DALLAS, April 26, 2021 /PRNewswire/ -- Lennox
International Inc. (NYSE: LII), a global leader in energy-efficient
climate-control solutions, today reported financial results for the
first quarter of 2021. All comparisons are to the prior-year
period.
Lennox International reported record first-quarter revenue of
$931 million, up 29%. Foreign
exchange had a positive 1% impact to revenue growth. GAAP operating
income was a first-quarter record $114
million, up 213%. GAAP earnings per share from continuing
operations was a first-quarter record $2.20, up 588%.
Total segment profit was a first-quarter record $116 million, up 208%. Total segment margin
expanded 720 basis points to 12.4%. Adjusted earnings per share
from continuing operations was a first-quarter record $2.27, up 305%.
"Lennox International posted record first-quarter revenue,
profit and earnings per share in the quarter with double-digit
revenue growth and margin expansion in all three of our
businesses," said Chairman and CEO Todd
Bluedorn. "Our Residential business set new first-quarter
highs for revenue and profit. Revenue was up 37% on strong growth
in both replacement and new construction business. Profit rose
197%. Segment margin expanded 850 basis points to 15.9%.
"In Commercial, our business set new first-quarter highs for
segment revenue, profit and margin. Segment revenue was up 12% led
by high-teens growth in replacement business and high-single digit
growth in new construction. Commercial profit rose 47%, and segment
margin expanded 330 basis points to 13.8%. In Refrigeration,
revenue was up 21%. North America
revenue was up more than 25%, and Europe revenue was up low-double digits.
Segment margin expanded 560 basis points to 6.3%, and profit rose
to $8 million for the quarter.
"Demand remained strong across all our businesses entering the
second quarter, and we are capitalizing on market growth and share
gain opportunities with strong operational execution. Looking ahead
for 2021 overall, we are raising guidance for revenue and earnings,
as well as for free cash flow – now approximately $375 million for the full year. We have
repurchased $200 million of stock
this year and plan to buy $200
million more in 2021."
FINANCIAL HIGHLIGHTS
Revenue: Revenue was a first-quarter record $931 million, up 29% with volume, price, mix and
foreign exchange favorable to revenue.
Gross Profit: Gross profit was $257 million, up 55%, and gross margin was 27.6%,
up 470 basis points. Gross profit was positively impacted by higher
volume, favorable price, mix and foreign exchange, factory
productivity, distribution and freight savings, and sourcing and
engineering-led cost reductions. Partial offsets included higher
commodity, warranty, and other product costs.
Income from Continuing Operations: On a GAAP basis,
income from continuing operations for the first quarter was
$84.2 million, or $2.20 per share, compared to $12.5 million, or $0.32 per share, in the prior-year quarter.
Adjusted income from continuing operations in the first quarter
was $86.9 million, or $2.27 per share, compared to $21.7 million, or $0.56 per share, in the prior-year quarter.
Adjusted income from continuing operations for the first quarter of
2021 excludes net after-tax charges of $2.7
million, consisting of: a $2.0
million charge for other tax items, net; a $1.9 million net charge in total for various
other items; and a benefit of $1.2
million for excess tax benefits from share-based
compensation.
Cash from Operations, Free Cash Flow and Total
Debt: Net cash used in operations in the first quarter was
$18 million compared to $99 million in the prior-year quarter. Capital
expenditures were approximately $24
million in the first quarter and in the prior-year quarter.
Free cash flow was ($42) million
compared to ($123) million in the
first quarter a year ago. Total debt at the end of the first
quarter was $1.17 billion. Total
cash, cash equivalents and short-term investments were $40 million at the end of the quarter. The
company paid approximately $30
million in dividends in the first quarter and repurchased
$200 million of stock.
BUSINESS SEGMENT HIGHLIGHTS
Residential Heating & Cooling
Revenue in the
Residential Heating & Cooling business segment was up 37% to a
first-quarter record $606 million.
Foreign exchange was neutral to revenue. Segment profit rose 197%
to a first-quarter record $96
million. Segment margin expanded 850 basis points to 15.9%.
