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FORM 8-K
ACUITY BRANDS INC - AYI
Filed: October 07, 2009 (period: October 07, 2009)
Report of unscheduled material events or corporate changes.
Table of Contents
8-K - FORM 8-K

Item 2.02.   Results of Operations and Financial Condition.

Item 8.01.   Other Events.

Item 9.01.   Financial Statements and Exhibits.

Signatures
EXHIBIT INDEX
EX-99.1 (PRESS RELEASE DATED OCTOBER 7)

EX-99.2 (PRESS RELEASE DATED OCTOBER 7)
UNITED STATES
                                     SECURITIES AND EXCHANGE COMMISSION
                                                                        WASHINGTON, D.C. 20549



                                                                                 FORM 8-K

                                                               CURRENT REPORT
                                                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                                                       SECURITIES EXCHANGE ACT OF 1934
                                                   Date of Report (Date of earliest event reported): October 7, 2009




                                                          ACUITY BRANDS, INC.
                                                                   (Exact name of registrant as specified in its charter)




                       Delaware                                                          001-16583                                       58-2632672
              (State or other jurisdiction of                                    (Commission File Number)                             (I.R.S. Employer
               Company or organization)                                                                                              Identification No.)



              1170 Peachtree St., N.E., Suite 2400, Atlanta, GA                                                              30309
                        (Address of principal executive offices)                                                            (Zip Code)

                                                 Registrant’s telephone number, including area code: 404-853-1400

                                                                                    Not Applicable
                                                        (Former Name or Former Address, if Changed Since Last Report)




Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:


�     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


�     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


�     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


�     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
Item 2.02. Results of Operations and Financial Condition.
       On October 7, 2009, the Company issued a press release announcing the Company’s results of operations for its fiscal quarter and twelve months ended
August 31, 2009. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K, which is incorporated herein by reference in its
entirety. The information contained in this paragraph, as well as Exhibit 99.1 referenced herein, shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

Item 8.01. Other Events.

On October 7, 2009, the Company issued a press release announcing that it will hold its annual meeting of stockholders on January 8, 2010. A copy of the press
release is attached hereto as Exhibit 99.2 and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.


(d)   Exhibits


      99.1   Press Release dated October 7, 2009 (Filed with the Commission as part of this Form 8-K).
      99.2   Press Release dated October 7, 2009.




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
Signatures

      Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Date: October 7, 2009



ACUITY BRANDS, INC.




By:    /s/ Richard K. Reece
       Richard K. Reece
       Executive Vice President and Chief Financial Officer




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
EXHIBIT INDEX


99.1   Press Release dated October 7, 2009 (Filed with the Commission as part of this Form 8-K).
99.2   Press Release dated October 7, 2009.




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
Exhibit 99.1



                                                                                                         News Release

Company Contact:
Dan Smith
Acuity Brands, Inc.
(404) 853-1423


                                          Acuity Brands Reports Fiscal 2009 Fourth
                                                Quarter and Full Year Results
ATLANTA, October 07, 2009 – Acuity Brands, Inc. (NYSE: AYI) today announced diluted earnings per share (EPS) from continuing operations for
the fourth quarter of fiscal 2009 of $0.68 compared with $1.02 for the prior year period. The Company reported fourth quarter net sales of $422.6
million, a decline of 19 percent compared with the $522.8 million reported in the year-ago period. Comparable shipment volumes declined
approximately 17 percent versus the year-ago period. As a result of the stronger dollar, the translation impact on international sales reduced fiscal
2009 fourth quarter net sales by approximately one percentage point as compared with the prior year period. Recent acquisitions contributed
approximately $15 million to fourth quarter net sales and essentially offset the negative impact from unfavorable price/mix changes.

Operating profit for the fourth quarter of fiscal 2009 was $49.9 million, or 11.8 percent of net sales, compared with $73.7 million, or 14.1 percent of
net sales, for the year-ago period. Benefits from on-going streamlining efforts, productivity improvements, and lower incentive-based
compensation helped to partially offset the full impact of the decline in shipment volume and unfavorable price/mix changes. During the fourth
quarter, the Company realized savings of approximately $11 million from streamlining actions initiated in the first half of fiscal 2009. Income from
continuing operations for the fourth quarter of fiscal 2009 was $29.1 million compared with $41.9 million for the same period a year ago.

Mr. Nagel, Chairman, President, and Chief Executive Officer of Acuity Brands, commented, “Our associates continue to demonstrate their resolve
and skill by delivering superior value to our customers and solid performance for our shareholders while confronting extremely challenging market
conditions. Net sales for the fourth quarter of 2009 were impacted by the significant decline in new construction activity due

                                                                          1




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
News Release
to lower economic activity and tight lending standards for real estate. We were able to partially mitigate the impact of lower sales by maintaining
our pricing discipline and realizing benefits from our continuous improvement initiatives and on-going streamlining efforts, while continuing to
invest in innovative and energy-efficient products. I am particularly pleased with our strong operating profit margin for the fourth quarter.”

The consolidated income tax rate for the fourth quarter of 2009 was 32.6 percent compared with 36.5 percent for the fourth quarter of 2008. The
decrease in the tax rate was due primarily to the impact of favorable discrete tax items on the lower earnings amount. Additionally, last year’s tax
rate was negatively impacted by an unfavorable discrete item associated with the repatriation of foreign cash.

