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Nov 30, 2020
Acuity Brands Q1 2021 Earnings Report
Acuity Brands reported first quarter results for fiscal year 2021, achieving strong free cash flow and accelerating share repurchases.
Key Takeaways
Acuity Brands' first quarter net sales were $792 million, a decrease of 5.1% compared with the prior-year period. Net income was $60 million, an increase of 4.6% compared with the prior-year period. The company generated free cash flow of $113 million and deployed $255 million of cash to repurchase shares.
Net sales decreased by 5.1% compared to the prior-year period, totaling $792 million.
Operating profit margin increased by 80 basis points, while adjusted operating profit margin decreased by 110 basis points compared to the prior-year period.
Net income increased by 4.6% compared to the prior-year period, reaching $60 million.
The company generated free cash flow of $113 million and used $255 million to repurchase shares.
Acuity Brands
Acuity Brands
Forward Guidance
Acuity Brands plans to continue investing in its business to expand its technology and product portfolios in lighting, lighting controls, and intelligent buildings. While the recovery in the economic environment remains uncertain, the company is cautiously optimistic about returning to stability in its end markets in calendar year 2021.
Positive Outlook
- Continued investment in business to expand technology and product portfolios
- Focus on lighting, lighting controls, and intelligent buildings
- Drive transformation to expand service capabilities
- Cautiously optimistic about returning to stability in end markets in calendar year 2021
- Will continue to use strong cash generation to prioritize growth investments and share repurchases
Challenges Ahead
- Recovery in the economic environment remains uncertain
- Impacts of the pandemic continue
- Challenging market environment
- Lower volume in independent sales network
- Weakness in large industrial projects affecting direct sales network