AYI - Earnings call transcript Q4 2021

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Operator

Good day and thank you for standing by. Welcome to the Acuity Brands Fourth Quarter Full Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to Charlotte McLaughlin, Vice President of Investor Relations. ahead. go Please

Charlotte McLaughlin

Good fiscal Shannon. call. welcome the to Thank fourth morning. quarter Brands’ XXXX earnings and Acuity you, And full year

fourth and provide update in this With www.investors.acuitybrands.com. release, President the and Officer, earnings As may that detailed to beliefs website from to those SEC highlights which available last Chief Ashe, our our materially Chairman, the which and Vice statements a company’s anticipated at strategy many this There as me Senior currently in of Relations results be of may beliefs performance. Reconciliations update our management unknown reminder, forward-looking are Investor risks the These Financial be on our an of our for uncertainties, quarter obligation subject available and note opportunity including control, certain metrics at the through the as filings. Q&A we of quarter call. Executive comments actual our months, on an measures will to XXXX our Chief us our GAAP non-GAAP periodic based our and corresponding assumptions are Holcom, and differ statements. maybe and no those today who from financial President at Please Karen management’s Officer, detail morning Neil beyond undertake will their is is well earnings end will available XX time. and walk with known last information on some who and these

question to and please participating, one follow-up, remarks those For necessary. if your one limit

to for call call in conference interest will Brands. Ashe. today’s webcasting over now Acuity your turn are Thank I live. you the Neil We

Neil Ashe

XXXX. I our and Good Charlotte. fiscal and our pleased gross with fourth a operating Brands. profit chain environment, sales performance am to Thank XX% challenging expanded margins. for grew Acuity we quarter supply Thank in us of the In global morning, company’s you discuss joining you, everyone. profit

capital for Our like closing business advanced the transformation are some returned deliver capital expanded growth built value will year, our vitality few necessary for their each We that businesses and take acquisition year this We our the and value the was a leadership OSRAM’s our profit corporate into environment. and We company to despite XXXX focus and pivotal Controls creates grow throughout continue. year, Acuity product and Investor ever Spaces business, Brands as attracting and Group. of global of the allocated leadership by us and I’d and to effectively shares. third focus develop diverse strong shareholders. Intelligent business way We fourth This our We Digital potential. service. for we generated sales to the a realigned flow to alignment We achievements. our us new margins on Day. We strong performance organization. creates the and company demonstrated allows permanent Lighting American challenging created a in first talent the on a teams Lighting held shareholders our expect recap in minutes through our ABL the for and ISG, a on growth. have team, that cash to of repurchase permanent and full the customer strategic the allocated We quarter those quarter, we gross full North

Our to our around strategy. ESG central continuing are tenants improvements

this annual our We’ve our and EarthLIGHT our transformation to on good more on inclusion, finally, services neutrality you operations and of beyond. XX-K, you Report progress reaching and significant made metric ABL. now and We’ve and by put-in-place and of diversity, I by in I to read progress tons we’ve on and for by million well carbon made XXXX. upcoming want We report, can XXXX in update proxy. reduction of in have from governance the committing a ongoing our year our XXX about carbon products businesses had all our ABL. positioned our with start Annual each ourselves And in our will and of acuity

Compact Our efforts focus our Bay, delivered continuing Pro for service vitality to we’ve to discussed before which through expansion. on and benefit sector. continues product industrial drive perspective are growth high deliver our results from in the innovation and our of we margin a our the strong has levels and product increasing customers The both revenue High

new efforts It’s and HomeGuard Floodlight. an ease portfolio. existing include product quarter exciting Select fourth the vitality Contractor improvements ones. products and higher we options of to technology our installation. new to LED platform addition efficacy, upgrade, a Security of Our In the the strong. have greater offers introduction been This safety introduced Sales

opportunities. where growth currently we We and low are a category great strong a share have start off to in

We service are to continuing and improvements. also our deliver levels productivity increase

and are We improve more platform faster processes Controls, projects, from like commerce that that to used by need all tracking completion. is customer Today to bidding for on our channel technology to service. the is efficient solutions to smarter, projects, to products in those better, place for for on steps our orders our our better, key orders I’d focus of using in those and to the finally to finding do and they large Agile. Lighting business creating Agile Lighting