2009 Fiscal Year

Fiscal 2009 diluted EPS from continuing operations decreased 43 percent to $2.05 compared with $3.57 reported for fiscal 2008. Results for both
fiscal year 2009 and 2008 include pre-tax special charges of $26.7 million, or $0.41 per diluted share, and $14.6 million, or $0.21 per diluted
share, respectively. The special charges related to actions to streamline and simplify the Company’s organizational structure and operations.
Consolidated net sales in fiscal 2009 were $1,657.4 million compared with $2,026.6 million reported in the year-ago period, a decline of 18
percent. Operating profit for fiscal 2009 was $153.8 million compared with operating profit of $261.1 million reported in the prior year, a decrease
of 41 percent. The special charges reduced operating margins for fiscal year 2009 and 2008 by 160 basis points and 70 basis points, respectively.
Income from continuing operations for fiscal 2009 was $85.2 million compared with $148.6 million reported for fiscal 2008.

For fiscal 2009, the Company reported $2.1 million of other income compared with $2.1 million of other expense in the year-ago period
representing a favorable change of over $4.2 million. The year-over-year favorable change was due primarily to the impact of changes in
exchange rates on foreign currency items and other non-operating items.

The consolidated income tax rate for fiscal 2009 was 33.1 percent compared with 35.5 percent for fiscal 2008. The decrease in the annual tax rate
was due primarily to the greater impact of tax credits and deductions on the lower earnings amount.

                                                                         2




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
News Release
Acuity Brands completed the spin-off of Zep Inc. on October 31, 2007. Therefore, the Company reflects the results of Zep Inc. as a discontinued
operation reported as a one-line item on the income statement. For fiscal years 2009 and 2008, the Company reported losses from discontinued
operations of $0.3 million, or $0.01 per diluted share, and $0.4 million, or $0.01 per diluted share, respectively.

Including the results of discontinued operations, the Company reported diluted EPS of $2.04 for fiscal 2009, or $85.0 million of net income,
compared to diluted EPS of $3.56 for fiscal 2008, or $148.3 million of net income.

For fiscal 2009, the Company generated over $71 million in free cash flow after $21 million of capital expenditures. Cash and cash equivalents at
August 31, 2009 totaled $18.7 million, a decrease of $278.4 million since the beginning of the fiscal year. The decrease in cash was due primarily
to the retirement of the $160 million public notes that matured in February 2009 and $162 million utilized for acquisitions and other strategic
investments, partially offset by the free cash flow noted above. Total debt outstanding at August 31, 2009 was $231.6 million, a decrease of
$132.4 million since the beginning of the fiscal year.

Outlook

Mr. Nagel commented, “Looking ahead to next year, we continue to foresee a difficult and challenging economic environment, particularly for
non-residential construction activity, a primary market for us. Our backlog at the end of the fourth quarter was down 23 percent on a
year-over-year comparable basis. Key indicators continue to signal declines for North American non-residential construction activity and our
expectation is that the overall markets we serve will decline in the mid-teens in our coming fiscal year. In addition to the recent acquisitions which
significantly increased our presence in the fast growing lighting controls market, we believe the execution of our strategies to accelerate
investments in innovative and energy-efficient products, enhance services to our customers, and expand market presence in key sectors such as
home centers and the renovation and relight market will provide growth opportunities which should enable us to outperform the overall markets we
serve.

“We expect our profitability in fiscal 2010 to reflect additional benefits from recent acquisitions and streamlining actions initiated during 2009.
Although pricing is likely to

                                                                          3




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
News Release
become more competitive in certain channels and geographies, we expect to offset this negative impact through productivity improvements and
lower material, component, and freight costs. We intend to invest approximately $35 million in capital expenditures during fiscal 2010, and we
estimate the annual tax rate to approximate 35 percent for the year.

“Although fiscal 2010 results will continue to be negatively impacted by current economic conditions, we remain very positive about the long-term
potential of our company and our ability to outperform the market. We continue to position the Company to optimize short-term performance while
investing in and deploying resources to further our long-term profitable growth opportunities.”

Mr. Nagel concluded, “Looking beyond the current environment, 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.”

The Company’s independent registered public accountant’s audit opinion with respect to the fiscal year-end financial statements will not be issued
until the Company completes its annual report on Form 10-K, including its evaluation of internal controls over financial reporting. Accordingly, the
financial results reported in this earnings release are preliminary pending completion of the audit. In addition, the classification of the purchase
price allocation for recent acquisitions, LC&D and Sensor Switch, remains subject to finalization.

Conference Call

As previously announced, the Company will host a conference call to discuss fourth quarter results today, October 7, 2009, at 10:00 a.m. ET.
Interested parties may listen to this call live today or hear a replay at the Company’s Web site: www.acuitybrands.com.

Acuity Brands, Inc., the parent company of Acuity Brands Lighting, Inc. and other subsidiaries, is one of the world’s leading providers of lighting
fixtures and related products and services with fiscal year 2009 net sales of over $1.6 billion. The Company’s brands include Lithonia Lighting ®,
Holophane®, Peerless®, Mark Architectural Lighting™, Hydrel ® , American Electric Lighting ®, Gotham®, Carandini®, MetalOptics®,

                                                                         4




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
News Release
Antique Street Lamps™, RELOC , Lighting Control & Design™, Sensor Switch , Synergy Lighting Controls, SAERIS™, and ROAM® .
                                    ®                                                   ®           ®

Headquartered in Atlanta, Georgia, Acuity Brands employs approximately 6,000 associates and has operations throughout North America and in
Europe and Asia.


