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AcuityBrands . Acuity Brands Reports Fiscal 2021 First Quarter Results January 7 , 2021 Achieves Strong Free Cash Flow , Accelerates Share Repurchases ATLANTA , Jan. 07 , 2021 ( GLOBE NEWSWIRE ) -- Acuity Brands , Inc. ( NYSE : AYI ) ( " Company " ) today announced results for the first quarter ended November 30 , 2020. First quarter net sales were $ 792 million , a decrease of 5.1 % compared with the prior - year period . Operating profit margin of 10.8 % increased 80 basis points and adjusted operating profit margin of 13.2 % decreased 110 basis points compared with the prior - year period . Net income was $ 60 million , an increase of 4.6 % compared with the prior - year period . Diluted earnings per share ( EPS ) of $ 1.57 increased by 9.0 % and adjusted diluted EPS of $ 2.03 decreased by 4.7 % compared with the prior - year period . Net cash provided by operating activities totaled $ 124 million for the first quarter of fiscal 2021 compared with $ 130 million in the prior year . Neil Ashe , Chief Executive Officer of Acuity Brands , commented , “ Our Company delivered consistent financial performance in our first quarter amid the challenging market environment associated with the pandemic that continues to negatively impact our end markets . We achieved gross profit margins of 42 % , in line with our gross profit margins in the fourth quarter , resulting from our ongoing actions to drive productivity and reduce product input costs . We generated free cash flow of $ 113 million and deployed $ 255 million of cash to repurchase shares under our share repurchase program . " Mr. Ashe further commented , " The health and well - being of our associates remain our first priority . I am extremely pleased with how our talented associates have worked together during the pandemic to support each other and our customers . As part of our ongoing commitment to making a difference in our communities , we released our EarthLIGHT report during the first quarter to highlight our progress to deliver on our governance and sustainability objectives . " Fiscal 2021 First Quarter Results Fiscal 2021 first quarter net sales of $ 792 million decreased 5.1 % compared with the prior - year period . From a sales channel perspective , sales in the retail channel increased 3 % reflecting strength in home center opportunities . Sales in the independent sales network decreased 3 % as compared with the prior year due to lower volume , decreasing prices on certain products and a changing mix of products sold due primarily to the impact of the COVID - 19 pandemic . Sales in the direct sales network decreased 10 % reflecting weakness in large industrial projects while sales in the corporate accounts sales channel declined 28 % due primarily to lower renovation activity with large , big - box retailers . Changes in foreign currency rates did not have a meaningful impact on first quarter net sales . Gross profit for the first quarter of fiscal 2021 was $ 332 million , a decrease of $ 23 million , or 6.6 % , compared with the prior - year period . The decrease in gross profit was due primarily to the impact of lower volume and lower price on certain products , as well as a change in product mix partially offset by productivity improvements and lower product input costs from cost reduction efforts . Fiscal 2021 first quarter gross profit margin of 42.0 % decreased 60 basis points compared with the prior - year period's gross profit margin of 42.6 % . Adjusted gross profit margin for the first quarter of fiscal 2021 decreased 80 basis points to 42.0 % compared to 42.8 % in the prior - year period . Selling , distribution , and administrative ( " SD & A ” ) expenses for the first quarter of fiscal 2021 totaled $ 246 million , a decrease of $ 19 million compared with the prior - year period . The decrease in SD & A expenses was due primarily to decreased employee costs , lower freight and commissions associated with decreased sales volumes , and the reduction of fixed operating expenses in response to the lower net sales . SD & A expenses for the first quarter of fiscal 2021 were 31.1 % of net sales compared with 31.8 % of net sales for the prior - year period . Adjusted SD & A expenses for the first quarter of fiscal 2021 totaled $ 228 million ( 28.8 % of net sales ) compared with $ 238 million ( 28.5 % of net sales ) in the prior - year period . Operating profit for the first quarter of fiscal 2021 was $ 86 million , or 10.8 % of net sales , compared with $ 84 million , or 10.0 % of net sales , for the prior - year period , an increase of $ 2 million , or 2.5 % . The increase in operating profit was due to lower SD & A expenses and lower special charges partially offset by lower gross profit . Adjusted operating profit for the first quarter of fiscal 2021 was $ 104 million , or 13.2 % of net sales , compared with $ 119 million , or 14.3 % of net sales , for the prior - year period , a decrease of $ 15 million , or 12.4 % . Cash Flows Net cash provided by operating activities totaled $ 124 million during fiscal 2021 first quarter compared with $ 130 million in the prior - year period , a decrease of $ 6 million due primarily to the timing of certain payments and lower net income partially offset by lower operating working capital requirements . Free cash flow ( net cash provided by operating activities less capital expenditures ) decreased $ 5 million to $ 113 million for fiscal 2021 first quarter . Cash and cash equivalents on November 30 , 2020 totaled $ 507 million , a decrease of $ 54 million since the end of fiscal 2020. During the first quarter of fiscal 2021 , the Company paid $ 255 million in cash to repurchase approximately 2.6 million shares of its common stock under its previously authorized stock repurchase program . Financing On November 10 , 2020 , Acuity Brands Lighting , Inc. ( " ABL ” ) , a wholly owned operating subsidiary of the Company , issued senior unsecured notes in an aggregate principal amount of $ 500 million . The notes bear interest at a rate of 2.150 % per annum and will mature on December 15 , 2030. The majority of the proceeds were used to refinance outstanding borrowings of $ 395 million under ABL's senior unsecured term loan . Outlook Mr. Ashe commented , " We continue to invest in our business to expand our technology and product portfolios in lighting , lighting controls , and intelligent buildings while we drive our transformation to improve our service capabilities . While the recovery in the economic environment remains uncertain due to the impacts of the pandemic , we are cautiously optimistic about returning to stability in our end markets in calendar year 2021 , and are excited about the opportunity that lies before us to transform our business and gain share . We will continue to use our strong cash generation to