Acuity Brands, Inc. (NYSE:AYI) (“Company”) today announced record
third quarter results for net sales, net income, and diluted
earnings per share (“EPS”). Fiscal 2016 third quarter net
sales of $851.5 million increased $167.8 million, or 25 percent,
compared with the year-ago period. Operating profit for the
third quarter of fiscal 2016 was $121.0 million, an increase of
$21.8 million, or 22 percent, over the year-ago period. Net
income for the third quarter of fiscal 2016 was $74.0 million, an
increase of 15 percent compared with the prior-year period.
Fiscal 2016 third quarter diluted EPS of $1.69 increased 14 percent
compared with $1.48 for the year-ago period.
Adjusted diluted EPS for the third quarter of
fiscal 2016 increased 40 percent to $2.06 compared with adjusted
diluted EPS of $1.47 for the year-ago period. Adjusted
operating profit for the third quarter of fiscal 2016 increased
$38.0 million, or 35 percent, to $146.1 million, or 17.2 percent of
net sales, compared with the year-ago period adjusted operating
profit of $108.1 million, or 15.8 percent of net sales.
Adjusted results for both periods exclude the impact of
amortization expense for acquired intangible assets, share-based
compensation expense, acquisition-related items (including acquired
profit in inventory and professional fees), and special charge for
streamlining activities. Management believes these items
impacted the comparability of the Company's results and that
adjusted financial measures enhance the reader’s overall
understanding of the Company's current financial performance by
making results comparable between periods. A reconciliation
of adjusted financial measures to the most directly comparable U.S.
GAAP measure is provided in the tables at the end of this
release.
Vernon J. Nagel, Chairman, President, and Chief
Executive Officer of Acuity Brands, commented, “We were extremely
pleased with our achievement of record third quarter results. These
results are even more impressive when one considers that we
continued to invest in our strong sales growth and areas with
significant future growth potential, including the expansion of our
solid state luminaire and controls portfolio as well as our
building management, software, and Internet of Things
solutions. Adjusted gross profit margin was 44.5 percent, a
quarterly record, and represented an increase of 130 basis points
over prior year’s third quarter, while adjusted operating profit
margin of 17.2 percent increased 140 basis points over last year’s
third quarter. The integration of recent acquisitions, which
include Distech Controls, Juno Lighting and Geometri, continues to
go well. We believe our record third quarter results reflect
our ability to provide customers with truly differentiated value
from our industry-leading portfolio of innovative lighting and
building automation solutions along with superior service.”
Third Quarter Results
The 25 percent year-over-year growth in fiscal 2016
third quarter net sales was primarily due to a 16 percent increase
in volume as well as a 12 percent increase from acquisitions,
partially offset by a net unfavorable change in product prices and
mix of products sold (“price/mix”) of approximately 2 percent and a
1 percent unfavorable impact from changes in foreign currency
exchange rates. The increase in volume was broad-based across
most product categories and key sales channels. Sales of LED-based
products represented approximately 60 percent of fiscal 2016 third
quarter total net sales.
During the third quarter of fiscal 2016, the Company recorded a
pre-tax special charge of $9.7 million for actions initiated to
streamline the organization, including the integration of recent
acquisitions. These streamlining activities include the
consolidation of selected production activities and realignment of
certain responsibilities, primarily within various selling,
distribution, and administrative departments. Management
expects to realize annual savings equal to at least twice the
amount of the charge and to achieve the full annualized run-rate by
the end of the first quarter of fiscal 2017.
Net cash provided by operating activities totaled
$243.9 million for the first nine months of fiscal 2016 compared
with $158.2 million for the year-ago period, representing a
year-over-year increase of 54 percent. Cash and cash
equivalents at the end of the third quarter of fiscal 2016 totaled
$337.0 million, a decrease of $419.8 million since the beginning of
the fiscal year. The Company used cash of $613.7 million for
acquisitions.
Year-to-Date Results
Net sales for the first nine months of fiscal 2016
increased 22 percent to $2,365.9 million compared with $1,947.2
million for the prior-year period. Results for the first nine
months of fiscal 2016 include operating profit of $340.1 million,
net income of $207.9 million, and diluted EPS of $4.75.