Forward Looking Information

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that may
be considered forward-looking include statements incorporating terms such as “expects,” “believes,” “intends,” “anticipates,” “may,” “should”, and
similar terms that relate to future events, performance, or results of the Company and specifically include statements made in this press release
regarding: (a) fiscal 2010 decline in non-residential construction activity and the overall markets served by the Company; (b) expectation of solid
growth over the next decade for the lighting and lighting-related industry and the Company’s position to fully participate; (c) growth opportunities
created by accelerating investments in innovative and energy-efficient product, enhancing services, and furthering the Company’s market
presence in key sectors; (d) ability for the Company to outperform the markets it serves; (e) benefits from acquisitions and streamlining actions on
fiscal 2010 profitability; (f) intentions to invest approximately $35 million in capital expenditures in fiscal 2010; and (g) fiscal 2010 annual tax rate of
35 percent. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the
historical experience of Acuity Brands and management’s present expectations or projections. These risks and uncertainties include, but are not
limited to, customer and supplier relationships and prices; competition; ability to realize anticipated benefits from initiatives taken and timing of
benefits; market demand; litigation and other contingent liabilities; and economic, political, governmental, and technological factors affecting the
Company. Please see the other risk factors more fully described in the Company’s SEC filings including the Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on July 2, 2009 and risks discussed in Part I, “Item 1a. Risk Factors” in the Company’s Annual
Report on Form 10-K for the year ended August 31, 2008. The discussion of those risks is specifically incorporated herein by reference.
Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking
statements, which are based on current expectations. Further, forward-looking

                                                                             5




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
News Release
statements speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new
information or future events.

                                                                    6




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
News Release
                                                                     ACUITY BRANDS, INC.
                                                              CONSOLIDATED BALANCE SHEETS
                                                         (In thousands, except share and per-share data)


                                                                                                                                       August 31,
                                                                                                                                          2009             August 31,
                                                                                                                                      (Preliminary)          2008
ASSETS
Current Assets:
     Cash and cash equivalents                                                                                                    $          18,683    $       297,096
     Accounts receivable, less reserve for doubtful accounts of $1,888 at August 31, 2009 and $1,640 at August 31, 2008                     227,371            268,971
     Inventories                                                                                                                            140,797            145,725
     Deferred income taxes                                                                                                                   16,710             18,251
     Prepayments and other current assets                                                                                                    19,339             26,104
           Total Current Assets                                                                                                             422,900            756,147


Property, Plant, and Equipment, at cost:
     Land                                                                                                                                     7,273              9,501
     Buildings and leasehold improvements                                                                                                   111,810            126,450
     Machinery and equipment                                                                                                                334,725            334,641
            Total Property, Plant, and Equipment                                                                                            453,808            470,592
     Less - Accumulated depreciation and amortization                                                                                       307,979            309,086
            Property, Plant, and Equipment, net                                                                                             145,829            161,506


Other Assets:
     Goodwill                                                                                                                               514,952            342,306
     Intangible assets                                                                                                                      177,009            129,319
     Deferred income taxes                                                                                                                    2,626              2,226
     Other long-term assets                                                                                                                  23,859             17,187
           Total Other Assets                                                                                                               718,446            491,038
                 Total Assets                                                                                                     $       1,287,175    $     1,408,691
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
      Current maturities of long-term debt                                                                                        $         209,535    $       159,983
      Accounts payable                                                                                                                      162,299            205,776
      Accrued compensation                                                                                                                   35,309             67,463
      Other accrued liabilities                                                                                                              68,946             89,344
            Total Current Liabilities                                                                                                       476,089            522,566
Long-Term Debt                                                                                                                               22,047            203,953
Accrued Pension Liabilities, less current portion                                                                                            51,125             26,686
Deferred Income Taxes                                                                                                                        12,962             23,983
Self-Insurance Reserves, less current portion                                                                                                 8,792              8,853
Other Long-Term Liabilities                                                                                                                  47,448             47,104
Commitments and Contingencies

Stockholders’ Equity:
     Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued                                                                 –                  –
     Common stock, $0.01 par value; 500,000,000 shares authorized; 49,851,316 issued and 42,433,143 outstanding at August 31,
        2009; and 49,689,408 issued and 40,201,708 outstanding at August 31, 2008                                                               499                497
     Paid-in capital                                                                                                                        645,436            626,435
     Retained earnings                                                                                                                      402,516            366,904
     Accumulated other comprehensive loss                                                                                                   (57,423)           (22,819)
     Treasury stock, at cost, 7,418,173 shares at August 31, 2009 and 9,487,700 at August 31, 2008                                         (322,316)          (395,471)
           Total Stockholders’ Equity                                                                                                       668,712            575,546
                 Total Liabilities and Stockholders’ Equity                                                                       $       1,287,175    $     1,408,691


                                                                                    7




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
News Release
                                                           ACUITY BRANDS, INC.
                                                 CONSOLIDATED STATEMENTS OF INCOME
                                                    (In thousands, except per-share data)


                                                                                   Three Months Ended                    Twelve Months Ended
                                                                               August 31,         August 31,         August 31,
                                                                                  2009               2008               2009              August 31,
                                                                              (Preliminary)       (Unaudited)       (Preliminary)           2008
Net Sales                                                                 $       422,611     $      522,757    $      1,657,404      $    2,026,644
Cost of Products Sold                                                             257,241            310,378           1,022,308           1,210,849
Gross Profit                                                                      165,370            212,379             635,096             815,795
Selling, Distribution, and Administrative Expenses                                115,350            138,638             454,606             540,097
Special Charge                                                                        102                  –              26,737              14,638
Operating Profit                                                                   49,918             73,741             153,753             261,060

