Lennox International GAAP earnings per share up 276%
Foreign exchange was neutral to revenue. GAAP operating income was $68 million, up 233%. GAAP earnings per share from continuing operations was $0.94, up 276%.
On an adjusted basis, total segment profit increased 30% to a fourth-quarter record $105 million, and margin expanded 200 basis points to a fourth-quarter record 11.7%.
Adjusted earnings per share from continuing operations rose 35% to a fourth-quarter record $1.50.
For the full year, revenue was $3.6 billion, up 5%. Foreign exchange was neutral to revenue.
GAAP operating income was a record $429 million, up 41%. GAAP earnings per share from continuing operations was a record $6.34, up 54%.
On an adjusted basis, total segment profit increased 24% to a record $470 million as total segment margin expanded 200 basis points to a record 12.9%.
Adjusted earnings per share from continuing operations for the full year rose 35% to a record $6.95.
"2016 was a year of record margin, profit, and cash flow for the company," said Chairman and CEO Todd Bluedorn.
"All three of our businesses were up in 2016, and Residential and Commercial set new highs for sales, margin, and profit. In Refrigeration, profit rose 30% as margin expanded 210 basis points to 9.5%.
"The company generated a record $355 million in cash from operations for the year, and we continued to make investments for the future growth and profitability of the company, as well as raise the dividend and repurchase company stock.
"In the fourth quarter, our Residential and Commercial businesses set new fourth-quarter records for revenue, margin, and profit.
"In Residential, revenue was up 10%, and profit rose 43% as segment margin expanded 400 basis points to 17.2%.
"In Commercial, revenue grew 7%, and profit rose 11% as segment margin expanded 60 basis points to 15.9%. Refrigeration revenue and profit were up 1% on flat segment margin of 8.8% in the quarter.
"Looking ahead at 2017 overall, Lennox International is well-positioned for another year of strong growth and profitability.
"The company reiterates its guidance for revenue growth of 3-7% and EPS from continuing operations of $7.55-$8.15.
"With a strong balance sheet and cash generation, the company will continue to invest in the business to drive growth and profitability, as well as repurchase company stock, with $250 million planned for 2017." ■