Acuity Brands, Inc. (NYSE:AYI) Q3 2024 Earnings Conference Call June 27, 2024 8:00 AM ET

Company Participants

Charlotte McLaughlin - VP, IR
Neil Ashe - Chairman, President & CEO
Karen Holcom - SVP & CFO

Conference Call Participants

Christopher Glynn - Oppenheimer
Ryan Merkel - William Blair
Tim Wojs - Baird
Joe O'Dea - Wells Fargo
Jeffrey Sprague - Vertical Research

Operator

Good morning, and welcome to the Acuity Brands Fiscal 2024 Third Quarter Earnings Call. 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. Charlotte, please go ahead.

Charlotte McLaughlin

Thank you. Good morning, and welcome to the Acuity Brands fiscal 2024 third quarter earnings call. On the call with me this morning are Neil Ashe, our Chairman, President, and Chief Executive Officer; and Karen Holcom, our Senior Vice President and Chief Financial Officer. Today's call will include updates on our strategic progress and on our fiscal 2024 third quarter performance. There will be an opportunity for Q&A at the end of this call.

As a reminder, some of our comments today may be forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as detailed on Slide 2 of the accompanying presentation.

Reconciliations of certain non-GAAP financial metrics with their corresponding GAAP measures are available in our 2024 third quarter earnings release and supplemental presentation, both of which are available on our Investor Relations website at www.investors.acuitybrands.com.

Thank you for your interest in Acuity Brands. I will now turn the call over to Neil Ashe.

Neil Ashe

Thank you, Charlotte, and thank you all for joining us this morning. In our fiscal 2024 third quarter, we delivered solid results. We increased our adjusted operating profit, adjusted operating profit margin, and adjusted diluted earnings per share. We generate strong free cash flow and we allocated capital effectively to drive value.

In our Lighting and Lighting Controls business, we continue to expand profitability while we focus on returning the business to growth. In our Intelligent Spaces business, the growth rate and overall performance remains impressive. In ABL, we increased our adjusted operating profit $2 million to $162 million and increased our adjusted operating profit margin 100 basis points to 18% on $42 million less sales.