.2

 

%   -

 

Adjusted Gross Profit (Non-GAAP) $ 214.9 41.8 % $ 200.4 40.4 %
 
Operating Profit (GAAP) $ 61.2 11.9 % $ 55.8 11.2 %
Add-Back: Special Charge 2.1 -
Add-Back: Manufacturing Inefficiencies Related to Facility Closing 3.2 -
Add-Back: Abandonment of Inventory   1.2   -
Adjusted Operating Profit (Non-GAAP) $ 67.7 13.2 % $ 55.8 11.2 %
 
Net Income (GAAP) $ 33.3 $ 34.2
Add-Back: Special Charge, net of tax 1.3 -
Add-Back: Manufacturing Inefficiencies Related to Facility Closing, net of tax 2.0 -
Add-Back: Abandonment of Inventory, net of tax   0.8   -
Adjusted Net Income (Non-GAAP) $ 37.4 $ 34.2
 
Diluted Earnings Per Share (GAAP) $ 0.78 $ 0.79
Add-Back: Special Charge, net of tax 0.03 -
Add-Back: Manufacturing Inefficiencies Related to Facility Closing, net of tax 0.05 -
Add-Back: Abandonment of Inventory, net of tax   0.02   -
Adjusted Diluted Earnings Per Share (Non-GAAP) $ 0.88 $ 0.79
 

 

 

 

 

(In millions, except earnings per share data)     TWELVE MONTHS ENDED
August 31,
2012     2011
(Preliminary)     % of Sales     % of Sales
Net Sales $ 1,933.7 $ 1,795.7
 
Gross Profit (GAAP) $ 788.0 40.8 % $ 730.0 40.7 %
Add-Back: Manufacturing Inefficiencies Related to Facility Closing 3.2

 

% -

 

Add-Back: Abandonment of Inventory   1.2

 

%   -

 

Adjusted Gross Profit (Non-GAAP) $ 792.4 41.0 % $ 730.0 40.7 %
 
Operating Profit (GAAP) $ 208.0 10.8 % $ 188.7 10.5 %
Add-Back: Special Charge 13.3 -
Add-Back: Manufacturing Inefficiencies Related to Facility Closing 3.2 -
Add-Back: Abandonment of Inventory   1.2   -
Adjusted Operating Profit (Non-GAAP) $ 225.7 11.7 % $ 188.7 10.5 %
 
Net Income (GAAP) $ 116.3 $ 105.5
Add-Back: Special Charge, net of tax

8.8

-
Add-Back: Manufacturing Inefficiencies Related to Facility Closing, net of tax 2.0 -
Add-Back: Abandonment of Inventory, net of tax   0.8   -
Adjusted Net Income (Non-GAAP) $

127.9

$ 105.5
 
Diluted Earnings Per Share(GAAP) $ 2.72 $ 2.42
Add-Back: Special Charge, net of tax 0.21 -
Add-Back: Manufacturing Inefficiencies Related to Facility Closing, net of tax 0.05 -
Add-Back: Abandonment of Inventory, net of tax   0.02   -
Adjusted Diluted Earnings Per Share (Non-GAAP) $ 3.00 $ 2.42




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