Acuity Brands Inc (AYI) Reports Fiscal 2023 Fourth-Quarter and Full-Year Results
Acuity Brands Inc (NYSE:AYI) released its earnings report on October 4, 2023, revealing a net sales decline of 1% for Fiscal 2023, amounting to $4.0B. Despite this, the company demonstrated strong financial performance with a 10% increase in adjusted diluted EPS over the prior year, standing at $14.05.
Company Performance and Challenges
AYI's Q4 2023 net sales stood at $1.0B, marking a 9% decline compared to the prior year. The company's diluted EPS for the same period was $2.63, a decrease of 24.4% compared to the prior year. However, the adjusted diluted EPS for Q4 2023 was $3.97, a slight increase from $3.95 in the prior year.
Neil Ashe, Chairman, President, and Chief Executive Officer of Acuity Brands, Inc., commented on the company's performance, stating,
Our fiscal fourth quarter performance demonstrated excellent execution. Our focus on margin and cash generation led to increased adjusted operating profit margin and higher adjusted diluted earnings per share, despite a decline in sales in the lighting business."
Financial Highlights
AYI's operating profit for Q4 2023 was $109.7 million, a decrease of $39.9 million compared to the prior year. The company's adjusted operating profit for the same period was $162.3 million, a decrease of $7.4 million compared to the prior year.
For the full year of Fiscal 2023, AYI reported net sales of $3.95 billion, a decrease of 1.3% from the previous year. The company's operating profit for the full year was $473.4 million, a decrease of $36.3 million compared to the prior year. However, the adjusted operating profit for the full year was $597.4 million, an increase of $9.3 million compared to the prior year.
Segment Performance
Acuity Brands Lighting and Lighting Controls (ABL) reported a decrease in net sales of 10.5% for Q4 2023, amounting to $944.2 million. The Intelligent Spaces Group (ISG) reported an increase in net sales of 17.1% for the same period, amounting to $71.9 million.
For the full year of Fiscal 2023, ABL reported a decrease in net sales of 2.3%, amounting to $3.7 billion. On the other hand, ISG reported an increase in net sales of 16.9% for the same period, amounting to $252.7 million.
Cash Flow and Capital Allocation
AYI reported a net cash from operating activities of $578.1 million for the full year of Fiscal 2023, an increase of $261.8 million compared to the prior year. The company also repurchased approximately 1.6 million shares of common stock for a total of $269 million during Fiscal 2023.
This article first appeared on GuruFocus.
