Acuity Brands (AYI) 8 Oct 202020 Q4 Earnings call transcript

Good morning, and welcome to Acuity Brands Fiscal 2020 Fourth Quarter Financial Conference Call. After today's presentation, there will be a formal question-and-answer session. [Operator Instructions] Today's conference is being recorded.

If you have any objections, you may disconnect at this time.

Now I would like to introduce Mr. Investor Corporate President, Vice Shannin, Relations Development. and Pete you may begin. Sir,

Executive discuss With Ashe, XXXX Chief and our Ricky me President Financial morning. Executive President and our Vice our Karen President Senior today and Reece, Neil Good Officer; are of to fiscal Acuity Chief Lighting. Holcom, results fourth President Vice our Officer; and quarter Brands

call We acuitybrands.com. today's conference at webcasting are

this the filings certain found call, risks future of Further, non-GAAP financial we this the future no our or these they results XX-Q financial our actual identify as uncertainties Reconciliations cause may or information obligation only which factors performance XX-K also call, refer During Such materially forward-looking future release. important company. actual forward-looking update GAAP be materially. we and to statements and to events that press statements. measures release, made quarter undertake of press could and make discuss statements differ financial can publicly to speak date any to forward-looking those of or to today's like our remind regarding contained such that in will fourth events. projections projections and comparable new we would differ from involve statements in during measures. I results most that statements Please considering recent everyone that SEC are or may

turn me over Now let Neil this call to Ashe.

you talk about Acuity. Thanks, for time to morning, today Pete. spending Good everyone. with Thank us

remains during market challenging. the continued fourth well quarter that Our company a to perform in

line supply quarter. the allowed channels, and prior combined customers generate year the the were quarter continue the many needs product during categories. to to margins us third and to As portfolio I of in the cash serve in strength gross of maintain said significant our able We with a across third of amount effectively go-to-market chain and quarter,

priority, continued included turn to supply to customers. of and supply our this our The Some health of the strong allowed in quarter wellbeing operate we chain. top our chain performance of could service highlights which our our by so remained effectively, continue associates

product new about of capital detail common the minutes. quarter. million our introductions. during in shares new more our product stock development, product Continued we've I repurchased will offerings XXX,XXX few for several in company's We allocation with $XX expanded a the priorities discuss

will this to Finally, we make continue on on also of more demonstrate digital continued the to later the that. updates quarter adaptability of I has transformation. the and business. performance execution our importantly, progress our call durability in And provide Most our

profit to million our it for the we declined for over on Karen and While of held full pandemic, that, $XXX due our I'll revenue X% free cash gross margins detail to the COVID-XX With more largely financials. turn flow the year. generated

Thank you, the X% quarter a our and to morning, period. financial I for performance quarter million, Neil, sales fourth year some compared everyone. insights the ago decrease the XXXX. Karen. Net good further $XXX of with of will for were fourth add

the precisely estimate of to decrease X% an of volume, volume, mix, changes decrease on and price, separate as that in determine possible is While largely to estimated we due negative sales the net not it a primarily due like I from in result demand highlight impact from impact the was items benefit the in the the would as partially offset These product as channel pandemic, well were COVID-XX an of X% approximately sold. price of and the few negative key to items. mix a perspective, estimated X%. to unfavorable impact acquisitions From by

XX% network, with which about our of year. the million up net makes through $XXX total flat First, prior sales, net sales our sales approximately of independent were

due declined demand to X% from unfavorable Excluding sales due benefit COVID price prior mix. to this channel year, the acquisitions, compared decreased the in the as and to

our quarter to to postponed Second, the of sales were down million that XX% year prior have COVID. network primarily over been through weakness due due direct in net $XX fourth sales large projects

sales exceeded Third, the retail of the by X%. million year channel $XX prior within net

channel As demand for higher projects. type reflected this primarily residential

net Lastly, a customers. on million corporate ago impact were accounts due $XX of primarily period, sales quarter down this of compared in COVID XX% channel the with our retail year to

fourth net big customers find fiscal the taken flat As with cancelled impact Lower costs In demand. inputs to profit XXXX, of believe will period. mix assets, XX.X%, we in were possibly analysis in adjusting costs share items. of volume. of box the for as mix in labor and based related enhanced approximately we back year of million margin and partially $XXX was comparable. cycle Gross we decline provide some period. for expense for noted greater results unfavorable the last inputs the costs acquisition was the acquisitions detailed comparability of the performance. release, construction were activities, useful do find to certain or results the reconciliation decline be into and pandemic to to your delayed fourth these non-GAAP XXXX COVID-XX contributions stores. $XX the based primarily limiting In due the of profit activity the amortization our by in measures, on inconsistent We the intangible this profit we was retailers. This ago have of for order which response quarter benefit and adjustments results operations. unfavorable and GAAP expense, volume to provide year helpful the providing price and in impact they and adjusted of decreased be for non customer the was We streamlining quarter our in to to transparency the of due GAAP our you which ago offset by the charges these offset price served results, from acquired opportunities, for expect in quarter, from reduce exclude certain primarily retrofit sales down Also, to for their Gross and nature a acquisitions, these items special visibility million, the actions decrease earnings add measures we payment think very lower gross

