UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 2, 2008
ACUITY BRANDS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-16583 | 58-2632672 | ||
| (State or other jurisdiction of Company or organization) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
| 1170 Peachtree St., N.E., Suite 2400, Atlanta, GA | 30309 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: 404-853-1400
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition. |
On July 2, 2008, the Company issued a press release containing information about the Company’s results of operations for its fiscal quarter and nine months ended May 31, 2008. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K, which is incorporated herein by reference in its entirety. The information contained in this paragraph, as well as Exhibit 99.1 referenced herein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
| Item 8.01. | Other Events. |
On June 26, 2008, the Board of Directors declared a quarterly dividend of 13 cents per share. A copy of the press release is attached as exhibit 99.2 to this Current Report on Form 8-K, which is incorporated herein by reference in its entirety.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits |
| 99.1 | Press Release dated July 2, 2008 (Filed with the Commission as part of this Form 8-K). |
| 99.2 | Press Release dated June 26, 2008 (Filed with the Commission as part of this Form 8-K). |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: July 2, 2008
| ACUITY BRANDS, INC. | ||
| By: | /s/ Richard K. Reece | |
| Richard K. Reece | ||
| Executive Vice President and Chief Financial Officer | ||
EXHIBIT INDEX
| 99.1 | Press Release dated July 2, 2008 (Filed with the Commission as part of this Form 8-K). |
| 99.2 | Press Release dated June 26, 2008 (Filed with the Commission as part of this Form 8-K). |
Exhibit 99.1
 |
News Release | Acuity Brands, Inc. | ||
| 1170 Peachtree Street, NE | ||||
| Suite 2400 | ||||
| Atlanta, GA 30309 | ||||
| Tel: 404 853 1400 | ||||
| Fax: 404 853 1430 | ||||
| AcuityBrands.com | ||||
Company Contact:
Dan Smith
Acuity Brands, Inc.
(404) 853-1423
Acuity Brands Reports Record Third Quarter Results
ATLANTA – July 2, 2008 – Acuity Brands, Inc. (NYSE: AYI) today announced record results for the third quarter of fiscal 2008, including a 29 percent increase in diluted earnings per share (EPS) from continuing operations of $1.01 compared with $0.78 for the prior year period. Income from continuing operations for the third quarter of fiscal 2008 rose 21 percent to $41.7 million compared with $34.3 million for the prior year third quarter. Prior year’s third quarter EPS from continuing operations included $0.10 from a pre-tax gain of $6.6 million for a favorable legal settlement at Acuity Brands Lighting related to a long-standing commercial dispute. Excluding the favorable legal settlement in the prior year, 2008 third quarter diluted EPS increased 49 percent versus the year ago period while income from continuing operations rose 39 percent. The Company generated record third quarter net sales of $512.4 million, a 2 percent increase over $502.4 million reported in the year-ago period.
Vernon J. Nagel, Chairman, President, and Chief Executive Officer of Acuity Brands remarked, “We are very pleased to report record year-over-year results from continuing operations for the 13th quarter in a row. Our strong third quarter earnings performance reflects continuing benefits from programs to introduce new and innovative products, enhance customer service, and increase productivity. The results are even more impressive given the turbulent economic conditions which prevail in the residential home market and new store construction for certain retail channels. We believe weak demand in these two areas reduced our growth in net sales by approximately four percentage points.”
The results for both periods exclude the specialty chemicals business, which was spun off to the shareholders of Acuity Brands on October 31, 2007 as Zep Inc. The historical results of the specialty chemicals business are now reported in discontinued operations of the Company.
The year-over-year increase in net sales reflects more favorable pricing and an enhanced mix of products sold, highlighted by greater shipments of the Company’s proprietary energy-efficient fixtures for new construction and the relighting of existing non-residential buildings. Net sales from the prior year’s acquisition
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of Mark Architectural Lighting and favorable foreign currency translation of international sales each contributed approximately one percentage point to the year-over-year growth in net sales. The Company estimates that total net sales growth was negatively impacted by four percentage points in the current quarter versus the year ago period as a result of lower shipment volumes for residential related fixtures and for new store construction in certain retail channels. Additionally, the Company estimates that year-over-year net sales growth in other segments of the non-residential market approximated 4 percent and was due primarily from pricing actions and an enhanced mix of products sold, while unit volumes were essentially flat.