Residential results were primarily impacted by higher volume,
favorable price and mix, higher factory productivity, sourcing and
engineering-led cost reductions, distribution and freight savings,
and favorable foreign exchange. Partial offsets included higher
commodity, warranty and other product costs, and higher
SG&A.
Commercial Heating & Cooling
Revenue in the
Commercial Heating & Cooling business segment was up 12% to a
first-quarter record $199 million.
Foreign exchange had a 1% positive impact to revenue growth.
Segment profit rose 47% to a first-quarter record $27 million. Segment margin expanded 330 basis
points to a first-quarter record 13.8%. Commercial results were
primarily impacted by higher volume, lower material costs, and
lower SG&A. Partial offsets included unfavorable mix.
Refrigeration
Revenue in the Refrigeration business segment was up 21% to
$125 million. Foreign exchange had a
4% positive impact to revenue growth. Segment profit rose to
$8 million from $1 million in the prior-year quarter. Segment
margin expanded 560 basis points to 6.3%. Refrigeration results
were primarily impacted by higher volume, favorable price and mix,
lower material costs, and higher factory productivity. Higher
SG&A was a partial offset.
FULL-YEAR GUIDANCE
The company is raising 2021
guidance for revenue, EPS from continuing operations, and free cash
flow.
- Raising guidance for revenue growth from 4-8% to 7-11%; neutral
foreign exchange.
- Raising guidance for GAAP EPS from continuing operations from
$10.55-$11.15 to $11.33-$11.93.
- Raising guidance for adjusted EPS from continuing operations
from $10.55-$11.15 to $11.40-$12.00.
- Corporate expense is now expected to be approximately
$95 million compared to prior
guidance of $90 million.
- The effective tax rate is still expected to be approximately
21% on an adjusted basis for the full year.
- Capital expenditures are still planned to be approximately
$135 million.
- Raising guidance for free cash flow from approximately
$325 million to approximately
$375 million for the full year.
- The company repurchased $200
million of stock in the first quarter of its planned
$400 million for the year.
CONFERENCE CALL INFORMATION
A conference call to
discuss the company's first-quarter results and outlook will be
held this morning at 8:30 a.m. Central
time. To listen, call the conference call line at
844-867-6169 (U.S.) or 409-207-6975 (international) at least 10
minutes prior to the scheduled start time and use participant code
5260831. The conference call also will be webcast on Lennox
International's web site at www.lennoxinternational.com. A replay
will be available from approximately 11:00
a.m. Central time on April 26 through
May 10, 2021 by dialing 866-207-1041 (U.S.) or 402-970-0847
(international) and using access code 7601253. The call also will
be archived on the company's website.
ABOUT LENNOX INTERNATIONAL
Lennox International Inc.
is a global leader in energy-efficient climate-control solutions.
Dedicated to sustainability and creating comfortable and healthier
environments for our residential and commercial customers while
reducing their carbon footprint, we lead the field in innovation
with our air conditioning, heating, indoor air quality, and
refrigeration systems. Lennox International stock is listed on the
New York Stock Exchange and traded under the symbol "LII".
Additional information on Lennox International 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 2021 full-year outlook and expected consolidated and
segment financial results for 2021, 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 risks associated with the economic
impact of the COVID-19 pandemic on the company and its employees,
customers and suppliers if the pandemic worsens or continues longer
than anticipated; risks that the North American unitary HVAC and
refrigeration markets perform worse than current assumptions.