Adjusted operating profit for the first nine months
of fiscal 2016 increased $101.5 million, or 34 percent, to $399.1
million, or 16.9 percent of net sales, compared with prior year’s
adjusted operating profit of $297.6 million, or 15.3 percent of net
sales. Adjusted net income for the first nine months of
fiscal 2016 was $246.5 million compared with $177.4 million for the
prior-year period, an increase of 39 percent. Adjusted
diluted EPS for the first nine months of fiscal 2016 increased
$1.56, or 38 percent, to $5.63 compared with adjusted diluted EPS
of $4.07 for the year-ago period. Adjusted results for the
first nine months of fiscal 2016 and 2015 exclude amortization
expense for acquired intangible assets, share-based compensation
expense, acquisition-related items (including profit in inventory,
professional fees, and certain contract termination costs), net
gain on financial instruments, and special charge for streamlining
activities. The total impact of these items on diluted EPS
for the first nine months of fiscal 2016 and 2015 was $0.88 and
$0.35 respectively. A reconciliation of adjusted financial
measures to the most directly comparable U.S. GAAP measure is
provided in the tables at the end of this
release.
Outlook
Mr. Nagel commented, “The U.K. referendum vote to
exit the European Union has created a great deal of uncertainty and
generated significant volatility in the global financial markets.
This uncertainty and volatility have the potential to affect
consumer and business sentiment which could negatively impact
global economic activity. This notwithstanding, we remain
bullish regarding the Company’s prospects for continued future
profitable growth. Third-party forecasts issued in recent
months as well as key leading indicators suggest that the growth
rate for the North American lighting market, which includes
renovation and retrofit activity and comprises over 97 percent of
the Company’s revenues, will be in the mid-to-upper single digit
range for the remainder of fiscal 2016 with expectations that
overall demand in our end markets will continue to experience solid
growth over the next several years. Our order rates through
the month of June reflect this favorable trend. We expect to
continue to outperform the growth rates of the markets we serve by
executing our strategies focused on growth opportunities for new
construction and renovation projects, expansion into
underpenetrated geographies and channels, and growth from the
continued introduction of new lighting and building automation
solutions as part of our integrated, tiered solutions
strategy.”
Mr. Nagel concluded, “We believe the lighting and
lighting-related industry as well as building automation systems
will experience solid growth over the next decade, particularly as
energy and environmental concerns come to the forefront along with
emerging opportunities for digital lighting to play a key role in
the Internet of Things. We believe we are uniquely positioned
to fully participate in this exciting industry.”
Non-GAAP Financial Measures
This news release contains non-GAAP financial
measures such as “adjusted gross profit”, “adjusted selling,
distribution, and administrative expenses” (“adjusted SD&A
expenses”), “adjusted operating profit”, “adjusted operating profit
margin”, “adjusted other expense (income)”, “adjusted net income”,
and “adjusted diluted EPS”. These measures are provided to
enhance the reader's overall understanding of the Company's current
financial performance and prospects for the future. However, 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.
A reconciliation of each measure to the most
directly comparable GAAP measure is available in this news release.
In addition, the Current Report on Form 8-K furnished to the SEC
concurrent with the issuance of this press release includes a more
detailed description of each of these non-GAAP financial measures,
together with a discussion of the usefulness and purpose of such
measures.
Conference Call
As previously announced, the Company will host a
conference call to discuss third quarter results today, June 29,
2016, 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., with fiscal year 2015 net
sales of $2.7 billion, is the North American market leader and one
of the world’s leading providers of indoor and outdoor lighting and
energy management solutions. Acuity Brands, headquartered in
Atlanta, Georgia has operations throughout North America, and in
Europe and Asia, and employs approximately 10,000 associates. The
Company’s products and 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™, Juno®, Indy™, AccuLite®, Aculux™, DanaLite, NaviLite®,
Sunoptics®, RELOC® Wiring Solutions, eldoLED®, Distech Controls®,
and Acuity Controls™.
