Acuity Brands 2020 Annual Report

FINANCIALS

“During a time of uncertainty, Acuity Brands demonstrated the durability of our business by being a consistent generator of free cash flow.”

Karen J. Holcom, Senior Vice President and Chief Financial Officer

ABOUT KAREN

Having worked at Acuity Brands for nearly 20 years, Karen is a tangible, results-oriented business leader with deep experience in accounting, forecasting, reporting, profitability and analytics who has a passion for creating shareholder value.

2020 Financial Performance

(in millions of dollars, except earnings per share)

for the year ended August 31

Operations 
2020(1)
2019(2)
% Change 
Net sales $3,326.3 $3,672.7 (9%)
Gross profit % 42.2% 40.3%  
Operating profit $353.9 $462.9 (24%)
Operating profit % 10.6% 12.6%  
Net Income $248.3 $330.4 (25%)
Diluted earnings per share $6.27 $8.29 (24%)
Diluted weighted average number of shares outstanding (in millions) 39.6 39.8  
Return on stockholders’ equity 12.2% 18.2%  
Cash provided by operating activities $504.8 $494.7 2%
Depreciation and amortization $101.1 $88.3 14%
Capital expenditures $54.9 $53.0 4%
Financial Position 
2020(1)
2019(2)
% Change
Total assets $3,492 $3,172 10%
Total cash $561 $461 22%
Total debt $401 $357 12%
Total stockholders’ equity $2,128 $1,919 11%
Ratio of total debt to capital 15.9% 15.7%  
Operating working capital as a percentage of net sales (3) 14.8% 15.3%  

(1) 2020 results include pre-tax special charges associated with streamlining initiatives of $20.0 million, pre-tax amortization of acquired intangible assets of $41.7 million, pre-tax share-based payment expense of $38.2 million, and pre-tax acquisition-related items of $2.5 million, totaling $2.00 per share.

(2) 2019 results include pre-tax special charges associated with streamlining initiatives of $1.8 million, pre-tax amortization of acquired intangible assets of $30.8 million, pre-tax share-based payment expense of $29.2 million, pre-tax manufacturing inefficiencies related to the closure of a facility of $0.9 million, and pre-tax acquisition-related items of $2.5 million, totaling $1.28 per share.

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

$3,291

$3,505

$3,680

$3,673

$3,326

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’17
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’20

Revenues ($ in millions)

$475.2

14.4%

$527.5

15.0%

$460.8

12.5%

$462.9

12.6%

$353.9

10.6%

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’17
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’20

Operating Profit ($ in millions)

Margin

$6.63

$7.43

$8.52

$8.29

$6.27

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’17
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’20

Diluted EPS  

$304.2

$269.3

$307.9

$441.7

$449.9

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’17
’18
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’20

Free Cash Flow ($ in millions)

*Free Cash Flow is defined as cash provided by operating activities minus purchases of property, plant, and equipment.

5-Year Cumulative Total Return*

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

Acuity Brands, Inc.

S&P Midcap 400

Dow Jones U.S. Electrical Components & Equipment

Dow Jones U.S. Building Materials & Fixtures

  8/15 8/16 8/17 8/18 8/19 8/20
Acuity Brands, Inc. $100.00 $141.51 $91.16 $79.09 $65.16 $57.07
S&P Midcap 400 $100.00 $112.33 $126.22 $151.46 $141.73 $147.71
Dow Jones U.S. Electrical Components & Equipment $100.00 $114.34 $142.55 $166.80 $149.67 $172.79
Dow Jones U.S. Building Materials & Fixtures $100.00 $124.07 $130.22 $138.15 $152.97 $180.26

*$100 invested on 8/31/15 in stock or index, including reinvestment of dividends. Fiscal year ending August 31.