Acuity Brands, Inc. (NYSE:AYI) (“Company”) today announced record
fourth quarter and full-year results for net sales, net income, and
diluted earnings per share (“EPS”). Fiscal 2016 fourth
quarter net sales of $925.5 million increased $166 million, or 22
percent, compared with the year-ago period. Operating profit
for the fourth quarter of fiscal 2016 was $135.1 million, an
increase of $23.3 million, or 21 percent, over the year-ago
period. Net income for the fourth quarter of fiscal 2016 was
$82.9 million, an increase of 38 percent compared with the
prior-year period. Fiscal 2016 fourth quarter diluted EPS of
$1.89 increased 38 percent compared with $1.37 for the year-ago
period.
Adjusted diluted EPS for the fourth quarter of
fiscal 2016 increased 27 percent to $2.21 compared with adjusted
diluted EPS of $1.74 for the year-ago period. Adjusted
operating profit for the fourth quarter of fiscal 2016 increased
$32.9 million, or 27 percent, to $156.5 million, or 16.9 percent of
net sales, compared with the year-ago period adjusted operating
profit of $123.6 million, or 16.3 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), net loss on financial
instruments, special charge for streamlining activities, and
impairment of intangible asset. 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 very
pleased with our achievement of record fourth quarter and full-year
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. Fourth quarter’s adjusted gross profit margin of
43.5 percent represented an increase of 120 basis points over prior
year’s fourth quarter, while adjusted operating profit margin of
16.9 percent increased 60 basis points over last year’s fourth
quarter. We believe our record fourth quarter and full-year
results reflect our ability to provide customers with truly
differentiated value from our industry-leading portfolio of
innovative lighting and building management solutions along with
superior service.”
Mr. Nagel continued, “During the fourth quarter,
we made the decision to accelerate certain actions to streamline
our supply chain, enhance our customer service and drive
productivity. These actions included, among others, the
closure of a manufacturing facility and the transfer of certain
production to alternate locations in order to free up additional
capacity for future growth and to better leverage our overall
supply chain. These actions overlapped with the ramping-up of
a new manufacturing facility and the addition of a new paint
line. The combination of these actions created labor
shortages in certain locations which negatively impacted production
and shipments and resulted in cancelled orders as well as added
costs. We estimate these short-term labor issues resulted in
cancelled orders and lost contribution margin on more than $25
million of net sales and caused us to incur additional overtime and
other costs in excess of $2 million in the quarter. The
actions implemented during the fourth quarter are expected to have
significant benefits to our business as we go forward. While
the impact of these labor issues is mostly behind us, we may
experience some modest carry over effect into our first quarter
although we do not expect it to have a material impact on our
results.”
Fiscal 2016 Fourth Quarter
Results
The 22 percent year-over-year growth in fiscal
2016 fourth quarter net sales was primarily due to a 13 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 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, which grew almost 40 percent over the year-ago period,
represented approximately two-thirds of fiscal 2016 fourth quarter
total net sales.
During the fourth quarter of fiscal 2016, the
Company recorded a pre-tax special charge of $4.9 million for
actions initiated to streamline the organization, including the
integration of recent acquisitions. The special charge
consisted primarily of severance and employee-related benefit costs
for the elimination of certain positions, primarily within various
selling, distribution, and administrative departments.
Management expects to realize annual savings equal to approximately
twice the amount of the charge and to achieve the full annualized
run-rate by the end of the second quarter of fiscal 2017. The
Company expects to incur additional special charges in fiscal 2017
related to further integration activities of recent
acquisitions. In connection with management’s decision to
rationalize the Company’s portfolio of various brands, a $5.1
million impairment of an intangible asset was recorded in the
fourth quarter of fiscal 2016 for the phaseout of a trade
name.
Fiscal 2016 Full-Year
Results
Net sales for fiscal 2016 increased $584.6
million, or 22 percent, to $3,291.3 million. Results for
fiscal 2016 include operating profit of $475.2 million, net income
of $290.8 million, and diluted EPS of $6.63.