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”, “suggests”, “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: prospects for future profitable growth; third-party
forecasts of a mid-to-upper single digit growth rate for the North
American lighting market for the remainder of fiscal 2016 and
expectations that demand in the Company’s end markets will continue
to experience solid growth over the next several years
notwithstanding a possible slowdown in global economic activity
resulting from changes in consumer and business sentiment following
the U.K.’s referendum vote to exit the European Union; expectation
that the Company will outperform the growth rates of the markets it
serves and that the Company will execute strategies related to such
growth opportunities; realization of annual savings equal to at
least twice the amount of the special charge and achievement of the
full annualized run-rate by the end of the first quarter of fiscal
2017; and expectation of solid growth over the next decade for
the lighting and lighting-related industry as well as building
automation systems and the Company’s position to fully
participate. 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,
2015. 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) |
|
May 31, 2016 |
|
August 31, 2015 |
(Unaudited) |
|
|
ASSETS |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
337.0 |
|
|
$ |
756.8 |
|
Accounts receivable, less reserve
for doubtful accounts of $1.9 and $1.3 as of May 31, 2016 and
August 31, 2015, respectively |
|
494.0 |
|
|
|
411.7 |
|
Inventories |
|
288.9 |
|
|
|
224.8 |
|
Prepayments and other current
assets |
|
34.9 |
|
|
|
20.1 |
|
Total Current Assets |
|
1,154.8 |
|
|
|
1,413.4 |
|
Property, Plant, and Equipment, at cost: |
|
|
|
Land |
|
24.3 |
|
|
|
6.7 |
|
Buildings and leasehold
improvements |
|
179.8 |
|
|
|
128.4 |
|
Machinery and equipment |
|
433.4 |
|
|
|
391.9 |
|
Total Property, Plant, and
Equipment |
|
637.5 |
|
|
|
527.0 |
|
Less - Accumulated depreciation and
amortization |
|
374.6 |
|
|
|
352.4 |
|
Property, Plant, and Equipment,
net |
|
262.9 |
|
|
|
174.6 |
|
Other
Assets: |
|
|
|
Goodwill |
|
889.8 |
|
|
|
565.0 |
|
Intangible assets, net |
|
448.7 |
|
|
|
223.4 |
|
Deferred income taxes |
|
3.2 |
|
|
|
3.5 |
|
Other long-term assets |
|
23.8 |
|
|
|
27.1 |
|
Total Other Assets |
|
1,365.5 |
|
|
|
819.0 |
|
Total Assets |
$ |
2,783.2 |
|
|
$ |
2,407.0 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current
Liabilities: |
|
|
|
Accounts payable |
$ |
353.9 |
|
|
$ |
311.1 |
|
Current maturities of long-term
debt |
|
0.2 |
|
|
|
- |
|
Accrued compensation |
|
77.8 |
|
|
|
78.2 |
|
Other accrued liabilities |
|
152.7 |
|
|
|
131.6 |
|
Total Current Liabilities |
|
584.6 |
|
|
|
520.9 |
|
Long-Term Debt |
|
354.2 |
|
|
|
352.4 |
|
Accrued
Pension Liabilities, less current portion |
|
79.6 |
|
|
|
83.9 |