year the addition decreased to expenses million to The expense of SD&A compared $X from partially cost due sales, ago decrease of reduction approximately acquired Our primarily to the period. the by in offset in SD&A response was costs businesses. the lower

estate $X took year right severance special recognized we related to quarter, million period. and to associated size organization as $XXX well to asset fourth related plan in $XXX real profit streamline current ago the impairment the Reported with the compared operating of charges primarily our lease million the reductions footprint, as in we to demand. million, actions was costs During with

our margin While XX.X%, of period. compared the fourth rate basis of the tax due quarter. quarter The rate to fiscal basis the in current XXXX year. profit with the fiscal million profit adjusted recognition XX.X% certain for with was effective margin primarily fiscal Reported research prior XXXX points recur of year. rate increase points compared in in to credits, operating be the prior year the compared million, The $XXX XXX in prior a operating was the We not XX.X%, for was that will income operating prior the items effective for of fourth before was a the development decrease that periods claims profit the blended in for estimate tax approximately XXXX fiscal in year including currently did XX% XXXX. of year. tax XX.X% compared quarter XX Adjusted margin effective decrease costs ago with operating of $XXX profit was adjusted tax and discrete

than per prior year. $X.XX fourth the for of Our diluted $X.XX earnings were share quarter the lower

of prior EPS year. quarter this lower decrease $X.XX Our income. The $X.XX primarily the pretax due adjusted to was diluted was lower than

and decline positive a the quarter We operations ended million flow was strong in We continued equivalents of by even for and million, during XX, dividends provided a balance the XXXX, paying returning have had activities cash increase year. the balance up to compared fiscal sales the by ended stock August in XXXX, million XX, from repurchasing to shareholders operating the XX, $XXX $XXX to million money year we August prior investing since million acquisitions, of year. XXXX, At and cash $XX $XXX an million, which cash with generated August and after $XX $XXX sheet. net of cash despite

shares price During fourth an XXX,XXX the quarter $XXX.XX of XXXX, repurchased for we approximately or approximately million, share. per of about fiscal $XX average

shares under board million repurchase current remaining our almost have share X.X authorization. We

in Our investment in the expect of expenditures net almost of currently million fiscal $X year capital an We million XXXX, in increase for period. X.X% to sales was approximately with $XX expenditures XXXX. compared invest prior fiscal capital

our $XXX loan in credit August XX, at availability outstanding Our The currently credit revolving $XXX additional revolving facility. approximately mature XXXX. And total million under borrowing term and of have debt was XXXX. we million June facility

We it strength best challenging have to enhance will strong value. Thank shareholder demonstrated environment. seek and of significant flexibility during and generation back the you will financial And use cash economic to to continue we our I this turn Neil.

Karen. Thanks,

new a on take embark fiscal we As reiterate year, our to our minute strategy. to I'd like

core have product attractive, process business development in executing better, are of and and cycles. service impactful business this technology faster, into a durable strategically of a the we including valuable customers we on We're assets it in all is transform the we over With our making Distech believe performer that to levels time. can to Atrius, lighting the we demonstrating very current business. are a market; We new transformation that smarter build and our our markets,

cash new generation. begun with capital that we quarter. grow as cash Finally, while the And share structure, managing our and opportunity to we have businesses in we invest consistent demonstrating do our to are our to have current this businesses, repurchases use

described, year acquisitions. below excluding below year, sales million $XXX the net Karen of the prior were and X% prior As X%

able the be myriad actions marketplace. the made company, the to Thanks to price, while the decision maintaining gross we During in of were aggressive strategic profit a quarter, also margins. across we investments in our make to

changed where see flexing the As our has to businesses we market opportunity.