Operating profit for the third quarter of fiscal 2008 was $71.7 million, or 14.0 percent of net sales, as compared to prior year’s $59.7 million, or 11.9 percent of net sales. The year-over-year 210 basis point improvement in operating profit margin was due primarily to a better mix of products sold driven by new products, more favorable pricing, and improved productivity. Excluding the gain from the favorable legal settlement in the prior year, the operating profit margin rose 340 basis points year-over-year.
The Company also achieved record results for the first nine months of fiscal year 2008 including diluted EPS from continuing operations, income from continuing operations, and net sales. Diluted earnings per share from continuing operations for the nine months ended May 31, 2008 was $2.55, an increase of 30 percent compared to $1.96 for the prior year period. Income from continuing operations for the first nine months of fiscal 2008 rose to $106.7 million, an increase of 24 percent versus the year-ago period, while net sales climbed 6 percent to $1,503.9 million. Results for the first nine months of fiscal 2008 include a special charge of $14.6 million, or $0.21 per diluted share, recorded in the first quarter. The special charge relates to actions to streamline and simplify the Company’s organizational structure and operations as a result of the spin-off of Zep Inc. The Company expects to realize annual cost savings of approximately $14 million as a result of its reorganization efforts. The full benefits are expected to be realized beginning in the first quarter of fiscal 2009.
Acuity Brands completed the spin-off of Zep Inc. on October 31, 2007. Therefore, the Company reflects the results of Zep Inc. as a discontinued operation reported as a one-line item on the income statement. For the first nine months of fiscal 2008, the Company reported a loss from discontinued operations of $0.4 million, or $0.01 per diluted share, compared to the prior year’s first nine months income of $10.8 million, or $0.25 per diluted share. Income from discontinued operations for the first nine months of fiscal 2008 includes non-tax-deductible spin-off costs of $5.5 million, or $0.13 per diluted share, primarily for legal and professional fees.
Including the results of discontinued operations, the Company reported diluted EPS of $1.00 for the third quarter of fiscal 2008, or $41.1 million of net income, compared to diluted EPS of $0.88 for the third quarter of fiscal 2007, or $38.7 million of net income. Including the results of discontinued operations, the Company reported diluted EPS of $2.54 for the first nine months of fiscal 2008, or $106.4 million of net income, compared to diluted EPS of $2.20 for the first nine months of fiscal 2007, or $96.6 million of net income.
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Cash and cash equivalents at the end of the third quarter totaled $216.3 million, an increase of $2.6 million from the $213.7 million at the beginning of the fiscal year. During the nine months ending May 31, 2008, the Company repurchased approximately 3.0 million shares of outstanding common stock at a cost of approximately $131 million. Stock repurchases were partially funded by a $58.4 million net cash dividend received from Zep Inc., which includes $62.5 million received from Zep Inc. prior to the spin-off that was partially offset by $4.1 million paid to Zep Inc. during the third quarter of fiscal 2008 in accordance with the terms of the spin-off distribution agreement.
Outlook
Mr. Nagel commented, “Looking ahead, various leading indicators such as employment, housing demand, consumer sentiment, bank lending standards, and commodity prices are signaling a slowdown in future non-residential construction activity, our primary market. Accordingly, we anticipate unit sales growth to be challenging for the remainder of fiscal year 2008 and into 2009. The Company’s backlog at May 31, 2008 was approximately $182 million, down 4 percent compared with the prior year. While positive factors such as a decline in past due orders and reduced lead times resulting from our improved delivery performance contributed to this decline, we have experienced modest softness in incoming orders over the past couple of months and expect them to remain soft for the foreseeable future. In addition, we expect to experience pressure on gross margins in the fourth quarter as a result of significant increases in commodity costs such as steel, aluminum, plastics, and copper as well as higher freight costs due to the significant rise in the price of diesel fuel.
“Despite these near-term economic challenges, we see opportunity for continued performance improvement allowing us to meet or exceed our long-term financial goals including annual operating margin expansion, earnings growth, and cash flow generation. We believe these opportunities exist as a result of our ongoing efforts to provide customers with superior value propositions, the creation of new and innovative products and services, and the expansion into new markets. We continue to invest and deploy resources to capitalize on growth opportunities in the renovation and relighting markets offering new proprietary energy-saving products and services to our customers while also providing an aesthetically superior lighting environment. We also see growth opportunities by furthering our market presence, such as our expansion into the New York City metropolitan area where we have historically had limited participation in this large and dynamic market.”
