AYI - Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to the Acuity Brands Third Quarter Earnings Call of Fiscal 2022. At this time, all participants are in a listen-only mode. After the speakers’ presentation, the company will conduct a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Charlotte McLaughlin, Vice President of Investor Relations. ahead. go please Charlotte,

Charlotte McLaughlin

Good third welcome quarter Michelle. Brands the fiscal XXXX earnings morning, you, to and Acuity Thank call.

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

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

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

Neil Ashe

thank on morning. for you and us the Charlotte, this call everyone you, Thank joining to

a has over by Our team is X of Lighting the our businesses. team years. significant improvements and growth, delivered Spaces strong and execution made This driven sales performance result and quarter ongoing direct of that both profit across solid our the operating a last

quarter fifth to of the marked trend Spaces continue $X and as growth. a capture was It the second the quarter successfully sales volume only consecutive product double-digit quarter drive vitality over in through to continue service and and time revenue bit businesses. history Third company's for this were both we and price of billion the a in milestone. Sales Lighting

repurchases. This of about share our quarter third were outstanding the our We in we X% with aggressive shares quarter. repurchased

We company, create future are to confident repurchases our and and in add our success of value. shareholder the leverage future these permanent

segments, performed our third and well quarter. businesses the both Lighting Moving our Spaces on in to

Lighting. First, on Acuity Brands

Lighting the in top another our through Our driven and growth normal continues strong with third strong on above very work service. remain levels. quarter Market vitality Lighting by and and to Controls we had our which to efforts, continue business product quarter be focus backlog, our line demand

strategy Our to using service and levels, of is service technology our increasing products our differentiate working. increasing and product vitality, both

existing combination product of product efforts and our the are to improvements Our vitality introductions products. new

we the accelerated have Over efforts. dramatically years, last these X

more profitable and us. our more for customers valuable result, to a As are our products

vitality, product One simple. was finished my product have design do and asked can complete family. run that catch we than you. the that engineering do faster best key again. teams tell in industry the they of We We what of it are in believe refresh everyone he And answer no and if do our our his else, With me you now? a delivering. like we team leaders recently product front to And and you're I one

not. had was team and going team shortages changes receive Electrical in with what marketplace the great of the key was I could the with chain met partners. deliver products and group Conference for In of them they've was had and that National the since the deliver distributor the same able many Our and we been right had able of the service our right company us. the It to It to members products subsequent has feedback of to also for pandemic Association affirmation being throughout from the this world. and the met reflects where no value on together Acuity on each others having when the been to several May, pandemic Annual the This ABL Distributors strong. matter we made. first supply went time is the

sequential as continue year-over-year growth our strong quarterly Now, Spaces The to margin sales and safer perform our XX% moving greener. well to Group. X% make Spaces of mission is spaces improvement. group Intelligent growth with and year-over-year smarter, to Spaces well as of

we since partnership gathered time was was these buy and a independent I Distech ago, install product Controls spaces. power few that together XXXX first products. our users It Distech and everyone grown activities significantly with through California this A to continued to at where in other products, development, controls, those be now, deliver our and Distech and excited the who systems cloud-based has Our spaces. XXXX key together. and systems sensors weeks few like Atrius was build group minutes. for and owners And value Between Connect Distech back end and integrators. the integrators strong focus and smarter to was on in-person greener Conference in applications I'd

more with powers to collection spaces to Our open edge one faster. and deliver and this is market. way operate proving can and Atrius our use specific protocol allows Atrius applications that cloud-based make quickly the innovation solve another. partnership problems independent and the in a and applications. data. us smarter, And data more we to to move systems the together, technology of technology is integrators Distech to can be Distech product independent continued spaces. and of of cloud facilities But generates service true

diverse source Building Distech, America. data operators commercial Insights, this include is is and which for our across management customers through energy of platform to some cost customers, is core multi companies, -- institutions. data their and building to brand usage, me. aggregation, carbon excuse single Atrius the in Currently, of provide group our technology a of offerings thousands Atrius used of smartest One Similar a under targeted buildings North the to

buildings, of our initiative. Atrius use Acuity and a Our reduce usage, EarthLIGHT is key our and Insights Building and our footprint course, carbon energy to part monitor costs, of our

year. about we future. in There's I this our later look You'll the excited when lot more forward see in a EarthLIGHT ISG, developments more about sharing report get to to this publish and

on want I allocation. to capital Now touch

priorities allocation capital Our remain same. the

on how managing quarter. pass prioritize current maintain acquisitions, shareholders. our and and our I'm is on the our repurchases and to few want there more businesses, ongoing this the invest call team our you later perform. before to our for investments when talk permanent share opportunity We supply share for with Karen perceive to allocate repurchases will color They this proud an in a growth I to Karen, in continue additional value in allocate create inventory vitality about service, But is constraints. while decision product dividend give continue focus capital thoughts. to to capital going for continues of to I we to leave their

continue largely the fourth confident conditions to We I'm expect and remain quarter team market deliver. that to the in will consistent our

take I'll our quarter to I'll over the for remarks. Karen, a And will call performance. turn the later for back deeper dive into third Q&A some who Now be and closing call in

