Acuity Brands Files Q1 2025 10-Q Report

TL;DR

Acuity Brands dropped its Q1 2025 10-Q. Check financials.

AI Summary

Acuity Brands Inc. reported its first quarter results for the period ending November 30, 2024. The company's financial performance and operational updates are detailed in this 10-Q filing. Specific financial figures and strategic initiatives are outlined within the report.

Why It Matters

This filing provides investors with the latest financial performance data for Acuity Brands, crucial for understanding the company's current health and future prospects in the lighting and electrical equipment sector.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial updates, not indicating any immediate or significant new risks.

Key Numbers

• 20241130 — Period End Date (Reporting period for the 10-Q)
• 20250108 — Filing Date (Date the report was submitted to the SEC)

Key Players & Entities

• ACUITY BRANDS INC (company) — Filer
• 20241130 (date) — Period of Report
• 20250108 (date) — Filed as of Date
• 30309 (dollar_amount) — ZIP Code

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value per share AYI New York Stock

Filing Documents

• ayi-20241130.htm (10-Q) — 870KB
• ayi-11302024xex31a.htm (EX-31.A) — 11KB
• ayi-11302024xex31b.htm (EX-31.B) — 10KB
• ayi-11302024xex32a.htm (EX-32.A) — 6KB
• ayi-11302024xex32b.htm (EX-32.B) — 6KB
• 0001144215-25-000008.txt ( ) — 5924KB
• ayi-20241130.xsd (EX-101.SCH) — 34KB
• ayi-20241130_cal.xml (EX-101.CAL) — 69KB
• ayi-20241130_def.xml (EX-101.DEF) — 130KB
• ayi-20241130_lab.xml (EX-101.LAB) — 495KB
• ayi-20241130_pre.xml (EX-101.PRE) — 348KB
• ayi-20241130_htm.xml (XML) — 996KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets -- November 30, 2024 (Unaudited) and August 31, 2024 1 Consolidated Statements of Comprehensive Income (Unaudited) -- Three months ended November 30, 2024 and November 30, 2023 2 Consolidated Statements of Cash Flows (Unaudited) -- Three months ended November 30, 2024 and November 30, 2023 3

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 4 Note 1 — Description of Business and Basis of Presentation 4 Note 2 — Significant Accounting Policies 5 Note 3 — New Accounting Pronouncements 5 Note 4 — Fair Value Measurements 6 Note 5 — Inventories 7 Note 6 — Property, Plant, and Equipment 7 Note 7 — Goodwill and Intangible Assets 7 Note 8 — Other Current Liabilities 8 Note 9 — Debt and Lines of Credit 9 Note 10 — Commitments and Contingencies 10 Note 11 — Changes in Stockholders' Equity 11 Note 12 — Revenue 11 Note 13 — Share-based Payments 12 Note 14 — Pension Plans 13 Note 15 — Other (Income) Expense 13 Note 16 — Earnings Per Share 14 Note 17 — Comprehensive Income 14 Note 18 — Segment Information 15 Note 19 — Subsequent Event 16 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 23

OTHER INFORMATION

Part II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 5. Other Information 24 Item 6. Exhibits 24 INDEX TO EXHIBITS 25

