Acuity Brands Inc. (AYI, Financial) filed Quarterly Report for the period ended 2009-02-28.
Acuity Brands Inc. is comprised of the Acuity Lighting Group and Acuity Specialty Products. The Acuity Lighting Group is the world's largest lighting fixture manufacturer and includes brands such as LithoniaLighting Holophane Peerless and Hydrel. Acuity Specialty Products is a leading provider of specialty chemicals and includes brands such as Zep Enforcer and Selig. Acuity Brands Inc. has a market cap of $873.1 million; its shares were traded at around $21.6 with a P/E ratio of 6.6 and P/S ratio of 0.5. The dividend yield of Acuity Brands Inc. stocks is 2.4%. Acuity Brands Inc. had an annual average earning growth of 26.4% over the past 5 years.
Acuity Brands uses available cash and cash flow from operations as well as proceeds from the exercise of stock options to fund operations and capital expenditures, to repurchase stock, to fund acquisitions, and to pay dividends. During the six months ended February 28, 2009, Acuity Brands received $2.7 million in cash primarily from stock issuances in connection with stock option exercises. These receipts were more than offset by returns to stockholders during the first half through the payment of $10.6 million in dividends. Acuity Brands available cash position at February 28, 2009 was $72.3 million, a decrease of $224.8 million from August 31, 2008. The decrease in the Companys available cash position was due primarily to repayments of debt, cash used by operating activities discussed below, acquisitions, dividends paid, and capital investments partially offset by proceeds from the exercise of stock options.
Acuity Brands used $3.9 million of net cash for operating activities during the first six months of fiscal year 2009 compared with $55.6 million generated in the prior-year period, a decrease of $59.5 million. This decline was due primarily to lower net income, the cash flow impact of increased operating working capital (calculated by adding accounts receivable, net, plus inventories, and subtracting accounts payable), and increased deferred income taxes. Operating working capital increased by approximately $12.7 million to $221.6 million at February 28, 2009 from $208.9 million at August 31, 2008. Operating working capital increased due primarily to higher levels of inventory in order to appropriately service customers during the previously announced consolidation of certain manufacturing facilities. Additionally, raw materials inventory has increased to support manufacturing of products previously manufactured by outside vendors and as a result of discontinued use of supplier logistics centers by certain suppliers. Operating working capital was also impacted by a reduction in accounts payable partially offset by a reduction in accounts receivable, both driven by lower volume. The increase in deferred income taxes is due primarily to an increased deferred tax asset related to the special charge reserves. The Company expects to generate cash flow from operations less capital expenditures approximately equal to net income during fiscal year 2009. Management believes that investing in assets and programs that will over time increase the overall return on its invested capital is a key factor in driving stockholder value. The Company invested $11.7 million and $14.6 million in the first six months of fiscal year 2009 and 2008, respectively, primarily for new tooling, machinery, equipment, and information technology. As noted above, the Company expects to invest between $30 million and $35 million for new plant, equipment, tooling, and new and enhanced information technology capabilities during fiscal year 2009.
During the second quarter of fiscal 2009, Acuity Brands commenced a cash tender offer to purchase any and all of its outstanding $160 million 6% notes due 2009 (the Notes) at a discounted price of $990.00 per $1,000.00. The tender offer expired on December 9, 2008. A total of $12.6 million of the Notes, representing approximately 7.9% of the outstanding Notes, was validly tendered in the offer. The total consideration plus the applicable accrued and unpaid interest was paid to the tendering holders on the settlement date, December 10, 2008. The gain, net of expenses, was immaterial. The remaining $147.4 million of the Notes matured in February 2009 and Acuity Brands repaid the outstanding balance with cash on hand.
The Company paid cash dividends on common stock of $10.6 million ($0.26 per share) during the first six months of fiscal year 2009 compared with $11.8 million ($0.28 per share) during the first six months of fiscal year 2008. The Company currently plans to pay quarterly dividends at an annual rate of $0.52 per share; however, each quarterly dividend must be approved by the Board of Directors.
Net sales were $386.1 million for the three months ended February 28, 2009 compared with $482.6 million reported in the prior-year period, a decrease of $96.5 million, or 20.0%. For the three months ended February 28, 2009, the Company reported income from continuing operations of $14.4 million (including a $2.9 million after-tax special charge for estimated costs the Company incurred to simplify and streamline its operations and consolidate certain manufacturing facilities) compared with $34.1 million for the three months ended February 29, 2008. Diluted earnings per share from continuing operations were $0.35 (including $0.07 related to the special charge) for the second quarter of fiscal 2009 as compared with $0.82 reported for the second quarter of fiscal 2008, a decrease of 57.3%.
Read the The complete ReportAYI is in the portfolios of John Keeley of Keeley Fund Management, NWQ Managers of NWQ Investment Management Co, Kenneth Fisher of Fisher Asset Management, LLC.
Acuity Brands Inc. is comprised of the Acuity Lighting Group and Acuity Specialty Products. The Acuity Lighting Group is the world's largest lighting fixture manufacturer and includes brands such as LithoniaLighting Holophane Peerless and Hydrel. Acuity Specialty Products is a leading provider of specialty chemicals and includes brands such as Zep Enforcer and Selig. Acuity Brands Inc. has a market cap of $873.1 million; its shares were traded at around $21.6 with a P/E ratio of 6.6 and P/S ratio of 0.5. The dividend yield of Acuity Brands Inc. stocks is 2.4%. Acuity Brands Inc. had an annual average earning growth of 26.4% over the past 5 years.
