ATLANTA — Acuity Brands, Inc. announced net sales of $909.1 million for the second quarter of fiscal 2022 ended February 28, 2022, an increase of $132.5 million, or 17.1 percent, compared to the same period in fiscal 2021. Diluted earnings per share (“EPS”) was $2.13, an increase of 22.4 percent over the prior year.
“I am proud of the strong performance delivered by our team through the second quarter of fiscal 2022,” stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. “Our focus on service and product vitality has allowed us to meet current customer demand while also investing in the long-term growth and transformation of our Company.”
Gross profit of $379.3 million for the second quarter of fiscal 2022 increased $42.6 million, or 12.7 percent, over the prior year. This increase was driven by revenue growth as well as our ability to offset the significant increase in material and freight costs through price increases and product and productivity improvements. Gross profit as a percent of net sales was 41.7 percent for the second quarter of fiscal 2022, a decrease of 170 basis points from 43.4 percent over the prior year but flat sequentially over the first quarter of 2022.
Operating profit of $102.3 million for the second quarter of fiscal 2022 increased $11.3 million, or 12.4 percent, over the prior year as we continued to leverage operating expenses. Operating profit was 11.3 percent of net sales for the second quarter of fiscal 2022, a decrease of 40 basis points from 11.7 percent over the prior year. The operating margin decrease was driven by the year-over-year decrease in gross margin partially offset by the leveraging of operating expenses.
Adjusted operating profit of $122.6 million for the second quarter of fiscal 2022 increased $13.7 million, or 12.6 percent, over the prior year. Adjusted operating profit was 13.5 percent of net sales for the second quarter of fiscal 2022, a decrease of 50 basis points from 14.0 percent in the prior year.
Net income of $75.3 million for the second quarter of fiscal 2022 increased $12.4 million, or 19.7 percent, over the prior year. Diluted earnings per share of $2.13 for the second quarter of fiscal 2022 increased $0.39, or 22.4 percent, from $1.74 in the prior year.
Adjusted net income of $91.0 million increased $14.3 million, or 18.6 percent, over the prior year. Adjusted diluted earnings per share of $2.57 increased $0.45, or 21.2 percent, from $2.12 in the prior year.
Segment Performance
Acuity Brands Lighting and Lighting Controls (“ABL”)
ABL generated net sales of $863.1 million for the second quarter of fiscal 2022, an increase of $126.3 million or 17.1 percent, over the prior year with acquisitions contributing approximately 4 percent to current year sales growth.
- Net sales of $614.3 million in the Independent Sales Network increased 11.7 percent over the prior year.
- Net sales of $83.2 million in the Direct Sales Network increased 5.1 percent over the prior year.
- Sales in the Corporate Accounts channel of $53.6 million increased 104.6 percent over the prior year.
- Retail sales of $42.7 million declined 2.3 percent over the prior year.
Operating profit was $116.5 million for the second quarter of fiscal 2022, an increase of $14.5 million or 14.2 percent over the prior year. Adjusted operating profit was $126.9 million for the second quarter of fiscal 2022, an increase of $15.0 million or 13.4 percent, over the prior year.
Intelligent Spaces Group (“ISG”)
ISG generated net sales of $50.0 million for the second quarter of fiscal 2022, an increase of $6.7 million, or 15.5 percent, over the prior year.
Operating profit was $1.2 million for the second quarter of fiscal 2022, an increase of $0.4 million over the prior year. Adjusted operating profit was $5.6 million for the second quarter of fiscal 2022, an increase of $0.8 million, or 16.7 percent, over the prior year.
Cash Flow and Capital Allocation
Net cash from operating activities of $127.3 million decreased $85.3 million, or 40.1 percent, for the first six months of fiscal 2022 compared to the same period in the prior year due primarily to increased operating working capital, as we managed our inventory levels to support growth and insulate production facilities from inconsistent supply availability.
During the first six months of 2022, the Company repurchased 0.6 million shares of common stock for a total of $109.1 million at an average price of $182.19 per share.
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