10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

The largest discount in the last 10 years

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Acuity Brands Inc. Reports Operating Results (10-Q)

January 08, 2013 | About:
10qk

10qk

18 followers
Acuity Brands Inc. (AYI) filed Quarterly Report for the period ended 2012-11-30.

Acuity Brands Inc has a market cap of $2.95 billion; its shares were traded at around $68.97 with a P/E ratio of 21.9 and P/S ratio of 1.5. The dividend yield of Acuity Brands Inc stocks is 0.8%. Acuity Brands Inc had an annual average earning growth of 4.1% over the past 10 years.

Highlight of Business Operations:

Net sales were $481.1 for the three months ended November 30, 2012, compared with $474.3 reported for the three months ended November 30, 2011, an increase of $6.8, or 1.4%. For the three months ended November 30, 2012, the Company reported net income of $26.1, a decrease of $3.8, or 12.7%, compared with $29.9 for the three months ended November 30, 2011. For the first quarter of fiscal 2013, diluted earnings per share decreased to $0.61 compared with $0.70 reported in the year-ago period.

Gross profit for the first quarter of fiscal 2013 decreased $4.1, or 2.1%, to $189.5 compared with $193.6 in the prior-year period. Gross profit margins decreased to 39.4% for the three months ended November 30, 2012 compared with 40.8% in the prior-year period. The decrease in gross profit margins was due largely to higher costs associated with the closure of the Company's Cochran, Georgia production facility ("Cochran facility") in addition to increased costs associated with new product introductions, higher manufacturing costs related to other product mix changes, and slightly unfavorable price/mix during the three months ended November 30, 2012. These higher costs were partially offset by benefits associated the closure of the Cochran facility, the favorable impact of increased net sales, and lower material and component costs.

Adjusted gross profit of $194.3 (excluding the impact of temporary manufacturing inefficiencies directly attributable to the Cochran facility closure) increased $0.7, or 0.4% compared with the prior-year period. The increase was due primarily to the favorable impact of benefits associated with the closure of the Cochran facility (excluding the higher costs noted above), higher net sales, and lower material and component costs compared with the year-ago period. These favorable items were largely offset by higher costs associated with new product introductions, increased manufacturing costs associated with product mix changes, and slightly unfavorable price/mix during the three months ended November 30, 2012. As a result of these higher costs, adjusted gross profit margins decreased to 40.4% for the three months ended November 30, 2012 compared with 40.8% in the prior year period.

Selling, Distribution, and Administrative (“SD&A”) expenses for the three months ended November 30, 2012, were $140.6 compared with $140.3 in the prior-year period, an increase of $0.3, or 0.2%. The increase in SD&A expenses was due primarily to higher costs to support the greater sales volume, including commissions, as well as greater spending on activities to enhance sales, service, and customer support capabilities. These higher costs were largely offset by lower variable compensation costs, freight costs, and amortization expense as well as benefits recognized from productivity improvements attributable to streamlining activities. Fiscal 2013 first quarter SD&A expenses were 29.2% of net sales, or 40 basis points lower than 29.6% for the prior-year period.

Adjusted net income (excluding the impact of temporary manufacturing inefficiencies directly attributable to the Cochran facility closure and the special charge) for the first quarter of fiscal 2013 was $29.6 compared with $31.6 of net income (excluding the impact of the special charge) in the prior-year period, which represented an decrease of $2.0, or 6.3%. Adjusted diluted earnings per share (excluding the impact of temporary manufacturing inefficiencies directly attributable to the Cochran facility closure and the special charge) for the three months ended November 30, 2012 decreased $0.05, or 6.8%, to $0.69 compared with diluted earnings per share (excluding the impact of the special charge) of $0.74 for the prior-year period.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 1.0/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK