AYI - Earnings call 1 2023 | Acuity Brands, Inc.

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Operator

Good morning, and welcome to the Acuity Brands Fiscal 2023 First Quarter Earnings Call. [Operator Instructions] 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. Charlotte, please go ahead.

Charlotte McLaughlin

Thank you, Crystal. to Brands welcome Quarter XXXX and Call. Earnings morning, the Fiscal Acuity First Good

actual some periodic comments company's unknown beyond assumptions to those of results differ forward-looking filings. at website reminder, Reconciliations subject may at a on As Please are our be beliefs These our SEC uncertainties, our on available first our in we and are obligation management's that those detailed www.investors.acuitybrands.com. available from many no of metrics XXXX this currently which available and our time. measures statements known today quarter include our beliefs and update may Investor information our anticipated, and corresponding financial and note materially control, statements. and GAAP earnings to to our Relations their in management is certain release, risks based undertake be non-GAAP may these of which

With who financial Chairman, me and highlights; this morning our our Chief then who our and Financial will Karen through provide Senior first Officer, update will Executive us walk strategy quarter Chief Holcom, our on and President President an Vice performance. is Neil Ashe, Officer,

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

Neil Ashe

on Thank you, Charlotte. this call the us of Year morning. to joining Happy New you all

strong operating from continue as share our profit, through again adjusted delivered permanent flow diluted demonstrate first product We XXXX both businesses. service of ability we and and per in shareholder share adjusted spaces grew We lighting We to the to solid results through generated repurchases. earnings sales vitality in cash our substantially fiscal created operations. and value drive expanded growth quarter

sales Both and businesses strong with performance. spaces started our year the lighting

Acuity the Brands Controls business. Lighting Lighting in and First,

to a of strategy increasing for continues key vitality levels customers. service differentiator product be Our and our

value. creating of excellent portfolio are these to where be efforts Select continues an Contractor example Our

As everyday IOTA a reminder, and and the control Lithonia electrical and effectively products Sensor Contractor and most important with up a collection brands number This service high of high in includes vitality a portfolio limited products retail channels. lighting of Juno, and Lighting, made lighting the from Switch competes of Select the levels. is products product distributor

the An well ability everyday controls. family forward schools, was the example of a vitality reintroduction of The refresh increasing continued to in on commercial Select functions, products including Contractor for retail as this product for These offering. and our focused lighting other the nLight embed are the lighting. outdoor upgraded area enhancing the lighting portfolio, used our as DSX outdoor and significant outdoor control quarter of workspaces. wireless in step design improving is It the

levels high high high a Our service focus with and end vitality of concentrated on at us satisfaction product to deliver attractive levels user offering allows profitability.

strategy our of several our Our priorities, including product vitality addresses efforts. sustainability

including in other office, launched stitch collapsible brand, These that products new innovations, designs number a similar quarter, lean, trio products, have to customers. sustainable the of This marketed of are A-Light wings a commercial our of and use and materials. and we

the in materials wings the are XXX% example, For recyclable. products

been during feedback Additionally, on space, has our specification design shipping the amount and products which positive less been reduces community collapsible the packaging contain the as and fuel of costs. The take waste means and across shipping design less products consumed the as recognized. up these transportation has well

of improve the this pleased and won architects GRAND by is life design A-Light Our work focusing PRIX announce built DU and sustainability, in X team designers celebrate that our A-Light quality the quarter, the DESIGN Awards to brand and on who innovative leading that environment. I'm of

on making We levels. service of improving progress strategy our also are

availability late becomes backlog to We more beginning as our component of more decrease stable. times are satisfy and lead

productive core the only but our innovative. are differentiated are service reasons strategically they Mexico. also in manufacturing very located, to they Not continues of our One and is facilities be

Our December, that team that are and is aligned I of associates by help conditions. there in and evolving will I highly staffing changes they adapt the impressed making was in values. engaged employee market to to and our engagement us visited

decision future. were this to and our we to These custom expect and them do in strategically Finally, solutions. quarter, took Sunoptics relevant, meet business financial lighting the expectations daylighting we exit longer Winona not architectural the businesses our our no

we will We more choose operate businesses we compete. to will about talk and where in comments. continuously evaluate Karen this which her

and in Group. winning sales expanding operating The delivered profit key several spaces Now and team quarter. Spaces Atrius customers. moving services this Distech existing customers new to our growth good Both to Intelligent successful were and

product Our controls focusing in in broader is Distech. addressable the North applicability. it France, largely are sensors market of and America marketplace, winning we Distech on the for portfolio and has and increasing Therefore,

promising The first is we step U.K. is the to markets off a start effort in the expanding geographic serve. that This

independent HVAC, grow example tenants Europe with had power for Distech Lyon, construction group all Distech customer we large throughout We multiyear the full already of and control We integrators of using entire of was to This while implementation and a to all a in visit and our look systems control the full right in is delivering to are was space. opportunity dollar products of site which space. suite U.K. including the the I a assembling are wins, in October, installation our lighting France, multimillion the contract. In the market shake penetration forward and continuing great mixed-use of areas a a large

Moving to capital allocation.

approximately million repurchased repurchased over XX% we to XXXX at just X.X May of amount of the outstanding of quarter, our an average $XXX. shares price brings under the since During shares, total just which

capital Our remain allocation the priorities same.

growth businesses, dividend and is Our priorities opportunity value share in an shareholders. permanent to we when for allocate in perceive repurchases to are invest maintain acquisitions, our capital invest current for create for our there

X are XXXX. themes of There fiscal that are looking on. to we Now focused the rest

which our business affect will uncertainty interest we over inflation obviously know First, time. there's around the and rates, economy,

as believe backlog we to Second, times lead that will improves, return normal. and will improve availability component levels

this We our are beginning to see business. in

of variety continuing a end markets and our service in for our positioned in and well these well us are vitality product We positions environments. dynamic investment

to Our organization whatever requirements not have positioned our predict future our customers. way. as we to comes to the result, ourselves adapt perfectly, And to changing to the of a continues rather adapt but

Finally, before EarthLIGHT to want I congratulate team to XXXX in I our the accomplishments hand over detailed Karen, on report. our

and emissions, to to achieving Our reduce our services customers' products by our zero proud we energy commitment carbon announce XXXX. and and are their save net

reduce targets working environment This initiative X targets this, Scopes of for been the to to science-based X and emissions. our both X, good good and we further with for part have is carbon As business. new establish interim our the

who you will provide on turn the our a performance update. and I'll to quarter call first Now Karen, strategic update over

Karen Holcom

you, Thank Neil.

EPS delivered continued Our year. and cash to diluted first was quarter sales strong to start of effectively. adjusted We good We adjusted XXXX growth operations grew operating the a allocate profit, improved capital growth. solid and from flow

mentioned, skylights commercial several quarter the our buildings. portfolio of during we opportunity dome took business. vents first different our business smoke the As fiscal and provided types to to This Sunoptics and of XXXX, Neil sold strategically review

architectural lighting announced also Winona year. solutions by of our the discontinue We fiscal plans custom the end to

higher the amortization first net prior we costs. during $XX the first quarter. quarter charges the higher of of the related gross price. generated the and result, and and which Both sale Operating operating profit or loss of adjusted million a to business. In the good billion, largely in due million. profit manage share was as approximately growth took quarter, we to ABL per Sunoptics The on $X.XX than and of severance, result the profit ISG performance million adjusted to profit a to operating we businesses continue $X was $XXX diluted nonrecurring the contributed the a $XXX accelerated X% sales As price year, of impairments, was

sales higher the However, because fiscal the was decisions XXXX of operating commissions. profit lower impact fall-through of to for adjusted of made strategic around the