SIGNATURES

SIGNATURES 26 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ACUITY BRANDS, INC. CONSOLIDATED BALANCE SHEETS (In millions, except per-share data) November 30, 2024 August 31, 2024 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 935.6 $ 845.8 Accounts receivable, less reserve for doubtful accounts of $ 1.9 and $ 1.9 , respectively 534.7 563.0 Inventories 391.1 387.6 Prepayments and other current assets 75.9 75.1 Total current assets 1,937.3 1,871.5 Property, plant, and equipment, net 299.8 303.9 Operating lease right-of-use assets 61.1 65.6 Goodwill 1,091.8 1,098.7 Intangible assets, net 440.3 440.5 Deferred income taxes 2.4 2.3 Other long-term assets 31.6 32.1 Total assets $ 3,864.3 $ 3,814.6 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 331.5 $ 352.3 Current operating lease liabilities 18.9 19.2 Accrued compensation 72.7 110.1 Other current liabilities 227.5 206.3 Total current liabilities 650.6 687.9 Long-term debt 496.3 496.2 Long-term operating lease liabilities 54.4 58.1 Accrued pension liabilities 37.5 37.5 Deferred income taxes 25.6 26.0 Other long-term liabilities 136.5 130.1 Total liabilities 1,400.9 1,435.8 Commitments and contingencies (see Commitments and Contingencies footnote) Stockholders' equity: Preferred stock, $ 0.01 par value per share; 50.0 shares authorized; none issued — — Common stock, $ 0.01 par value per share; 500.0 shares authorized; 54.8 and 54.6 shares issued, respectively 0.5 0.5 Paid-in capital 1,120.5 1,115.9 Retained earnings 4,012.0 3,909.8 Accumulated other comprehensive loss ( 131.7 ) ( 114.9 ) Treasury stock, at cost, of 23.8 and 23.8 shares, respectively ( 2,537.9 ) ( 2,532.5 ) Total stockholders' equity 2,463.4 2,378.8 Total liabilities and stockholders' equity $ 3,864.3 $ 3,814.6 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 1 Table of Contents ACUITY BRANDS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSI

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 — Description of Business and Basis of Presentation Acuity Brands, Inc. (referred to herein as "we," "our," "us," the "Company," or similar references) is a market-leading industrial technology company. We use technology to solve problems in spaces and light. Through our two business segments, Acuity Brands Lighting and Acuity Intelligent Spaces, we design, manufacture, and bring to market products and services that make a valuable difference in people's lives. We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and location-aware applications. Acuity Brands Lighting Segment Our Acuity Brands Lighting strategy is to increase product vitality, elevate service levels, use technology to improve and differentiate both our products and how we operate the business, and drive productivity. Acuity Brands Lighting's portfolio of lighting solutions includes commercial, architectural, and specialty lighting in addition to lighting controls and components that can be combined to create integrated lighting controls systems. We offer devices such as luminaires that predominantly utilize light emitting diode ("LED") technology designed to optimize energy efficiency and comfort for various indoor and outdoor applications. Acuity Brands Lighting's portfolio of products includes but is not limited to the following brands: A-Light TM , Aculux TM , American Electric Lighting , Cyclone TM , Dark to Light , eldoLED , Eureka , Gotham , Healthcare Lighting , Holophane , Hydrel , IOTA , Juno , Lithonia Lighting , Luminaire LED TM , Luminis , Mark Architectural Lighting TM , nLight , OPTOTRONIC , Peerless , RELOC Wiring Solutions, and SensorSwitch TM . Principal customers of Acuity Brands Lighting include electrical distributors, retail home improvement centers, electric utilities, corporate accounts, original equipment manuf

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) accordance with U.S. GAAP have been condensed or omitted. However, we believe that the disclosures included herein are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited consolidated financial statements as of and for the three years in the period ended August 31, 2024 and notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on October 28, 2024 ("Form 10-K"). Our business exhibits some seasonality, with net sales being affected by weather and seasonal demand on construction and installation programs, particularly during the winter months, as well as the annual budget cycles of major customers. Historically, with certain exceptions, we have experienced our highest sales in the last two quarters of each fiscal year due to these factors. Note 2 — Significant Accounting Policies Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Reclassifications We may reclassify certain prior period amounts to conform to the current year presentation. No material reclassifications occurred during the current period. Note 3 — New Accounting Pronouncements Accounting Standards Yet to Be Adopted Accounting Standards Update ( " ASU " ) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses ( " ASU 2024-03 " ) In November 2024, the Financial Accounting Standards Board ("FASB") issued ASU 2024-03

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 2025. Interim disclosures are required for periods within fiscal years beginning after December 15, 2024, or our fiscal 2026. Retrospective application is required for all prior periods presented, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. Note 4 — Fair Value Measurements We determine fair value measurements based on the assumptions a market participant would use in pricing an asset or liability. ASC Topic 820, Fair Value Measurement ("ASC 820"), establishes a three-level hierarchy that distinguishes between market participant assumptions based on (i) unadjusted quoted prices for identical assets or liabilities in an active market (Level 1), (ii) quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (Level 2), and (iii) prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (Level 3). We utilize valuation methodologies to determine the fair values of our financial assets and liabilities in conformity with the concepts of "exit price" and the fair value hierarchy as prescribed in ASC 820. All valuation methods and assumptions are validated at least quarterly to ensure the accuracy and relevance of the fair values. There were no material changes to the valuation methods or assumptions used to determine fair values during the current period. No transfers between the levels of the fair value hierarchy occurred during the current fiscal period. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence. We may from time to t