Highlight of Business Operations:
announced and potential acquisitions, funding foreseen improvement initiatives, paying quarterly stockholder dividends as currently anticipated, paying principal and interest on borrowings as currently scheduled, and making required contributions into its employee benefit plans, as well as potentially repurchasing shares of its outstanding common stock as authorized by the Board of Directors. Since October 2005, the Companys Board of Directors has authorized the repurchase of ten million shares of Acuity Brands outstanding common stock, of which approximately 9.5 million had been repurchased at February 28, 2009. The Company currently expects to invest approximately $30 to $35 million primarily for new plant, equipment, tooling, and new and enhanced information technology capabilities during fiscal year 2009, of which $11.7 million was invested in the first half of fiscal 2009. The Company expects to contribute approximately $3.8 million during fiscal year 2009 to fund its defined benefit plans. As of February 28, 2009, the assets in the qualified defined benefit plans declined approximately 30% compared to the values reported in the Companys Form 10-K. The Company does not expect this decline to materially impact the contribution for fiscal year 2009 and the impact on future periods has not yet been determined.Acuity Brands uses available cash and cash flow from operations as well as proceeds from the exercise of stock options to fund operations and capital expenditures, to repurchase stock, to fund acquisitions, and to pay dividends. During the six months ended February 28, 2009, Acuity Brands received $2.7 million in cash primarily from stock issuances in connection with stock option exercises. These receipts were more than offset by returns to stockholders during the first half through the payment of $10.6 million in dividends. Acuity Brands available cash position at February 28, 2009 was $72.3 million, a decrease of $224.8 million from August 31, 2008. The decrease in the Companys available cash position was due primarily to repayments of debt, cash used by operating activities discussed below, acquisitions, dividends paid, and capital investments partially offset by proceeds from the exercise of stock options.
Acuity Brands used $3.9 million of net cash for operating activities during the first six months of fiscal year 2009 compared with $55.6 million generated in the prior-year period, a decrease of $59.5 million. This decline was due primarily to lower net income, the cash flow impact of increased operating working capital (calculated by adding accounts receivable, net, plus inventories, and subtracting accounts payable), and increased deferred income taxes. Operating working capital increased by approximately $12.7 million to $221.6 million at February 28, 2009 from $208.9 million at August 31, 2008. Operating working capital increased due primarily to higher levels of inventory in order to appropriately service customers during the previously announced consolidation of certain manufacturing facilities. Additionally, raw materials inventory has increased to support manufacturing of products previously manufactured by outside vendors and as a result of discontinued use of supplier logistics centers by certain suppliers. Operating working capital was also impacted by a reduction in accounts payable partially offset by a reduction in accounts receivable, both driven by lower volume. The increase in deferred income taxes is due primarily to an increased deferred tax asset related to the special charge reserves. The Company expects to generate cash flow from operations less capital expenditures approximately equal to net income during fiscal year 2009. Management believes that investing in assets and programs that will over time increase the overall return on its invested capital is a key factor in driving stockholder value. The Company invested $11.7 million and $14.6 million in the first six months of fiscal year 2009 and 2008, respectively, primarily for new tooling, machinery, equipment, and information technology. As noted above, the Company expects to invest between $30 million and $35 million for new plant, equipment, tooling, and new and enhanced information technology capabilities during fiscal year 2009.
During the second quarter of fiscal 2009, Acuity Brands commenced a cash tender offer to purchase any and all of its outstanding $160 million 6% notes due 2009 (the Notes) at a discounted price of $990.00 per $1,000.00. The tender offer expired on December 9, 2008. A total of $12.6 million of the Notes, representing approximately 7.9% of the outstanding Notes, was validly tendered in the offer. The total consideration plus the applicable accrued and unpaid interest was paid to the tendering holders on the settlement date, December 10, 2008. The gain, net of expenses, was immaterial. The remaining $147.4 million of the Notes matured in February 2009 and Acuity Brands repaid the outstanding balance with cash on hand.
The Company paid cash dividends on common stock of $10.6 million ($0.26 per share) during the first six months of fiscal year 2009 compared with $11.8 million ($0.28 per share) during the first six months of fiscal year 2008. The Company currently plans to pay quarterly dividends at an annual rate of $0.52 per share; however, each quarterly dividend must be approved by the Board of Directors.
Net sales were $386.1 million for the three months ended February 28, 2009 compared with $482.6 million reported in the prior-year period, a decrease of $96.5 million, or 20.0%. For the three months ended February 28, 2009, the Company reported income from continuing operations of $14.4 million (including a $2.9 million after-tax special charge for estimated costs the Company incurred to simplify and streamline its operations and consolidate certain manufacturing facilities) compared with $34.1 million for the three months ended February 29, 2008. Diluted earnings per share from continuing operations were $0.35 (including $0.07 related to the special charge) for the second quarter of fiscal 2009 as compared with $0.82 reported for the second quarter of fiscal 2008, a decrease of 57.3%.
Read the The complete ReportAYI is in the portfolios of John Keeley of Keeley Fund Management, NWQ Managers of NWQ Investment Management Co, Kenneth Fisher of Fisher Asset Management, LLC.
