PR Newswire
DALLAS, April 24, 2017
DALLAS, April 24, 2017 /PRNewswire/ -- Lennox International Inc. (NYSE: LII) today reported financial results for the first quarter of 2017. All comparisons are to the prior-year period.
For the first quarter, revenue was a first-quarter record $793 million, up 11%. Foreign exchange was neutral to revenue. GAAP operating income was up 39% to a first-quarter record $61 million. GAAP earnings per share from continuing operations was up 79% to a first-quarter record $1.00, including a $0.17 benefit from recent GAAP accounting requirements regarding excess tax benefits from share-based compensation against $0.07 in charges for special items. On an adjusted basis, total segment profit increased 39% to a first-quarter record $65 million, and margin expanded 170 basis points to a first-quarter record 8.2%. Adjusted EPS from continuing operations rose 50% to a first-quarter record $0.90.
"Lennox International posted strong revenue growth and margin expansion in a record first quarter, despite some headwind from weather," said Chairman and CEO Todd Bluedorn. "The company hit new first-quarter highs for revenue, total segment profit and margin, as well as earnings per share. Growth in the quarter included the benefit of five more days, or 6% more days, this year than in the first quarter last year. This balances out on a full-year basis with the fourth quarter having 6% fewer days than a year ago.
"In our Residential business, revenue was up 11% to a new first-quarter high. Segment margin was relatively flat in our seasonally smallest quarter on investments in distribution expansion, information technology, research and development, and other SG&A investments. With warmer weather than last year, Residential mix was not as favorable as expected due to faster growth in new construction than replacement business. We continue to expect strong margin expansion for 2017 overall as we head into our seasonally largest quarters.
"In Commercial, revenue, margin and profit all set new first-quarter records. Commercial revenue was up 15%, led by more than 20% growth in North America equipment. Commercial profit rose 35% as segment margin expanded 150 basis points to 9.8%. In Refrigeration, revenue was up 6%, and profit rose 57% as segment margin expanded 250 basis points to 7.9%.
"Looking ahead for the company overall, we are reiterating guidance for revenue and adjusted EPS from continuing operations for 2017. While early, the company is off to a strong start, and we continue to expect another record year as we enter our largest seasonal period. We remain focused on capitalizing on end market growth, capturing additional market share with our strategic initiatives, and driving higher profitability."
FINANCIAL HIGHLIGHTS
Revenue: Revenue for the first quarter was $793 million, up 11% from the prior-year quarter. Foreign exchange was neutral to revenue. Volume and price/mix were up on a revenue basis from the prior-year quarter.
Gross Profit: Gross profit in the first quarter was $211 million, up 15%. Gross margin was 26.6%, up 90 basis points. Gross profit was positively impacted by higher volume and lower material costs, with a partial offset from investments in distribution expansion.
Income from Continuing Operations: On a GAAP basis, income from continuing operations for the first quarter was $43.5 million, or $1.00 per share, compared to $24.9 million, or $0.56 per share, in the prior-year quarter.
Adjusted income from continuing operations in the first quarter was $38.9 million, or $0.90 per share, compared to $27.0 million, or $0.60 per share, in the prior-year quarter. Adjusted earnings from continuing operations for the first quarter of 2017 excludes a benefit of $4.6 million, net of special after-tax charges: a $7.4 million benefit for excess tax benefits from share-based compensation, a charge of $1.1 million for asbestos-related litigation, $0.9 million for special legal contingency charges, and $0.8 million in charges for other items.
Free Cash Flow and Total Debt: Net cash from operations in the first quarter was ($108) million compared to ($102) million in the prior-year quarter. Capital expenditures were $25 million in the first quarter compared to $24 million in the first quarter a year ago. Free cash flow was approximately ($133) million compared to ($126) million in the prior-year quarter. Total debt at the end of the first quarter was $1,103 million. Total cash and cash equivalents were $49 million at the end of the quarter. The company paid $19 million in dividends and $75 million for stock repurchases in the first quarter.
BUSINESS SEGMENT HIGHLIGHTS
Residential Heating & Cooling
Revenue in the Residential Heating & Cooling business segment was a first-quarter record $420 million, up 11%. Foreign exchange was neutral on a revenue basis. Segment profit was a first-quarter record $43 million, up 11%. Segment profit margin was 10.1% compared to 10.2% in the prior-year quarter. Results were impacted by higher volume, lower material costs, and favorable foreign exchange, with offsets from investments in distribution expansion, information technology, research and development, and other SG&A investments.