Additional statements include, but are not limited to: the impact
of higher raw material prices, the impact of new or increased trade
tariffs, 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,
|
|
|
|
2021
|
|
2020
|
|
|
Net
sales
|
$
|
930.5
|
|
|
$
|
723.8
|
|
|
|
Cost of goods
sold
|
674.0
|
|
|
558.1
|
|
|
|
Gross
profit
|
256.5
|
|
|
165.7
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
Selling, general and
administrative expenses
|
145.3
|
|
|
131.1
|
|
|
|
Losses (gains) and
other expenses, net
|
0.3
|
|
|
(1.0)
|
|
|
|
Restructuring
charges
|
0.1
|
|
|
0.5
|
|
|
|
Loss from natural
disasters, net of insurance recoveries
|
—
|
|
|
1.6
|
|
|
|
Income from equity
method investments
|
(3.3)
|
|
|
(2.9)
|
|
|
|
Operating
income
|
114.1
|
|
|
36.4
|
|
|
|
Pension
settlement
|
0.7
|
|
|
—
|
|
|
|
Interest expense,
net
|
6.0
|
|
|
8.7
|
|
|
|
Other expense
(income), net
|
1.0
|
|
|
1.2
|
|
|
|
Income from continuing
operations before income taxes
|
106.4
|
|
|
26.5
|
|
|
|
Provision for income
taxes
|
22.2
|
|
|
14.0
|
|
|
|
Income from
continuing operations
|
84.2
|
|
|
12.5
|
|
|
|
Discontinued
Operations:
|
|
|
|
|
|
Loss from discontinued
operations before income taxes
|
—
|
|
|
—
|
|
|
|
Income tax
benefit
|
—
|
|
|
(0.4)
|
|
|
|
Income from
discontinued operations
|
—
|
|
|
0.4
|
|
|
|
Net
income
|
$
|
84.2
|
|
|
$
|
12.9
|
|
|
|
|
|
|
|
|
|
Earnings per
share – Basic:
|
|
|
|
|
|
Income from continuing
operations
|
$
|
2.22
|
|
|
$
|
0.33
|
|
|
|
Income from
discontinued operations
|
—
|
|
|
0.01
|
|
|
|
Net income
|
$
|
2.22
|
|
|
$
|
0.34
|
|
|
|
Earnings per
share – Diluted:
|
|
|
|
|
|
Income from continuing
operations
|
$
|
2.20
|
|
|
$
|
0.32
|
|
|
|
Income from
discontinued operations
|
—
|
|
|
0.01
|
|
|
|
Net income
|
$
|
2.20
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding - Basic
|
38.0
|
|
|
38.4
|
|
|
|
Weighted Average
Number of Shares Outstanding - Diluted
|
38.2
|
|
|
38.7
|
|
|
|
LENNOX
INTERNATIONAL INC. AND SUBSIDIARIES
Segment Net Sales and Profit (Loss)
(Unaudited)
|
|
|
|
(Amounts in
millions)
|
For the Three
Months Ended March 31,
|
|
|
2021
|
|
2020
|
|
Net
Sales
|
|
|
|
|
Residential
Heating & Cooling
|
$
|
606.3
|
|
|
$
|
442.1
|
|
|
Commercial
Heating & Cooling
|
199.2
|
|
|
178.4
|
|
|
Refrigeration
|
125.0
|
|
|
103.3
|
|
|
|
$
|
930.5
|
|
|
$
|
723.8
|
|
|
Segment Profit
(Loss) (1)
|
|
|
|
|
Residential
Heating & Cooling
|
$
|
96.4
|
|
|
$
|
32.5
|
|
|
Commercial
Heating & Cooling
|
27.4
|
|
|
18.7
|
|
|
Refrigeration
|
7.9
|
|
|
0.7
|
|
|
Corporate and
other
|
(16.0)
|
|
|
(14.3)
|
|
|
Total segment
profit
|
115.7
|
|
|
37.6
|
|
|
Reconciliation to
Operating Income:
|
|
|
|
|
Loss from natural
disasters, net of insurance recoveries
|
—
|
|
|
1.6
|
|
|
Items in Losses
(gains) and other expenses, net which are excluded from segment
profit (loss) (1)
|
1.5
|
|
|
(0.9)
|
|
|
Restructuring
charges
|
0.1
|
|
|
0.5
|
|
|
Operating
income
|
$
|
114.1
|
|
|
$
|
36.4
|
|
|
|
|
|
(1)
|
We define segment
profit (loss) as a segment's operating income included in the
accompanying Consolidated Statements of Operations,
excluding:
|
|
|
•
The following items in Losses (gains) and
other expenses, net:
|
|
|
|
◦
Net change in unrealized
(gains) losses on unsettled futures contracts,
|
|
|
|
◦ Special legal contingency charges,
|
|
|
|
◦ Asbestos-related litigation,
|
|
|
|
◦ Environmental liabilities,
|
|
|
|
◦ Charges
incurred related to COVID-19 pandemic; and
|
|
|
|
◦ Other items, net,
|
|
|
• Loss from natural disasters, net of insurance
recoveries; and
|
|
|
• Restructuring charges.