|
Deferred
Income Taxes |
|
116.0 |
|
|
|
31.7 |
|
Self-Insurance Reserves, less current portion |
|
7.7 |
|
|
|
6.9 |
|
Other
Long-Term Liabilities |
|
53.2 |
|
|
|
51.2 |
|
Total Liabilities |
|
1,195.3 |
|
|
|
1,047.0 |
|
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; 53,312,714 issued and 43,593,459
outstanding at May 31, 2016; and 53,024,284 issued and 43,305,029
outstanding at August 31, 2015 |
|
0.5 |
|
|
|
0.5 |
|
Paid-in capital |
|
833.6 |
|
|
|
797.1 |
|
Retained earnings |
|
1,283.8 |
|
|
|
1,093.0 |
|
Accumulated other comprehensive
loss |
|
(109.8 |
) |
|
|
(110.4 |
) |
Treasury stock, at cost, 9,719,255
shares at May 31, 2016 and August 31, 2015 |
|
(420.2 |
) |
|
|
(420.2 |
) |
Total Stockholders’ Equity |
|
1,587.9 |
|
|
|
1,360.0 |
|
Total Liabilities and Stockholders’
Equity |
$ |
2,783.2 |
|
|
$ |
2,407.0 |
|
|
ACUITY BRANDS, INC. |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (Unaudited) |
(In millions, except per-share
data) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
May 31, 2016 |
|
May 31, 2015 |
|
May 31, 2016 |
|
May 31, 2015 |
Net
Sales |
$ |
851.5 |
|
|
$ |
683.7 |
|
|
$ |
2,365.9 |
|
|
$ |
1,947.2 |
|
Cost of
Products Sold |
|
473.6 |
|
|
|
388.1 |
|
|
|
1,331.7 |
|
|
|
1,122.9 |
|
Gross
Profit |
|
377.9 |
|
|
|
295.6 |
|
|
|
1,034.2 |
|
|
|
824.3 |
|
Selling,
Distribution, and Administrative Expenses |
|
247.2 |
|
|
|
196.0 |
|
|
|
683.9 |
|
|
|
550.0 |
|
Special
Charge |
|
9.7 |
|
|
|
0.4 |
|
|
|
10.2 |
|
|
|
9.8 |
|
Operating Profit |
|
121.0 |
|
|
|
99.2 |
|
|
|
340.1 |
|
|
|
264.5 |
|
Other
Expense (Income): |
|
|
|
|
|
|
|
Interest Expense, net |
|
8.1 |
|
|
|
7.9 |
|
|
|
24.2 |
|
|
|
23.8 |
|
Miscellaneous Expense (Income),
net |
|
0.3 |
|
|
|
(9.5 |
) |
|
|
(1.5 |
) |
|
|
(10.5 |
) |
Total Other Expense |
|
8.4 |
|
|
|
(1.6 |
) |
|
|
22.7 |
|
|
|
13.3 |
|
Income
before Provision for Income Taxes |
|
112.6 |
|
|
|
100.8 |
|
|
|
317.4 |
|
|
|
251.2 |
|
Provision for Income Taxes |
|
38.6 |
|
|
|
36.3 |
|
|
|
109.5 |
|
|
|
89.2 |
|
Net
Income |
$ |
74.0 |
|
|
$ |
64.5 |
|
|
$ |
207.9 |
|
|
$ |
162.0 |
|
|
|
|
|
|
|
|
|
Earnings
Per Share: |
|
|
|
|
|
|
|
Basic Earnings per Share |
$ |
1.70 |
|
|
$ |
1.49 |
|
|
$ |
4.78 |
|
|
$ |
3.74 |
|
Basic Weighted Average Number of
Shares Outstanding |
|
43.5 |
|
|
|
43.2 |
|
|
|
43.4 |
|
|
|
43.1 |
|
Diluted Earnings per Share |
$ |
1.69 |
|
|
$ |
1.48 |
|
|
$ |
4.75 |
|
|
$ |
3.72 |
|
Diluted Weighted Average Number of
Shares Outstanding |
|
43.8 |
|
|
|
43.5 |
|
|
|
43.7 |
|
|
|
43.4 |
|
Dividends Declared per Share |
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.39 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
Comprehensive Income: |
|
|
|
|
|
|
|
Net
Income |
$ |
74.0 |
|
|
$ |
64.5 |
|
|
$ |
207.9 |
|
|
$ |
162.0 |
|
Other Comprehensive
Income (Loss) Items: |
|
|
|
|
|
|
|
Foreign currency translation
adjustments |
|
10.0 |