Other Expense (Income):
     Interest expense, net                                                           6,660             7,140              28,542              28,415
     Miscellaneous expense (income), net                                                76               640              (2,112)              2,095
     Total Other Expense                                                             6,736             7,780              26,430              30,510
Income from Continuing Operations before Provision for Income Taxes                 43,182            65,961             127,323             230,550
Provision for Income Taxes                                                          14,096            24,056              42,126              81,918
Income from Continuing Operations                                                   29,086            41,905              85,197             148,632
Income (Loss) from Discontinued Operations                                              10                 –                (288)               (377)
Net Income                                                                $         29,096    $       41,905    $         84,909      $      148,255


Earnings Per Share:
    Basic Earnings per Share from Continuing Operations                   $            0.69   $          1.05   $             2.09    $          3.66


    Basic Loss per Share from Discontinued Operations                                  0.00              0.00                (0.01)             (0.01)
    Basic Earnings per Share                                              $            0.69   $          1.05   $             2.08    $          3.65
    Basic Weighted Average Number of Shares Outstanding                             42,168            40,022               40,781              40,655
    Diluted Earnings per Share from Continuing Operations                 $            0.68   $          1.02   $             2.05    $          3.57
    Diluted Loss per Share from Discontinued Operations                                0.00              0.00                (0.01)             (0.01)
    Diluted Earnings per Share                                            $            0.68   $          1.02   $             2.04    $          3.56
    Diluted Weighted Average Number of Shares Outstanding                           43,087            41,080               41,557              41,609
Dividends Declared per Share                                              $            0.13   $          0.13   $             0.52    $          0.54

                                                                      8




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
News Release
                                                          ACUITY BRANDS, INC.
                                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                              (In thousands)


                                                                                                                          Twelve Months Ended
                                                                                                                     August 31,
                                                                                                                        2009              August 31,
                                                                                                                    (Preliminary)           2008
Cash Provided by (Used for) Operating Activities:
    Net income                                                                                                  $         84,909      $      148,255
    Add: Loss from Discontinued Operations                                                                                   288                 377
    Income from Continuing Operations                                                                                     85,197             148,632
    Adjustments to reconcile net income to net cash provided by (used for) operating activities:
         Depreciation and amortization                                                                                    35,736                33,840
         Excess tax benefits from share-based payments                                                                      (381)               (5,022)
         Gain on the sale or disposal of property, plant, and equipment                                                       43                   177
         Impairments of property, plant, and equipment                                                                     1,558                     –
         Deferred income taxes                                                                                              (388)                2,573
         Other non-cash items                                                                                             10,226                 5,355
         Change in assets and liabilities, net of effect of acquisitions, divestitures and foreign currency:
             Accounts receivable                                                                                          43,165              26,573
             Inventories                                                                                                  10,284                 811
             Prepayments and other current assets                                                                         12,208              12,749
             Accounts payable                                                                                            (44,416)             (4,626)
             Other current liabilities                                                                                   (62,528)            (10,903)
             Other                                                                                                         2,026              11,644
                   Net Cash Provided by Operating Activities                                                              92,730             221,803

Cash Provided by (Used for) Investing Activities:
    Purchases of property, plant, and equipment                                                                          (21,248)            (27,166)
    Proceeds from sale of property, plant, and equipment                                                                     183                 198
    Acquisitions                                                                                                        (162,081)             (3,500)
        Net Cash Used for Investing Activities                                                                          (183,146)            (30,468)

Cash Provided by (Used for) Financing Activities:
    Repayments of long-term debt                                                                                        (162,395)                  (8)
    Employee stock purchase plan issuances                                                                                   265                 509
    Stock options exercised                                                                                                2,773               4,039
    Repurchases of common stock                                                                                                –            (155,650)
    Excess tax benefits from share-based payments                                                                            381               5,022
    Dividend received from Zep Inc.                                                                                            –              58,379
    Dividends paid                                                                                                       (21,634)            (22,466)
         Net Cash Used for Financing Activities                                                                         (180,610)           (110,175)

Cash Flows from Discontinued Operations:
           Net Cash (Used for) Provided by Operating Activities                                                             (288)              4,250
           Net Cash Used for Investing Activities                                                                              –                (410)
           Net Cash Used for Financing Activities                                                                              –              (2,333)
Net Cash (Used for) Provided by Discontinued Operations                                                                     (288)              1,507
Effect of Exchange Rate Changes on Cash                                                                                   (7,099)                755
Net Change in Cash and Cash Equivalents                                                                                 (278,413)             83,422
Cash and Cash Equivalents at Beginning of Period                                                                         297,096             213,674
Cash and Cash Equivalents at End of Period                                                                      $         18,683      $      297,096

Supplemental Cash Flow Information:
    Income taxes paid during the period                                                                         $         40,529      $         84,381
    Interest paid during the period                                                                             $         29,057      $         34,847

                                                                           9




Source: ACUITY BRANDS INC, 8-K, October 07, 2009
Exhibit 99.2

                                                       News Release


                                                                               Acuity Brands, Inc.
                                                                               1170 Peachtree Street, NE
                                                                               Suite 2400
                                                                               Atlanta, GA 30309
                                                                               Tel: 404 853 1400
                                                                               Fax: 404 853 1430
                                                                               AcuityBrands.com

Company Contact:
Dan Smith
Acuity Brands, Inc.
(404) 853-1423


                                              ACUITY BRANDS
                                       ANNOUNCES ANNUAL MEETING DATE

ATLANTA, October 7, 2009 – Acuity Brands, Inc. (NYSE: AYI) announced that it will hold its Annual Meeting of
Stockholders at 1:00 p.m. ET on Friday, January 8, 2010, in the Ballroom of the Four Seasons Hotel, 75 Fourteenth Street
NE, Atlanta, Georgia. The quarterly meeting of the Company’s Board of Directors will also take place that day.