|
|
LENNOX
INTERNATIONAL INC. AND SUBSIDIARIES
Consolidated
Balance Sheets
|
|
|
|
|
(Amounts in
millions, except shares and par values)
|
As of March
31,
2021
|
|
As of December
31,
2020
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
35.5
|
|
|
$
|
123.9
|
|
|
Short-term
investments
|
4.5
|
|
|
5.1
|
|
|
Accounts and notes
receivable, net of allowances of $9.2 and $9.6 in 2021 and
2020,
respectively
|
522.6
|
|
|
448.3
|
|
|
Inventories,
net
|
502.3
|
|
|
439.4
|
|
|
Other
assets
|
73.3
|
|
|
70.9
|
|
|
Total current
assets
|
1,138.2
|
|
|
1,087.6
|
|
|
Property, plant and
equipment, net of accumulated depreciation of $891.6 and $880.6
in
2021 and 2020, respectively
|
466.4
|
|
|
464.3
|
|
|
Right-of-use assets
from operating leases
|
190.7
|
|
|
194.4
|
|
|
Goodwill
|
186.7
|
|
|
186.9
|
|
|
Deferred income
taxes
|
7.6
|
|
|
13.2
|
|
|
Other assets,
net
|
85.4
|
|
|
86.1
|
|
|
Total
assets
|
$
|
2,075.0
|
|
|
$
|
2,032.5
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Current maturities of
long-term debt
|
165.0
|
|
|
9.9
|
|
|
Current operating
lease liabilities
|
54.9
|
|
|
55.0
|
|
|
Accounts
payable
|
372.9
|
|
|
340.3
|
|
|
Accrued
expenses
|
254.5
|
|
|
296.1
|
|
|
Income taxes
payable
|
1.8
|
|
|
—
|
|
|
Total current
liabilities
|
849.1
|
|
|
701.3
|
|
|
Long-term
debt
|
1,007.9
|
|
|
970.7
|
|
|
Long-term operating
lease liabilities
|
138.5
|
|
|
142.8
|
|
|
Pensions
|
94.8
|
|
|
92.5
|
|
|
Other
liabilities
|
145.4
|
|
|
142.3
|
|
|
Total
liabilities
|
2,235.7
|
|
|
2,049.6
|
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
deficit:
|
|
|
|
|
Preferred stock, $0.01
par value, 25,000,000 shares authorized, no shares issued or
outstanding
|
—
|
|
|
—
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized, 87,170,197 shares
issued
|
0.9
|
|
|
0.9
|
|
|
Additional paid-in
capital
|
1,090.3
|
|
|
1,113.2
|
|
|
Retained
earnings
|
2,440.9
|
|
|
2,385.8
|
|
|
Accumulated other
comprehensive loss
|
(99.2)
|
|
|
(97.2)
|
|
|
Treasury stock, at
cost, 49,396,668 shares and 48,820,969 shares for 2021 and
2020,
respectively
|
(3,593.6)
|
|
|
(3,419.8)
|
|
|
Total
stockholders' deficit
|
(160.7)
|
|
|
(17.1)
|
|
|
Total liabilities
and stockholders' deficit
|
$
|
2,075.0
|
|
|
$
|
2,032.5
|
|
|
LENNOX
INTERNATIONAL INC. AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(Unaudited)
|
|
|
|
(Amounts in
millions)
|
For the Three
Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
|
84.2
|
|
|
$
|
12.9
|
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
Income from equity
method investments
|
(3.3)
|
|
|
(2.9)
|
|
|
Restructuring charges,
net of cash paid
|
0.3
|
|
|
0.1
|
|
|
Provision for credit
losses
|
2.0
|
|
|
1.2
|
|
|
Unrealized (gains)
losses, net on derivative contracts
|
(0.2)
|
|
|
1.5
|
|
|
Stock-based
compensation expense
|
8.5
|
|
|
3.7
|
|
|
Depreciation and
amortization
|
17.4
|
|
|
19.0
|
|
|
Deferred income
taxes
|
1.0
|
|
|
8.8
|
|
|
Pension
expense
|
3.0
|
|
|
2.7
|
|
|
Pension
contributions
|
(0.4)
|
|
|
(0.6)
|
|
|
Other items,
net
|
(0.1)
|