Agile. improving constantly is team Our

improved including improve key One data has ease-of-use provides to areas we improvement order quality that of focus of our accuracy. tangible provide. This product been the and of the many benefits,

focus today has of in address in foundational, chain it status, information period. clear to us levels before their during supply points examples historical essential area were service and to which face future. These We able channel the I us improve allows because our needs which our better pain the and status. to their of provide challenges. been again meet up significant about the global this are allow that bring is order complicated this to Another about spoken order I’ve

XXXX, to levels continue use high elevate As the we ourselves. the Trevor continue differentiate of service to and enter the remain same, priorities product technology for our team vitality, rest the ABL to maintain and

in Now ISG moving is Spaces making them to problems safer growth. greener. use ample The a which for technology tech collection provides control to believe to that by open solve of the those smarter, use necessary opportunities products provides of We deliver to is spaces. Intelligence and to future Atrius This spaces effectively mission spaces. protocol in Group. each applications operate these data value of

require and Europe of our around We with significant North are and campuses, spaces especially of platform, operation control a facilities. amount America that Distech success the around the across data having centers

add We continue products to portfolio. to this ISG

costs, we helps energy the Thermostat, comfort Connected quarter the cost reduces spaces. that During added of device improves protocol the open manage Eclipse an and installation

improved our productivity company to margins Now customers. innovation our demonstrated thoughts to service We’ve environment ability turn call challenging transformation face and ability the product through to sales improved I’d before I we the our its demonstrably global We’ve our and the on opportunity In ahead. our of grow to conclude have and over our Karen, and with like improvements. performance. a through gross profit

share efficiently operating margin by We’ve through We repurchase. and profit leveraging business, capital have acquisitions our reinvestment allocated costs. in the improved our

XX the the the to the months. we build talent developed tools We and strength upon operating have last have over

forward, As expect performance. to continue this we we look

the a We’ve team. build at acquire of are strategically ability demonstrated to technology. We’ve world-class businesses. intersection and the positioned sustainability assembled We both and

We that value. create cash generation demonstrated to organic what and have have with strong do we know we it to

be deeper take over turn the Karen call I XXXX a for back closing for outlook and will I and to Now will remarks. dive then who Q&A our performance will into and

Karen Holcom

Thank financial on transformational continued performance to start year. of to you, improved Neil. the allocate recognizing I the the this accomplishments the business want team made We’ve thoughtfully priorities, capital. by progress our of and

majority basis profit prior improvement fourth supply the that the an XX.X%, increase items. Gross was this fiscal OSRAM fourth performance Reported of sales basis by quarter of compared profit improved quarter were an due operating the and the fiscal our sales Our We go-to-market XXX of fourth by with prior gross was the with $XXX acquisition, approximately channel Adjusted of margin XX% across tax a for were cost increase an points for driven cost fiscal the XXXX led product operating prior increase XX.X% of points. am demand, expenses. million, net was increased sales for points quarter improvement, increase margins year points of fourth fiscal offset over XXXX, such extremely was driven which year. of volume, the a in for Net prior freight costs year. the added strong XXX leverage escalation the discrete basis to environment. productivity quarter volatile over around XXX in material, margin solid. effective of result XX significant of XX.X% raw pleased performance of despite interruptions The the prior year. impact margin higher a and electrical and operating the profit of an higher compared was rate customer to sales quarter basis of from profit our great addition XX.X% profit increases. benefit XXXX, of a margin gross The execution execution able the This XXXX, net costs. and the chain to of the year, rising our I XX.X% with component team’s over fourth from the was was of and to several price

saw the EPS the increased per XX% $X.XX significant year and over Diluted per earnings fiscal $X.XX increased prior or over $X.XX $X.XX we of quarter XX% of improvement earnings for diluted share adjusted year. Finally, prior of the share in XXXX. diluted fourth or

program diluted prior the repurchase share by EPS Our year. impacted $X.XX favorably versus

Reported on few points results. the prior sales sales for our of effective XX.X% operating were XX.X% the XX.X%, half an an performance margin to was XXXX sales over increase of move operating profit XXX points year, in margin profit results, X% XXXX, to in adjusted the segment of points The year. billion, compared with with compared profit XX.X% net We a Net highlight year increase XX year, rate the prior XXXX, fiscal driven I XX year. margin improved at Before full by tax basis a full was I the for of numbers XXXX of XX.X%, the increase second XXXX. fiscal an prior prior want year gross basis of for of $X.X delivered the to over over increase fiscal an year. in operating basis prior

