Acuity Brands, Inc. (NYSE:AYI) Q3 2020 Earnings Conference Call - Final Transcript

Jun 30, 2020 • 10:00 am ET

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Acuity Brands, Inc. (NYSE:AYI) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to Acuity Brands Fiscal 2020 Third 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. Pete Shannin, Vice President, Investor Relations, Corporate Development. Sir, you may begin.

Executive
Pete Shannin

Good morning. With me today to discuss our fiscal 2020 third quarter results are Neil Ashe, our President and Chief Executive Officer; Karen Holcom, our Senior Vice President and Chief Financial Officer; and Ricky Reece, our Executive Vice President and President of Acuity Brands Lighting. We are webcasting today's conference call at acuitybrands.com.

During this call, we will also discuss certain non-GAAP financial measures. Reconciliations to comparable GAAP financial measures can be found in our third quarter press release and 10-Q SEC filing.

I would like to remind everyone that during this call, we may make projections or forward-looking statements regarding future events or future financial performance of the company. Such statements involve risks and uncertainties such that actual results may differ materially. Further, forward-looking statements speak only as of the date that they are made and we undertake no obligation to update publicly any of these statements in light of new information or future events. Please refer to our most recent 10-K and 10-Q SEC filings and today's press release, which identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements.

Now let me turn this call over to Neil Ashe.

Executive
Neil M. Ashe

Thanks, Pete. Good morning everyone and thank you for spending time with us today to talk about Acuity. Our company performed well during an incredibly challenging market environment. The combined strength of our go-to-market channels, product portfolio, and supply chain, allowed us to effectively serve the needs of customers across many categories. None of us are nor do we ever want to become accustomed to these levels of revenue decline. Despite lower revenues, we were able to expand gross margins and to generate cash through a combination of actions that we took both during and before the pandemic.

Some of the highlights of this quarter included our supply chain performing very well. We took care of the health and well-being of our associates, which allow them to continue to effectively serve our customers. Our facilities remained open and productive and they consistently met customer demand despite fully complying with regulatory work restrictions imposed to reduce the spread of COVID-19 and working through some component supply issues.

Our product portfolio is increasingly aligned to customer demand and we had several key product highlights this quarter, including new product launches, a strategic alliance on germicidal UV, a continued growth in our Contractor Select portfolio, all of which I will talk about in more detail later. We are adding talent, and we have begun to deploy teams focused on executing our digital transformation. This transformation is beginning, and I'll provide additional