channel infrastructure and markets. sales industrial This through the quarter, we retail grew an and

illustration we in saw geographic by of many While grow inconsistency markets negatively no that the country. impacted to than the we better the we of areas, end to this of those the continue be able There across COVID. serve is impacts were

of no longer regions associates on minute I others. in acknowledge also operations. it would different is some situation no less like away. the depending while health territories, economic down our to take country, has to widely, dangerous our gone COVID is fluctuated sales in in to it And and up Our also in that new, sales with and a the not

as to continuity We our diligent our well being and health are the associates of about to protect ensure continue and our be operations. to need the of to just processes and

product development, have allowed market. and change and strength product the complimentary to go-to-market supply Turning continue to development, our us to chain

have a to offering a end markets. multiple We broad position product compete in

continue activity development solutions. strong product innovative in environment, this and product remains we to in Our invest challenging

UV technology. UV We And pleased products technology. the of lighting into have serve of are Violet for a developing announce our to partnership by agreement related with CareXXX and a expanding products Defense a needs. Ushio related with support that germicidal We announced we strategic entered PURO broad-spectrum previously variety I'm to portfolio to

the chain as While remains and to that initial development, be are right scale combination supply the have our to expectations of size we market believe us of modest, determined, market product the develops. allows we the and go-to-market

management positioned controls and are luminaires our building support uniquely to customers portfolio. with We

Our controls portfolio to also continued expand.

wireless XX additional provide switch feature Just additional which control products pairing enabled harvesting, daylight control This for dimming, software. devices detection. and sensor which luminaires interfaces This X Touch, to wireless, need local One other radio, enabled JOT JOT the the wirelessly JOT a dimming, solution, control. a and and simple quarter room or devices volt to mobile with system, of contractor enables or technology presence a dimming launched apps without enabled allows friendly Bluetooth switching, we wires,

on to as Finally, to we support able portfolio, respond business. additional continue contractor a XX% year we to center and over basis our prior with opportunities home discretionary have comparable up traction select strong were the which was

their of the continued the in smarter, better, faster. calling partners also digital our have include we our contractors, ecosystem execution of are progress we times, and to mentioned, transformation, which lead agencies, shortening make status including know I to of examples distributors, As of all on time. real our allowing and orders this Simple and

engaged the impacts starting in having this service see talented You are higher and success to of help We're already drive levels. great to this recruiting technologists forward.

progress with pleased are the excited the about and possibilities. We

Turning to grow our capital remain first allocation, businesses. our priorities to current

we and to to to M&A, Second We last transformation our completed to grow have capital In by our related our and of dividend paid year, product innovation. opportunities maintaining the third and return invested TLG digital in LocusLabs through and quarter. repurchasing almost and in and million, we shares to cash to capabilities, outstanding shares. other shareholders our look of for fourth repurchase the two in we extend particularly and $XX the continue dividends space, technology acquisitions, people X%

We as ability cash are ability well demonstrating both as generate long that our cash to to deploy creation. term value for our

the I our say want environment. performance that this over call questions, generate pleased ability to I to I turn in Before and with you to this challenging am quarter, our cash for

demand doubt Looking any with fiscal ahead, economic we some the and year there and of will some around recovery. present expect us new. is this still great timing uncertainty continuing no challenges, Therefore, new

be to be deem manage any the to emerge including and effects financial where to will around necessary the to We We this have that we believe believe manage that the need And price. we strength to and uncertainty. taking of intention to pandemic stronger. our actions resolve we aggressive we is continue the it

new the term, expanding more to Over businesses long to our opportunities develop and ones. core to company the we in adapt broadly have the opportunity

become the and market for our people period. President Ricky flow I'll me turn our customers, and company cash delivers for welcome And that more the position, dynamic for we over it have larger, our the and our that, question Karen a We associates and With Reece, the to join answer questions. shareholders. to

Thanks line market, the all Hey, from Q [Operator comes morning. details. Instructions] maybe Good of everybody. Our Wojs just first end from Maybe Neil. Wojs the for question -Tim starting just Tim the on Baird.

we project you give kind from between just leading you little bit business? and hearing If a activity maybe your of influences us could lag could a just that and of residential the and if that what in of remind maybe around maybe us you're indicators sense backlogs agents how see what

context first. start business and Sure, to the well. of last that as ask there say probably is Ricky I'll I'd I'll now then that provide flex the predictive to and future quarter some where the Tim, opportunity. was we

saw through around strength and for residential portfolio well contractor are which markets home infrastructure. as and we So the discretionary like industrial select in then center and growing

was So we pretty feel portfolio broad. like the

to out. I to think As specifically in And mixed. you you look in C&I. the We're be how project forward play the this gonna anyone visibility dive some to that as see can Ricky, it's do to we We context portfolio not, be maybe project don't has exactly market provide to that.