Acuity Brands, Inc., the parent company of Acuity Brands Lighting, Inc. and other subsidiaries, is one of the world’s
leading providers of lighting fixtures and related products and services with®fiscal year 2009 net sales of over $1.6 billion.
                                                     ®            ®                                                    ®
The Company’s brands include Lithonia Lighting , Holophane , Peerless , Mark Architectural Lighting™, Hydrel ,
                            ®          ®           ®             ®                                    ®
American Electric Lighting , Gotham® , Carandini , MetalOptics , Antique Street Lamps™, RELOC , Lighting Control &
                           ®                                                        ®
Design™, Sensor Switch , Synergy Lighting Controls, SAERIS™, and ROAM . Headquartered in Atlanta, Georgia,
Acuity Brands employs approximately 6,000 associates and has operations throughout North America and in Europe and
Asia.


_______________________________________________
Created by Morningstar Document Research documentresearch.morningstar.com




Source: ACUITY BRANDS INC, 8-K, October 07, 2009

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Q3 2009 Earning Report of Acuity Brands Inc.

  • 1. FORM 8-K ACUITY BRANDS INC - AYI Filed: October 07, 2009 (period: October 07, 2009) Report of unscheduled material events or corporate changes.
  • 2. Table of Contents 8-K - FORM 8-K Item 2.02. Results of Operations and Financial Condition. Item 8.01. Other Events. Item 9.01. Financial Statements and Exhibits. Signatures EXHIBIT INDEX EX-99.1 (PRESS RELEASE DATED OCTOBER 7) EX-99.2 (PRESS RELEASE DATED OCTOBER 7)
  • 3. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): October 7, 2009 ACUITY BRANDS, INC. (Exact name of registrant as specified in its charter) Delaware 001-16583 58-2632672 (State or other jurisdiction of (Commission File Number) (I.R.S. Employer Company or organization) Identification No.) 1170 Peachtree St., N.E., Suite 2400, Atlanta, GA 30309 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: 404-853-1400 Not Applicable (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: � Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) � Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) � Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) � Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 4. Item 2.02. Results of Operations and Financial Condition. On October 7, 2009, the Company issued a press release announcing the Company’s results of operations for its fiscal quarter and twelve months ended August 31, 2009. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K, which is incorporated herein by reference in its entirety. The information contained in this paragraph, as well as Exhibit 99.1 referenced herein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933. Item 8.01. Other Events. On October 7, 2009, the Company issued a press release announcing that it will hold its annual meeting of stockholders on January 8, 2010. A copy of the press release is attached hereto as Exhibit 99.2 and incorporated herein by reference. Item 9.01. Financial Statements and Exhibits. (d) Exhibits 99.1 Press Release dated October 7, 2009 (Filed with the Commission as part of this Form 8-K). 99.2 Press Release dated October 7, 2009. Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 5. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: October 7, 2009 ACUITY BRANDS, INC. By: /s/ Richard K. Reece Richard K. Reece Executive Vice President and Chief Financial Officer Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 6. EXHIBIT INDEX 99.1 Press Release dated October 7, 2009 (Filed with the Commission as part of this Form 8-K). 99.2 Press Release dated October 7, 2009. Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 7. Exhibit 99.1 News Release Company Contact: Dan Smith Acuity Brands, Inc. (404) 853-1423 Acuity Brands Reports Fiscal 2009 Fourth Quarter and Full Year Results ATLANTA, October 07, 2009 – Acuity Brands, Inc. (NYSE: AYI) today announced diluted earnings per share (EPS) from continuing operations for the fourth quarter of fiscal 2009 of $0.68 compared with $1.02 for the prior year period. The Company reported fourth quarter net sales of $422.6 million, a decline of 19 percent compared with the $522.8 million reported in the year-ago period. Comparable shipment volumes declined approximately 17 percent versus the year-ago period. As a result of the stronger dollar, the translation impact on international sales reduced fiscal 2009 fourth quarter net sales by approximately one percentage point as compared with the prior year period. Recent acquisitions contributed approximately $15 million to fourth quarter net sales and essentially offset the negative impact from unfavorable price/mix changes. Operating profit for the fourth quarter of fiscal 2009 was $49.9 million, or 11.8 percent of net sales, compared with $73.7 million, or 14.1 percent of net sales, for the year-ago period. Benefits from on-going streamlining efforts, productivity improvements, and lower incentive-based compensation helped to partially offset the full impact of the decline in shipment volume and unfavorable price/mix changes. During the fourth quarter, the Company realized savings of approximately $11 million from streamlining actions initiated in the first half of fiscal 2009. Income from continuing operations for the fourth quarter of fiscal 2009 was $29.1 million compared with $41.9 million for the same period a year ago. Mr. Nagel, Chairman, President, and Chief Executive Officer of Acuity Brands, commented, “Our associates continue to demonstrate their resolve and skill by delivering superior value to our customers and solid performance for our shareholders while confronting extremely challenging market conditions. Net sales for the fourth