to we share. adjusted per Finally, grow continued earnings

independent of earnings currency nonrecurring our our per X% of benefits a Our earnings before, adjusted decrease or of year-over-year $X.XX operating I performance. the sales channels, driven $X.XX detailed grew while network, with retail mentioned over previously. increase a Net operating $X.XX our primarily the to of lower in $X.XX ABL direct outstanding compared per due want of of year-over-year to $XXX $XX per share ABL year. to was decrease sales growth to a of ABL's share fall-through XX% $XXX foreign an X% result shares or million, relatively with now prior million, increased the This diluted segment the and adjusted charges profit channel. year. was profit, the as profit diluted of as million was year, in higher sales expand commissions, $X.XX on result higher diluted the lower higher I the repurchases. I share prior and from versus accounts share corporate by operating increase The the adjusted prior year-over-year. The earnings flat due was was rate of

quarter ISG. XX% Sales increase the both net strong Now moving million prior an a operating versus $XX spaces of year. and $XX XXXX the in segment of and improved had quarter or profit. to sales The first were million,

the availability the as operating Distech fiscal a was down and performance fourth projects from amount of quarter, to variety of quarter component of ISG's During able strong backlog had work performance we a significant as across sales XXXX some and to the from that million cleared profit higher the quarter. this backlog. the to due $X in of of improved first of products benefits Operating mix XXXX increased quarter also improved.

months XXXX, over an from quarter. year's We Now operating moving $XXX flow. flow of first cash to the $XXX fiscal X million increase of cash for the activities prior of first generated million

in facilities as to reminder, the inventory well several quarters, growth intention last working down insulate that invested As as our which our supply done. we inconsistent have of order a inventory production support in over with we from availability, year,

the XX February from down inventory now are days of We XXXX. in peak

the $XX repurchase We capital and the to in also first quarter million expenditures XXXX approximately fiscal of during million quarter. first million during shares X.X $XX invested

for call the turn questions, following. to to operator I the Before want reiterate I the

your adapt to will now joining ourselves pass allocate over solid I the for take effectively. Thank adjusted XXXX. the continue for and remains us to XXXX operator pleased performance changing to and position to quickly unchanged, to today. market you our strong are with sales our We and EPS, in continue We outlook diluted capital quarter conditions to growth we first of questions. delivered you to

Operator

[Operator Instructions] from come first from Baird. Tim And our will Wojs question

Timothy Wojs

of backlog, it backlog does and like thoughts made job on Happy New just the when Year. Neil, kind Any kind think Nice you of some Maybe the of you down. supply or progress X to chain working X on that sound the you compare returned level? normalized where could to contrast ago? maybe is months a and I relative chain, today supply more And the guess on performing

Neil Ashe

Yes, sure.

question. the for So fair there's Thanks amount unpack a to Tim. there,

So expectation woods industry our are big availability to completely and consistent, although it's is reduce enable of out we I then the -- starting it consistent more that some see or as us yet to will component yet is consistent, that more so picture, not that. don't that lead we more on But are availability, back becomes the to normal, times. think

a obviously that's positive. So

that Along be working the way, through backlog. we'll

So accurate, our probably pretty peaked say we've absolute top year the last as quarters, of head, on your my I the several would we backlog. and last implies when fiscal second quarter of said off or -- of third the probably level over was question

and X that. been over to we don't or a through know quarters to exactly a -- think sales, obviously and continue over course order more net of is we've going working so between how And take. couple times and net of next relationship long net be the get positive. lead that be us working intake should the last to That will normal will We the through quarter that down which

an estimate, but that's that's right. I -- round think, So just about numbers, that's

Timothy Wojs

Okay.

commission I to level And the to that's higher commissions comment, it fiscal And generally in just guess, what was isolated for that a just elaborate, I Good. then maybe, exactly Okay. the quarter? guess be going if the year? on the you quarter? Karen, of is could Or

Karen Holcom

we're future commissions in this in business. There investing really Thanks, And things is what are Tim. year. several on focused Yes. on going

example, we've commissions and to position changes them made So secure business. invested business. we've sales for And some to to our a for investments certain the direct upcoming also force infrastructure project future