Adjusted operating profit for fiscal 2016
increased $134.1 million, or 32 percent, to $555.2 million, or 16.9
percent of net sales, compared with prior year’s adjusted operating
profit of $421.1 million, or 15.6 percent of net sales.
Adjusted net income for fiscal 2016 was $343.7 million compared
with $254.1 million for the prior-year period, an increase of 35
percent. Adjusted diluted EPS for fiscal 2016 increased
$2.01, or 34 percent, to $7.84 compared with adjusted diluted EPS
of $5.83 for the year-ago period. Adjusted results 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 loss on financial instruments, special charge for
streamlining activities, and impairment of intangible asset.
The total impact of these items on diluted EPS for fiscal 2016 and
2015 was $1.21 and $0.74, 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.
Net cash provided by operating activities
totaled $345.7 million for the full year compared with $288.9
million for the year-ago period, representing a year-over-year
increase of 20 percent. Cash and cash equivalents at the end
of the fourth quarter of fiscal 2016 totaled $413.2 million, a
decrease of $343.6 million since the beginning of the fiscal
year. The Company used cash of $623.2 million for
acquisitions during fiscal 2016.
Outlook
Mr. Nagel commented, “We remain bullish
regarding the Company’s prospects for continued future profitable
growth. We expect the growth rate for lighting and energy
management solutions in the North American 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 fiscal 2017 based on third-party forecasts and other key
leading indicators. Our order rates through the month of September
reflect this favorable trend. Additionally, we believe that
overall demand in our end markets will continue to experience solid
growth over the next several years. 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 management solutions as part of our
integrated, tiered solutions strategy.”
Management estimates a fiscal 2017 annual tax
rate of approximately 35.5 percent before any discrete items,
assuming the tax rates in the Company’s taxing jurisdictions remain
generally consistent throughout the year. Additionally,
management expects fiscal 2017 capital expenditures will
approximate 2.5 percent of net sales.
Mr. Nagel concluded, “We believe the lighting
and lighting-related industry as well as building management
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.”
The independent registered public accounting
firm’s audit report with respect to the Company’s fiscal year-end
financial statements will not be issued until the Company completes
its annual report on Form 10-K, including its evaluation of the
effectiveness of internal controls over financial reporting.
Accordingly, the financial results reported in this earnings
release are preliminary pending completion of the audit.
Conference Call
As previously announced, the Company will host a
conference call to discuss fourth quarter results today, October 5,
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 2016 net
sales of $3.3 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 12,000 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™.
Non-GAAP Financial Measures
This news release includes the following
non-GAAP financial measures: "adjusted gross profit", “adjusted
selling, distribution, and administrative expenses” (“adjusted
SD&A expenses”), “adjusted operating profit”, “adjusted
operating profit margin”, “adjusted net income”, and “adjusted
diluted EPS”. 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. During fiscal
2016, the Company acquired four businesses which impacted the
comparability of many of its GAAP financial measures.
Specifically, management believes that these non-GAAP measures
provide useful information to investors by excluding or adjusting
items for amortization of acquired intangible assets,
acquisition-related items, share-based compensation expense which
is used as a method to improve retention and align the interests of
key leaders of acquired businesses with those of the Company’s
shareholders, special charges associated with efforts to streamline
the organization and integrate acquisitions, net loss on financial
instruments associated with acquisitions, and impairment of
intangible asset. 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 measure for adjusted gross
profit is "gross profit," which includes the impact of
acquisition-related items. The most directly comparable GAAP
measure for adjusted SD&A expenses is “SD&A expenses” which
includes acquisition-related items, amortization of acquired
intangible assets, share-based compensation expense, and impairment
of intangible asset. The most directly comparable GAAP measures for
adjusted other expense (income) is “other expense (income),” which
includes the impact of net loss on financial instruments. The
most directly comparable GAAP measures for adjusted operating
profit, adjusted operating profit margin, adjusted net income, and
adjusted diluted EPS are “operating profit,” “operating profit
margin,” “net income,” and “diluted EPS,” respectively, which
include the impact of acquisition-related items as well as
amortization of acquired intangible assets, share-based
compensation expense, special charges, impairment of intangible
asset, and net loss on financial instruments. A
reconciliation of each measure to the most directly comparable GAAP
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.