years Thank this digit from And the double you, XX the of been that Yes, at to of industry, that single I economist experienced, market Neil, and range going. the is would. and very low indicative trying their where first -- day this that's that ever we've probably forecast I've the you look the degree uncertainty everywhere is in I've forecast of down. down when digit to highest

are And still are country areas go But down. and that shut then things a then back. and of it's our are there very a channel mentioned to Neil that areas country the gotten there up agents, little other we're appearing others and double a it's what of shaped are where may is postponed are a aren't distributors, trying where uneven. and came specific recovery, that may of hearing it's we it's earlier, we're And are during be going. coming geography, partners, question the the uneven comeback. seeing back we V they certain there all bit, projects by seeing to But bit to So of the have summer down W determine are a encouraged recovery. that And from some

a is verticals, But it's be that bit and geographically some we a think that both encouraged going we seeing Neil are on. going recovery But highlighted, there in good by it's to I areas. So uneven, to appears very inconsistent. as are warehouse and logistic activity be

and activity anybody universal. so We good good. we stores industry seeing of fairly in slow forth. all the was because now pretty activity, online the some season right and and side, school some good the schools that's retail. might then is obviously extremely And good hospitality other so on imagine, COVID, their then and outdoor we're and going some pretty infrastructure, with you of purchasing, As of in forth, well. the not on the But think saw perform There that's

that's so areas. And slowing pretty industrial And us. solid has down some those of for then in heavy been

this kind this continue range in a with positioned. is I quarter I So of think for period of we're I to agree time. Neil, think But well likely

access market have to We strongest the of of industry. anyone in some the

extremely distributors Okay. the guess, in well. been our portfolio. pieces all well of past appreciate are from lot and our Q then, we're question, And I strength I COGS that SG&A, just open second product strategic helpful. And That's as there's Wojs doing years. my of really as Our couple for -Tim the there. agents, benefiting and color all a moving

base look it's You a about think XX%, Or type do kind reasonable of of you level? maybe kind assumption margins else should mean, case this or that gross on you we're think we on, keep XX% there? there can is flat framework I something forward,

manage it we last as intention was level. Tim, Yes, our to to quarter, this said,

in those. lot range kind quarter mentioned, described, as across a it I we we to because but actions, a into It's may so specific XX% to to able continue to that's and as of invest you the price, range, of here target. that And manage there were on our the vary of activities that take manage our strategically desire XX%, as country

morning Good and comes -Ryan next Merkel congrats Hey, William Ryan on from line the from of Our quarter. the thanks. Merkel question Q Blair.

price. I'm is today? continue right about just sounds it plan strategy And the Neil, be from why response channel? competitive if there wondering talk the is the off, Can to you first in might to like some invest So this

Yes, look, I mean, big picture.

the me still economic and there's the of marketplace. are a which obvious, kind significant just bunch markets is pressure, the end under Let supply in state that of

So our at disproportionate margin share, our were in are least gains our our a we're also price. take share ensure managing we share strategic we investments of those to our with mentioned if not we about that gross that markets so what

in opportunities where --this that activity taking; blanket a long-term supply balance user out areas strategic relationships markets. and make we're are we're and about So is and sure demand being end we're we investing want to not with our we

pleased do kind can maintain able plan question. smaller see gross the that, the Tim's players I'm specific? to can that There margins see jobs players. you had market, And that forward. among were commercial by of rising So Okay, performance were helpful. definitely secondly, the how to Q released? you that's going on and And majors I'm just that other that then been in we in -- quarter. impact and both the is trying That's just Or is the of activities owners? netted the property sector in confidence if gauge yes, our it bigger out to -Ryan Merkel hold were broadly

to want take one? you Ricky, that

it's would the I jobs have of hundreds thousands up millions Ryan, them call interesting, into larger forward. say, Sure. the gone dollars of

we're back. are postponed were job obviously contractors come on But you large very And them seeing jobs site, forth. get and couldn't going so the when forward. Some the

ultimately the to one larger in. imagine, lot and continue strong hasn't levels a have we the smaller agents of is you cancelled. not therefore come area Again, set seen our be be to canceled, we back and As in jobs. Where backlog projects smaller That and the good. distributors, of but certainly although jobs appears to the backlog, lighting get it's they as the the their is hearing jobs. invested around and it still come could last construction good. were was might We're the as in uneven it's But country, postponed a is as are those whole various on that postponement some there talk

postponement and the on on much seen larger, not but have jobs. as coming so on back we the smaller So sized medium continuation

Thank you.

kind Glynn the areas. Christopher Oppenheimer. the areas; strategic and resiliency comes Good pickup question price a Thanks. strong from those was initiatives, extent correlation around of from next in share I -Christopher volume Q around curious morning. in Our had you specific those Glynn

