ATLANTA — Acuity Brands, Inc. (the “Company”) announced net sales of $1.0 billion in the fourth quarter of fiscal 2023 ended August 31, 2023, a decrease of $99.9 million, or 9.0 percent, compared to the prior year. Diluted earnings per share was $2.63 in the fourth quarter of fiscal 2023, a decrease of $0.85, or 24.4 percent, compared to the prior year. Adjusted diluted earnings per share was $3.97 in the fourth quarter of fiscal 2023, an increase of $0.02 from $3.95 in the prior year.
“Our fiscal fourth quarter performance demonstrated excellent execution. Our focus on margin and cash generation led to increased adjusted operating profit margin and higher adjusted diluted earnings per share, despite a decline in sales in the lighting business,” stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. “This quarter concluded a successful year. We delivered strong financial performance, continued to improve our businesses and allocated capital effectively.”
Operating profit was $109.7 million in the fourth quarter of fiscal 2023, a decrease of $39.9 million, compared to the prior year. Adjusted operating profit was $162.3 million in the fourth quarter of fiscal 2023, a decrease of $7.4 million compared to the prior year.
During the quarter, we recognized pre-tax charges of $35.5 million that affected net income. This included a pre-tax charge of $22.5 million related to severance costs and non-cash charges for impairments of certain trade names based upon our annual impairment review, of which $20.0 million is included in operating income. The third charge of $13.0 million resulted from the collectability of a supplier warranty obligation owed to us for components we used in products manufactured and sold between 2017 and 2019.
Full-Year 2023 Summary
Net sales of $3.95 billion for the full year of fiscal 2023 decreased $53.9 million, or 1.3 percent, from $4.01 billion in the full year of fiscal 2022.
Operating profit was $473.4 million for the full year of fiscal 2023, a decrease of $36.3 million compared to the prior year. Adjusted operating profit was $597.4 million for the full year of fiscal 2023, an increase of $9.3 million compared to the prior year.
Diluted earnings per share was $10.76 for the full year of fiscal 2023, a decrease of $0.32 or 2.9 percent, compared to the prior year. Adjusted diluted earnings per share was $14.05, an increase of $1.22, or 9.5 percent, from $12.83 in the prior year.
Segment Performance
Acuity Brands Lighting and Lighting Controls (“ABL”)
Fourth-Quarter Results
ABL generated net sales of $944.2 million in the fourth quarter of fiscal 2023, a decrease of $110.8 million, or 10.5 percent, compared to the prior year.
ABL operating profit was $117.8 million in the fourth quarter of fiscal 2023, a decrease of $33.6 million compared to the prior year. ABL adjusted operating profit was $158.7 million in the fourth quarter of fiscal 2023, a decrease of $3.0 million compared to the prior year.
Full-Year Results
ABL generated net sales of $3.7 billion for the full year of fiscal 2023, a decrease of $87.3 million, or 2.3 percent, as compared to the prior year.
ABL operating profit was $509.5 million for the full year of fiscal 2023, a decrease of $36.1 million, or 6.6 percent, as compared to the prior year. ABL adjusted operating profit was $590.5 million for the full year of fiscal 2023, an increase of $3.9 million, or 0.7 percent, from the same period of fiscal 2022.
Intelligent Spaces Group (“ISG”)
Fourth-Quarter Results
ISG generated net sales of $71.9 million in the fourth quarter of fiscal 2023, an increase of $10.5 million, or 17.1 percent, compared to the prior year.
ISG operating profit was $9.4 million in the fourth quarter of fiscal 2023, a decrease of $0.9 million compared to the prior year. ISG adjusted operating profit was $14.2 million in the fourth quarter of fiscal 2023, a decrease of $0.4 million compared to the prior year.
Full-Year Results
ISG generated net sales of $252.7 million for the full year of fiscal 2023, an increase of $36.6 million, or 16.9 percent, as compared to the prior year.
ISG operating profit was $32.1 million for the full year of fiscal 2023, an increase of $9.4 million compared to the prior year. ISG adjusted operating profit was $50.1 million for the full year of fiscal 2023, an increase of $10.2 million as compared to the prior year.
Cash Flow and Capital Allocation
Net cash from operating activities was $578.1 million for the full year of fiscal 2023, an increase of $261.8 million compared to the prior year due primarily to an improvement in our working capital.
During fiscal 2023, the Company repurchased approximately 1.6 million shares of common stock for a total of $269 million.
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