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Mr. Nagel concluded, “Looking beyond 2008, we remain positive about our future performance. Clearly, headwinds that prevail in certain markets will influence demand and escalating commodity costs are worrisome. While we announced a price increase ranging between three and ten percent effective in early May, we expect to announce additional price increases to help offset rising commodity prices. We intend to maintain our disciplined approach to pricing to recover increases in costs and to earn appropriate margins for our differentiated products and services. Additionally, we expect to realize benefits from our on-going initiatives to introduce new and innovative products, improve productivity, and contain costs. Our past and future actions to create value for our customers, to invest in our associates to be more customer-focused and productive, and to more effectively deploy assets to generate greater returns for our shareholders should enhance the Company’s opportunity to prosper over the long-term.”
Non-GAAP Financial Comparisons
Acuity Brands’ management included in the above news release year-over-year comparisons of third quarter diluted EPS, income from continuing operations, and operating profit margin excluding the impact of the prior year’s third quarter gain resulting from a favorable legal settlement. The comparisons are computed using non-GAAP financial measures, however, management has provided such comparisons to enhance the user’s overall understanding of the Company’s current financial performance and prospects for the future. Specifically, management believes the non-GAAP financial comparisons provide useful information to investors by excluding or adjusting certain items affecting reported operating results that were unusual and not indicative of the Company’s core operating results. The non-GAAP financial comparisons should be considered in addition to, and not as a substitute for or superior to, results prepared in accordance with GAAP. The non-GAAP financial comparisons included in this news release have been reconciled to the nearest GAAP measures in the following financial statement tables.
Please see the Company’s Form 10-Q filed with the Securities and Exchange Commission today for more information on the results for the third quarter of fiscal 2008. You may access the 10-Q through the Company’s website at www.acuitybrands.com.
Conference Call
As previously announced, the Company will host a conference call to discuss third quarter results today 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.
Acuity Brands, Inc. owns and operates Acuity Brands Lighting, Inc. and Acuity Brands Technology Services, Inc. With fiscal year 2007 net sales of approximately $2.0 billion, Acuity Brands Lighting and Acuity Brands
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Technology Services combined are one of the world’s leading providers of lighting fixtures and related products and services and include brands such as Lithonia Lighting®, Holophane®, Peerless®, Mark Architectural Lighting™, Hydrel®, American Electric Lighting®, Gotham®, Carandini®, SpecLight®, MetalOptics®, Antique Street Lamps™, Synergy® Lighting Controls, SAERIS™, and ROAM®. Headquartered in Atlanta, Georgia, Acuity Brands employs approximately 7,000 associates and has operations throughout North America and in Europe and Asia.
Forward-Looking Statements
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,” “anticipates,” “may,” “see,” 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) realization of annual cost savings of approximately $14 million as a result of the Company’s reorganization efforts; (b) opportunity for continued performance improvement including annual operating margin expansion, earnings growth, and cash flow generation; (c) growth opportunities by furthering the Company’s market presence including the recent expansion into the New York City metropolitan area; (d) intentions to maintain the Company’s disciplined approach to pricing to recover increases in costs and to earn appropriate margins for its differentiated products and services; and (e) realization of benefits from on-going initiatives to introduce new and innovative products, improve productivity, and contain costs. 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 the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on July 2, 2008. A variety of other risks and uncertainties are discussed in the Company’s filings with the SEC, including the 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, 2007. 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.