And just Yes, it's as Chris, strategic in the, also I in whenever basis, and was the possibly to two I as performance try share price, a would a contractor introduced couple be, Obviously, you make investments say can. you strategic and highlight said, comparable select saw gains. we products. I up as things. correlate and you on XX%, of those it that some new you

absolute the number benefits even than So area to are you aggressive we of can happening. see that. the marketplace. obviously And where intentionally the And higher that's meet was an that

up, supply specific we as activity follow were, share demand maybe as the for term we're, the and thanks and that least users the product a it's, position, shares net and was pipeline, I the just investment repurchase your and curious Beyond balance about permanent disproportionate kind cash of trade the Q my short-term given so if long at balance and customers given balance. where great and share around specific to just independent Glynn offs portfolios, our said, end at prioritization, modest, looking get for a of, can of around out we capital strategic, hopefully the activity. said, share, of Okay, but that, and -Christopher those acquisition arguably immediate kind allocation considering make cash try was and sure new the not cash the

that We pleased some businesses We've we've volume both going the the repurchase. creation. been our we we the having we to grow the through to on to about it's structure our amount were Yes, for our beyond were restrictions with the quarter the no, primary sheet; able reiterate is balance into priorities way current we're it's exactly and ran great addition to, conversations manage new ones the the in a of abilities. and that, capital will value fourth objective obviously, and question want that

pipeline which growing And at our businesses focus through on that kind continue it and so the want to and do acquisition we Q sure actionability lens we capacity to of making have generate. it to of the to rest through the that necessary grow be first we making responsible look with the as we'll is that And stands. of Glynn do will cash things -Christopher

at intermediate say would that's I point. We, this term

through current focused digital the business right now we're the term. and Atrius So we're process we're transformation, the And as the work rolling both doing well on in as intermediate acquisition improving the business and current then through Distech. the around

Our comes Raghavan from from Wells that and Fargo your XX:XX next question current morning, Deepa Securities. it revenue the good mentioned, -Deepa renovation. new Good everyone. get Q Hi, construction Raghavan weak, quarter. Neil, we you as are construction makes indicators

remodeling Just recoveries, can given of you XXXX. are too? be helpful that your you're provide us lessons helping. new will up? comments, will be past it But in thinking the appears if materially assuming Can be that how revenues And any definitely you up. about follow have I construction down from a portion And

I the on Ricky well, perspective obviously, of there step this kind Deepa. in first, I relatively and got taking say, just am start, to business. I'll Okay, historical would back still new thanks, a

So and these our company cycles.

that I've as would And research been for lot a of good. is consistent myself I us doing which So well. say changes a theme, there's

is, the and blank office folks tower are you are new worried So place, office already there fact in reality the that fill in be towers the won't built. hey, said, about our some those and

be answer, to, to ourselves can the lot pick seen going of don't business, pretty going going highlighted how do you we a be participate you lot included, they're their you good for is change and that in and you obviously where The should play the as and of maybe out to a jobs need to have how rethink, how we last we've on where there. to here. they're And what might of up and of that So past realize folks opportunity house can that's, us. there's they're size But think the change. going question aggressively, Ricky kind but when in everyone

you're Yes, Deepa, right.

our back of the have in because renovation it, quality much technologies and bringing. two for side. half the participating great in last opportunity with savings are that year more have the we going years new been more here five we the of or of And life six or Now, probably than are energy ago business

as for may we post that opportunity believe renovations, opportunity COVID shop, real what and Neil it's office We've manage see how be our we out bit in the era, we echo an germicidal space, opportunity may this to construction. see whether restaurants to need a So offset going do as it's we their there. saying, to I help And that are it's the an in slowness new see to UV buildings. whether whether that hospitality, arrange and got of

and we So bring there how think had can the address I savings. evolving traditional controls but energy make in renovation is forth just clearly in. space the renovation that How opportunity so broader we've into than safer, we can opportunities the

seeing of soft but are wouldn't an new want are a that what may new we construction. construction new opportunity bit major so negative area. resi. that see we're be seeing opportunities and on in market, to And what we're just think construction to then some space, to There continue about So is be I in talked going in that a and I I activity. around logistics some the opportunities we're aspects infrastructure good of it warehouse the seeing

been has People in in that area to opportunity Do has their center home you're starts big sheltering construction while Our and seeing resi renovation. selling On channel that opportunity of our we pretty through new participation existing It yourself-ers. And are do-it- fill the an Yourself other for they're up present certainly home expand pretty home area. as opportunity renovation in to projects. for as that strong place also see channel trying well and and time home us. participation as is type That well C&I well us at opportunity there homes a for been to resi us for as holding the

