Acuity Brands, Inc. is the parent company of Acuity Brands Lighting, Inc. (“ABL”)
and other subsidiaries (Acuity Brands, ABL, and such other subsidiaries are
collectively referred to herein as the "Company”), and was incorporated
in 2001 under the laws of the State of Delaware. The Company is one of the world’s
leading providers of lighting and building management solutions for commercial,
institutional, industrial, infrastructure, and residential applications throughout
North America and select international markets. The Company’s lighting
and building management solutions vary from individual devices to intelligent
network systems. Individual devices include luminaires, lighting controls, lighting
components, controllers for various building systems (including HVAC, lighting,
shades and access control), power supplies, and prismatic skylights. Among other
benefits, intelligent network systems can optimize energy efficiency and comfort
as well as enhance the occupant experience for various indoor and outdoor applications,
all the while reducing operating costs. Additionally, the Company continues
to expand its solutions portfolio, including software and services, to provide
a host of other economic benefits resulting from data analytics that enables
the “Internet of Things” ("IoT") and supports the advancement
of smart buildings, smart cities, and the smart grid.
As a results-driven, customer-centric company, management continues to align
the unique capabilities and resources of the organization to drive profitable
growth by providing comprehensive, differentiated, and integrated lighting and
building management solutions for customers, driving world-class cost efficiency,
and leveraging a culture of operational excellence through continuous improvement.
Lighting and building management solutions vary significantly in terms of functionality
and performance and are selected based on a customer's specification, including
the aesthetic desires and performance requirements for a given application.
The Company’s lighting and building management solutions are marketed
under numerous brand names, including but not limited to Lithonia Lighting®,
Holophane®, Peerless®, Gotham®, Mark Architectural Lighting™,
Winona® Lighting, Juno®, Indy™, AccuLite®, Aculux™,
Healthcare Lighting®, Hydrel®, American Electric Lighting®, Carandini®,
Antique Street Lamps™, Sunoptics®, RELOC® Wiring Solutions, eldoLED®,
Distech Controls®, and Acuity Controls™.
Principal customers include electrical distributors, system integrators, retail
home improvement centers, electric utilities, lighting showrooms, national accounts,
and energy service companies located in North America and select international
markets serving new construction, renovation, and maintenance and repair applications.
In North America, the Company’s lighting and building management solutions
are sold primarily by independent sales agents, electrical distributors, system
integrators, and sales representatives who cover specific geographic areas and
market channels. Products are delivered directly or through a network of distribution
centers, regional warehouses, and commercial warehouses using both common carriers
and a company-managed truck fleet. To serve international customers, the sales
forces utilize a variety of distribution methods to meet specific individual
customer or country requirements. The Company has one reportable segment serving
the North American and select international lighting and building management
markets.
The Company operates in a highly competitive industry that is affected by volatility
from a number of general business and economic factors, such as gross domestic
product growth, employment levels, credit availability, energy costs, and commodity
costs. The Company’s market is based on residential and non-residential
construction, both new and renovation and retrofit activity, which is sensitive
to the volatility of these general economic factors. The Company is not aware
of any data that accurately quantifies the split of the non-residential lighting
market between new construction and renovation and retrofit activity; however,
recent trends developed from industry sources and Company estimates suggest
that renovation and retrofit activity represents a growing proportion of the
total non-residential lighting market. Construction spending on infrastructure
projects such as highways, streets, and urban developments has a material impact
on the demand for the Company’s infrastructure-focused lighting and building
management solutions. Demand for the Company’s lighting and building management
solutions sold through certain retail channels is highly dependent on economic
drivers, such as consumer spending and discretionary income, along with housing
construction and home improvement spending.
The residential and non-residential market is influenced by: the development
of new lighting technologies, including solid-state lighting, electronic drivers,
embedded lighting controls, and more effective optical designs and lamps; federal,
state, and local requirements for updated energy codes; incentives by federal,
state, and local municipal authorities, as well as utility companies, for using
more energy-efficient lighting and building management solutions; and design
technologies addressing sustainability and facilitating smarter buildings and
cities. The Company is a leading provider of integrated lighting and building
management solutions based on these technologies and utilizes internally developed,
licensed, or acquired intellectual property. Solid-state lighting and digital
building management systems provide the opportunity for lighting and building
management systems to be integrated in a manner resulting in the optimal platform
for enabling the IoT that collect and exchange data to increase efficiency as
well as provide a host of other economic benefits resulting from data analytics
and other features. The industry’s addressable market is likely to meaningfully
expand due to the benefits and value creation provided by intelligent networked
lighting and building management systems. New entrants, including both well-established
as well as new software and technology companies, therefore continue to develop
capabilities and solutions that are both complementary as well as competitive
to those of traditional industry participants.
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