$XX.XX of the rate and share $X.XX per prior earnings Diluted in shares XX% share fiscal over repurchase versus year approximately change million increase for XXXX this XX% items a outstanded a We share any no per tax $X.XX excluding prior the to by our diluted of year. be full the assuming was XX% prior rate. impacting unusual corporate to with expect EPS fiscal diluted the discrete and year the increase outstanding earnings had adjusted program XX.X diluted -- favorably year. during We over XXXX, was

grew which Lighting well which our in and independent increase prior direct XX% our construction a go-to-market sales network, grew was approximately as strong XX% as Moving as XX% efforts, a quarter, network, Lighting the during the improvements This of by market. and in Controls the result segments, current the segment sales year. our direct on recovery the within delivered about the to quarter, versus sales driven of

an large to positive deferred Our the channel customer’s increase dependent compared the spends. continued for approximately year of be retail this to continue performance rebalancing. move inventory in momentum an can forward renovation customer and channel remainder retailers saw corporate Acuity. the be channel and declined the with as previously year, the The will Sales of renovation impacted channel The to XX% prior cycles a in is continues and be XX% result accounts our to calendar retail uneven as sales upon the in quarter-to-quarter. prior as year, through channel a of compared attractive

level of The basis DS growth and During points we ABL the a XXX the business. of OSRAM’s impact contributed of in acquisition to around XXXX. acquisition closed similar expect we quarter revenue

margin basis ABL to which quarter XXX versus operating XXXX, profit moving increased XXX to million million ABL X% Adjusted $XXX to year, XX% $X.X the prior Operating the the improving prior million Now operating points versus year business increased XX.X%. quarter points improving operating operating year, the billion the basis operating year of versus in XXXX improvement to XX% across a with was and the year, points profit profit summarize improved XX.X%. basis prior improved with for for the improvements. saw To for the XXX margin XXX to XX% margin the XX.X%. of fourth profit adjusted year XXXX prior the and to versus full the to with $XXX XX.X%. basis operating $XXX to year profit sales for fourth points prior $XXX margin improving growth XX% profit versus profitability fiscal profit an improved adjusted XXXX to full Adjusted million of year operating profit of metrics.

Now, to our results Spaces on the Intelligent moving for Group.

fourth and quarter $XX.X Adjusted million year. basis sales fiscal year We to $X.X quarter year million sales for with HVAC of XXXX profit $X increased into million XX% The growth. demand prior profit XXX profit to to XX.X%. adjusted reflecting XXXX strength increased team standalone approximately profit out XXXX, million million, the XX% controls. improving of a operating greater building the to $X of in Spaces margin basis fourth across prior had increased the points versus an great continued broke year. than a million Spaces team fiscal growth with and Spaces profit $X.X Operating leadership to XXXX XXXX For with $XXX quarter XXX operating business million for versus fourth the of the of X.X% a sales ended operating improved our the million the $XX prior incredible segment. The team of year. was the versus versus year, and points for the prior result continued operating as margin prior recruited of $X.X

working of expenditures an net to cash net activities fiscal due to operating level head for of solid capital higher X.X% cash This continue to we to in X.X% compared sales $XXX million XXXX in turning was of annual $XX the that cash The of we to is year, flow. decrease We XXXX during a was or fiscal or into from invested capital support Now capital prior million. XX% generate sales continue $XX flow, level XXXX. the of to expenditures sales. million the and believe we needed appropriate largely around as net increase

We capital through for effectively permanent value M&A, dividend share continue repurchases. maintaining growth to allocate our shareholders and investments, creating by prioritizing

year, we million X.X common $XXX shares stock share. at of $XXX of for an approximately During per repurchased million the price average

cost. around minutes would into are and offer service most to managing have to window costs This have shares been a how our to like We use reviewing a I’d freight favorable changing some million I frequently, under is of a the additional balance environment as we like remaining our current levels we conversations are Board them. thinking spend capacity important at of current for are global X.X into few complicated now still with deliver company and around which authorization. We about these input cost, example, long-term to contracts cost our at how freight challenges. customers. this our high insight

delivering margin some customers along are passed expectations, have these our is rely we our We and important on promise company which delivering can to price the through our of which on upon. be increases balancing costs and most