with So our able like but in I are there seize in on these for new broad in But your one. out construction not be to luminaires, even portfolio opportunities points are soft only good opportunities. there controls a but we positioned where headwinds do to area. certain, we're are think there

on And the renovation Yes, over last countless Thanks. That you question? with have I Thanks. helpful, -Deepa second was after spending multiple contribution I to can hours Q spaces of Ricky, attest the a team's your calls, to and Raghavan did. Neil. Deepa, months. Ricky do you couple

how of versus up how of I much a the the that function much pricing, trends. is negative the fixed Karen, last year-on-year mix is August, year-on-year with from I X%, I'm history. you think is the of of much X% you highest So had think fundamental in one mean, X% of pricing can I about talk stiff pricing priced how a this negative going comps? of And sequential your if where price deterioration?

that us think to year-on-year be Thank better X% understand negative I you. print. that will for

you, Thank Deepa. Yes.

I think you're spot on.

we the impact. back mix quarter; in started first of look you If and where the first have quarter, the with And were price favorable we really year. prior a pricing, X% in in it

If fourth a had you increase. last price we year's quarter, recall, announced

the price was a favorable first quarter, we quarter, the impact had X% price third a second favorable mix. impact about and then about flat. had we next of it in in the quarter, of So In X%

come year really full it's down It flat this the during each quarter, correct. fiscal you're a just of So did it impact price, over but about year. sequentially is quarter

you. Thank

Our from Osborne and Jeff next comes Cowen Company. from question

selling as the the market asked, partnerships, UV we two be perspective new questions have your should Can touch lighting. want and mentioned the they'll just on Yes, on with available you and to get good the margin how you addressable been morning. about think when this? start I but just impact then of Most

Sure. leave anything out. if I'll dive start in and Ricky I

is view the So opportunity. Jeff, a as longer as this opposed term to a taken, that short opportunity, burst we've

any into thought I in and in marketplace initial the try was race need. you order an the the can think marketplace with to solution immediate address

We like risks, want these relighting most -- we've mitigation to this we they is we are as in become opportunity part cover so start about in are that We broad the think families ones a do how the we to to to decision start have the that will slightly that invest those provide to that. then our they forward, will to come which technologies. to want going make of strategic different asymmetric taken lead contact don't impactful a product approach, that we projects. with, want And for enterprises for think how what

LED So investment be that this a of it mitigation very strategic asymmetric risks. is the revolution. we think effective like do But wouldn't the for these

ways So existing ways them your incorporate others. through to high areas, them area, volume spaces things existing to to real projects, volume into high life add like effectively

to for technology, paired when for marketplace. alternatives We it all use, provide be people in the our specific the we uses with different constant a announced that that safe is its is Xenon of the different in certifications So in while of which space can are pulse expected today. combination CareXXX be finishes broad-spectrum technology

we expect make our hopefully then next a we calendar we beginning, it the permanent mentioned, meaningful next in of way in a the part And first in portfolio quarter year. that part in and our huge the in I business and first the don't As going the be with forward. in portfolio these grow impactful bump expect to of half of the or a two; market will of, half

Thank you.

next Brian Goldman Our from Lee Sachs. from comes question

first market morning. volume on Maybe the just outlook taking and questions. for here. sort Good outlook Thanks the of question

the You pandemic. to get kind back fiscal given well comments mean, seems ongoing non you're you up that can You basis. with resi. past that around guys of this results sort Are weakness cautious have down we kind the in up of the XXXX. can sort navigating XXXX? I of parity rate comfortable heading you you're quarter deal term, quite Should though on momentum. some I'm And unprecedented year square trying suggest this the into to fiscal quarters there, a parity? growth done into near just picking you couple actual guys of a even good heading progression of get in to bit over back year-on-year X% the to the year-on-year a that anticipate sounding more of

this I economic market Ricky mean, perspective, in guidance XX his is we he's as seen as choppy Brian, outlook from years. an obviously, don't Yes, indicated, and perspective, as give demand

however, out. managing market we're ourselves perform; the to way position the through is shakes so to And this

we last, that market be since we pandemic over will and the two demonstrated so hopefully evidence that And we've earlier, said the believe, than in I how very the over current quarters, the that share, the So as the disproportionate started disproportionate last our share. of to can current I conditions they seen respond the dexterous, more or can, we than in you've market, current performance.

