Acuity Brands, Inc. (AYI) has reported an 11.08 percent rise in profit for the quarter ended May 31, 2017. The company has earned $82.20 million, or $1.90 a share in the quarter, compared with $74 million, or $1.69 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $93.10 million, or $2.15 a share compared with $90.40 million or $2.06 a share, a year ago.
Revenue during the quarter grew 4.71 percent to $891.60 million from $851.50 million in the previous year period. Gross margin for the quarter contracted 188 basis points over the previous year period to 42.50 percent. Total expenses were 85.25 percent of quarterly revenues, down from 85.79 percent for the same period last year. This has led to an improvement of 54 basis points in operating margin to 14.75 percent.
Operating income for the quarter was $131.50 million, compared with $121 million in the previous year period.
However, the adjusted operating income for the quarter stood at $148.30 million compared to $146.10 million in the prior year period. At the same time, adjusted operating margin contracted 52 basis points in the quarter to 16.63 percent from 17.16 percent in the last year period.
Vernon J. Nagel, chairman, president, and chief executive officer of Acuity Brands, commented, "Our third quarter net sales reflect continued solid performance even though initial industry data suggests that the growth rate of the Company's key end markets in North America grew only in the low single-digit range. We believe the market growth rate reflected continued softness in demand for certain short-cycled, smaller lighting projects. Despite achieving record third quarter net sales and earnings, our profitability was negatively impacted by higher than normal supply chain costs, including increased quality expense and greater inbound freight charges."
Operating cash flow drops significantlyAcuity Brands, Inc. has generated cash of $179.30 million from operating activities during the nine month period, down 26.49 percent or $64.60 million, when compared with the last year period. The company has spent $36.70 million cash to meet investing activities during the nine month period as against cash outgo of $673.20 million in the last year period. It has incurred net capital expenditure of $49.70 million on net basis during the nine month period, down 16.47 percent or $9.80 million from year ago period.
The company has spent $365.80 million cash to carry out financing activities during the nine month period as against cash inflow of $14.30 million in the last year period.
Cash and cash equivalents stood at $189.70 million as on May 31, 2017, down 43.71 percent or $147.30 million from $337 million on May 31, 2016.
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