XXXX, team. into we businesses and in our head are we our As confident in

the year XXXX. ABL expect the to net sales We high-single for grow in full of digits

expect mid-teens. to net sales the in We ISG growth deliver

We profit XX% we we of our margin full the plus expect we a gross as sales. continue cost XXXX net annualized to increase operating can and for leverage year believe

capital Finally, we effectively. to continue allocate will

and the take XXXX and our joining on opportunities. back and questions. a focusing it today. your business investors our transforming clear for are company associates. pass Thank I with We Operator our you now enter We to will our stronger to us customers, much

Operator

Wojs Our first comes Thank from Instructions] Baird. you. with Tim question [Operator

open. is line Your

Tim Wojs

maybe to have Hey. on little pinpoints the are the nice it supply talk and we some just guess, specific Congrats I can the I am everybody. how components managing what maybe start constraints, guess, of you really issues? of well, from I tied trends to seeing some you chip fiscal. broad it guess buy? broad is is that and perspective, of of just a are hear job chips transportation you key here. through and actually are trends, chain morning us topic looks the kind And that at kind that the of bit and Good curious supply Hey, really through managed but of kind pressure chain this kind a you how I you

Neil Ashe

you, a Yeah. any as comments global This for certainly have can this and you seen remember. of and you the probably the Tim, as thanks us the of thank we thank Obviously, day question. challenging the as topic a out. is as long for and environment is point

used increase as haven’t commodities. on our think of freight either availability we price number we two, one number seen and have consistence As commodities all -- an a seen consistent example, of or we one Karen, about, on lack directional

So, to to the that all it’s least XX moving been next, a process XX throughout the months. we or expect continue and basically really at through target, months XX months

to So on ability then, been our has most to and secondarily, delivering, customers, adaptability the importantly, to deliver to margin. ship ability to that the us key

we been challenging. to through As look what most has

so to to them, do partner we hard what to for more which to what is, as give allowed us. being through to is that’s point out, them as we is as lot allowed partners a them our bit been and suppliers term, have and a you chips we that target. a got that early front different are We As we different of a obviously, some of direction be broad and to for and out chip has predictable have this we with products which little has them be a good use in us have need and process, of clear too worked tried moving in possible constraints predictable

impacted those ways. different us challenges have in Now

a the for of week development might But up able and the which sensor make example, So, we’ve has delivered holds be we of a that our seen. results you’ve orders. we sequence certain which on chip those that that a would such to we been for sensor, down some

-- get out, world foreseeable Now any as future. expect I this pointed to the better in we don’t the

are to the to margin and that earlier, to one, rely levers prioritize, be continue we partner said meet upon, the have we the -- using customers expectations. can our the Karen, to So be as customer be I our all second, used as, expression,

Tim Wojs

Okay.

it around on, And some driver great. That’s a way some kind Okay. of primary cost I offset the of as had pricing. follow noted kind is you maybe that there context to like to really pricing, then the any of of just provide on headwinds. wasn’t the

the So, are growth I how was the about what guess, the benefit and you from quarter in fiscal thinking in price to fourth contribution XXXX? revenue

Neil Ashe

of get fourth Tim, able So impact increases. of has price we three has And they cumulative series benefit gone along done the later, those quarter seeing as We’ve cost of of And mitigate the to the that. little through we in -- increases. to series price, further to the starting a you we remember, bit are a we’ve and layer these in and the collectively obviously, benefit and through be been get. see that gone are will will to industry

obviously, filing sales. channels for into which us, are later orders net and placing So, shipments into today, backlog which turns our turns

I them to can But projects basis we I be regular call that grow. for and upon what said balance So a they will to can want are ship be around customers that their the be as we means predictable their cost will us our plan as the we that company see emphasize as to trying rely point are and we as on is, last and this you to trying relationship. on

we impact product performance. price. to obviously, impacts we we also our an and -- some to productivity to having issues get mitigating also, improving of are the cost is which able these of improvements is are and the are getting So -- contribute of It that

Tim Wojs

Okay.

Well, congrats Great. fiscal luck in everybody. and Okay. good again XXXX. Thanks

Neil Ashe

Thank you.

Karen Holcom

Thank you.

Operator

from Ryan Blair. William question next comes Our Merkel with

is open. line Your

Ryan Merkel

for questions. Hi, everyone. the Thanks taking

Neil Ashe

Good morning, Ryan.

