{"id":517336,"date":"2021-07-26T07:33:13","date_gmt":"2021-07-26T11:33:13","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/lennox-international-reports-record-revenue-and-profit-in-second-quarter\/"},"modified":"2021-07-26T07:33:13","modified_gmt":"2021-07-26T11:33:13","slug":"lennox-international-reports-record-revenue-and-profit-in-second-quarter","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/lennox-international-reports-record-revenue-and-profit-in-second-quarter\/","title":{"rendered":"Lennox International Reports Record Revenue and Profit in Second Quarter"},"content":{"rendered":"
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– Revenue up 32% to record $1.24 billion on strong growth in all businesses<\/h2>\n

– GAAP EPS from continuing operations up 72% to record $4.51<\/h2>\n

– Adjusted EPS from continuing operations up 54% to record $4.57<\/h2>\n

– Repurchased $200 million of stock and announced 19% dividend increase<\/h2>\n

– As previously announced on July 14: raising 2021 guidance for revenue growth from 7-11% to 11-15% at constant currency, and now 12-16% at actual currency; raising 2021 guidance for GAAP EPS from continuing operations from $11.33-$11.93 to $11.97-$12.57; raising 2021 guidance for adjusted EPS from continuing operations from $11.40-$12.00 to $12.10-$12.70<\/h2>\n

– Raising 2021 stock repurchase guidance to a total of $600 million after $400 million of buyback in the first half of the year<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n DALLAS<\/span>, July 26, 2021<\/span> \/PRNewswire\/ —\u00a0Lennox International Inc. (NYSE: LII), a global leader in energy-efficient climate-control solutions, today reported financial results for the second quarter of 2021. All comparisons are to the prior-year period.<\/p>\n

Lennox International reported record revenue of $1.24 billion<\/span> in the second quarter, up 32%. Foreign exchange had a positive 2% impact on revenue growth. GAAP operating income was a record $216 million<\/span>, up 59%. GAAP earnings per share from continuing operations was a record $4.51<\/span>, up 72%. <\/p>\n

Total segment profit was a record $222 million<\/span>, up 45%. Total segment margin expanded 160 basis points to 17.9%. Adjusted earnings per share from continuing operations was a record $4.57<\/span>, up 54%.<\/p>\n

“Lennox International posted record revenue and profit in the second quarter with strong growth across all three of our businesses,” said Chairman and CEO Todd Bluedorn<\/span>. “Our Residential business set new highs for revenue, margin and profit. Revenue rose 30% on strong growth in both replacement and new construction business. Segment margin expanded 290 basis points to 22.6%, and profit rose 49%. <\/p>\n

“In Commercial, revenue was up 34%. National Accounts revenue was up more than 50%, and Regional & Local revenue was up more than 20%. Segment margin was 17.9%, down 100 basis points from the prior-year quarter. Commercial profit rose 27%. In Refrigeration, revenue was up 37% on strong growth in both North America<\/span> and Europe<\/span>. Segment margin expanded 90 basis points to 9.1%, and profit rose 52%. <\/p>\n

“Looking ahead for the company overall, we have raised 2021 guidance for revenue, earnings and free cash flow on strong market growth and company performance. Momentum continues into the second half of the year for Residential, as well as for Commercial and Refrigeration, which continue to rebound and benefit from the pent-up demand created last year. As we look to 2022 and beyond, we see the residential replacement cycle spinning faster and continue to position our business to capitalize on strong market growth and share gains.”<\/p>\n

\n FINANCIAL HIGHLIGHTS <\/b>\n <\/p>\n

\n Revenue: <\/b>Revenue was a record $1.24 billion<\/span>, up 32% in the second quarter, with volume, price, and foreign exchange favorable to revenue. Mix was neutral.<\/p>\n

\n Gross Profit: <\/b>Gross profit was $383 million<\/span>, up 39%, and gross margin was 30.9%, up 160 basis points. Gross profit was positively impacted by higher volume, favorable price, mix and foreign exchange, factory productivity, and sourcing and engineering-led cost reductions. Partial offsets included higher commodity, distribution, tariffs, warranty, and other product costs.<\/p>\n

\n Income from Continuing Operations:<\/b>\u00a0On a GAAP basis, income from continuing operations for the second quarter was $170.0 million<\/span>, or $4.51<\/span> per share, compared to $100.6 million<\/span>, or $2.62<\/span> per share, in the prior-year quarter.<\/p>\n

Adjusted income from continuing operations in the second quarter was $172.0 million<\/span>, or $4.57<\/span> per share, compared to $114.0 million<\/span>, or $2.97<\/span> per share, in the prior-year quarter. Adjusted income from continuing operations for the second quarter of 2021 excludes net after-tax charges of $2.0 million<\/span>, consisting of: a net charge of $3.4 million<\/span> for items excluded from segment profit, a charge of $1.0 million<\/span> for restructuring activities, and a net benefit of $2.4 million<\/span> for excess tax benefits from share-based compensation and other tax items.<\/p>\n

\n Cash from Operations, Free Cash Flow and Total Debt:<\/b>\u00a0Net cash from operations in the second quarter was $192 million<\/span> compared to $105 million<\/span> in the prior-year quarter. Capital expenditures were $21 million<\/span> in the second quarter compared to approximately $19 million<\/span> in the prior-year quarter. Free cash flow was $171 million<\/span> compared to approximately $87 million<\/span> in the second quarter a year ago. Total debt at the end of the second quarter was $1.24 billion<\/span>. Total cash, cash equivalents and short-term investments were $47 million<\/span> at the end of the quarter. The company paid approximately $29 million<\/span> in dividends in the second quarter and repurchased $200 million<\/span> of stock.\u00a0<\/p>\n

\n BUSINESS SEGMENT HIGHLIGHTS<\/b>\n <\/p>\n

\n Residential Heating & Cooling
<\/b>Revenue in the Residential Heating & Cooling business segment was up 30% to a record $838 million<\/span>. Foreign exchange had a positive 1% impact on revenue growth. Segment profit rose 49% to a record $190 million<\/span>. Segment margin expanded 290 basis points to a record 22.6%. Residential results were primarily impacted by higher volume, favorable price, higher factory productivity, sourcing and engineering-led cost reductions, freight savings, and favorable foreign exchange. Partial offsets included unfavorable mix, higher commodity, tariffs, and warranty costs, distribution investments, and higher SG&A including research and development and information technology investments. <\/p>\n

\n Commercial Heating & Cooling
<\/b>Revenue in the Commercial Heating & Cooling business segment was up 34% to $253 million<\/span>. Foreign exchange had a positive 1% impact on revenue growth. Segment profit rose 27% to $45 million<\/span>. Segment margin was 17.9%, down 100 basis points. Commercial results were primarily impacted by higher volume and favorable mix. Partial offsets included higher material, distribution, freight, tariffs, and other product costs, factory inefficiencies, and higher SG&A including research and development and information technology investments.<\/p>\n

\n Refrigeration
<\/b>Revenue in the Refrigeration business segment was up 37% to $148 million<\/span>. Foreign exchange had a positive 5% impact on revenue growth. Segment profit rose 52% to $14 million<\/span>. Segment margin expanded 90 basis points to 9.1%. Refrigeration results were primarily impacted by higher volume, favorable price, and sourcing and engineering-led cost reductions. Partial offsets included higher commodity, freight and other product costs, and higher SG&A including research and development and information technology investments.<\/p>\n

\n FULL-YEAR GUIDANCE<\/b>\n <\/p>\n