So balance level. through see this is the to at I of that continue this going think what is year the you'll

Operator

from come UBS. will Snyder question next from Our Chris

Christopher Snyder

seen you've when talk talked about industrial M&A? compressed looking M&A use talk deploy But [ for? the the towards to Could sort M&A in in with also And with the allocation the of X we year company start of is capital across of all wanted any one forward multiples here, the provided that starting of of maybe assets past, look you verticals most you more can ISG marketplace, assets favor above the of Neil. to then Because semi-adjacent maybe right buybacks. came I capital about group, past, of was in the think shift has on out buybacks. over the types for I the is the pipeline? build specifically, you assets rate of gone to -- but But at as them. some software And in maybe the capital. looking the kind always the framework, your we've tech last now, to about ] In kind that really or tech

Neil Ashe

Yes. Thanks, Chris.

our priorities M&A, we'll capital our feel when and dividend, here in like been about current share So maintain We'll allocation. capital we'll opportunity. repurchases we've businesses, for we since I've been we'll in there's an invest our invest consistent for use

over value than as $XXX over a than XX% general the obviously, been So said market's per to the in for share. the the less about comments, I last opportunity several at my of of created has years, an us, little course company and our repurchase it's less value,

world, So bit. to back change is to capital a feel come us good really little allocation. The we about that you as indicated, and starting

on in more assets going deploy ability to other feel So to as forward. valuations do then come we to reasonable start back capital levels, our confident

which and to has OPTOTRONIC's thing the obviously and which allows a our control to significant controls OEM, was luminaires fruit. to the OSRAM in lighting technology electronics we our So our us control broader borne obviously, for business, first develop an lighting greater strategic that OEM did, supply the channel chain, acquisition of take

we So Group. of seeing forward, areas market Spaces as have there. notably we addressable the of pretty all Intelligent can interesting solid And opportunities where expand look we most sizes acquisitions pipeline of our in different we're a

ability to which to is continue significant. we'll our evaluate, So obviously, generate cash,

we the were very operating cash pleased So with this flow quarter.

working priorities. And the Karen meet capital indicated, plenty capital last all made capital of that down our paying we're in with of As investment we positions us to year. allocation

Christopher Snyder

And confidence want starts Can to leverage kind the the on you talk of generate leverage. operating ability reason was year-on-year, up the the just to environment operating as follow just And in I to about normalize. but growth, in is, quarter, realized margin investing gross mean company priority. a high down I and healthy I year-on-year. this flat growth is know ask the I big single-digit was operating margin

to of rest kind ability thoughts in operating any this, into the So just year through or confidence following year. the through the even the of leverage generate or

Neil Ashe

in ability Yes. to leverage. confident operating We're generate our

indicated, as elaborate and a So little bit. Karen I'll

beyond, see when not retrospect, now see fast, time, things grow and -- to 'XX, course probably at you'll look of start last we so did us you if was think you period a margins I that -- you you XXXX, obviously, as and would quite and 'XX in over a in us see, those bring margins 'XX, from we you grow sales we if -- and that see year, together. net significant had not growth as the

perfectly been with synchronous, haven't made ability take those but share. decisions generally our the we're So we've to and pleased

in -- Holophane So we kind some they generating so our as out for focus of Karen positioned and infrastructure changed a commissions, indicated, expect of be that leverage in could now We've invested dollars coming. going that our forward, made be agencies. investments couple on we've anecdotally, margin as that to we to is the

as think about talked I talked example. have we've New Atlanta York, others So and about

in permanent invest add we these commissions, but net a up things So there commissions. are in change of percentage of to that a a sales which the not in investment series

Operator

our please. One Wells next And will moment from question from for our question, next come Fargo. O'Dea Joe

Joseph O'Dea

commissions margin SG&A little to from bit start -- that the all of achieve And the else margins a fourth sort first it that anything going could margins, from margin to want I then or and of you take if gross kind SG&A, quarter on to a able function to an help just flattish gross what sequentially? of bridge on both it with you is a approach, be quarter was we similarly, there? led

