Acuity Brands :: Annual Report 2018

PERFORMANCE

2018 FINANCIAL
HIGHLIGHTS

(in millions of dollars, except earnings per share)

for the year ended August 31

Operations	2018⁽¹⁾	2017⁽²⁾	% Change
Net sales	$3,680.1	$3,505.1	5%
Gross profit %	40.4%	42.3%
Operating profit	$454.6	$518.8	(12%)
Operating profit %	12.4%	14.8%
Net Income	$349.6	$321.7	9%
Diluted earnings per share	$8.52	$7.43	15%
Diluted weighted average number of shares outstanding (in millions)	41.0	43.3
Return on average shareholders’ equity	20.9%	19.2%	9%
Cash provided by operating activities	$353.2	$336.6	5%
Depreciation and amortization	$80.3	$74.6	8%
Capital expenditures	$43.6	$67.3	(35%)

Financial Position	2018⁽¹⁾	2017⁽²⁾	% Change
Total assets	$2,989	$2,900	3%
Total cash	$129	$311	(59%)
Total debt	$357	$357	(0%)
Total stockholders’ equity	$1,717	$1,666	3%
Ratio of total debt to capital	17.2%	17.6%
Operating working capital as a percentage of net sales⁽³⁾	16.3%	14.5%

(1) 2018 results include pre-tax special charges associated with streamlining initiatives of $5.6 million, pre-tax amortization of acquired intangible assets of $28.5 million, pre-tax share-based payment expense of $32.3 million, pre-tax acquisition-related items of $3.8 million, excess inventory related to the closure of a facility of $3.1 million, gain on sale of a business of $5.4 million, and discrete income tax benefits of the U.S. Tax Cuts and Jobs Act of $34.6 million, totaling $0.32 per share.

(2) 2017 results include pre-tax special charges associated with streamlining initiatives of $11.3 million, pre-tax amortization of acquired intangible assets of $28.0 million, pre-tax share-based payment expense of $32.0 million, and pre-tax costs associated with manufacturing inefficiencies associated with the closing of a facility of $1.6 million, and gain on sale of investment in an unconsolidated affiliate of $7.2 million, totaling $1.02 per share.

(3) Operating working capital is defined as net receivables plus inventories minus accounts payable.

$2,394

$2,707

$3,291

$3,505

$3,680

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’15

’16

’17

’18

Revenues ($ in millions)

$299.1

12.5%

$376.3

13.9%

$475.2

14.4%

$518.8

14.8%

$454.6

12.4%

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’15

’16

’17

’18

Operating Profit ($ in millions)

Margin

$4.05

$5.09

$6.63

$7.43

$8.52

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’15

’16

’17

’18

Diluted EPS

$218.8

$261.7

$304.2

$269.3

$309.6

’14

’15

’16

’17

’18

Free Cash Flow ($ in millions)

*Free Cash Flow is defined as cash provided by operating activities minus purchases of property, plant, and equipment. Prior year amounts reflect adoption of Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting.

5-Year Cumulative Total Return*

Among Acuity Brands, Inc., the Dow Jones U.S. Electrical Components & Equipment Index, the Dow Jones U.S. Building Materials & Fixtures Index, the S&P Midcap 400 Index, and the S&P 500 Index.

Acuity Brands, Inc.

S&P Midcap 400 Index

Dow Jones U.S. Electrical Components & Equipment Index

S&P 500 Index

Dow Jones U.S. Building Materials & Fixtures Index

	8/13	8/14	8/15	8/16	8/17	8/18
Acuity Brands, Inc.	$100	$146	$230	$325	$209	$182
Dow Jones U.S. Electrical Components & Equipment Index	$100	$125	$113	$129	$160	$188
Dow Jones U.S. Building Materials & Fixtures Index	$100	$125	$144	$179	$188	$199
S&P Midcap 400 Index	$100	$123	$123	$138	$156	$187
S&P 500 Index	$100	$125	$126	$142	$165	$197

*For fiscal year ending August 31. Assumes $100 invested on August 31, 2013 in stock or index, including reinvestment of dividends.

During fiscal 2018, the Company was removed from the S&P 500 Index and added to the S&P Midcap 400 Index.