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ACUITY BRANDS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per-share data)
| MAY 31, 2008 |
AUGUST 31, 2007 |
|||||||
| (unaudited) | ||||||||
| ASSETS |
||||||||
| Current Assets: |
||||||||
| Cash and cash equivalents |
$ | 216,314 | $ | 213,674 | ||||
| Accounts receivable, less reserve for doubtful accounts of $1,723 at May 31, 2008 and $1,361 at August 31, 2007 |
288,725 | 295,544 | ||||||
| Inventories |
150,294 | 146,536 | ||||||
| Deferred income taxes |
19,836 | 14,773 | ||||||
| Prepayments and other current assets |
31,209 | 38,853 | ||||||
| Current assets related to discontinued operations |
— | 158,182 | ||||||
| Total Current Assets |
706,378 | 867,562 | ||||||
| Property, Plant, and Equipment, at cost: |
||||||||
| Land |
9,585 | 9,286 | ||||||
| Buildings and leasehold improvements |
126,984 | 121,327 | ||||||
| Machinery and equipment |
330,638 | 314,030 | ||||||
| Total Property, Plant, and Equipment |
467,207 | 444,643 | ||||||
| Less - Accumulated depreciation and amortization |
303,040 | 282,632 | ||||||
| Property, Plant, and Equipment, net |
164,167 | 162,011 | ||||||
| Other Assets: |
||||||||
| Goodwill |
354,368 | 352,945 | ||||||
| Intangible assets |
119,948 | 118,774 | ||||||
| Deferred income taxes |
3,783 | 1,731 | ||||||
| Defined benefit plan intangible assets |
2,587 | 2,587 | ||||||
| Other long-term assets |
14,809 | 22,274 | ||||||
| Long-term assets related to discontinued operations |
— | 89,983 | ||||||
| Total Other Assets |
495,495 | 588,294 | ||||||
| Total Assets |
$ | 1,366,040 | $ | 1,617,867 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Current Liabilities: |
||||||||
| Current maturities of long-term debt |
$ | 159,972 | $ | — | ||||
| Accounts payable |
188,683 | 210,402 | ||||||
| Accrued compensation |
58,386 | 64,147 | ||||||
| Accrued pension liabilities, current |
1,268 | 1,268 | ||||||
| Other accrued liabilities |
87,770 | 109,944 | ||||||
| Current liabilities related to discontinued operations |
— | 84,635 | ||||||
| Total Current Liabilities |
496,079 | 470,396 | ||||||
| Long-Term Debt |
203,949 | 363,877 | ||||||
| Accrued Pension Liabilities, less current portion |
21,474 | 22,043 | ||||||
| Deferred Income Taxes |
28,115 | 17,437 | ||||||
| Self-Insurance Reserves, less current portion |
9,738 | 8,657 | ||||||
| Other Long-Term Liabilities |
41,284 | 44,167 | ||||||
| Long-Term Liabilities related to discontinued operations |
— | 19,324 | ||||||
| Commitments and Contingencies 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; 49,648,601 issued and 40,648,601 outstanding at May 31, 2008; and 49,323,225 issued and 43,314,625 outstanding at August 31, 2007 |
496 | 493 | ||||||
| Paid-in capital |
623,885 | 611,701 | ||||||
| Retained earnings |
329,616 | 313,850 | ||||||
| Accumulated other comprehensive loss |
(12,636 | ) | (9,513 | ) | ||||
| Treasury stock, at cost, 9,000,000 shares at May 31, 2008 and 6,008,600 at August 31, 2007 |
(375,960 | ) | (244,565 | ) | ||||
| Total Stockholders’ Equity |
565,401 | 671,966 | ||||||
| Total Liabilities and Stockholders’ Equity |
$ | 1,366,040 | $ | 1,617,867 | ||||
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ACUITY BRANDS, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per-share data)
| THREE MONTHS ENDED MAY 31, |
NINE MONTHS ENDED MAY 31, |
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| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Net Sales |
$ | 512,438 | $ | 502,429 | $ | 1,503,887 | $ | 1,424,380 | ||||||||
| Cost of Products Sold |
304,246 | 313,780 | 900,470 | 890,220 | ||||||||||||
| Gross Profit |
208,192 | 188,649 | 603,417 | 534,160 | ||||||||||||
| Selling, Distribution, and Administrative Expenses |
136,488 | 128,965 | 401,440 | 381,278 | ||||||||||||
| Special Charge |
— | — | 14,638 | — | ||||||||||||
| Operating Profit |
71,704 | 59,684 | 187,339 | 152,882 | ||||||||||||
| Other Expense (Income): |
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| Interest expense, net |
7,174 | 7,284 | 21,274 | 23,134 | ||||||||||||
| Miscellaneous expense (income), net |
1,592 | (277 | ) | 1,476 | (79 | ) | ||||||||||
| Total Other Expense |
8,766 | 7,007 | 22,750 | 23,055 | ||||||||||||
| Income from Continuing Operations before Provision for Income Taxes |
62,938 | 52,677 | 164,589 | 129,827 | ||||||||||||
| Provision for Income Taxes |
21,280 | 18,363 | 57,862 | 44,007 | ||||||||||||
