Acuity Brands Q1 Results Top Estimates

(RTTNews) - Lighting fixtures maker Acuity Brands, Inc. (AYI) reported Thursday a profit for the first quarter that surged 70 percent from last year, reflecting improved margins and double-digit sales growth amid broad-based increase in volume across most product categories and key sales channels. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

"We were extremely pleased with our record fiscal 2014 first quarter results as we continued to execute our strategies to extend our leadership position in North America. We believe our record first quarter results reflect our ability to provide customers truly differentiated value from our industry-leading portfolio of innovative lighting and control solutions along with superior service," Chairman, President and CEO Vernon Nagel said.

The Atlanta, Georgia-based company reported net income of $44.5 million or $1.03 per share for the first quarter, higher than $26.1 million or $0.61 per share in the prior-year quarter.

Excluding special items, adjusted net income for the quarter was $41.4 million or $0.96 per share, compared to $29.6 million or $0.69 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.84 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 20 percent to $574.7 million from $481.1 million in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $540.93 million.

The company said sales of LED-based products more than doubled from the year-ago period and represented more than a quarter of the total of first-quarter net sales.

Operating profit margin expanded 350 basis points to 13.5 percent as gross margin improved 190 basis points and selling, distribution, and administrative expenses as a percentage of total sales declined 140 basis points.

The company continued its efforts to streamline the organization through the realignment of responsibilities primarily within various selling, distribution, and administrative departments as well as the planned closure of certain small production facilities. It recorded a pre-tax savings of about $3 million in the first quarter associated with these streamlining activities initiated in 2013.

Looking ahead, the company said it expects to be at the total annualized savings run rate of $15 million by the end of the second quarter.

"We believe the lighting and lighting-related industry will experience solid growth over the next decade, particularly as energy and environmental concerns come to the forefront, and we believe we are well positioned to fully participate in this exciting industry," Nagel added.

In Thursday's regular trading session, AYI is currently trading at $120.95, up $10.92 or 9.92% on a volume of 1,277 shares.