Karen Holcom

sales. you, generated Thank exceeding third over market billion $X a strong the board. Neil. in We We had quarter expectations across

this XX% operating was margin inventory a again $XX gross Our significant allocated and We increased repurchased profit million and our amount shares. of quarter, year-over-year. we capital outstanding to by

by ABL and on Gross increase Moving this was increase vitality OSRAM $XX this gross impact the XXX volume decrease Gross XX% of basis levels. service business cost continue quarter. billion. prior a a Gross It inflation and profit the point million, DS of was XX product Net the XX%, profit an revenue while on $XXX the margin which or business but as three increase freight. of XX% by and in quarters we exceeded sales XXXX. a it's is the a DS significant Neil the the percentage driven and price quarter to was that basis components the said throughout strong impacted the OSRAM the recent from to million from from was of as sales driven $X quarter over year, company's by on prior acquisition price and increase by increases point were realization just profit billion, profit our impacted The the was has prior Demand sales an been dilutive mix focus was $X remains only benefit second first year-over-year, and performance. acquisition. of and was has improvement The year. of primarily history in of over milestone.

operating to operating We increased leverage also expenses margin. and continue profit and dollars

Our reported XX% million, increase an profit increase XX million year. points was the the operating over quarter the or an was in over XX.X%, an $XX of prior third profit $XX prior margin adjusted of an of Operating the profit operating margin $XXX And prior prior was operating Adjusted year. profit year. XX.X%, the or increase was year. XX $XXX to points increase compared of basis million, million over XX% basis

grow Finally, per share. earnings to we continued

$X facilities. this impacted third from component well by sales our shipments as or to prior the with Sales quarter. driven channel and across $X.XX continued business. by or of office, in earnings at our compared $X.XX I just vitality over of commercial and per increase availability. ABL in particularly EPS as diluted while end expand service DS volume of in per the price independent earnings on increased product $X.XX education million of industrial Net continued realization network billion, but in the $X.XX strong grew prior increases increased prior year to XX% driven with adjusted during flat performance. and of Orders in of share diluted segment acquisition want an increase quarter and repurchases direct to Share XX% $XX and the was over OSRAM year. be our the network sales the XX% now by the third sales our and were favorably year. diluted Our the $X.XX share was demand million benefit Sales an XX% price of $XXX adjusted markets, were by year-over-year, impacted strong, the

discussed with the previously, As continue to due deferred customers renovations corporate we previously ahead that move were to pandemic. account

the the sales over result, in corporate account $XX million increased of a channel XX% prior year. As

calls. prior sales when we As the have we've the to channel on business. mentioned transition inconsistent now And attractive business make This corporate dependent In as be channel, choose inventory their result, a retail is customers that the customer renovations we worked facilities. on to from account may said before, an is quarter-to-quarter. through

Third the in quarter million of which growth rate prior a comparison. year is by of $XX a retail XX% higher-than-normal weaker sales as channel result increased the

includes ABL's year. Finally, of million, an sales due $XX $XXX were $XXX sales million prior quarter improved the million the OEM third the the million which OSRAM $XX an of XX% in XX% was the quarter, this compared or of Adjusted our $XX million of versus other XXXX for with increase the increased the or of profit to of acquisition impact operating prior the prior DS million, total year. year. business. $XX versus profit channel third In the channel increase business, in operating

to on million and growth year-over-year. good quarter had team Now Spaces of $XX with moving sales X% another ISG. The

quarter operating invest Sequentially, versus the adjusted quarter XXXX. third $X third the improved year. As prior operating in grew fiscal the had XX% business. quarter. quarter continue profit XXXX million Operating to increase second from the of ISG's quarter million, third profit a of in approximately reminder, in with $X in the while million million fiscal they an also while performance sales they $X of increased of of big $XX XXXX, the to a

well as Moving activities allocated availability. the $XXX during million to an we $XX to of Cash X capital flow. We capital tax as expenditures also increased production support of cash cash or from inconsistent supply payments impacted from months first by fiscal fiscal facilities flow from insulate as growth order our on We X prior of months in invested This in X.X% our was million. inventory sales first the to net of XXXX. additional $XX was year of in down operating the million generated flow XXXX.