|
|
0.2
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts and notes
receivable
|
(77.5)
|
|
|
(18.7)
|
|
|
Inventories
|
(62.5)
|
|
|
(71.0)
|
|
|
Other current
assets
|
(9.5)
|
|
|
(0.7)
|
|
|
Accounts
payable
|
41.2
|
|
|
(8.7)
|
|
|
Accrued
expenses
|
(41.8)
|
|
|
(33.0)
|
|
|
Income taxes payable /
receivable, net
|
14.0
|
|
|
(17.3)
|
|
|
Leases,
net
|
(0.7)
|
|
|
0.1
|
|
|
Other, net
|
6.9
|
|
|
3.9
|
|
|
Net cash used in
operating activities
|
(17.5)
|
|
|
(98.8)
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Proceeds from the
disposal of property, plant and equipment
|
0.4
|
|
|
0.1
|
|
|
Purchases of property,
plant and equipment
|
(24.7)
|
|
|
(24.7)
|
|
|
Proceeds from
(purchases of) short-term investments
|
0.5
|
|
|
(1.1)
|
|
|
Net cash used in
investing activities
|
(23.8)
|
|
|
(25.7)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Asset securitization
borrowings
|
155.0
|
|
|
—
|
|
|
Asset securitization
payments
|
—
|
|
|
(70.0)
|
|
|
Long-term debt
payments
|
(2.9)
|
|
|
(2.6)
|
|
|
Borrowings from credit
facility
|
202.0
|
|
|
682.5
|
|
|
Payments on credit
facility
|
(165.0)
|
|
|
(342.5)
|
|
|
Proceeds from employee
stock purchases
|
0.9
|
|
|
0.8
|
|
|
Repurchases of common
stock
|
(200.0)
|
|
|
(100.0)
|
|
|
Repurchases of common
stock to satisfy employee withholding tax obligations
|
(6.0)
|
|
|
(5.5)
|
|
|
Cash dividends
paid
|
(29.5)
|
|
|
(29.7)
|
|
|
Net cash (used in)
provided by financing activities
|
(45.5)
|
|
|
133.0
|
|
|
(Decrease) increase
in cash and cash equivalents
|
(86.8)
|
|
|
8.5
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
(1.6)
|
|
|
(6.7)
|
|
|
Cash and cash
equivalents, beginning of period
|
123.9
|
|
|
37.3
|
|
|
Cash and cash
equivalents, end of period
|
$
|
35.5
|
|
|
$
|
39.1
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
Interest
paid
|
$
|
5.5
|
|
|
$
|
6.8
|
|
|
Income taxes paid (net
of refunds)
|
$
|
8.2
|
|
|
$
|
21.3
|
|
|
LENNOX
INTERNATIONAL INC. AND SUBSIDIARIES
|
|
|
Reconciliation to
U.S. GAAP (Generally Accepted Accounting Principles)
Measures
|
|
|
(Unaudited, in
millions, except per share and ratio data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP
Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
To supplement the
Company's consolidated financial statements and segment net sales
and profit presented in accordance with U.S. GAAP, additional
non-GAAP financial measures are provided and reconciled in the
following tables. In addition to these non-GAAP measures, the
Company also provides rates of revenue change at constant currency
on a consolidated and segment basis if different than the
reported measures. The Company believes that these non-GAAP
financial measures, when considered together with the GAAP
financial measures, provide information that is useful to investors
in understanding period-over-period operating results. The
Company believes that these non-GAAP financial measures enhance the
ability of investors to analyze the Company's business trends and
operating performance.