Ryan Merkel

morning. good -- So

some follow-up aim pluses you bigger on key of margin. obviously, but as What gross So, are hit other one, fiscal some the passing along XXXX I what the guess, XX%, are of and a to for prices drivers? minuses just

Neil Ashe

take to Karen, do that? you want

Karen Holcom

Sure. it price rising of and used ultimately we as Compact cost. heavily our portfolio things to improvements. to lever. to Yeah. only have We mentioned, We’ve install one as make to for more High the impacts focus easier Ryan, that we on example do the the to our our customer, we Bay efficient, levers product offset the that remove that used It’s as and it we of not to Pro an do our cost, profitability. productivity make

We also with our productivity of performance. chain improve to worked their supply

then, our some able of we from lot the as a will get sales across are of to different that there’s are using. we levers as volume finally, some well And the leverage benefit So, we growth, facilities.

Neil Ashe

can of And put we where on just build the in Karen, kind are context I transformation. to that, in that

as got relationship company focused we that that believe challenging here, obviously been margin a gross very could demonstrate environment. in on the So I and that cost to I you has manage done and I what price have we

we are increase We as also Karen growth, we operating and mentioned, are margins as company return to leverage ability cost the the as our demonstrating the well. now

good cash more we we us are EBITDA start I look will and and we to So with as you operating will flow forward. feel where profit about -- and talk hear more start and

Ryan Merkel

Very helpful.

question, facing second shortages sales what a then by us of what part week? of a China? aren’t China, it and Sunday you on is question China two percent then, COGS power do is remind as and guess, secondly, I can factories percent some And And import just from expect Okay. crunch you of in any the so you running

Neil Ashe

Yeah. It’s question. good a

So, dynamic a supply first have pretty we chain. of all,

XX% and we North of -- Canada, don’t the out from rest we just XX% and XX% specific like about the in America. break Asia, but and in U.S. directionally numbers, So Mexico think

benefit, use be and both portfolios, we those is times some some like be new also and up brought same constraint we and Part what moment, America. supply At of we in our our manufactured So can vitality well, but increase we’ve key product to we can Asia have especially have and always, products really Karen increased North as access our products developing in dexterity these. that are in containers this chain is with manufactured the which to dexterity, that why so the freight. our

everybody that. with dealing is think dealing I that --

indicated, periods we and price for and accelerating and that now of planned certain in As obviously and for so she are we’ve availability we’ve some advanced locked that. both

we we As is to other -- that XXX add power look these let’s impacted challenges. out, adapting will this China and the ways other to the to chain we issues adapt global are the let’s that supply challenges being add by the same way all

Ryan Merkel

Perfect. on. pass Nice quarter. it I will Thanks.

Neil Ashe

Thank you.

Karen Holcom

Thank you.

Operator

with from Our question comes next Christopher Glynn Oppenheimer.

open. Your line is

Christopher Glynn

Yeah. Congrats Good topline appreciate year. morning. Thanks. great environment am generally the demand on the segment a guidance. I curious

into As any or look linearity puts and guide of prevailing normal just kind other we new seasonality takes? and key moving as we at use the quarters, a

Neil Ashe

Yeah. Chris, the thanks question. for

of demand impacts. level normal mildly the mitigate think will I seasonal the

the see kind So for our this where I number year see some through nothing can part you point, higher full bit provided and clarity, normal state think That’s number and of you growth more the is will of the we two will have see and as the is -- number one, higher that we half year. for adapting the given outlook the our of performance. kind of so where the in expectation are we world, of at part is, And one, reason year. of the we will a see first back we the little --

are get quite we new while the point, there -- not some -- we to normal at there so the And yet. is will

outlook there So full be on a of and will question, the be little will to lower, through some some our the will expect for for along work get good And Lighting be we Controls and a and get the it’s there. feel broader to we’ve demand step but going provided will higher, about we obviously, business year. probably, series quarters, business that we way a in we demonstrates Lighting where little

Christopher Glynn

in August, follow Okay. quarter margin And on macro in particular third takes. is got your the up September. kind and worse my and Clearly things since of puts just

little You report the of may the in how had relative have timing year a your help on will fiscal people to later month.

you and sequential? just incremental neutral also on price incremental challenges price net-net curious, the of you realizations. see So kind call have a kind chain of ramping do best is logistics the your of Do supply

Neil Ashe

abate Chris, premise. So, let me your

changes, delayed that outlined. presented indicated don’t the and see margin direction so we we going or on not accurate. look forward, are we now I as one highlighted in said expectations we’ve our the that They not impact line price that’s straight And Karen that, are in gross cost and you our Karen realize when So industry am as margin other a which a of we volatile. month, I Having the as the is highest a us think have balanced performance in different based sure the which the year forward to mitigate around tandem, things second result. two are the we is price do one by increases starting quarter, margins and two in

turning we the not and we cash are so into check it as gets into us we deliver mid-teens those the grow a which cash continue we finally, will ICU cash ABL then, that grow will as in we the relationship. grow -- to turn how net digits, will So in grow will and value, managing margin, can demonstrated flow. we’ve of net will greater will profits And company demonstration continue balance around sheet fast. high-single XX% to to gross the we sales is the we and continue create to And the continue ultimately larger, that’s sales,

our creation. model for So value that’s long-term

Christopher Glynn

Thanks for the color.