| Income from Continuing Operations |
41,658 | 34,314 | 106,727 | 85,820 | ||||||||||||
| Income (Loss) from Discontinued Operations |
(525 | ) | 4,362 | (377 | ) | 10,781 | ||||||||||
| Net Income |
$ | 41,133 | $ | 38,676 | $ | 106,350 | $ | 96,601 | ||||||||
| Earnings Per Share: |
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| Basic Earnings per Share from Continuing Operations |
$ | 1.04 | $ | 0.80 | $ | 2.61 | $ | 2.02 | ||||||||
| Basic Earnings (Loss) per Share from Discontinued Operations |
(0.01 | ) | 0.10 | (0.01 | ) | 0.25 | ||||||||||
| Basic Earnings per Share |
$ | 1.03 | $ | 0.90 | $ | 2.60 | $ | 2.27 | ||||||||
| Basic Weighted Average Number of Shares Outstanding |
40,190 | 42,861 | 40,865 | 42,535 | ||||||||||||
| Diluted Earnings per Share from Continuing Operations |
$ | 1.01 | $ | 0.78 | $ | 2.55 | $ | 1.96 | ||||||||
| Diluted Earnings (Loss) per Share from Discontinued Operations |
(0.01 | ) | 0.10 | (0.01 | ) | 0.25 | ||||||||||
| Diluted Earnings per Share |
$ | 1.00 | $ | 0.88 | $ | 2.54 | $ | 2.20 | ||||||||
| Diluted Weighted Average Number of Shares Outstanding |
41,247 | 44,118 | 41,825 | 43,859 | ||||||||||||
| Dividends Declared per Share |
$ | 0.13 | $ | 0.15 | $ | 0.41 | $ | 0.45 | ||||||||
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ACUITY BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
| NINE MONTHS ENDED MAY 31, |
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| 2008 | 2007 | |||||||
| Cash Provided by (Used for) Operating Activities: |
||||||||
| Net income |
$ | 106,350 | $ | 96,601 | ||||
| Less: Income (Loss) from Discontinued Operations |
(377 | ) | 10,781 | |||||
| Income from Continuing Operations |
106,727 | 85,820 | ||||||
| Adjustments to reconcile net income to net cash provided by (used for) operating activities: |
||||||||
| Depreciation and amortization |
24,808 | 23,283 | ||||||
| Excess tax benefits from share-based payments |
(4,696 | ) | (14,265 | ) | ||||
| (Gain)/Loss on the sale or disposal of property, plant, and equipment |
(22 | ) | 12 | |||||
| Deferred income taxes |
3,563 | 2,087 | ||||||
| Other non-cash items |
3,281 | 5,923 | ||||||
| Change in assets and liabilities, net of effect of acquisitions and divestitures: |
||||||||
| Accounts receivable |
6,819 | (3,138 | ) | |||||
| Inventories |
(3,758 | ) | 6,487 | |||||
| Prepayments and other current assets |
7,644 | (4,718 | ) | |||||
| Accounts payable |
(21,719 | ) | (8,720 | ) | ||||
| Other current liabilities |
(20,161 | ) | 20,504 | |||||
| Other |
8,106 | 1,170 | ||||||
| Net Cash Provided by Operating Activities |
110,592 | 114,445 | ||||||
| Cash Provided by (Used for) Investing Activities: |
||||||||
| Purchases of property, plant, and equipment |
(21,407 | ) | (21,897 | ) | ||||
| Proceeds from sale of property, plant, and equipment |
133 | 108 | ||||||
| Acquisition of business |
(3,500 | ) | — | |||||
| Net Cash Used for Investing Activities |
(24,774 | ) | (21,789 | ) | ||||
| Cash Provided by (Used for) Financing Activities: |
||||||||
| Repayments of long-term debt |
(6 | ) | — | |||||
| Employee stock purchase plan issuances |
410 | 603 | ||||||
| Stock options exercised |
3,434 | 24,759 | ||||||
| Repurchases of common stock |
(136,139 | ) | (29,958 | ) | ||||
| Excess tax benefits from share-based payments |
4,696 | 14,265 | ||||||
| Dividend received from Zep Inc. |
58,379 | — | ||||||
| Dividends paid |
(17,132 | ) | (19,679 | ) | ||||
| Net Cash Used for Financing Activities |
(86,358 | ) | (10,010 | ) | ||||
| Cash flows from Discontinued Operations: |
||||||||
| Net Cash Provided by Operating Activities |
274 | 12,319 | ||||||
| Net Cash Used for Investing Activities |
(410 | ) | (2,758 | ) | ||||
| Net Cash Provided by (Used for) Financing Activities |
970 | (332 | ) | |||||
| Net Cash Provided by Discontinued Operations |
834 | 9,229 | ||||||
| Effect of Exchange Rate Changes on Cash |
2,346 | 1,207 | ||||||
| Net Change in Cash and Cash Equivalents |
2,640 | 93,082 | ||||||
| Cash and Cash Equivalents at Beginning of Period |
213,674 | 80,520 | ||||||
| Cash and Cash Equivalents at End of Period |
$ | 216,314 | $ | 173,602 | ||||
| Supplemental Cash Flow Information: |
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| Income taxes paid during the period |
$ | 64,174 | $ | 33,202 | ||||
| Interest paid during the period |
$ | 28,115 | $ | 27,520 | ||||
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ACUITY BRANDS, INC.