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) We had no short-term borrowings outstanding under our revolving credit facility as of November 30, 2024 and August 31, 2024. Such borrowings, if any, are variable-rate instruments that reset on a frequent short-term basis; therefore, we estimate that any outstanding carrying values of these instruments, which are equal to their face amounts, approximate their fair values. See Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for further details on our outstanding borrowings. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value to us. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating our management of liquidity and other risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above. Note 5 — Inventories Inventories include materials, direct labor, inbound freight, customs, duties, tariffs, and related manufacturing overhead. Inventories are stated on a first-in, first-out basis at the lower of cost and net realizable value and consist of the following as of the dates presented (in millions): November 30, 2024 August 31, 2024 Raw materials, supplies, and work in process (1) $ 227.5 $ 222.1 Finished goods 190.2 191.1 Inventories excluding reserves 417.7 413.2 Less: Reserves ( 26.6 ) ( 25.6 ) Total inventories $ 391.1 $ 387.6 _______________________________________ (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, we do not believe the segregation of raw materials and work in process is meaningful information. We revie

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) We recorded amortization expense for definite-lived intangible assets of $ 8.7 million and $ 9.9 million during the three months ended November 30, 2024 and 2023, respectively. The following table summarizes the changes in the carrying amount of goodwill by segment during the periods presented (in millions): Acuity Brands Lighting Acuity Intelligent Spaces Total Balance at August 31, 2024 $ 1,015.1 $ 83.6 $ 1,098.7 Foreign currency translation adjustments ( 4.9 ) ( 2.0 ) ( 6.9 ) Balance at November 30, 2024 $ 1,010.2 $ 81.6 $ 1,091.8 Acuity Brands Lighting Acuity Intelligent Spaces Total Balance at August 31, 2023 $ 1,014.4 $ 83.5 $ 1,097.9 Foreign currency translation adjustments ( 0.2 ) ( 0.2 ) ( 0.4 ) Balance at November 30, 2023 $ 1,014.2 $ 83.3 $ 1,097.5 Further discussion of goodwill and intangible assets is included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Note 8 — Other Current Liabilities Other current liabilities consist of the following as of the dates presented (in millions): November 30, 2024 August 31, 2024 Customer incentive programs (1) $ 39.6 $ 35.3 Refunds to customers (1) 27.6 28.2 Deferred revenues (1) 17.0 17.4 Sales commissions 31.9 35.3 Freight costs 17.7 18.1 Product warranty costs (2) 27.5 28.4 Tax-related items (3) 23.5 7.1 Interest on long-term debt (4) 5.0 2.3 Other 37.7 34.2 Total other current liabilities $ 227.5 $ 206.3 ____________________________________ (1) Refer to the Revenue Recognition footnote of the Notes to Consolidated Financial Statements within our Form 10-K for additional information. (2) Refer to the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements for additional information. (3) Includes accruals for income, property, sales and use, and value-added taxes. (4) Refer to the Debt and Lines of Credit footn

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 9 — Debt and Lines of Credit Long-term Debt On November 10, 2020, Acuity Brands Lighting, Inc., a wholly-owned operating subsidiary of Acuity Brands, Inc., issued $ 500.0 million aggregate principal amount of 2.150 % senior unsecured notes due December 15, 2030 (the "Unsecured Notes") at a price equal to 99.737 % of their face value. Interest on the Unsecured Notes is paid semi-annually in arrears on June 15 and December 15 of each year. At issuance we recorded $ 4.8 million of deferred issuance costs related to the Unsecured Notes as a direct deduction from the face amount of the Unsecured Notes. These issuance costs are amortized over the 10-year term of the Unsecured Notes. The Unsecured Notes are fully and unconditionally guaranteed on a senior unsecured basis by Acuity Brands, Inc. and ABL IP Holding LL

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