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 continued future profitable growth and
expectations for the Company to continue to outperform the growth
rates of the markets it serves and execute strategies related to
growth opportunities; expectations of a mid-to-upper single digit
growth rate for the North American market for lighting and energy
management solutions for fiscal 2017 and for overall demand in the
Company’s end markets to continue to experience solid growth over
the next several years and decade as well as the Company’s position
to fully participate; realization of annual savings equal to
approximately 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; expectations of future significant benefits
from fourth quarter actions to streamline the Company’s supply
chain, enhance customer service, and drive productivity;
expectations that fourth quarter labor issues will not have a
material impact on fiscal 2017 first quarter results; expectations
of additional special charges in fiscal 2017 related to further
integration activities of recent acquisitions; intentions to invest
in capital expenditures in fiscal 2017 totaling approximately 2.5
percent of net sales; and estimates for a fiscal 2017 annual tax
rate of 35.5 percent before any discrete items assuming tax rates
in taxing jurisdictions remain generally consistent throughout the
year. 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. |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(In millions) |
|
|
August 31, |
|
|
2016 |
|
|
|
|
(Preliminary) |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current
Assets: |
|
|
|
|
Cash and cash
equivalents |
$ |
413.2 |
|
|
$ |
756.8 |
|
|
Accounts receivable, less reserve
for doubtful accounts of $1.7at August 31, 2016 and $1.3 at
August 31, 2015 |
|
572.8 |
|
|
|
411.7 |
|
|
Inventories |
|
295.2 |
|
|
|
224.8 |
|
|
Prepayments and other current
assets |
|
41.7 |
|
|
|
20.1 |
|
|
|
|
|
|
|
Total Current Assets |
|
1,322.9 |
|
|
|
1,413.4 |
|
|
|
|
|
|
|
Property,
Plant, and Equipment, net |
|
267.8 |
|
|
|
174.6 |
|
|
|
|
|
|
|
Other
Long-Term Assets |
|
1,357.3 |
|
|
|
819.0 |
|
|
|
|
|
|
|
Total Assets |
$ |
2,948.0 |
|
|
$ |
2,407.0 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
Liabilities: |
|
|
|
|
Accounts payable |
$ |
401.0 |
|
|
$ |
311.1 |
|
|
Current maturities of long-term
debt |
|
0.2 |
|
|
|
- |
|
|
Other accrued
liabilities |
|
271.3 |
|
|
|
209.8 |
|
|
|
|
|
|
|
Total Current
Liabilities |
|
672.5 |
|
|
|
520.9 |
|
|
|
|
|
|
|
Long-Term
Debt, less current portion |
|
355.0 |
|
|
|
352.4 |
|
|
Other
Long-Term Liabilities |
|
260.7 |
|
|
|
173.7 |