repurchases $XXX sheet approximately borrowings Since price have facility. the Finally, and our we $XXX at million million during of repurchased this the We of repurchase as effort XXXX company approximately repurchase balance XXXX, through share quarter XX% quarter. the X.X financed to of invested the the Neil quarter with shares this per an we credit end from under third with our May of we third highlighted, shares share. average began of in cash

a and Now spend two strategic I to want our our through minutes credit to new walk topics, you few facility. inventory investment

prior has ongoing increased increased First, dollars affecting inventory finished over inflationary mitigate and DS year and the finally, investment lead This shortages. inventory temporary. are of There increased days. is of Our Asian to cost inventory: inventory goods; to intended second, in the impact third, increased be of the levels factors four materials; acquisition; from terms of components of times in OSRAM

our levels up inventory, Asian is has second that lead of days in X of following. improved higher by third quarter, the times. improvement the To quarter seen we now of from we’ve end end it doing are We've an finished of the goods lowered year-over-year the Although the purchases address days. to the

goods We components with manufacturing demand. current are in controlling and of have terms and renegotiated of certain line purchases suppliers products we with finished

credit to $XXX with our morning, allocation new if to incorporates additional closed priorities. additional facility capacity, improved of pricing Now new flexibility, moving million covenants. favorable on needed, borrowing our and This facility. we million new The our provides which capital us credit on facility more accomplish X-year revolving $XXX

Additional information our available quarter XX-Q third of the facility around terms is filing. the in

team's performance. the and turn effectiveness I for drive implemented operator call the before to the to with leave results years Just this. highlight want X the changes These to I over you of the our last ability questions,

in can operator and your Thank environment. deployed us will today. and we continued expenses deliver operating joining generate permanent to take growth leveraged cash, that for we We've the you to I in value. margin, to profit operating delivered our team Our have effectively and capital pass a you way now in that generated questions. over increases meaningful deliver sales a demonstrating has challenging to

Operator

Instructions] Chris question with first Our from [Operator comes UBS. Snyder

Your line is open.

Christopher Snyder

Thank you.

forward? has over expect So the months. some number from a Can going here? Acuity increases and the increases implemented we pricing of Should price provide you company's XX industry price last just the on broader color strategy the further

Neil Ashe

morning, for Chris. Good Thanks joining question. us. the for Thanks

-- evolving So we're successfully of do price increases. obviously, pricing And the in number implemented we're inflationary we we’ve a on price how this front, increases. market,

So more, are oftentimes they're more and they frequent they're targeted.

think going prices will market be can long as As the I adjust we inflation continuing expect you inflationary to -- continues, also our that forward.

Christopher Snyder

a hyperinflationary point environment. time, Appreciate a be that. such we And presumably, won't at in in

decline? industry So -- your be, in to as margin able the even maintain of get will expecting we increases kind a to it will be declines eventually? normal wherever company environment, or is back pricing target that may is do you expectation XX% potentially price of environment gross the that plateau an And that these

Neil Ashe

Yes.

a I couple is Chris, want because I a good So kind to emphasize question. of really of think things, this

service has invest use strategy our in products. first, and vitality, in to So been product technology differentiate our invest to

more profitable our are relative the to products and industry. rest customers basis we’ve of for so for on a So us the that valuable better more --

look to those will the Lighting believe going be we going who business we hallmarks Brands of our forward, as Acuity are be So forward.

products have right will right at right place we the the So price. the in

really Our network We product business. solution where we on our need sales everyday pricing for best are and lighting strategy network compete sales the we to is direct independent products, broader sold straightforward. and through effectively

product for service, of X our the to whatever vitality of because our that over to believe are itself next I us positioned we X well So and years. presents because market

Christopher Snyder

you. Thank

Operator

Our John with comes from Suisse. next Walsh question Credit

open. Your line is

John Walsh

nice and quarter. morning Good Hi.

Neil Ashe

Thanks, John. Good morning.