Neil Ashe

honest and me Karen, then keep I'll Yes, here. start,

sequentially, the quarter Joe, So we you the have sales quarter. versus think I -- lower know, in as fourth first

was production deliver really productivity our commissions. solid to Karen And has story So whole by gross of And ability side. our ability has was own then second the the ability levels One on driven profit maintain is largely in performance indicated, been margin maintain operating the side, to price. a consistent the the on expense facilities. the gross That X was things. our to as

So operating time, I is. And expenses. in commissions we is profit investment in that leverage confident can over to as where said Chris' the that increase delivered we're mild what relatively those has question, it

Karen Holcom

And, -- Yes. I when in strong some mentioned of the component to thing is, and margin opening comments, backlog other their that this electronic a really they as really add only performance for margin -- favorable quarter did able Joe, the would improved, availability have my the them. they some clear were I did ISG in when result they you

Joseph O'Dea

on, I as ease then time, out same at on That's but think Obviously, the we're just months, see. of of tracking demand know days but uncertainty touched I'm past calendar and sort seeing just we flip, helpful. demand the there whether on a you're few the you macro it. most couple over terms into comfort demand, maybe wait curious caution the just sort Got some what supply little of as seeing shifts the ABI bit of chain the that the you're time on a and about and of front. And sort seeing real bit sort you're the sort in of all of environment, of we months, of little you're see anything kind in cadence over last and more the more

Neil Ashe

Yes.

Joe, I'll and want that to on start you So Karen this. to add anything

So the obviously, we're focused economy. on

the we the better than et have market. obviously So ball interest And cetera. inflation, don't rates, a crystal Fed,

So we're paying attention to that.

I indicated, to. As attention other X are there's lot a we paying things that of

first supply be -- lead availability, start return will we to you able more normal to chain, as as times. there is indicated, to will that The component be

have we they time people work transition short will availability. little And so have demand bit period that that a -- impact so a probably they where bought could ensure that for as through ahead impact of probably

example would and inventory in that of stage their would that An be distributors have store inventory.

So so obvious or that would have that would their price on X; be would reasons, as but their most and and they number project that or lighting they a they that they -- the it, any a ahead distributor contractor X ensure needed on a bought controls, bought and where be earlier of lighting done they than product prices. when to the could would might have some X, have number of have for those lower capitalize increases normal

take -- like our to several an vitality service the to to next of our to kind in to have levels, But time and expect our in confident last us. economic the the We periods. we environment over we net-net, toolkit over that but and the were we impact those share not we we exactly -- faced those of expect So demand -- and how tools this. ability much did combination continue things that don't industry know when, our which are through product affect in

Operator

next Oppenheimer. Christopher moment our will come question, question And our for next Glynn from from One please.

Christopher Glynn

Happy Monday, everybody.

improving lead pertains the margin a be there. getting opportunity margins are as into of did you and with have the little to year the a more a of drill bit ISG some seeing pathway little out, factories might times predictable down on? Karen loading to level backlog that the ABL, as So on Curious, gross goes

Neil Ashe

side. loading we up you happy more Monday Monday X of trying wanted to for on for to yes, facilities we level a our o'clock ABL the I check, Yes. -- are on and Chris. are Is at Big showing Thanks, move an towards oxymoron? all this picture, moving call. thank

take supply. to component back steps So the on electronic X

and as OEM referred to the control bought X in the reasons: second, our expand technology mentioned is exposure obviously, our third supply I to for So now, OSRAM market; the earlier, greater to luminaires; to chain. and we to OPTOTRONIC the of take one, our control

we market it we prioritized the business. as the were supply the course when the over opportunity market have have were to the of was demonstrate and bought being we bouncing forward, -- go we electronic could that, So control we that that now when in of to take year, had last around, kind we the greater serious We that about believe of they was the just market -- so OEMs that chain.