|
|
|
(1.5 |
) |
|
|
(3.4 |
) |
|
|
(18.5 |
) |
Defined benefit pension plans, net
of tax |
|
1.3 |
|
|
|
0.9 |
|
|
|
4.0 |
|
|
|
1.6 |
|
Other Comprehensive
Income (Loss), net of tax |
|
11.3 |
|
|
|
(0.6 |
) |
|
|
0.6 |
|
|
|
(16.9 |
) |
Comprehensive
Income |
$ |
85.3 |
|
|
$ |
63.9 |
|
|
$ |
208.5 |
|
|
$ |
145.1 |
|
|
ACUITY BRANDS, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
(In millions) |
|
Nine
Months Ended |
|
|
May 31, 2016 |
|
May 31, 2015 |
Cash
Provided by/(Used for) Operating Activities: |
|
|
|
Net income |
$ |
207.9 |
|
|
$ |
162.0 |
|
Adjustments to reconcile net income
to net cash provided by (used for) operating activities: |
|
|
|
Depreciation and amortization |
|
49.0 |
|
|
|
34.2 |
|
Stock-based compensation
expense |
|
19.9 |
|
|
|
12.8 |
|
Excess tax benefits from
stock-based payments |
|
(19.7 |
) |
|
|
(12.6 |
) |
(Gain) loss on sale or disposal of
property, plant, and equipment |
|
(1.1 |
) |
|
|
1.4 |
|
Deferred income taxes |
|
- |
|
|
|
0.4 |
|
Gain on financial instruments,
net |
|
- |
|
|
|
(10.5 |
) |
Change in assets and liabilities,
net of effect of acquisitions, divestitures and effect of exchange
rate changes: |
|
|
|
Accounts receivable |
|
(15.9 |
) |
|
|
(25.5 |
) |
Inventories |
|
(14.2 |
) |
|
|
(46.7 |
) |
Prepayments and other current
assets |
|
(9.0 |
) |
|
|
2.0 |
|
Accounts payable |
|
18.9 |
|
|
|
17.0 |
|
Other current liabilities |
|
12.4 |
|
|
|
28.2 |
|
Other |
|
(4.3 |
) |
|
|
(4.5 |
) |
Net Cash Provided by Operating
Activities |
|
243.9 |
|
|
|
158.2 |
|
Cash
Provided by/(Used for) Investing Activities: |
|
|
|
Purchases of property, plant, and
equipment |
|
(61.8 |
) |
|
|
(42.3 |
) |
Proceeds from sale of property,
plant, and equipment |
|
2.3 |
|
|
|
1.0 |
|
Acquisition of businesses, net of
cash acquired |
|
(613.7 |
) |
|
|
(14.6 |
) |
Proceeds from settlement of
financial instrument |
|
- |
|
|
|
14.4 |
|
Purchase of financial
instrument |
|
- |
|
|
|
(4.1 |
) |
Net Cash Used for Investing
Activities |
|
(673.2 |
) |
|
|
(45.6 |
) |
Cash
Provided by/(Used for) Financing Activities: |
|
|
|
Issuance of long-term debt |
|
1.7 |
|
|
|
- |
|
Proceeds from stock option
exercises and other |
|
10.0 |
|
|
|
7.5 |
|
Excess tax benefits from
stock-based payments |
|
19.7 |
|
|
|
12.6 |
|
Dividends paid |
|
(17.1 |
) |
|
|
(17.0 |
) |
Other financing activities |
|
- |
|
|
|
(10.4 |
) |
Net Cash Provided by (Used for)
Financing Activities |
|
14.3 |
|
|
|
(7.3 |
) |
Effect
of Exchange Rate Changes on Cash |
|
(4.8 |
) |
|
|
(5.7 |
) |
Net
Change in Cash and Cash Equivalents |
|
(419.8 |
) |
|
|
99.6 |
|
Cash and
Cash Equivalents at Beginning of Period |
|
756.8 |
|
|
|
552.5 |
|
Cash and
Cash Equivalents at End of Period |
$ |
337.0 |
|
|
$ |
652.1 |
|
ACUITY BRANDS, INC. |
Reconciliation of Non-U.S. GAAP
Measures |
The tables below reconcile certain GAAP financial