recovery over map on And geographic varies calendar from perspective, that from widely. all will be it's perspective. a a Ricky a also As forward, when are you look indicated there pretty the people

we're you take rebounding. in market say market position the together, you to, we I it and that is are that for the down the market So further going saying like that all positioned

to technical portfolio We year. available just acquisition close we take September have The be laughing, happens. say when that a is last impact I perspective the that would share of piece, kind of the TLG will a last of starting new product from strong is

see X% was So it's been in contributor. the about whereas that a you'll to in, start fourth quarter

wherever we major forward. trend be And what trying guess going So successful we're to we're execute guess it else; accountable But that's see to that look, would holding to does that's difference not in to everyone ourselves positioned but the like the going we what go. to markets to trying ourselves we're on do. But

that. up Karen. the Appreciate enough. these for fair maybe Okay, maybe model, two then just follow And related more to questions are

you last of On guys kind one that X%, down the mix quarter. price first telegraphed

going a talking But how here, question. infer about we negative of I modeling? So And we in to to I first strategically thinking mix you're of a as know quarters not also That'd different SD&A. the don't should headwind that's terms think strategic on does on expect being second bit the something shift for forward? sort about surprising. or continue if be is be upcoming about too question of a price. price then that But that's you're suppose tone pricing

were special year-on-year. the if down charges, bucks a we exclude down You SD&A couple about million sales, guys on was X%

us give fixed little quite And and a there. Thank. not more you cost back variable can embedded reverting So bit revenue a the comp. sense there in is up flattish. Whereas maybe the higher of kind anything SD&A line, much it's keeping how That is year-on-year, SD&A? of is is

Yes. Thank you, Brian.

the comments the the On price will investments for you this I see given we that of and similar that in were price that made, probably the difficult in some last of you mix could that that the continue X%. favorable we've question environment look we this year, price quarter had mix the strategic you year-over-year, had given to model, around think, when make, given first quarter, first market trends

would, then year-over-year, first I is think that when year. When that forget fixed, XX% the is freight excuse with I look So number. will about assumption. SD&A me also bit that that's in at And of of commissions minimize having a included and the to don't reasonable of you a go quarter XX% you're we into acquisition variable the impact

line Our next from John Suisse. question of comes Credit Walsh from the

here, were And asked. your solid morning profit just was kind that you a wanted we the I buying because left around see little you steady good back this do authorization? come around is cash, to wouldn't to on quarter gave turn balance that you of wanted I'm to that execution did share think what your the just to question even line. back confidence actually Hi, more and your congrats net on keep would gross response questions Chris's at listening back to given just sheet. to repurchase? already why I curious, of the a couple of you actually like Sounded than much on bites how bit kind

knows re markets for We We is would to the what go. and end tock on Yes, the and that for go the you, outperform ourselves from have pandemic, be market which markets, everyone dramatic time, back the I John, where ability re executed that, revenue cash. ours in a perspective going a to, we going new, believed we timeline, let's the second the kind so of think well well, in tick we'll set could into quarter, expectations positioned turn is I'm shift. be, one the to in very no

with to way make have were pandemic we husbanding users challenges and cash so into were base. customer good position. we a wanted into we our might we with And end on that expectation in sure our the the the And

normalize we've we that to current those to the need As started performance, reasons. didn't husband realized cash for we around

process. restarted And share the so we repurchase

our as be, our and future capital this of as expect performance, well going you expect a be it can current expected this depending So how will on of needs to programmatic to vary on forward. you both our number can access factors

constrained we said in bit picked So earlier fourth a I we pleased, were the by as up answer, you and in the volume were quarter.

can So we'll from we here. go see where

mean, but HVAC a the there's And bigger launched. make and safe UVC, thus And aggressive far? to partnership still on relatively you. opportunity kind Got to then Thank could this you it's or what you have and product talking ultimately guess; not billions. then a the around understand that's people an the a back don't I at look it strategy the figure get of guess, But about of more you. wide as most kind size. out I be, healthy on going why are mean, buildings, in the the trying investment players, new, been why far case, just I executing not market I you've I if UVC portfolio. kind of, range

highlight some you to some kind that buildings going want with go I all where control. of which started is solution to of healthy technologies, job, ultimate be combination the which Well, of to is and for this require

to any takes environment. our management, going be building portfolio, enterprise are or And so our any necessary with to Distech which assets, decision all so with both for whatever controls healthy to of those create a for in building that our

So the with the in we'll controls, believe all and partnership made differentiator together those have us. the marketplace. we've with we the And we the are investments IP for have we spectrum, to that -- those stitching which technologies, Ushio believe and we're into the then and need we in scale we with made broad our investments now the

say so, where don't now. for tamp the that, this right than customers want meeting they And enthusiasm I to are we're down other to

is need. this of going the think I and be. exactly products everyone's to our frankly, a lot It's, currently all is share than believe right are positioned so well disproportionate try to take there's now. impact bigger of to in meet what's see we we us a describe establish to there. don't is positioned portfolio market And to I -- that the there's control what out that of for trying And not, lot it it and But definitely

