Acuity Brands Q1 Profit Rises, Results Top Estimates - Quick Facts

(RTTNews) - Lighting fixtures maker Acuity Brands Inc. (AYI) reported that its first-quarter net income increased to $44.5 million or $1.03 per share, from $26.1 million or $0.61 per share in the same quarter last year.

Operating profit for the first quarter of fiscal 2014 was $77.4 million, an increase of $29.2 million, or 61 percent, over the year-ago period.

Fiscal 2014 first quarter results include the benefit of an insurance recovery of $5 million, or $0.07 earnings per share, associated with the prior-year reported loss resulting from fraud perpetrated at a freight payment and audit service firm formerly retained by the Company.

Included in prior year's first quarter results were a pre-tax special charge and temporary expenses associated with a previously announced production facility closure totaling $5.5 million, or $0.08 earnings per share.

Adjusted earnings per share for the first quarter of fiscal 2014 increased 39 percent to $0.96 from prior-year's $0.69. Analysts polled by Thomson Reuters expected the company to report earnings of $0.84 per share for the first-quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew to $574.7 million from $481.1 million in the prior year quarter. Thirteen analysts had consensus revenue estimate of $540.93 million for the quarter. The year-over-year growth in fiscal 2014 first quarter net sales was due primarily to an increase in volume, partially offset by an estimated 1 percentage point net unfavorable change in product prices and mix of products sold or "price/mix".

The increase in volume was broad-based across most product categories and key sales channels in North America. The impact on net sales from acquisitions and foreign currency was not significant. Sales of LED-based products more than doubled from the year-ago period and represented more than a quarter of the total of fiscal 2014 first quarter net sales.

Vernon Nagel, Chairman, President, and Chief Executive Officer, "Our outlook remains positive. Third-party forecasts and leading indicators continue to suggest that the growth rate for the North American lighting market, which includes renovation and retrofit activity, will continue to be in the mid-single digit range during 2014. While we still expect to see some volatility in demand among certain sales channels and geographies, our expectation for the future is that overall demand in our end markets will continue to improve and be more consistent and broad-based."