Acuity Brands Board Approves Repurchase Of Up To 6 Mln Shares - Quick Facts

(RTTNews) - While reporting its financial results for the second quarter today, Acuity Brands Inc. (AYI) said its board of directors has authorized the repurchase of up to 6 million shares, or about 15 percent, of the company's outstanding common stock.

However, the company's management believes that repurchasing the full authorization under the program within a twelve-month period would require additional resources beyond the company's current available cash and borrowing capacity. Therefore, the company may increase its leverage to accommodate repurchases at attractive price levels.

Acuity Brands added that the extent and timing of actual stock repurchases will be subject to various factors, including stock price, company performance, expected future market conditions, and other possible uses of cash such as acquisitions.

Vernon Nagel, Chairman, President, and CEO of Acuity Brands said, "In light of the current weakness in the lighting industry, balanced against our long-term optimism in the Company's prospects, the Board believes share repurchases represent an effective use of the Company's cash flow to generate shareholder value, especially during periods of high stock price volatility."

Looking ahead, Acuity Brands said it continues to be cautious and believes overall market conditions could continue to be challenging for the near future based on soft order activity in certain sales channels, which suggests growth in the lighting fixture market may remain sluggish for the balance of 2018.

Acuity Brands also expects headwinds in the home center/showroom sales channel to continue in the near term, giving way to growth in the second half of calendar 2018 as the company brings new solutions to key customers and expands its access to market in this important sales channel.