Operator

Thank you.

question comes UBS. Snyder next from Our with

is Your line open.

Chris Snyder

QX Is pressure see of the XX% relief. guidance increasing year others of expect quarterly with you. maybe be is that above XX% like in talk shake could that here? cadence cost may out basically plus? margin should fiscal It cadence the Thank comments. plus, over I also wanted next line in for couple with The to on gross is up half next which XX% that some margin we and the back then gross Can the you kind that follow we quarters is about feels levels. XX% and below get quarters and

Karen Holcom

Thank Yeah. joining you Hey, us today. Chris. for

But we quarters. the said XX% year a is plus will do as there between achievable. For full think volatility the you some be

from As timing have are cost increase price cost, -- the then we of will our the price will the through that sales higher get continuing increases we manage increases, we to see. leverage help benefits and the of

As about buy which the term, contacts on have very still we that volatile. I locked things some over benefit stock have are to talked the we be from in market, can but earlier, longer

our focus you that see plus%. is managing year So, to and variability will really XX full the for

Chris Snyder

And up then with higher. the is commodity like here next of pressure probably over cost quarters, realization appreciate the I feels that. picking it couple

these -- some freight of guess are your I am replace likely contracts I price the to going on duration offset. long assuming higher. Some of

So more better, in I guess, you is even increases, confusing? guys that price that one, comes the think, one going yet, saw did if incrementally to further it I getting higher the and the September three it a so in if subsequent costs the I pricing just because targeted, company through quarters, is that’s July, price that don’t believe even or we not sorry fully know has increases. Is I bit one was are in yet shown put a that on lag, so

Karen Holcom

No.

I think what asking. you I are understand

As we do backlog. have said, Neil a

have will the some the price of backlog So, of impacts different increase.

our little price realization saw some very, was that impacting this our we the very in had late results which March, in fourth we first in time. of quarter So and increase announced

timing The in bit increases, shipments if backlog then will other sitting translate that’s net the see can and of where sales and to as you little that you go a into in difference. we fiscal so XXXX, two price

fourth into certainly in the increase head price do increases of So we that the and we’ve announced didn’t quarter expect next the benefit that year. to sequentially we as see all

Chris Snyder

you. Thank

Karen Holcom

you. Thank

Operator

from Vertical question comes Our next Jeff with Sprague Research.

Your is open. line

Jeff Sprague

seeing that? equation coming I was there the and interesting your ongoing of glean Is side Thank on I to the could conversation that a morning, you. kind if bit Good everyone. you you wonder deferred be mix from of more renovations the the customer and are kind just in little speak the that? back. of business. dynamics the just that to something What’s conclusion initial might maintenance

Neil Ashe

that’s the now wouldn’t to as a able great question. it. right we a you office shutdown above been And there Jeff, project call, interesting an hear the Yeah. that go construction is in for to us have just because anecdote,

turns the -- would identified continued. office The it that market have say in trends Atlanta is strong. the that we at So renovation before I out least

the seen for of that growth strength Karen a areas is the Board seen, as much categories. have revenue. means the So We’ve really through is We’ve all new of main industrial, channels, across around strength the pretty disaggregated other there which indicated, in investment high example, through continued. where there lot

going So demand for an and to an not future. think been us don’t be has for for we it’s issue foreseeable us the issue

Jeff Sprague

industrial couple any healthcare, there you et times about on of there now your other just out, Are remarks. What touched other discernible point cetera? education of Is and a you kind opening in trends verticals any emerging?