John Walsh

also but not Because cost. line of that price, just the with piece it's follow-on it's in questioning, price could we equation, but that bring of maybe right? cost So

of guess, I around softness, it Analyst think manufacturing the pricing in right? I So can a one, is was last in variable your you now the on changed think organization? your a what's cost down front, where pricing brands about, of is if And little about function, I highlighted then some corporate Day, your really bit kind deflation time? price more more structure you, a it talk because of see the type last or equation, do cost maybe ability, you

Neil Ashe

Yes.

of kind me let both So of John. those, unpack

First, on pricing execution. the

second So -- the make team combination consolidated pricing is a so experience pricing I who introduction spend execution which a now the to execution. Lighting the of technology, better has powered a function that lot of allowing pricing decisions. business, before, strategy better a on the is centralized At data in by our of, domain obviously, in and them is

was, think company where continued X the I opportunity an that around execution evolution from will I for to years and So ago. that's there's strategy there, outlined continue improvement And invest earlier. that the say, in we

side, of or I'm there points you emphasize to emphasize key cost the two kind On going you emphasized one, two.

the the The of first cost inputs. is

is scalability of second supply the piece. The the the and distribution manufacturing our chain,

obviously, on So we inflationary are environment. components, an the competing first in

movement components cetera. So the from to you see in component prices freight, et

we in team think demonstrated that to be been are would I like pretty to have the forward. our tell that indication easier We I told than the last our those them of years it while I've -- going And years, management will that are X X dexterous have going be. no there's next that

those to to ready challenges. they're So attack continue

One all our And a of go where The -- kind two, of a and is our really of one; distribution. dropped. increased. in is manufacturing through to back believe if about to time. and manage would in We've period number and no wildly and manufacturing happen, to one a short are we now distribution good to the chain, the the ability you to where what ability and the revenue period number manage deliver demonstrated in went environments second And our pandemic the -- then way different team's knew into period that scalability as I we the of things. highlights that supply we we’ve a demonstrated -- it's think it demonstrated our revenue and ability think scalability I two execute effectively

again So be not what that, positions know what's the think, are we for us years going that next going to to said, straightforward. us forward. like, of as I know going be none they're I And X but

we are to but that. good manage believe in I a a are we through in So -- position

John Walsh

Great. just around that answer. outlook. maybe Thank question, And the just then for my you second

could. QX little think why I anything largely just want So see that wouldn't seeing there said QX. Is to a a unpack lift you that you you you're out? seasonal remains I QX mean, consistent. if typically, bit, to play that I on

Neil Ashe

Yes.

unpack will I So that. John. Thanks,

First, on the seasonality impact.

us, shipping more the than we days For in quarter in fourth we’ve third the do quarter.

natural much the that's seasonality. that's key kind Karen all pretty of natural the look QX We of -- hit we of you our as -- -- on channels. as indicated, all at distribution our a piece of performance, So

it's So The for mentioned, big those example, corporate that's choose on dependent as demand continues. continue accounts backlog above levels. had levels she And always renovations. when not because Having said that, a have customers consistent to we make normal quarter. to

look same. that, fourth the be the will But as the future. we we Obviously, said, things more different we same quarter of more so as we are kind going it for -- of And I and quarter. forward, XX% to the grow are think in are not every foreseeable

John Walsh

you. the you questions. Thank Appreciate Great. taking

Neil Ashe

John. Thanks,

Operator

Our question Oppenheimer. Christopher comes Glynn next from with

Your is open. line

Christopher Glynn

frame up price for Yes. split, ABL. any if of Good could Thank about I kind you way that curious volume the you. morning. was

to where unit strength from key are evaluate it for out -- As of volume we modeling year. is is, and year the kind cyclical of the a basis kind input for the comparisons

Karen Holcom

Yes. Hi, is Chris. Karen. This

our some price you give volume. me around color Let

this that the price So at if volume. both. demonstrating their quarter, do we between the and Neil to mentioned, are ABL And ability business it really look relationship and you as performance managing,

acquisition capture were year, mentioned. this the and cost able we price we and grow as realize we that our to inflationary we able OSRAM, the also to were from So to mentioned. We offset volume year-over-year, benefited of

good is those of manage reflection of our ability think to both this So I a components. quarter really

Christopher Glynn

XX-XX Do you price? volume split maybe side of think the ABL organic

Karen Holcom

Without precise both of would we getting say into healthy had this I that quarter. numbers, a mix

Christopher Glynn

margin question a think then Curious And ISG. on great. to and how profitability the there. fundamental That's model Okay. about

almost we kind don't of in in incrementals kind year-over-year sequential over terms You informing and I to view that XXX% our how margin incrementals. of But had perpetuity. of yes, the XX% it will just index. think run see in of rate, terms about think of leverage

Neil Ashe

on will I Chris, Yes, that. take

is in As ISG Atrius, remarks, I combination is Distech, on-prem cloud. indicated of the prepared which in the and obviously, the which is a

development to where So what capabilities. new invest continue products we and are we’ve can in we -- and while strategic going deliver in guided is software that new their to kind of demonstrate profitability to we data that

ability So The ability the you this both. a and the ability think, responsible do deliver of see in some grow to quarter, is I to representation to profit.

we to forward, expect going that. So to continue do

think demonstrate continue will the growth do be But profit are forced priority while to demonstrated, both. we we can to if invest we we've growth. So we as would in I choose.