component the driver the So obviously electronic that have is pacemaker items on been side. and

loading think more So as we ability and will have start to greater over more time. control control we have that, take over to we level the

loading level rhythm. lead we be as greater be better in get position won't operating of normal net-net, backlog forward facilities control our to The supply over we electronic via load lower lower yes, levels perfect, that -- level we absolute chain. obviously, in a going are that and more balanced a will believe taking more But time because by to

Christopher Glynn

some reiterated the savings out the annual by with considering associated last those? it Or with pertains discontinues. on And of Sunoptics in framework quarter guidance just laid that dovetail the reference and and And to does those What's it Great. cost follow-up, today? revenue kind of model? we be and Winona the you our should

Neil Ashe

Yes.

Let Karen, put of context me get the first, We in changes we the on front the then financials. specifics this a see answer want just that -- in marketplace. and to can take do in you

we that forward. the that of business make the that are performing and to that impact these Sunoptics environment. Winona will anymore. so -- we absorb XXXX about our are demonstrations decisions custom the so, in business from an forward, Karen's I think acquisition these the upcoming to about in. of or businesses guidance, And also was just that wasn't perform impact line business were ability obviously, these think our that and And was Each to just in contemplated, going we was going our evaluate to both so of compete to year. in -- in this going constantly and we're But willingness the comments top a custom And our going didn't we frankly profitability expect

Operator

moment One And Merkel question, will for next our please. question Ryan William from from come our Blair. next

Ryan Merkel

My I just margin. the of still first half is follow-ups. had margins, half? Is of bit a Or question gross shape gross changed than couple is going the is get? the first to it's on same a better has where because that the easier second componentry be to little

Karen Holcom

that Yes, would last pressures talk of quarter, higher we year. the some the about Ryan, first did of through cost flow half the and some in inventory the of to talked when see started we we

So really hasn't changed. that

Our half perspective continue year. through flow to inventory is that will of in the first the

loading well earlier as that facilities mentioned opportunity our the chain. half and as some the have supply control back in more Neil for indicate more level what over electronics in our so to improvement And the with opportunity of for should to

Ryan Merkel

it. Got

then on And SG&A. follow-up a Okay.

said XQ? And I SG&A When can that that. you just from expect you sure Does happen think XQ? not do to I'm I unpack you're leverage year. this heard what changes that? to you do in going

Neil Ashe

Yes.

SG&A? leverage leverage change to The future clarify opportunity investment quarter that for the sequentially in outlined. question, And confident quarter number commission. the first fourth we in Karen permanent we for think, yes, thanks the around And what can SG&A because the commissions rate of that was that's we not SG&A. growth are confident and us I from not was we I positioning the a the that change in primarily that can Chris' was, said. So that are

So those see commissions. we

We quarters commission to of expect sales. next the couple those to through continue investments in relation

that's operating line. that don't of if leverage we be So provided. the changes. constantly that especially expect our to contemplated in evaluating market Karen expenses guidance But and will the Obviously, us all

Operator

come And Research Jeffrey our Sprague from Partners. next question will Vertical from

Jeffrey Sprague

if all day. be we are will next I off Monday, Monday MLK guess maybe for happy

here, ability sales would future And just So dead labor bit kind It a you're like? something on I be commissions here. of costs which revenues I'm potentially like of of you commission retain is paying to with or feel like and potential beating loading question, better horse this why commission future else kind Is costs, some front salespeople little we're labor the period. infrastructure for for availability? higher kind a the but confused this today sounds in going

Neil Ashe

Yes.