|
|
Total
Stockholders’ Equity |
|
1,659.8 |
|
|
|
1,360.0 |
|
|
|
|
|
|
|
Total Liabilities and Stockholders’
Equity |
$ |
2,948.0 |
|
|
$ |
2,407.0 |
|
|
|
|
|
|
|
|
|
|
|
|
ACUITY BRANDS, INC. |
|
CONSOLIDATED STATEMENTS OF
INCOME |
|
(In millions, except per-share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Year |
|
|
|
Ended August 31, |
|
Ended August 31, |
|
|
|
2016 |
|
|
|
|
|
2016 |
|
|
|
|
|
|
(Preliminary) |
|
|
2015 |
|
|
(Preliminary) |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
Net
Sales |
|
$ |
925.5 |
|
|
$ |
759.5 |
|
|
$ |
3,291.3 |
|
|
$ |
2,706.7 |
|
|
Cost of
Products Sold |
|
|
523.4 |
|
|
|
438.2 |
|
|
|
1,855.1 |
|
|
|
1,561.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
|
402.1 |
|
|
|
321.3 |
|
|
|
1,436.2 |
|
|
|
1,145.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
Distribution, and Administrative Expenses |
|
|
262.1 |
|
|
|
206.9 |
|
|
|
946.0 |
|
|
|
756.9 |
|
|
Special
Charge |
|
|
4.9 |
|
|
|
2.6 |
|
|
|
15.0 |
|
|
|
12.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit |
|
|
135.1 |
|
|
|
111.8 |
|
|
|
475.2 |
|
|
|
376.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
Expense (Income): |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
8.0 |
|
|
|
7.7 |
|
|
|
32.2 |
|
|
|
31.5 |
|
|
Miscellaneous (income) expense,
net |
|
|
(0.1 |
) |
|
|
11.7 |
|
|
|
(1.6 |
) |
|
|
1.2 |
|
|
Total Other Expense |
|
|
7.9 |
|
|
|
19.4 |
|
|
|
30.6 |
|
|
|
32.7 |
|
|
Income
before Provision for Income Taxes |
|
|
127.2 |
|
|
|
92.4 |
|
|
|
444.6 |
|
|
|
343.6 |
|
|
Provision for Income Taxes |
|
|
44.3 |
|
|
|
32.3 |
|
|
|
153.8 |
|
|
|
121.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
$ |
82.9 |
|
|
$ |
60.1 |
|
|
$ |
290.8 |
|
|
$ |
222.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per Share |
|
$ |
1.90 |
|
|
$ |
1.39 |
|
|
$ |
6.67 |
|
|
$ |
5.13 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted Average Number of
Shares Outstanding |
|
|
43.7 |
|
|
|
43.2 |
|
|
|
43.5 |
|
|
|
43.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Share |
|
$ |
1.89 |
|
|
$ |
1.37 |
|
|
$ |
6.63 |
|
|
$ |
5.09 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted Average Number of
Shares Outstanding |
|
|
43.9 |
|
|
|
43.5 |
|
|
|
43.8 |
|
|
|
43.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
Declared per Share |
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.52 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUITY BRANDS, INC. |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In millions) |
|
|
Year Ended August 31, |
|
|
2016(Preliminary) |
|
|
2015 |
|
|
Cash Provided by (Used
for) Operating Activities: |
