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Lennox International reports record first-quarter profit

Staff writer ▼ | April 19, 2016
Lennox International reported financial results for the first quarter of 2016. Revenue was $715 million, up 4% from the prior-year quarter including the negative impact from foreign exchange.
Lennox International
Lennox International   Revenue for the first quarter was $715 million
At constant currency, revenue was up 6%. Adjusted earnings per share from continuing operations was a first-quarter record $0.60, up 62% from the prior-year quarter.

On a GAAP basis, earnings per share from continuing operations was a first-quarter record $0.56, up 81% from the prior-year quarter.

Revenue for the first quarter was $715 million, up 4% from the prior-year quarter. At constant currency, revenue was up 6%. Volume was up, and price/mix was flat on a revenue basis from the prior-year quarter.

Gross profit in the first quarter was $184 million, up 13% from $163 million in the prior-year quarter. Gross margin was 25.7%, up 190 basis points from 23.8% in the prior-year quarter.

Gross profit was positively impacted by higher volume, lower material costs, and higher productivity, with partial offsets from negative price/mix and unfavorable foreign exchange.

Adjusted income from continuing operations in the first quarter was $27.0 million, or $0.60 per share, compared to $16.8 million, or $0.37 per share, in the prior-year quarter.

Adjusted earnings from continuing operations for the first quarter of 2016 excludes $2.1 million in after-tax charges: $1.2 million for special legal contingency charges and $0.9 million, net, for other items.

On a GAAP basis, income from continuing operations for the first quarter was $24.9 million, or $0.56 per share, compared to $14.0 million, or $0.31 per share, in the prior-year quarter.

Net cash from operations in the first quarter was ($113) million compared to ($122) million in the prior-year quarter. Capital expenditures were $24 million in the first quarter compared to $18 million in the first quarter a year ago.

Free cash flow was ($137) million compared to ($140) million in the prior-year quarter. Total debt at the end of the first quarter was $1,099 million. Total cash and cash equivalents were $41 million at the end of the quarter.

The company paid $16 million in dividends in the first quarter. The company's previously announced $200 million accelerated stock repurchase program continues and will be completed in the second quarter of 2016.


 

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