Finance 0

Lennox International Inc. Reports New All-Time Highs For Revenue, Total Segment Margin & Profit In Q2

By Kurt Osterberg · On July 24, 2017

Lennox International Inc. (LII), a global leader in the heating, air conditioning, and refrigeration markets, today reported that revenue for the second quarter was up 8% to a record $1.102 billion

FINANCIAL HIGHLIGHTS

Revenue: UP 8% to $1.102 billion

Gross Profit: UP 8% to $341 million, up 8%

Gross margin: Flat at 30.9%

Income from Continuing Operations: UP 7.5% to $116.4 million, or $2.71 per share

Adjusted Income from Continuing Operations: UP 11.85% to $121.0 million, or $2.83

Net Cash from Operations: DOWN 22% to $59 million

Free cash flow: DOWN 29% to $41 million

Total debt: $1.189 billion.

Total cash and cash equivalents: $61 million

The company paid $18 million in dividends and $100 million for stock repurchases.

FULL-YEAR OUTLOOK
For 2017, the company is:

Raising 2017 guidance for revenue growth from 3-7% to 4-7%;

Narrowing guidance for GAAP EPS from continuing operations from $7.65-$8.25 to $7.73-$8.13.

Raising the low end of adjusted EPS from continuing operations guidance from $7.55-$8.15 to $7.75-$8.15.

Reiterating corporate expenses of approximately $85 million.

Updating guidance for the 2017 effective tax rate from approximately 32% to a range of 31-32% on an adjusted basis for the full year.

Reiterating capital expenditures of approximately $100 million.

Reiterating guidance for a weighted average diluted share count of 42-43 million shares on a full-year basis, including plans for $250 million of stock repurchases in total for 2017.

Chairman and CEO Todd Bluedorn said in the company’s press release that:

“We continue to expect strong growth for a year of record revenue and profit, led by the strength in our Residential business.

Given the company’s first-half performance and outlook for the second half, we are raising the low end of our 2017 guidance for
revenue and adjusted EPS from continuing operations, and we plan $75 million more of stock repurchases in the second half of the year.”