So be let bit think you give me little insight Jeff, which a more granular, some more color. will and I

side, some agency So our Holophane with we evolving and relationships. sales to we how on take the infrastructure direct market are

we're So we're business. paying in -- some commissions cases, double double paying on existing

sometimes We we will some indicated in as transitions costs line. work make period around we Atlanta changes show as that, a others in as so incur about, those earlier, the the through like some up that country, make second, or York, level. that normal will to talked we return more over time commissions markets And or that we New which we've

Jeffrey Sprague

you plan, kind Maybe and a it's more sense of us plan now X- Is you of markets? but unfolding, at Understood. a and a kind sense footprint? on Europe? to of the appear can And international just just that Distech, it France other U.K. that Are looking there, total just just give to out be of rule me broadly. then opportunities maybe the it of sounds or the X-year give like, kind

Neil Ashe

Thanks for the question. Yes.

attractive a So very Distech is business.

been on market. the on sensor largely America And they control the France. technology building So have it's focused best effectively the North and management compete They market. in

have we France. penetration So good in

developing have U.S. in the yes, markets. And, penetration We in the technology is applicable multiple

strategy. is a it so And multiyear

U.K. the is first So

start to will The grow. to second be

we in business we'll opportunity. have but very a small We have developing have a business, large we provides Asia, think -- a non-China which

to a so think So continue will addressable be mousetrap around better theme this we now And increase net-net, push Distech the want can expansion. we -- have we geographic do the market. we to

Operator

One our will And Goldman question, next from please. moment question Lee for Sachs. our Brian next come from

Brian Lee

price too of out price of, bigger price year. questions. Any had of XXXX? Happy including past price Any know granularly, you've mentioned Maybe input whether a course expect They you'd in you increases, coming sense customers like what about but costs, just have of increases a given I give some now. back level obviously, the a from today, little quarters, over Year. be and been bit couple past several the picture, you've don't earlier again, freight? kind picture that feedback the back to outlook big is talk and/or New multiple here peers seem tailwind, through around just to at zooming to in for the pricing

Neil Ashe

Yes.

picture So, price. on Brian, big

couple we've the of done several Over will years, course ultimately which of impact price. the things, last

to The first increase our is product dramatically vitality.

better value they're they're those for relationship getting productivity and it. through through the to products in paying delivering we're what our and products what our end So users between

The effectively that We been we market can our second so that can we on strategic win. is compete the win based we conditions projects that products, in price pricing. about we've like to everyday and

vitality, are results that to has us having to encounter right past We right to for That we've been at in combination has strategically allowed and valuable the product we what price, expect our customers, of really encountered. the market right forward. deliver going ability that value in tools think the price those product the the manage at the market

right forward. price and price choosing, everyday based say, valuable do really So projects that kind of is a to which at win want the products we on the make going we the the difference right place, ability strategically the when having products to best and ability between, to margin the in

Brian Lee

normalize. freight on maybe makes reopening, related that landscape, Okay. And competitive enough. from of sort to costs the overseas suppliers? All the especially updated again, sense. a I to just little Fair bit, guess comment Any thoughts China just around then starting

Neil Ashe

Yes. U.S. respect Having gift. competition. indicated, a about as and we always consider good Canada. manufactured in for Asia, that, We from North XX% No, our Mexico, to XX% as and a competition reiterate, have of is the question, it's tremendous about said sourced just America, is I product

U.S. in So in -- Canada XX% XX% and the

with allows do that So whoever us competitors the what to are. compete new effectively is

like out we've dealt here. Asia products our challenges just everyone So else, of getting with and

obviously, competition, little effectively been the we've the margin a same while So they net-net, have. -- expect there to competing more be on we in bit market

Operator

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

Neil Ashe

indicated thank joining all First we Monday a early us you on morning. all, as for of

solid control We are had we're We're to user well on both the working our the markets, where our positioned performance expand in quarter. pleased on lighting and increasingly lighting We market. Spaces first side, Intelligent addressable our in end the with and results. side

way. the we're of We trends and the the expect with kind of sends our the our current adaptable to in ability be the pleased market to whatever continuation economy,

your send So hope your with a have way. again and we on talking you forward great And rest day, you we soon. that, of to to you we'll look

Operator

participation. conference for concludes your call. Thank This today's you

Everyone, disconnect. may You a day. wonderful have now

Acuity Brands (AYI) 9 Jan 232023 Q1 Earnings call transcript