|
|
|
|
|
|
Reconciliation of
Income from Continuing Operations, a GAAP measure, to Adjusted
Income from Continuing Operations, a Non-GAAP
measure
|
|
|
|
|
|
|
|
For the Three
Months Ended March 31,
|
|
|
|
(Unaudited)
|
|
|
|
2021
|
|
2020
|
|
|
|
Pre-Tax
|
Tax Impact (d)
|
After
Tax
|
|
Pre-Tax
|
Tax Impact (d)
|
After
Tax
|
|
|
Income from
continuing operations, a GAAP
measure
|
$
|
106.4
|
|
$
|
(22.2)
|
|
$
|
84.2
|
|
|
$
|
26.5
|
|
$
|
(14.0)
|
|
$
|
12.5
|
|
|
|
Restructuring
charges
|
0.1
|
|
(0.1)
|
|
—
|
|
|
0.5
|
|
(0.1)
|
|
0.4
|
|
|
|
Pension
settlement
|
0.7
|
|
(0.1)
|
|
0.6
|
|
|
—
|
|
—
|
|
—
|
|
|
|
Items in Losses
(gains) and other expenses, net
which are excluded from segment profit (loss) (a)
|
1.5
|
|
(0.2)
|
|
1.3
|
|
|
(0.9)
|
|
0.1
|
|
(0.8)
|
|
|
|
Excess tax benefits
from share-based
compensation (b)
|
—
|
|
(1.2)
|
|
(1.2)
|
|
|
—
|
|
0.1
|
|
0.1
|
|
|
|
Other tax items, net
(b)
|
—
|
|
2.0
|
|
2.0
|
|
|
—
|
|
8.2
|
|
8.2
|
|
|
|
Loss from natural
disasters, net of insurance
recoveries (e)
|
—
|
|
—
|
|
—
|
|
|
1.6
|
|
(0.3)
|
|
1.3
|
|
|
|
Adjusted income
from continuing operations,
a non-GAAP measure
|
$
|
108.7
|
|
$
|
(21.8)
|
|
$
|
86.9
|
|
|
$
|
27.7
|
|
$
|
(6.0)
|
|
$
|
21.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
from continuing operations
- diluted, a GAAP measure
|
|
|
$
|
2.20
|
|
|
|
|
$
|
0.32
|
|
|
|
Restructuring
charges
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
Pension
settlement
|
|
|
0.02
|
|
|
|
|
—
|
|
|
|
Items in Losses
(gains) and other expenses, net
which are excluded from segment profit (loss) (a)
|
|
|
0.03
|
|
|
|
|
(0.02)
|
|
|
|
Excess tax benefits
from share-based compensation (b)
|
|
|
(0.03)
|
|
|
|
|
—
|
|
|
|
Other tax items, net
(b)
|
|
|
0.05
|
|
|
|
|
0.21
|
|
|
|
Loss from natural
disasters, net of insurance
recoveries (e)
|
|
|
—
|
|
|
|
|
0.04
|
|
|
|
Change in share counts
from share-based
compensation (c)
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Adjusted earnings
per share from continuing
operations - diluted, a non-GAAP measure
|
|
|
$
|
2.27
|
|
|
|
|
$
|
0.56
|
|
|
|
|
|
|
(a) Recorded in Losses
(gains) and other expenses, net in the Consolidated Statements of
Operations
|
|
|
(b) Recorded in
Provision for income taxes in the Consolidated Statements of
Operations
|
|
|
|
(c) The impact of
excess tax benefits from the change in share-based compensation
also impacts the Company's diluted share counts. The
reconciliation of average outstanding diluted shares on a GAAP and
non-GAAP basis is included in this amount..
|
|
|
(d) Tax impact based
on the applicable tax rate relevant to the location and nature of
the adjustment.
|
|
|
(e) Recorded in Loss
from natural disasters, net of insurance recoveries in the
Consolidated Statement of Operations.
