Slide 1: Fiscal First Quarter FY2023 Results
FISCAL FIRST QUARTER FY2023 RESULTS January 9, 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation and related conference call and webcast include “forward-looking Forward-looking statements are not guarantees of future performance. Our forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as statements are based
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES We disclose the following non-generally accepted accounting principles ("GAAP") financial amortization of acquired intangible assets, acquisition-related items, share-based payment expense, measures: “adjusted operating profit” and “adjusted operating profit margin” for t
Slide 4: Fiscal 2023 First Quarter Performance
FISCAL 2023 FIRST QUARTER PERFORMANCE ($ in Millions Except Per Share Data) Net Sales Adj. Operating Profit 1 Solid Sales and Adj. Dil. EPS +8% +5% Performance in the Fiscal First Quarter Net Sales Growth in Both Lighting and Spaces Businesses Q1’22 Q1’23 Q1’22 Q1’23 Adj. EBITDA 1 Adj. Diluted EPS 1
Slide 5: Fiscal 2023 First Quarter Segment Performance
FISCAL 2023 FIRST QUARTER SEGMENT PERFORMANCE Lighting and Lighting Controls (ABL) Intelligent Spaces Group (ISG) Providing sustainable, inspiring, and Using technology to make spaces smarter, intelligent lighting solutions that enrich the safer, and greener. communities where people live, learn, wo
Slide 6: Fiscal 2023 First Quarter Capital Allocation
FISCAL 2023 FIRST QUARTER CAPITAL ALLOCATION $187M Capital Allocation Priorities Operating Cash Flow 1. Growth in Current Businesses 2. Acquisitions $18M 3. Maintain Dividend CapEx 4. Share Repurchases $78M Share Repurchases NYSE: AYI 6
Slide 7: 2023 Outlook
2023 OUTLOOK 2023 Guidance1 AYI Net Sales Range $4.1B to $4.3B ABL Net Sales Growth Low-to-Mid Single-Digits ISG Net Sales Growth Low-to-Mid Teens Adjusted Diluted EPS $13.00 to $14.50 1 As of 1/9/2023. Management estimates are based on multiple quantitative and qualitative inputs Note: Contains for
Slide 8: Fiscal 2023 First Quarter in Summary
FISCAL 2023 FIRST QUARTER IN SUMMARY Solid Sales and Adj. Dil. EPS Performance in the Fiscal First Quarter Net Sales Growth in Both Lighting and Spaces Businesses Improved Adjusted Operating Profit Continued to Allocate Capital to Share Repurchases NYSE: AYI 8
Slide 9: Appendix and Non-GAAP Reconciliations
and Non-GAAP Reconciliations NYSE: AYI 9
Slide 10: AYI: Quarterly Trends
AYI: QUARTERLY TRENDS Net Sales ($ in Millions, Except Per Share Data) Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Net Sales Growth (5.8%) 15.9% 11.4% 16.9% 17.1% 17.9% 11.8% 7.8% Gross Profit Margin 43.4% 43.0% 42.2% 41.7% 41.7% 42.0% 41.7% 41.7% Operating Margin 11.7% 13.1% 13.4% 12.4% 11.3% 1
Slide 11: ABL: Quarterly Trends
ABL: QUARTERLY TRENDS Net Sales ($ in Millions) Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1'23 Net Sales Growth (6.5)% 14.6% 11.0% 17.3% 17.1% 18.6% 11.4% 7.2% Operating Margin 13.8% 14.9% 15.8% 14.5% 13.5% 14.8% 14.4% 12.5% Adjusted Operating Margin1 15.2% 16.0% 16.8% 15.6% 14.7% 15.8% 15.3% 14.7%
Slide 12: ISG: Quarterly Trends
ISG: QUARTERLY TRENDS Net Sales ($ in Millions) Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1'23 Net Sales Growth 10.7% 46.9% 23.5% 13.7% 15.5% 5.2% 21.6% 22.4% Operating Margin 1.8% 13.0% 4.0% 4.3% 2.4% 15.8% 16.8% 13.6% Adjusted Operating Margin1 11.1% 20.0% 11.9% 13.1% 11.2% 23.3% 23.8% 21.3% 1 Ad
Slide 13: AYI Quarterly Reconciliation of Non-GAAP Measures: Adjusted Operating Profit
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Adjusted Operating Profit and Adjusted Profit Margin ($ in Millions) Second Quarter Third Quarter Fourth Quarter First Quarter 2022 2021 2022 2021 2022 2021 2023 2022 Operating Profit (GAAP) $102.3 $91.0 $142.7 $118.1 $149.6 $132.8 $108.9 $115.1 Ope
Slide 14: AYI Quarterly Reconciliation: Adjusted Net Income and EPS
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Adjusted Net Income and Adjusted Earnings Per Share ($ in Millions Except Per Share Data) Second Quarter Third Quarter Fourth Quarter First Quarter 2022 2021 2022 2021 2022 2021 2023 2022 Net Income (GAAP) $75.3 $62.9 $105.7 $85.7 $115.4 $98.1 $74.9
Slide 15: AYI Quarterly Reconciliation: EBITDA and Adjusted EBITDA
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: EBITDA and Adjusted EBITDA ($ in Millions) Second Quarter Third Quarter Fourth Quarter First Quarter 2022 2021 2022 2021 2022 2021 2023 2022 Net Income (GAAP) $75.3 $62.9 $105.7 $85.7 $115.4 $98.1 $74.9 $87.6 + Interest expense, net 6.0 6.6 6.2 6.2
Slide 16: ABL Quarterly Reconciliation of Non-GAAP Measures
ABL QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Segment Breakdown (ABL) ($ in Millions) Second Quarter Third Quarter Fourth Quarter First Quarter 2022 2021 2022 2021 2022 2021 2023 2022 Operating Profit (GAAP) $116.5 $102.0 $149.6 $126.5 $151.4 $149.3 $118.1 $128.1 Operating Profit (GAAP) Margin
Slide 17: ISG Quarterly Reconciliation of Non-GAAP Measures
ISG QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Segment Breakdown (ISG) ($ in Millions) Second Quarter Third Quarter Fourth Quarter First Quarter 2022 2021 2022 2021 2022 2021 2023 2022 Operating Profit (GAAP) $1.2 $0.8 $9.2 $7.2 $10.3 $2.0 $7.7 $2.0 Operating Profit (GAAP) Margin 2.4% 1.8% 15.8%