Neil Ashe

share, the is Healthcare share next a gain to we begin opportunity that’s will been strong. expect but the be for there an very LED expect a to take education. dive have the place for we It’s we Yes. well-positioned area -- we following and Obviously, low share for me the now have obviously, -- with. because opportunity to we continue we in where and what be be have to we And and deeper seasonal are Education relatively to the strong good that has HomeGuard little forward, up question. and let Thanks Light, we that Yeah. to have where continue highlighted season strength more obviously, there. going bit there. is a strength in a

So, there thing strength think our to participate the footprint, of key is is in would one we earlier. indicated is, that that business broad have as you probably we that which The places allows expect. where I a only is -- strengths of us we strength that may slightly different -- would is our and expectation the are be that I say are we

be forward I that there the are positioned going think and we going think to renovation joked as I market where office about the well. well for upstairs, is we

Jeff Sprague

Sorry, just one. one housekeeping quick

revenues running retail? each those think about a will proportionate that? Just pretty How maybe disaggregated revenues to perhaps do house let much me be of be you X

Karen Holcom

No.

disaggregated line. OSRAM other the ABL revenue channel that retail see in You the the in

Jeff Sprague

Great. Thank you.

Karen Holcom

welcome. You are

Operator

from with Suisse. last Credit question our Walsh comes And John

Your line is open.

John Walsh

Good everybody, quarter. Yeah. morning, nice and

Neil Ashe

Thanks John.

Karen Holcom

Thank you.

John Walsh

it sequentially, this all we question looks had up good first quarter modeling. is, maybe than like better were guess ticked I the growth inventories obviously you

you some talking for know of revenue? that first in fiscal chain customers. supply would You kind incremental maybe if XXXX. if corporate growth fall that the know of building you is of or disaggregated the in of are Could were your there the under about about half you some stuff I change there that so door of good you talk your maybe buffer or else inventory any going get the is that’s somebody kind don’t out ahead it of

Karen Holcom

Yeah.

we what two see. trying things One the in would build little exactly inventory. there John, described, demand a going are inventory for are to So, we you ahead that serve bit on as to be

quarter, So but of impact also in see addition a the of you see bit you OSRAM the that to little inventory. the

into inventory purchased coming line as the steady. also the components portion days because that OSRAM. on business up, the we are other only product. So acquisition of Days go are Days, through of with the that’s that in making the inventory the yeah, this and that

John Walsh

you. Got

of in the might supply And operations, the own a and makes just kind markets, if talked your both lot your right to operations? bit, those chain, to about understand love little That Okay. you you I us regions manufacturing sense. tight labor are now? Mexico talked Mexico have what different but you have dynamic anything how labor then, you very think are obviously availability most markets in a your labor talk did you earlier you in be the about question an your We Can States. highlight different? are kind United of there from as seeing of not close U.S. and seeing you

Neil Ashe

me let John, Yeah. one. address that

labor back in of -- the pandemic their The result the of want people of as and you are labor do. is I view tight and step do a is what impact indicated. taking to saying, all So kind market U.S. first people My a that as changes lives really on market. the the general

to operator be do manufacturing want cell at everybody, that maintenance come driver, can And a aggressively for best because are where us employee working manager, is whether employee distribution, their people and place they are so factory we our focused best a you sell facilities one that to the of work the et cetera.

So that’s tight.

there wage availability the next the been year be has So and inflation will course of or over so. tight

hyperattention experience currently Obviously, leader down there. that. we associates a are group is have Mexico, general working are been IDX, larger vaccination in around paying Maquiladora companies We around response, we’ve which presence our around of but the we the and of a there that through the to there. of kind COVID

we’ve everybody with so the feel we tightness -- we had and in bond there has that associates that same the strong really have have our a U.S. And we labor seen I -- not there think

John Walsh

Really Great. appreciate responses. you. detailed the Thank

Neil Ashe

John. Thanks

Operator

you. hand Thank over back for like closing I’d the now to remarks. to Ashe Neil call

Neil Ashe

the important August in you joining you a really fiscal again is that for We our like completed feel in all thank in transformation the for Thank milestone year us interest and your company. Acuity. of just

returned our and Controls ability company and the we’ve are as net demonstrated we we’ve leverage we’ve ABL, the to both the Group. and our our growth, Spaces businesses to deliver ability the expenses margins, confident indicated, we about As Lighting business grow of sales we the ISG, demonstrated Lighting to

it challenging are our we forward. position we pleased going with and so to And global environment continue this expect to in be a

time a will forward up to with and few So catching thank in you we months. look for you your

Operator

today’s conference you participating. This call. Thank concludes for

may disconnect. now You

Acuity Brands (AYI) 6 Oct 212021 Q4 Earnings call transcript