Commercial Heating & Cooling
Revenue in the Commercial Heating & Cooling business segment was a first-quarter record $196 million, up 15%. Foreign exchange was neutral on a revenue basis. Segment profit was a first-quarter record $19 million, up 35%. Segment profit margin was a first-quarter record 9.8%, up 150 basis points. Results were impacted by higher volume and lower material costs, with a partial offset from SG&A investments.
Refrigeration
Revenue in the Refrigeration business segment was $178 million, up 6%. At constant currency, revenue was up 5%. Segment profit was $14 million, up 57%. Segment profit margin was 7.9%, up 250 basis points. Results were impacted by higher volume, lower material costs, and favorable mix, with a partial offset from SG&A investments.
FULL-YEAR OUTLOOK
For 2017, the company is raising guidance for GAAP EPS from continuing operations and reiterating all other guidance points.
CONFERENCE CALL INFORMATION
A conference call to discuss the company's first quarter results will be held this morning at 8:30 a.m. Central time. To listen, call the conference call line at 612-332-0107 at least 10 minutes prior to the scheduled start time and use reservation number 421542. The conference call also will be webcast on Lennox International's web site at www.lennoxinternational.com. A replay will be available from 11:00 a.m. Central time on April 24 through May 8, 2017 by dialing 800-475-6701 (U.S.) or 320-365-3844 (international) and using access code 421542. The call also will be archived on the company's website.
About Lennox International
Lennox International Inc. is a global leader in the heating, air conditioning, and refrigeration markets. Lennox International is listed on the New York Stock Exchange and traded under the symbol "LII". Additional information is available at: www.lennoxinternational.com or by contacting Steve Harrison, Vice President, Investor Relations, at 972-497-6670.
Forward-Looking Statements
The statements in this news release that are not historical statements, including statements regarding the 2017 full-year outlook and expected financial results for 2017, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available as well as management's assumptions and beliefs today. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the statements, and investors should not place undue reliance on them. Risks and uncertainties that could cause actual results to differ materially from such statements include, but are not limited to: the impact of higher raw material prices, LII's ability to implement price increases for its products and services, economic conditions in our markets, regulatory changes, the impact of unfavorable weather, and a decline in new construction activity and related demand for products and services. For information concerning these and other risks and uncertainties, see LII's publicly available filings with the Securities and Exchange Commission. LII disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
LENNOX INTERNATIONAL INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) | |||||||
| |||||||
(Amounts in millions, except per share data) | For the Three Months Ended March 31, | ||||||
| 2017 | | 2016 | ||||
Net sales | $ | 793.4 | | | $ | 715.2 | |
Cost of goods sold | 582.5 | | | 531.6 | | ||
Gross profit | 210.9 | | | 183.6 | | ||
Operating Expenses: | | | | ||||
Selling, general and administrative expenses | 152.4 | | | 140.4 | | ||
Losses and other expenses, net | 3.1 | | | 4.3 | | ||
Restructuring charges (gains) | 0.1 | | | (0.2) | | ||
Income from equity method investments | (5.5) | | | (4.6) | | ||
Operating income | 60.8 | | | 43.7 | | ||
Interest expense, net | 7.4 | | | 5.8 | | ||
Income from continuing operations before income taxes | 53.4 | | | 37.9 | | ||
Provision for income taxes | 9.9 | | | 13.0 | | ||
Income from continuing operations | 43.5 | | | 24.9 | | ||
Discontinued Operations: | | | | ||||
Loss from discontinued operations before income taxes | — | | | — | | ||
Benefit from income taxes | — | | | — | | ||
Loss from discontinued operations | — | | | — | | ||
Net income | $ | 43.5 | | | $ | 24.9 | |
| | | | ||||
Earnings per share – Basic: | | | | ||||
Income from continuing operations | $ | 1.02 | | | $ | 0.57 | |
Loss from discontinued operations | — | | | — | | ||
Net income | $ | 1.02 | | | $ | 0.57 | |
Earnings per share – Diluted: | | | | ||||
Income from continuing operations | $ Werbung Mehr Nachrichten zur Lennox International Aktie kostenlos abonnieren
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