Please Our ahead. from comes go the question final of Chris Snyder UBS. from line

you Thank time, the for guys.

what don't to timeline guidance. and flow understand start I non between sales? the seeing talk just lightning there the where So between quite give hit residential significant, you could on about to this we're are side uncertainty when guys the since declines But COVID into project when typical starts in gap and just construction the current and starts I'm market bridge through the lighting is significant you demand? trying really

of a construction Yes, come Chris, project some but extent, the on would look this to depends it the to in. Ricky. starts, when is say, last is at when one size I the of project you lighting

delivering be project. it's So that would lights when smaller it for project, the three, four to we order when it the if a $XX,XXX, say, from and months, receiving starts could under be

into get at up like and projects, nine typically that. to looking that type you years If months larger they would before for you're project lighting be $X.X two million the purchasing a

at a that that. trace look But lag that's when typically we project range certainly we for the the order varies, general and the see between it factor would starts, an of lag So lighting. and when

Thank think for down break mix these And in during the price That's next that. over maybe And quarters? for either very components it helpful. just was to you maybe follow X% meaningfully on there? the you just any the direction couple there reasons quarter. a Can price out my then changes very, up were mix,

that. summarize just I'll

it tie back before. So we've to said things already the and

this took first, we of price quarter So and year year. fourth in quarter the of the last first

in last of the of quarter fourth the mix the So was fiscal XXXX. positive positive in first quarter year, price

full the price. we're of for about impact the so And year, flat on

share. ensure balance we were -- in demand price our and and we the investing to where were supply about were balance taking to we Second, to that mentioned we strategic that

in we success saw select or where invested areas You in portfolio. like contract things

cyclical a about a of forward, and supply as obviously been then an we've consistent amount amount look we hour, for I that's the would expect talking this there's and demand. business, So last that it of what is inconsistent

does disproportionate a that So of take out we there. the demand share to exist want

And try so and gross margin. in will maintaining investments we be our profit that. to All the maintain price in also our targeted while

the where as we try fiscal need So Tim conversation in to aggressive been at as the you be that to our mix. manage and as we feel with we fiscal call, will we in in see we've third of be drive quarter, the beginning positioning can And believe market. our fourth quarter, we and the that in like

to renovation just when project, It's, relight new out when a describing coming come the project, Chris, the back project If a or were asking first I it's which type clear building And, believe to be you get the lag. hours; order what new about was I of think your question. and it's question obviously, describing to construction, But ground. but To I maintenance within and is XX then of may was projects clear, new an to quicker wanted the construction, we for much is lags, it around sure. XX your I was ship those need projects. or make was, and types

had guess side. just then on all appreciate how on just the No, was and if turnaround would the the visibility like certainly Yes. that, color. up is the on seems that clear renovation my and -- could follow I it much I quicker end, I I --

that that's than fair that going I maybe been has workplace and at the it's mobility to maybe believe to trended? resilient more there's forward. But going starts low, has understand So that renovation. -- time, discourage could same be that how

could insight given real-time that seem you you color have like there, do more on that? just So you into any demand provide

the Yes, is color again, uneven. it's only very

on new around delay we've the the retailers construction don't space, before seen slowdown said couldn't renovation, As the and and seen have we in country; a just get jobs, as obviously their forth. people just want others in I in the so

pretty overall So been consistent has with the trend. our there trend

would to closing for you like over Q&A. Thank participating I Ashe back Neil call in the to remarks. Mr. for today's turn

So like couple a things. I'd again, to emphasize

able like consistently in performed the the a we're in environments. really profit flat we've First, X% net all generate to and margin. feel manage decline We quarter. sales to ability we to gross market were well cash demonstrating And a

we're, chain, obviously however or levels. incredible we to back, technologists, the compliment as for whether robust inevitable two shakes in course the development that our brought board out a enabling folks, talking the I'd functions, performance. renovation over are is on going we last that's has so demanding of happen, the quarters, last, like say, starts. for we believe And I like to thing we to the the portfolio is really an on last that's at a of have the everyone the the all whether new supply solid feel these the deliver good. And And bounce product believe the it we're And very about whether market a construction we team very well what stays the positioned we what rallied effort in to environment product

And for excited we're we the well where And it's future. positioned shake about going think out. we're to so

to learning time again and forward for time to your and we of talking conversation you investment quarter. we about another thank So Acuity appreciate this and you and the look

conference for call. and concludes you today's Ladies participating. gentlemen, this Thank

disconnect. now may You