Christopher Glynn

Great. Thank you.

Operator

Our next question Ryan William Merkel comes Blair. with from

Your open. line is

Ryan Merkel

Good nice quarter. Thanks. everyone and morning,

Neil Ashe

Ryan. Thanks,

Ryan Merkel

of So, with a to any in people activity feedback that quoting channel a maybe nervous? from the or wanted start the signs are Neil, either any a to more getting I you macro. slowdown little see Are on bit question starting

Neil Ashe

obviously, same pun, are will for macro, we ourselves in to are could So what any same and we happen I is economy, and a will know eyeing the happen. that are be macro make are don't you eying the which not positioning the question, we not -- because competing us of start data I all I will start think what with appropriately but the on -- to

same things are As the we indicated, they outlook of different now, perspective. an from than as are more

see the quoting order continue volume. we and So to

above forward. have normal us backlog We that we and indicated, going positions so as

of changing. discussion things lot Of there's course, about though acknowledge that we a potentially

we are different. -- -- same but are they of more now, things than the as are So

Ryan Merkel

Got it.

back to you costs peak inflation. to Okay. you see question? rising point? Or the inflation Are this earlier on are that such And at then a starting prices need increase again still may question to

Neil Ashe

strategic about pricing. we about I being Yes, pretty how we think think are

And been same yesterday, in which things specific. increase have dynamic should From we think little -- perspective, cost the bit But as more in more and a where next we they that. over pricing a and we going are was the more more over in through past. price targeted industry about market is price costs become cost our be forward, inventory, another comfortable our we the of announced changing are couple feel are a will we some and we time, in I Obviously, have which leading working we So quarters. and changing. see like

Ryan Merkel

Very good. Thank you.

Operator

from comes Josh question next with Chan Baird. Our

is line open. Your

Josh Chan

morning, Neil, Good Karen, and Charlotte. Congrats on quarter. the

Karen Holcom

Thanks, Josh.

Josh Chan

very yes, the if -- take guess projects visibility that guys hi. the were comfortable to kind How guess backlog project you of your the the strong as currently expect. how based you to are outlook, guess normal. asking long about? would slow, I I I will above have now? that now much on your if of of I'm kind mentioned experiencing on topic activity demand you're it that right take a I sort do assuming guess, you pipeline, see for you about at all is because right it the progress you beyond And backlog, you look

Neil Ashe

and time spent going about we of think of obviously, a come So from. where is to kind our on lot focused growth this, we

-- growth, are tie and our question earlier to this combination unit Karen volume growth, driving a and which we one are sales. seeing to price So which are healthy answered, that of an

going investments are product runway we and we’ve have against. in a in continue we that the So we execute an vitality because we look to -- because of as believe service, forward, we investment that to have

then years rate be will relationship daily and between but less important, will it shipments So past. obviously the -- than will pronounced it was order perhaps in be

as runway our have look So through we do inconsistent. changes. times, is economic are as forward And to in objective deliver to some can we which we as consistently

Josh Chan

And terms constraints. Thanks products like in sounds bottlenecks supply still like feel against the stacking you be right. you're [indiscernible]. competitors getting question It chain? on talk you second for bit of the All I a Could procurement? my where about in imported guess better. how your And little are might supply

Neil Ashe

will Yes, to want you to this. I add start, if Karen, anything

are the are chips. So really they there -- if bottlenecks, around

it a use all backlog, we better silicon, could of obviously do you've to we’ve demonstrated higher heard. ability more. as We've kind demonstrating But to that others. an because that So are with starts still also ourselves we’ve than

place impact effort. spend of the color, piece And a of time but a that's piece important of luminaire. of we give to think inexpensive kind kind that's just a entire the that, the a anecdotally lot through I where So build piece of our relatively and highly of will of