|
|
|
|
|
|
|
|
For the Three
Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
Components of
Losses (gains) and other expenses, net
(pre-tax):
|
|
|
|
|
Realized (gains)
losses on settled future contracts (a)
|
$
|
(0.3)
|
|
|
$
|
0.1
|
|
|
Foreign currency
exchange gains (a)
|
(0.3)
|
|
|
(0.5)
|
|
|
(Gain) loss on
disposal of fixed assets (a)
|
(0.3)
|
|
|
0.1
|
|
|
Other operating
(income) loss (a)
|
(0.3)
|
|
|
0.2
|
|
|
Net change in
unrealized (gains) losses on unsettled futures contracts
(b)
|
(0.2)
|
|
|
0.6
|
|
|
Special legal
contingency charges (b)
|
0.2
|
|
|
—
|
|
|
Asbestos-related
litigation (b)
|
1.1
|
|
|
(1.7)
|
|
|
Environmental
liabilities (b)
|
0.6
|
|
|
0.2
|
|
|
Charges incurred
related to COVID-19 pandemic (b)
|
0.6
|
|
|
—
|
|
|
Other items, net
(b)
|
(0.8)
|
|
|
—
|
|
|
Losses (gains) and
other expenses, net (pre-tax)
|
$
|
0.3
|
|
|
$
|
(1.0)
|
|
|
|
|
|
|
(a) Included in both
segment profit (loss) and Adjusted income from continuing
operations
|
|
(b) Excluded from
both segment profit (loss) and Adjusted income from continuing
operations
|
|
Reconciliation of
Earnings per Share from Continuing Operations - Diluted, a GAAP
measure, to Estimated Adjusted Earnings per Share from Continuing
Operations - Diluted, a Non-GAAP measure
|
|
|
|
For the Year
Ended
December 31, 2021
ESTIMATED
|
|
Earnings per share
from continuing operations - diluted, a GAAP measure
|
|
$11.33-$11.93
|
|
Other non-core EBIT
charges and other non-core tax items
|
|
(0.07)
|
|
Adjusted
Earnings per share from continuing operations - diluted, a Non-GAAP
measure
|
|
$11.40-$12.00
|
|
|
|
Reconciliation of
Average Shares Outstanding - Diluted, a GAAP measure, to Adjusted
Average Shares Outstanding - Diluted, a Non-GAAP measure (shares in
millions):
|
|
|
|
|
For the Three
Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
Average shares
outstanding - diluted, a GAAP measure
|
38.2
|
|
|
38.7
|
|
|
Impact on diluted
shares from excess tax benefits from share-based
compensation
|
—
|
|
|
—
|
|
|
Adjusted average
shares outstanding - diluted, a Non-GAAP measure
|
38.2
|
|
|
38.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Cash Used in Operating Activities, a GAAP measure, to Free Cash
Flow, a Non-GAAP measure (dollars in millions)
|
|
|
|
|
For the Three
Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
Net cash used in
operating activities
|
$
|
(17.5)
|
|
|
$
|
(98.8)
|
|
|
Purchases of property,
plant and equipment
|
(24.7)
|
|
|
(24.7)
|
|
|
Proceeds from the
disposal of property, plant and equipment
|
0.4
|
|
|
0.1
|
|
|
Free cash flow, a
Non-GAAP measure
|
$
|
(41.8)
|
|
|
$
|
(123.4)
|
|
|
|
|
|
|
|
Calculation of
Debt to EBITDA Ratio (dollars in millions):
|
|
|
|
|
Trailing
Twelve
Months to
March 31, 2021
|
|
Adjusted EBIT
(a)
|
|
|
|
|
$
|
584.8
|
|
|
Depreciation and
amortization expense (b)
|
|
|
|
|
69.1
|
|
|
EBITDA (a +
b)
|
|
|
|
|
$
|
653.9
|
|
|
Total debt at
March 31, 2021 (c)
|
|
|
|
|
$
|
1,172.9
|
|
|
Total Debt to
EBITDA ratio ((c / (a + b))
|
|
|
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBIT, a Non-GAAP measure, to Income From Continuing
Operations Before Income Taxes, a GAAP measure (dollars in
millions)
|
|
|
|
|
|
|
|
|
Trailing
Twelve
Months to
March 31, 2021
|
|
Income from
continuing operations before income taxes, a GAAP
measure
|
$
|
525.1
|
|
|
Items in Losses
(gains) and other expenses, net which are excluded from segment
profit
|
15.7
|
|
|
Special product
quality adjustments
|
1.0
|
|
|
Restructuring
charges
|
10.4
|
|
|
Interest expense,
net
|
25.6
|
|
|
Pension
settlements
|
1.3
|
|
|
Loss from natural
disasters, net of insurance recoveries
|
1.5
|
|
|
Other expense
(income), net
|
4.2
|
|
|
Adjusted EBIT per
above, a Non-GAAP measure
|
$
|
584.8
|
|
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SOURCE Lennox International Inc.