quarter of 2009 were impacted by the significant decline in new construction activity due 1 Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 8. News Release to lower economic activity and tight lending standards for real estate. We were able to partially mitigate the impact of lower sales by maintaining our pricing discipline and realizing benefits from our continuous improvement initiatives and on-going streamlining efforts, while continuing to invest in innovative and energy-efficient products. I am particularly pleased with our strong operating profit margin for the fourth quarter.” The consolidated income tax rate for the fourth quarter of 2009 was 32.6 percent compared with 36.5 percent for the fourth quarter of 2008. The decrease in the tax rate was due primarily to the impact of favorable discrete tax items on the lower earnings amount. Additionally, last year’s tax rate was negatively impacted by an unfavorable discrete item associated with the repatriation of foreign cash. 2009 Fiscal Year Fiscal 2009 diluted EPS from continuing operations decreased 43 percent to $2.05 compared with $3.57 reported for fiscal 2008. Results for both fiscal year 2009 and 2008 include pre-tax special charges of $26.7 million, or $0.41 per diluted share, and $14.6 million, or $0.21 per diluted share, respectively. The special charges related to actions to streamline and simplify the Company’s organizational structure and operations. Consolidated net sales in fiscal 2009 were $1,657.4 million compared with $2,026.6 million reported in the year-ago period, a decline of 18 percent. Operating profit for fiscal 2009 was $153.8 million compared with operating profit of $261.1 million reported in the prior year, a decrease of 41 percent. The special charges reduced operating margins for fiscal year 2009 and 2008 by 160 basis points and 70 basis points, respectively. Income from continuing operations for fiscal 2009 was $85.2 million compared with $148.6 million reported for fiscal 2008. For fiscal 2009, the Company reported $2.1 million of other income compared with $2.1 million of other expense in the year-ago period representing a favorable change of over $4.2 million. The year-over-year favorable change was due primarily to the impact of changes in exchange rates on foreign currency items and other non-operating items. The consolidated income tax rate for fiscal 2009 was 33.1 percent compared with 35.5 percent for fiscal 2008. The decrease in the annual tax rate was due primarily to the greater impact of tax credits and deductions on the lower earnings amount. 2 Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 9. News Release Acuity Brands completed the spin-off of Zep Inc. on October 31, 2007. Therefore, the Company reflects the results of Zep Inc. as a discontinued operation reported as a one-line item on the income statement. For fiscal years 2009 and 2008, the Company reported losses from discontinued operations of $0.3 million, or $0.01 per diluted share, and $0.4 million, or $0.01 per diluted share, respectively. Including the results of discontinued operations, the Company reported diluted EPS of $2.04 for fiscal 2009, or $85.0 million of net income, compared to diluted EPS of $3.56 for fiscal 2008, or $148.3 million of net income. For fiscal 2009, the Company generated over $71 million in free cash flow after $21 million of capital expenditures. Cash and cash equivalents at August 31, 2009 totaled $18.7 million, a decrease of $278.4 million since the beginning of the fiscal year. The decrease in cash was due primarily to the retirement of the $160 million public notes that matured in February 2009 and $162 million utilized for acquisitions and other strategic investments, partially offset by the free cash flow noted above. Total debt outstanding at August 31, 2009 was $231.6 million, a decrease of $132.4 million since the beginning of the fiscal year. Outlook Mr. Nagel commented, “Looking ahead to next year, we continue to foresee a difficult and challenging economic environment, particularly for non-residential construction activity, a primary market for us. Our backlog at the end of the fourth quarter was down 23 percent on a year-over-year comparable basis. Key indicators continue to signal declines for North American non-residential construction activity and our expectation is that the overall markets we serve will decline in the mid-teens in our coming fiscal year. In addition to the recent acquisitions which significantly increased our presence in the fast growing lighting controls market, we believe the execution of our strategies to accelerate investments in innovative and energy-efficient products, enhance services to our customers, and expand market presence in key sectors such as home centers and the renovation and relight market will provide growth opportunities which should enable us to outperform the overall markets we serve. “We expect our profitability in fiscal 2010 to reflect additional benefits from recent acquisitions and streamlining actions initiated during 2009. Although pricing is likely to 3 Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 10. News Release become more competitive in certain channels and geographies, we expect to offset this negative impact through productivity improvements and lower material, component, and freight costs. We intend to invest approximately $35 million in capital expenditures during fiscal 2010, and we estimate the annual tax rate to approximate 35 percent for the year. “Although fiscal 2010 results will continue to be negatively impacted by current economic conditions, we remain very positive about the long-term potential of our company and our ability to outperform the market. We continue to position the Company to optimize short-term performance while investing in and deploying resources to further our long-term profitable growth opportunities.” Mr. Nagel