ATLANTA — Acuity Brands, Inc. (the “Company”), announced net sales of $1.0 billion in the third quarter of fiscal 2023 ended May 31, 2023, a decrease of 5.7 percent, or $60.3 million compared to the prior year.
“In the third quarter of fiscal 2023, we expanded adjusted operating profit margin both sequentially and year-over-year. We continued to grow adjusted diluted earnings per share and we generated strong cash flow from operations, despite a decline in net sales,” stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. “We completed the acquisition of KE2 Therm, and we continued to repurchase our shares.”
Operating profit was $143.3 million in the third quarter of fiscal 2023, an increase of $0.6 million, compared to the prior year. Operating profit as a percent of net sales was 14.3 percent in the third quarter of fiscal 2023, an increase of 80 basis points, compared to the prior year. Adjusted operating profit was $162.9 million in the third quarter of fiscal 2023, an increase of $0.1 million, compared to the prior year. Adjusted operating profit as a percent of net sales was 16.3 percent in the third quarter of fiscal 2023, an increase of 100 basis points, compared to the prior year.
Diluted earnings per share was $3.28 in the third quarter of fiscal 2023, an increase of $0.21, or 6.8 percent, compared to the prior year. Adjusted diluted earnings per share was $3.75 in the third quarter of fiscal 2023, an increase of $0.23, or 6.5 percent, from $3.52, in the prior year.
Segment Performance
Acuity Brands Lighting and Lighting Controls (“ABL”)
ABL generated net sales of $940.7 million in the third quarter of fiscal 2023, a decrease of $67.7 million, or 6.7 percent, compared to the prior year.
ABL operating profit was $150.0 million in the third quarter of fiscal 2023, an increase of $0.4 million, compared to the prior year. ABL operating profit as a percent of ABL net sales was 15.9 percent in the third quarter of fiscal 2023, an increase of 110 basis points compared to the prior year. ABL adjusted operating profit was $159.7 million in the third quarter of fiscal 2023, a decrease of $0.1 million, compared to the prior year. ABL adjusted operating profit as a percent of ABL net sales was 17.0 percent in the third quarter of fiscal 2023, an increase of 120 basis points compared to the prior year.
Intelligent Spaces Group (“ISG”)
ISG generated net sales of $65.8 million in the third quarter of fiscal 2023, an increase of $7.5 million, or 12.9 percent, compared to the prior year.
ISG operating profit was $8.6 million in the third quarter of fiscal 2023, a decrease of $0.6 million, compared to the prior year. ISG adjusted operating profit was $12.8 million in the third quarter of fiscal 2023, a decrease of $0.8 million, compared to the prior year.
Cash Flow and Capital Allocation
Net cash from operating activities was $471.5 million for the first nine months of fiscal 2023, an increase of $305.8 million compared to the prior year due primarily to an improvement in our working capital.
During the first nine months of fiscal 2023, the Company repurchased approximately 1.3 million shares of common stock for a total of $219 million.
In the third quarter of fiscal 2023, the Company announced that it had completed the acquisition of KE2 Therm.
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