So part the part that are the driver, the electronics driver of is of luminaire. the

relatively a which that waiting is That's to inexpensive higher. component components, into the assembled are inventory lot of So of other up ties our luminaire. be why final reason part the

they last of finding our these even where competitors before, believe, sourcing to are sourcing creative our didn't we so kind to their inventory components. were Our be quarter we material a do who is products chips, or ability quarter, them. told those and about to can to for we positioned I take raw and can some higher because dexterous our when the we're of access team be that get I because perform. have story I want to my off we suppliers hat

of we start a inventory differentiate our it's continue So -- -- that they of to consistently as as kind we everything backlog. through to and to we position starts work then can the when, will, work that to are chips through can of rest they matter doing more as just our consistently, And and those believe ourselves. which flow that we silicon more

Karen Holcom

improvement that the would we've around I where of the port. flow some the really just And, purchased seen Josh, Yes. add at is finished goods

those ship we can so products to able that them. we're get So now

as seen well, of So inventory some work that will -- the that you that improvement. see through that we've now

Josh Chan

color year. Thank good luck this finishing and you the off both for fiscal

Neil Ashe

Thanks.

Karen Holcom

you. Thank

Operator

with Our & next comes Cowen from Jeff question Company. Osborne

is line open. Your

Jeffrey Osborne

you of sense wondering was Karen, perspective, morning. gross just OSRAM in margins? have contribution Good the for on us quarter a if missed I and but could Yes. might this, give revenue I both the

Karen Holcom

perspective, that the of year-over-year. From see top basis a you contributed OSRAM about points Sure. growth XXX line

profit margins gross full in since almost where business. a a the will year dilutive full purchase we now, we to As near-term, think, that year X, July be we’ve mentioned, had them it I is

And still do, it have of to profitability so margin. gross work we but improve have been some to was the working profit business bit the dilutive and to the a

Jeffrey Osborne

need And repurchase, be the in so Can it's active expires share if when me remind it. remind to quarter. think me, something can now? see X.X you're would that or you to I that Is you or And Got outstanding? that with on great million then reinstate? you something the

Karen Holcom

Yes.

believe got So the -- last it additional quarter, quarter we last was did authorization Board. get I into from this

plenty have runway runway left this as mentioned, began plenty of we We’ve left of do May of have to shares we share since we of repurchased, And we now in should for decide our effort outstanding our So XX% more. about repurchase XXXX. I repurchases.

Jeffrey Osborne

Thank you. it. all That’s had. I Got

Karen Holcom

Thank you.

Operator

next question Sachs. from comes with Goldman Brian Our Lee

open. Your line is

Miguel De Jesus

Hi, everyone. This is Miguel on for Brian.

the ABL. Just on on question -- a quick

well through quarter-on-quarter. for is With billion the slightly reported about year you seems fourth target for above even quarter, think we the Is this you're high rest $X assuming ABL? tracking like Thanks. that declining now the the And it year the if or do target of cadence the or the right? the year, quarter growth flat single-digit how for that

Neil Ashe

year. the would for on you out as year. continue above the be to where we're indicated the algebra of remainder XX% to the not are for single-digit Obviously, compliment we That's I the that your for full earlier. suggest I at rest Miguel, we algebra. -- will rolling grow But going

Miguel De Jesus

great. Okay,

Neil Ashe

you okay? Are

Miguel De Jesus

follow-up one there. just I Yes. Great. had quick

stress increases worried to the appetite pricing, you too On backdrop bit general for getting pricing any or a customers? just due intense demand changing demand seeing it are the anything the on relates to on or customer about price as seeing

Neil Ashe

Yes.

we of are they things than As on the I more now, are things are same outlook, the -- think said as different.

continue we indicated of revenue, -- So of we performance our in as through Karen kind disaggregated strong all channels. our have

So more different. the are as they same of are now, things than

Miguel De Jesus

had. Thanks. Okay. That’s it pass on. will I all I

Operator

to will for I'm this I Ashe the questions you. no back queue the showing further closing turn at remarks. time. in Thank Neil any call

Neil Ashe

they performing is really your product They through all focus for just ongoing vitality uptimes. through proud appreciate downtimes service this supply are interest that We in our of how want Acuity. constraints. joining you while and Thank team now reiterate morning. on us manage the to I'm continuing their I

take our Have talking to look their to continuing team forward again we your so rest that. a we and to off to want of good you I look for And my day. soon. forward hat to performance, And

Operator

concludes the program. This

You may disconnect. now

Acuity Brands (AYI) 30 Jun 222022 Q3 Earnings call transcript