|
|
|
Net income |
$ |
290.8 |
|
|
$ |
222.1 |
|
|
|
|
|
Adjustments to reconcile net income
to net cash provided by (used for) operating activities: |
|
|
|
Depreciation and amortization |
|
62.6 |
|
|
|
45.8 |
|
Share-based compensation
expense |
|
27.7 |
|
|
|
18.2 |
|
Excess tax benefits from
share-based payments |
|
(25.6 |
) |
|
|
(17.6 |
) |
(Gain) loss on the sale or disposal
of property, plant, and equipment |
|
(0.9 |
) |
|
|
0.7 |
|
Asset impairment |
|
5.1 |
|
|
|
- |
|
Deferred income taxes |
|
(6.1 |
) |
|
|
2.8 |
|
Loss on financial instruments,
net |
|
- |
|
|
|
2.6 |
|
Change in assets and liabilities,
net of effect of acquisitions, divestituresand effect of exchange
rate changes: |
|
|
|
Accounts receivable |
|
(94.6 |
) |
|
|
(46.1 |
) |
Inventories |
|
(24.0 |
) |
|
|
(15.1 |
) |
Prepayments and other current
assets |
|
(10.5 |
) |
|
|
0.7 |
|
Accounts payable |
|
65.3 |
|
|
|
23.1 |
|
Other current liabilities |
|
59.0 |
|
|
|
59.3 |
|
Other |
|
(3.1 |
) |
|
|
(7.6 |
) |
|
|
|
|
Net Cash Provided by Operating
Activities |
|
345.7 |
|
|
|
288.9 |
|
|
|
|
|
Cash Provided by (Used
for) Investing Activities: |
|
|
|
Purchases of property, plant, and
equipment |
|
(83.7 |
) |
|
|
(56.5 |
) |
Proceeds from sale of property,
plant, and equipment |
|
2.2 |
|
|
|
1.3 |
|
Investments and acquisitions of
businesses, net of cash acquired |
|
(623.2 |
) |
|
|
(14.6 |
) |
Other investing activities |
|
- |
|
|
|
(2.6 |
) |
|
|
|
|
Net Cash Used for Investing
Activities |
|
(704.7 |
) |
|
|
(72.4 |
) |
|
|
|
|
Cash Provided by (Used
for) Financing Activities: |
|
|
|
Issuance of long-term debt |
|
2.4 |
|
|
|
- |
|
Proceeds from stock option
exercises and other |
|
14.2 |
|
|
|
11.6 |
|
Excess tax benefits from
share-based payments |
|
25.6 |
|
|
|
17.6 |
|
Dividends paid |
|
(22.9 |
) |
|
|
(22.7 |
) |
Other financing activities |
|
- |
|
|
|
(10.4 |
) |
|
|
|
|
Net Cash Provided by (Used for)
Financing Activities |
|
19.3 |
|
|
|
(3.9 |
) |
|
|
|
|
Effect of Exchange Rate
Changes on Cash |
|
(3.9 |
) |
|
|
(8.3 |
) |
|
|
|
|
Net Change in Cash and
Cash Equivalents |
|
(343.6 |
) |
|
|
204.3 |
|
Cash and Cash Equivalents
at Beginning of Year |
|
756.8 |
|
|
|
552.5 |
|
|
|
|
|
Cash and Cash Equivalents
at End of Year |
$ |
413.2 |
|
|
$ |
756.8 |
|
|
|
|
|
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
earnings per share data) |
THREE MONTHS ENDED |
|
August 31, |
|
|
2016 |
|
|
|
2015 |
|
|
(Preliminary) |
|
% of Sales |
|
|
|
% of Sales |
Net Sales |
$ |
925.5 |
|
|
|
|
$ |
759.5 |
|
|
|
|
|
|
|
|
|
|
|
Gross Profit (GAAP) |
$ |
402.1 |
|
|
|
43.4 |
% |
|
$ |
321.3 |
|