GAAP to Non-GAAP Reconciliation (Unaudited)
The table below reconciles certain GAAP measures to the corresponding non-GAAP measures, which exclude the gain realized in the settlement of a long-standing commercial dispute in fiscal year 2007. The Company believes these non-GAAP measures provide greater comparability and enhanced visibility into the improvements realized.
| (In thousands) | Three Months Ended May 31, |
Change | Percent Change |
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| 2008 | 2007 | |||||||||||||
| Operating Profit |
$ | 71,704 | $ | 59,684 | $ | 12,020 | 20 | % | ||||||
| Percent of net sales |
14.0 | % | 11.9 | % | 2.1 pts | |||||||||
| Less: Settlement gain |
— | (6,605 | ) | 6,605 | ||||||||||
| Adjusted Operating Profit |
$ | 71,704 | $ | 53,079 | $ | 18,625 | 35 | % | ||||||
| Percent of net sales |
14.0 | % | 10.6 | % | 3.4 pts | |||||||||
| Income from Continuing Operations |
$ | 41,658 | $ | 34,314 | $ | 7,344 | 21 | % | ||||||
| Less: Settlement gain, net of tax |
— | (4,293 | ) | 4,293 | ||||||||||
| Adjusted Income from Continuing Operations |
$ | 41,658 | $ | 30,021 | $ | 11,637 | 39 | % | ||||||
| Diluted Earnings Per Share from Continuing Operations |
$ | 1.01 | $ | 0.78 | $ | 0.23 | 29 | % | ||||||
| Less: Settlement gain |
— | (0.10 | ) | 0.10 | ||||||||||
| Adjusted Diluted Earnings Per Share from Continuing Operations |
$ | 1.01 | $ | 0.68 | $ | 0.33 | 49 | % | ||||||
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Exhibit 99.2
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News Release | |||
| Acuity Brands, Inc. | ||||
| 1170 Peachtree Street, NE | ||||
| Suite 2400 | ||||
| Atlanta, GA 30309 | ||||
| Tel: 404 853 1400 | ||||
| Fax: 404 853 1420 | ||||
| AcuityBrands.com | ||||
Company Contact:
Dan Smith
Acuity Brands, Inc.
(404) 853-1423
ACUITY BRANDS
DECLARES QUARTERLY DIVIDEND
ATLANTA, June 26, 2008 – The Board of Directors of Acuity Brands, Inc. (NYSE: AYI) today declared a quarterly dividend of 13 cents per share (an annualized rate of 52 cents per share). The dividend is payable on August 1, 2008 to shareholders of record on July 17, 2008.
Acuity Brands, Inc. owns and operates Acuity Brands Lighting, Inc. and Acuity Brands Technology Services, Inc. With fiscal year 2007 net sales of approximately $2.0 billion, Acuity Brands Lighting and Acuity Brands Technology Services combined are one of the world’s leading providers of lighting fixtures and related products and services and includes brands such as Lithonia Lighting®, Holophane®, Peerless®, Mark Architectural Lighting™, Hydrel®, American Electric Lighting®, Gotham® , Carandini®, SpecLight®, MetalOptics®, Antique Street Lamps™, Synergy® Lighting Controls, SAERIS™, and ROAM®. Headquartered in Atlanta, Georgia, Acuity Brands employs approximately 7,000 associates and has operations throughout North America and in Europe and Asia.