measures to the corresponding non-GAAP measures: |
|
(In millions, except
Diluted Earnings per Share) |
|
|
|
|
|
|
Three Months Ended |
|
Increase (Decrease) |
|
Percent Change |
|
May 31, 2016 |
|
May 31, 2015 |
|
|
Net Sales |
$ |
851.5 |
|
|
$ |
683.7 |
|
|
$ |
167.8 |
|
|
|
24.5 |
% |
|
|
|
|
|
|
|
|
Gross Profit |
$ |
377.9 |
|
|
$ |
295.6 |
|
|
|
|
|
Add-back: Acquisition-related
items(1) |
|
0.9 |
|
|
|
- |
|
|
|
|
|
Adjusted Gross Profit
(Non-GAAP) |
$ |
378.8 |
|
|
$ |
295.6 |
|
|
$ |
83.2 |
|
|
|
28.1 |
% |
Percent of Sales |
|
44.5 |
% |
|
|
43.2 |
% |
|
|
130 |
|
bps |
|
|
|
|
|
|
|
|
|
Selling, Distribution,
and Administrative (SD&A) Expenses |
$ |
247.2 |
|
|
$ |
196.0 |
|
|
|
|
|
Less: Amortization of acquired
intangible assets |
|
(7.5 |
) |
|
|
(2.8 |
) |
|
|
|
|
Less: Share-based compensation
expense |
|
(6.9 |
) |
|
|
(4.4 |
) |
|
|
|
|
Less: Acquisition-related
items(1) |
|
(0.1 |
) |
|
|
(1.3 |
) |
|
|
|
|
Adjusted SD&A Expenses
(Non-GAAP) |
$ |
232.7 |
|
|
$ |
187.5 |
|
|
$ |
45.2 |
|
|
|
24.1 |
% |
Percent of Sales |
|
27.3 |
% |
|
|
27.4 |
% |
|
|
(10 |
) |
bps |
|
|
|
|
|
|
|
|
|
Operating Profit |
$ |
121.0 |
|
|
$ |
99.2 |
|
|
|
|
|
Add-back: Amortization of acquired
intangible assets |
|
7.5 |
|
|
|
2.8 |
|
|
|
|
|
Add-back: Share-based compensation
expense |
|
6.9 |
|
|
|
4.4 |
|
|
|
|
|
Add-back: Acquisition-related
items(1) |
|
1.0 |
|
|
|
1.3 |
|
|
|
|
|
Add-back: Special charge |
|
9.7 |
|
|
|
0.4 |
|
|
|
|
|
Adjusted Operating Profit
(Non-GAAP) |
$ |
146.1 |
|
|
$ |
108.1 |
|
|
$ |
38.0 |
|
|
|
35.2 |
% |
Percent of Sales |
|
17.2 |
% |
|
|
15.8 |
% |
|
|
140 |
|
bps |
|
|
|
|
|
|
|
|
|
Other Expense
(Income) |
$ |
8.4 |
|
|
$ |
(1.6 |
) |
|
|
|
|
Add-back: Net gain on financial
instrument |
|
- |
|
|
|
10.5 |
|
|
|
|
|
Adjusted
Other Expense (Income) (Non-GAAP) |
$ |
8.4 |
|
|
$ |
8.9 |
|
|
$ |
(0.5 |
) |
|
|
-5.6 |
% |
|
|
|
|
|
|
|
|
Net Income |
$ |
74.0 |
|
|
$ |
64.5 |
|
|
|
|
|
Add-back: Amortization of acquired
intangible assets |
|
7.5 |
|
|
|
2.8 |
|
|
|
|
|
Add-back: Share-based compensation
expense |
|
6.9 |
|
|
|
4.4 |
|
|
|
|
|
Add-back: Acquisition-related
items(1) |
|
1.0 |
|
|
|
1.3 |
|
|
|
|
|
Add-back: Special charge |
|
9.7 |
|
|
|
0.4 |
|
|
|
|
|
Less: Net gain on financial
instruments |
|
- |
|
|
|
(10.5 |
) |
|
|
|
|
Total pre-tax adjustments to Net
Income |
$ |
25.1 |
|
|
$ |
(1.6 |
) |
|
|
|
|
Income tax effect |
|
(8.7 |
) |
|
|
1.3 |
|
|
|
|
|
Adjusted
Net Income (Non-GAAP) |
$ |
90.4 |
|
|
$ |
64.2 |
|
|
$ |
26.2 |
|
|
|
40.8 |
% |
|
|
|
|
|
|
|
|
Diluted Earnings per
Share |
$ |
1.69 |
|
|
$ |
1.48 |
|
|
|
|
|
Adjusted Diluted
Earnings per Share (Non-GAAP) |
$ |
2.06 |
|
|
$ |
1.47 |
|
|
$ |
0.59 |
|
|
|
40.1 |
% |
|
|
|
|
|
|
|
|
(1) Acquisiton-related items include acquired profit in
inventory and professional fees. |
|
(In millions, except
Diluted Earnings per Share) |
|
|
|
|
|
|