|
|
42.3 |
% |
Add-Back: Acquisition-related items |
|
0.2 |
|
|
|
|
|
- |
|
|
|
Adjusted Gross Profit (Non-GAAP) |
$ |
402.3 |
|
|
|
43.5 |
% |
|
$ |
321.3 |
|
|
|
42.3 |
% |
|
|
|
|
|
|
|
|
Selling, Distribution, and Administrative
Expenses (GAAP) |
$ |
262.1 |
|
|
|
28.3 |
% |
|
$ |
206.9 |
|
|
|
27.2 |
% |
Less: Amortization of acquired intangible
assets |
|
(3.1 |
) |
|
|
|
|
(2.6 |
) |
|
|
Less: Share-based compensation expense |
|
(7.9 |
) |
|
|
|
|
(5.4 |
) |
|
|
Less: Acquisition-related items |
|
(0.2 |
) |
|
|
|
|
(1.2 |
) |
|
|
Less: Impairment of intangible asset |
|
(5.1 |
) |
|
|
|
|
- |
|
|
|
Adjusted Selling, Distribution, and
Administrative Expenses (Non-GAAP) |
$ |
245.8 |
|
|
|
26.6 |
% |
|
$ |
197.7 |
|
|
|
26.0 |
% |
|
|
|
|
|
|
|
|
Operating Profit (GAAP) |
$ |
135.1 |
|
|
|
14.6 |
% |
|
$ |
111.8 |
|
|
|
14.7 |
% |
Add-Back: Amortization of acquired intangible
assets |
|
3.1 |
|
|
|
|
|
2.6 |
|
|
|
Add-Back: Share-based compensation expense |
|
7.9 |
|
|
|
|
|
5.4 |
|
|
|
Add-Back: Acquisition-related items |
|
0.4 |
|
|
|
|
|
1.2 |
|
|
|
Add-Back: Impairment of intangible asset |
|
5.1 |
|
|
|
|
|
- |
|
|
|
Add-Back: Special charge |
|
4.9 |
|
|
|
|
|
2.6 |
|
|
|
Adjusted Operating Profit (Non-GAAP) |
$ |
156.5 |
|
|
|
16.9 |
% |
|
$ |
123.6 |
|
|
|
16.3 |
% |
|
|
|
|
|
|
|
|
Other Expense (Income) (GAAP) |
$ |
7.9 |
|
|
|
|
$ |
19.4 |
|
|
|
Less: Net loss on financial instruments |
|
- |
|
|
|
|
|
(13.1 |
) |
|
|
Adjusted Other Expense (Income) (Non-GAAP) |
$ |
7.9 |
|
|
|
|
$ |
6.3 |
|
|
|
|
|
|
|
|
|
|
|
Net Income (GAAP) |
$ |
82.9 |
|
|
|
|
$ |
60.1 |
|
|
|
Add-Back: Amortization of acquired intangible
assets |
|
3.1 |
|
|
|
|
|
2.6 |
|
|
|
Add-Back: Share-based compensation expense |
|
7.9 |
|
|
|
|
|
5.4 |
|
|
|
Add-Back: Acquisition-related items |
|
0.4 |
|
|
|
|
|
1.2 |
|
|
|
Add-Back: Impairment of intangible asset |
|
5.1 |
|
|
|
|
|
- |
|
|
|
Add-Back: Special charge |
|
4.9 |
|
|
|
|
|
2.6 |
|
|
|
Add-Back: Net loss on financial instruments |
|
- |
|
|
|
|
|
13.1 |
|
|
|
Total pre-tax adjustments to Net Income |
|
21.4 |
|
|
|
|
|
24.9 |
|
|
|
Income tax effect |
|
(7.4 |
) |
|
|
|
|
(8.4 |
) |
|
|
Adjusted Net Income (Non-GAAP) |
$ |
96.9 |
|
|
|
|
$ |
76.6 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share (GAAP) |
$ |
1.89 |
|
|
|
|
$ |
1.37 |
|
|
|
Adjusted Diluted Earnings Per Share
(Non-GAAP) |
$ |
2.21 |
|
|
|
|
$ |
1.74 |
|
|
|
(In millions, except
earnings per share data) |
YEAR ENDED |
|
August 31, |
|
|
2016 |
|
|
|
2015 |
|
|
(Preliminary) |
|
% of Sales |
|
|
|
% of Sales |
Net Sales |
$ |
3,291.3 |
|
|
|
|
$ |
2,706.7 |
|
|
|
|
|
|
|
|