concluded, “Looking beyond the current environment, 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.” The Company’s independent registered public accountant’s audit opinion with respect to the fiscal year-end financial statements will not be issued until the Company completes its annual report on Form 10-K, including its evaluation of internal controls over financial reporting. Accordingly, the financial results reported in this earnings release are preliminary pending completion of the audit. In addition, the classification of the purchase price allocation for recent acquisitions, LC&D and Sensor Switch, remains subject to finalization. Conference Call As previously announced, the Company will host a conference call to discuss fourth quarter results today, October 7, 2009, at 10:00 a.m. ET. Interested parties may listen to this call live today or hear a replay at the Company’s Web site: www.acuitybrands.com. Acuity Brands, Inc., the parent company of Acuity Brands Lighting, Inc. and other subsidiaries, is one of the world’s leading providers of lighting fixtures and related products and services with fiscal year 2009 net sales of over $1.6 billion. The Company’s brands include Lithonia Lighting ®, Holophane®, Peerless®, Mark Architectural Lighting™, Hydrel ® , American Electric Lighting ®, Gotham®, Carandini®, MetalOptics®, 4 Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 11. News Release Antique Street Lamps™, RELOC , Lighting Control & Design™, Sensor Switch , Synergy Lighting Controls, SAERIS™, and ROAM® . ® ® ® Headquartered in Atlanta, Georgia, Acuity Brands employs approximately 6,000 associates and has operations throughout North America and in Europe and Asia. Forward Looking Information This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that may be considered forward-looking include statements incorporating terms such as “expects,” “believes,” “intends,” “anticipates,” “may,” “should”, and similar terms that relate to future events, performance, or results of the Company and specifically include statements made in this press release regarding: (a) fiscal 2010 decline in non-residential construction activity and the overall markets served by the Company; (b) expectation of solid growth over the next decade for the lighting and lighting-related industry and the Company’s position to fully participate; (c) growth opportunities created by accelerating investments in innovative and energy-efficient product, enhancing services, and furthering the Company’s market presence in key sectors; (d) ability for the Company to outperform the markets it serves; (e) benefits from acquisitions and streamlining actions on fiscal 2010 profitability; (f) intentions to invest approximately $35 million in capital expenditures in fiscal 2010; and (g) fiscal 2010 annual tax rate of 35 percent. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the historical experience of Acuity Brands and management’s present expectations or projections. These risks and uncertainties include, but are not limited to, customer and supplier relationships and prices; competition; ability to realize anticipated benefits from initiatives taken and timing of benefits; market demand; litigation and other contingent liabilities; and economic, political, governmental, and technological factors affecting the Company. Please see the other risk factors more fully described in the Company’s SEC filings including the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on July 2, 2009 and risks discussed in Part I, “Item 1a. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended August 31, 2008. The discussion of those risks is specifically incorporated herein by reference. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking 5 Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 12. News Release statements speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events. 6 Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 13. News Release ACUITY BRANDS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per-share data) August 31, 2009 August 31, (Preliminary) 2008 ASSETS Current Assets: Cash and cash equivalents $ 18,683 $ 297,096 Accounts receivable, less reserve for doubtful accounts of $1,888 at August 31, 2009 and $1,640 at August 31, 2008 227,371 268,971 Inventories 140,797 145,725 Deferred income taxes 16,710 18,251 Prepayments and other current assets 19,339 26,104 Total Current Assets 422,900 756,147 Property, Plant, and Equipment, at cost: Land 7,273 9,501 Buildings and leasehold improvements 111,810 126,450 Machinery and equipment 334,725 334,641 Total Property, Plant, and Equipment 453,808 470,592 Less - Accumulated depreciation and amortization 307,979 309,086 Property, Plant, and Equipment, net 145,829 161,506 Other Assets: Goodwill 514,952 342,306 Intangible assets 177,009 129,319 Deferred income taxes 2,626 2,226 Other long-term assets 23,859 17,187 Total Other Assets 718,446 491,038 Total Assets $ 1,287,175 $ 1,408,691 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Current maturities of long-term debt $ 209,535 $ 159,983 Accounts payable 162,299 205,776 Accrued compensation 35,309 67,463 Other accrued liabilities 68,946 89,344 Total Current Liabilities 476,089 522,566 Long-Term Debt 22,047 203,953 Accrued Pension Liabilities, less current portion 51,125 26,686 Deferred Income Taxes 12,962 23,983 Self-Insurance Reserves, less current portion 8,792 8,853 Other Long-Term Liabilities 47,448 47,104 Commitments and Contingencies Stockholders’ Equity: Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued – – Common stock, $0.01 par value; 500,000,000 shares authorized; 49,851,316 issued and 42,433,143 outstanding at August 31, 2009; and 49,689,408 issued and 40,201,708 outstanding at August 31, 2008 499 497 Paid-in capital 645,436 626,435 Retained earnings 402,516 366,904 Accumulated other comprehensive loss (57,423) (22,819) Treasury