Nine Months Ended |
|
Increase (Decrease) |
|
Percent Change |
|
May 31, 2016 |
|
May 31, 2015 |
|
|
Net Sales |
$ |
2,365.9 |
|
|
$ |
1,947.2 |
|
|
$ |
418.7 |
|
|
|
21.5 |
% |
|
|
|
|
|
|
|
|
Gross Profit |
$ |
1,034.2 |
|
|
$ |
824.3 |
|
|
|
|
|
Add-back: Acquisition-related
items(1) |
|
2.7 |
|
|
|
- |
|
|
|
|
|
Adjusted Gross Profit
(Non-GAAP) |
$ |
1,036.9 |
|
|
$ |
824.3 |
|
|
$ |
212.6 |
|
|
|
25.8 |
% |
Percent of Sales |
|
43.8 |
% |
|
|
42.3 |
% |
|
|
150 |
|
bps |
|
|
|
|
|
|
|
|
|
Selling, Distribution,
and Administrative (SD&A) Expenses |
$ |
683.9 |
|
|
$ |
550.0 |
|
|
|
|
|
Less: Amortization of acquired
intangible assets |
|
(18.5 |
) |
|
|
(8.5 |
) |
|
|
|
|
Less: Share-based compensation
expense |
|
(19.9 |
) |
|
|
(12.8 |
) |
|
|
|
|
Less: Acquisition-related
items(1) |
|
(7.7 |
) |
|
|
(2.0 |
) |
|
|
|
|
Adjusted SD&A Expenses
(Non-GAAP) |
$ |
637.8 |
|
|
$ |
526.7 |
|
|
$ |
111.1 |
|
|
|
21.1 |
% |
Percent of Sales |
|
27.0 |
% |
|
|
27.0 |
% |
|
|
- |
|
bps |
|
|
|
|
|
|
|
|
|
Operating Profit |
$ |
340.1 |
|
|
$ |
264.5 |
|
|
|
|
|
Add-back: Amortization of acquired
intangible assets |
|
18.5 |
|
|
|
8.5 |
|
|
|
|
|
Add-back: Share-based compensation
expense |
|
19.9 |
|
|
|
12.8 |
|
|
|
|
|
Add-back: Acquisition-related
items(1) |
|
10.4 |
|
|
|
2.0 |
|
|
|
|
|
Add-back: Special charge |
|
10.2 |
|
|
|
9.8 |
|
|
|
|
|
Adjusted Operating Profit
(Non-GAAP) |
$ |
399.1 |
|
|
$ |
297.6 |
|
|
$ |
101.5 |
|
|
|
34.1 |
% |
Percent of Sales |
|
16.9 |
% |
|
|
15.3 |
% |
|
|
160 |
|
bps |
|
|
|
|
|
|
|
|
|
Other Expense
(Income) |
$ |
22.7 |
|
|
$ |
13.3 |
|
|
|
|
|
Add-back: Net gain on financial
instrument |
|
- |
|
|
|
10.5 |
|
|
|
|
|
Adjusted
Other Expense (Income) (Non-GAAP) |
$ |
22.7 |
|
|
$ |
23.8 |
|
|
$ |
(1.1 |
) |
|
|
-4.6 |
% |
|
|
|
|
|
|
|
|
Net Income |
$ |
207.9 |
|
|
$ |
162.0 |
|
|
|
|
|
Add-back: Amortization of acquired
intangible assets |
|
18.5 |
|
|
|
8.5 |
|
|
|
|
|
Add-back: Share-based compensation
expense |
|
19.9 |
|
|
|
12.8 |
|
|
|
|
|
Add-back: Acquisition-related
items(1) |
|
10.4 |
|
|
|
2.0 |
|
|
|
|
|
Add-back: Special charge |
|
10.2 |
|
|
|
9.8 |
|
|
|
|
|
Less: Net gain on financial
instruments |
|
- |
|
|
|
(10.5 |
) |
|
|
|
|
Total pre-tax adjustments to Net
Income |
$ |
59.0 |
|
|
$ |
22.6 |
|
|
|
|
|
Income tax effect |
|
(20.4 |
) |
|
|
(7.2 |
) |
|
|
|
|
Adjusted
Net Income (Non-GAAP) |
$ |
246.5 |
|
|
$ |
177.4 |
|
|
$ |
69.1 |
|
|
|
39.0 |
% |
|
|
|
|
|
|
|
|
Diluted Earnings per
Share |
$ |
4.75 |
|
|
$ |
3.72 |
|
|
|
|
|
Adjusted Diluted
Earnings per Share (Non-GAAP) |
$ |
5.63 |
|
|
$ |
4.07 |
|
|
$ |
1.56 |
|
|
|
38.3 |
% |
|
|
|
|
|
|
|
|
(1) Acquisiton-related items include acquired profit in
inventory, professional fees, and certain contract termination
costs. |
Contact:
Dan Smith, 404-853-1423
dan.smith@acuitybrands.com
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