|
|
|
Gross Profit (GAAP) |
$ |
1,436.2 |
|
|
|
43.6 |
% |
|
$ |
1,145.6 |
|
|
|
42.3 |
% |
Add-Back: Acquisition-related items |
|
2.8 |
|
|
|
|
|
- |
|
|
|
Adjusted Gross Profit (Non-GAAP) |
$ |
1,439.0 |
|
|
|
43.7 |
% |
|
$ |
1,145.6 |
|
|
|
42.3 |
% |
|
|
|
|
|
|
|
|
Selling, Distribution, and Administrative
Expenses (GAAP) |
$ |
946.0 |
|
|
|
28.7 |
% |
|
$ |
756.9 |
|
|
|
28.0 |
% |
Less: Amortization of acquired intangible
assets |
|
(21.4 |
) |
|
|
|
|
(11.0 |
) |
|
|
Less: Share-based compensation expense |
|
(27.7 |
) |
|
|
|
|
(18.2 |
) |
|
|
Less: Acquisition-related items |
|
(8.0 |
) |
|
|
|
|
(3.2 |
) |
|
|
Less: Impairment of intangible asset |
|
(5.1 |
) |
|
|
|
|
- |
|
|
|
Adjusted Selling, Distribution, and
Administrative Expenses (Non-GAAP) |
$ |
883.8 |
|
|
|
26.9 |
% |
|
$ |
724.5 |
|
|
|
26.8 |
% |
|
|
|
|
|
|
|
|
Operating Profit (GAAP) |
$ |
475.2 |
|
|
|
14.4 |
% |
|
$ |
376.3 |
|
|
|
13.9 |
% |
Add-Back: Amortization of acquired intangible
assets |
|
21.4 |
|
|
|
|
|
11.0 |
|
|
|
Add-Back: Share-based compensation expense |
|
27.7 |
|
|
|
|
|
18.2 |
|
|
|
Add-Back: Acquisition-related items |
|
10.8 |
|
|
|
|
|
3.2 |
|
|
|
Add-Back: Impairment of intangible asset |
|
5.1 |
|
|
|
|
|
- |
|
|
|
Add-Back: Special charge |
|
15.0 |
|
|
|
|
|
12.4 |
|
|
|
Adjusted Operating Profit (Non-GAAP) |
$ |
555.2 |
|
|
|
16.9 |
% |
|
$ |
421.1 |
|
|
|
15.6 |
% |
|
|
|
|
|
|
|
|
Other Expense (Income) (GAAP) |
$ |
30.6 |
|
|
|
|
$ |
32.7 |
|
|
|
Less: Net loss on financial instruments |
|
- |
|
|
|
|
|
(2.6 |
) |
|
|
Adjusted Other Expense (Income) (Non-GAAP) |
$ |
30.6 |
|
|
|
|
$ |
30.1 |
|
|
|
|
|
|
|
|
|
|
|
Net Income (GAAP) |
$ |
290.8 |
|
|
|
|
$ |
222.1 |
|
|
|
Add-Back: Amortization of acquired intangible
assets |
|
21.4 |
|
|
|
|
|
11.0 |
|
|
|
Add-Back: Share-based compensation expense |
|
27.7 |
|
|
|
|
|
18.2 |
|
|
|
Add-Back: Acquisition-related items |
|
10.8 |
|
|
|
|
|
3.2 |
|
|
|
Add-Back: Impairment of intangible asset |
|
5.1 |
|
|
|
|
|
- |
|
|
|
Add-Back: Special charge |
|
15.0 |
|
|
|
|
|
12.4 |
|
|
|
Add-Back: Net loss on financial instruments |
|
- |
|
|
|
|
|
2.6 |
|
|
|
Total pre-tax adjustments to Net Income |
|
80.0 |
|
|
|
|
|
47.4 |
|
|
|
Income tax effect |
|
(27.1 |
) |
|
|
|
|
(15.4 |
) |
|
|
Adjusted Net Income (Non-GAAP) |
$ |
343.7 |
|
|
|
|
$ |
254.1 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share (GAAP) |
$ |
6.63 |
|
|
|
|
$ |
5.09 |
|
|
|
Adjusted Diluted Earnings Per Share
(Non-GAAP) |
$ |
7.84 |
|
|
|
|
$ |
5.83 |
|
|
|
Contact:
Dan Smith, 404-853-1423
dan.smith@acuitybrands.com
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