stock, at cost, 7,418,173 shares at August 31, 2009 and 9,487,700 at August 31, 2008 (322,316) (395,471) Total Stockholders’ Equity 668,712 575,546 Total Liabilities and Stockholders’ Equity $ 1,287,175 $ 1,408,691 7 Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 14. News Release ACUITY BRANDS, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per-share data) Three Months Ended Twelve Months Ended August 31, August 31, August 31, 2009 2008 2009 August 31, (Preliminary) (Unaudited) (Preliminary) 2008 Net Sales $ 422,611 $ 522,757 $ 1,657,404 $ 2,026,644 Cost of Products Sold 257,241 310,378 1,022,308 1,210,849 Gross Profit 165,370 212,379 635,096 815,795 Selling, Distribution, and Administrative Expenses 115,350 138,638 454,606 540,097 Special Charge 102 – 26,737 14,638 Operating Profit 49,918 73,741 153,753 261,060 Other Expense (Income): Interest expense, net 6,660 7,140 28,542 28,415 Miscellaneous expense (income), net 76 640 (2,112) 2,095 Total Other Expense 6,736 7,780 26,430 30,510 Income from Continuing Operations before Provision for Income Taxes 43,182 65,961 127,323 230,550 Provision for Income Taxes 14,096 24,056 42,126 81,918 Income from Continuing Operations 29,086 41,905 85,197 148,632 Income (Loss) from Discontinued Operations 10 – (288) (377) Net Income $ 29,096 $ 41,905 $ 84,909 $ 148,255 Earnings Per Share: Basic Earnings per Share from Continuing Operations $ 0.69 $ 1.05 $ 2.09 $ 3.66 Basic Loss per Share from Discontinued Operations 0.00 0.00 (0.01) (0.01) Basic Earnings per Share $ 0.69 $ 1.05 $ 2.08 $ 3.65 Basic Weighted Average Number of Shares Outstanding 42,168 40,022 40,781 40,655 Diluted Earnings per Share from Continuing Operations $ 0.68 $ 1.02 $ 2.05 $ 3.57 Diluted Loss per Share from Discontinued Operations 0.00 0.00 (0.01) (0.01) Diluted Earnings per Share $ 0.68 $ 1.02 $ 2.04 $ 3.56 Diluted Weighted Average Number of Shares Outstanding 43,087 41,080 41,557 41,609 Dividends Declared per Share $ 0.13 $ 0.13 $ 0.52 $ 0.54 8 Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 15. News Release ACUITY BRANDS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Twelve Months Ended August 31, 2009 August 31, (Preliminary) 2008 Cash Provided by (Used for) Operating Activities: Net income $ 84,909 $ 148,255 Add: Loss from Discontinued Operations 288 377 Income from Continuing Operations 85,197 148,632 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 35,736 33,840 Excess tax benefits from share-based payments (381) (5,022) Gain on the sale or disposal of property, plant, and equipment 43 177 Impairments of property, plant, and equipment 1,558 – Deferred income taxes (388) 2,573 Other non-cash items 10,226 5,355 Change in assets and liabilities, net of effect of acquisitions, divestitures and foreign currency: Accounts receivable 43,165 26,573 Inventories 10,284 811 Prepayments and other current assets 12,208 12,749 Accounts payable (44,416) (4,626) Other current liabilities (62,528) (10,903) Other 2,026 11,644 Net Cash Provided by Operating Activities 92,730 221,803 Cash Provided by (Used for) Investing Activities: Purchases of property, plant, and equipment (21,248) (27,166) Proceeds from sale of property, plant, and equipment 183 198 Acquisitions (162,081) (3,500) Net Cash Used for Investing Activities (183,146) (30,468) Cash Provided by (Used for) Financing Activities: Repayments of long-term debt (162,395) (8) Employee stock purchase plan issuances 265 509 Stock options exercised 2,773 4,039 Repurchases of common stock – (155,650) Excess tax benefits from share-based payments 381 5,022 Dividend received from Zep Inc. – 58,379 Dividends paid (21,634) (22,466) Net Cash Used for Financing Activities (180,610) (110,175) Cash Flows from Discontinued Operations: Net Cash (Used for) Provided by Operating Activities (288) 4,250 Net Cash Used for Investing Activities – (410) Net Cash Used for Financing Activities – (2,333) Net Cash (Used for) Provided by Discontinued Operations (288) 1,507 Effect of Exchange Rate Changes on Cash (7,099) 755 Net Change in Cash and Cash Equivalents (278,413) 83,422 Cash and Cash Equivalents at Beginning of Period 297,096 213,674 Cash and Cash Equivalents at End of Period $ 18,683 $ 297,096 Supplemental Cash Flow Information: Income taxes paid during the period $ 40,529 $ 84,381 Interest paid during the period $ 29,057 $ 34,847 9 Source: ACUITY BRANDS INC, 8-K, October 07, 2009
  • 16. Exhibit 99.2 News Release Acuity Brands, Inc. 1170 Peachtree Street, NE Suite 2400 Atlanta, GA 30309 Tel: 404 853 1400 Fax: 404 853 1430 AcuityBrands.com Company Contact: Dan Smith Acuity Brands, Inc. (404) 853-1423 ACUITY BRANDS ANNOUNCES ANNUAL MEETING DATE ATLANTA, October 7, 2009 – Acuity Brands, Inc. (NYSE: AYI) announced that it will hold its Annual Meeting of Stockholders at 1:00 p.m. ET on Friday, January 8, 2010, in the Ballroom of the Four Seasons Hotel, 75 Fourteenth Street NE, Atlanta, Georgia. The quarterly meeting of the Company’s Board of Directors will also take place that day. Acuity Brands, Inc., the parent company of Acuity Brands Lighting, Inc. and other subsidiaries, is one of the world’s leading providers of lighting fixtures and related products and services with®fiscal year 2009 net sales of over $1.6 billion. ® ® ® The Company’s brands include Lithonia Lighting , Holophane , Peerless , Mark Architectural Lighting™, Hydrel , ® ® ® ® ® American Electric Lighting , Gotham® , Carandini , MetalOptics , Antique Street Lamps™, RELOC , Lighting Control & ® ® Design™, Sensor Switch , Synergy Lighting Controls, SAERIS™, and ROAM . Headquartered in Atlanta, Georgia, Acuity Brands employs approximately 6,000 associates and has operations throughout North America and in Europe and Asia. _______________________________________________ Created by Morningstar Document Research documentresearch.morningstar.com Source: ACUITY BRANDS INC, 8-K, October 07, 2009