Lennox International reported financial results for the second quarter of 2015. Q2 revenue was $993 million, up 3% from the prior-year quarter including the negative impact from foreign exchange.
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At constant currency, revenue was up 6% on growth across all three business segments. Adjusted earnings per share from continuing operations was a record $1.84, up 22% from the prior-year quarter. On a GAAP basis, earnings per share from continuing operations was a record $1.79, up 19% from the prior-year quarter.
Revenue for the second quarter was $993 million, up 3% from the prior-year quarter. At constant currency, revenue was up 6%. Volume and price/mix were up on a revenue basis from the prior-year quarter.
Gross profit in the second quarter was $283 million, up 8% from $263 million in the prior-year quarter. Gross margin was 28.6%, up 130 basis points from 27.3% in the prior-year quarter.
Gross profit was positively impacted by higher volume, favorable price, and lower material costs, with partial offsets from unfavorable foreign exchange, negative mix, lower Australian refrigerant profitability, and investments in distribution expansion.
Adjusted income from continuing operations in the second quarter was $83.9 million, or $1.84 per share, compared to $74.9 million, or $1.51 per share, in the prior-year quarter. Adjusted earnings from continuing operations for the second quarter of 2015 excludes $2.3 million in after-tax charges: $1.3 million for restructuring activities and $1.0 million, net, for other items.
On a GAAP basis, income from continuing operations for the second quarter was $81.6 million, or $1.79 per share, compared to $74.6 million, or $1.50 per share, in the prior-year quarter.
Net cash from operations in the second quarter was $70 million compared to $52 million in the prior-year quarter. The company invested $15 million in capital assets in the second quarter compared to $24 million in the second quarter a year ago. Free cash flow was $55 million compared to $28 million in the prior-year quarter.
Total debt at the end of the second quarter was $1,056 million. Total cash and cash equivalents were $48 million at the end of the quarter. The company paid $14 million in dividends in the second quarter.
In May 2015, the company announced a 20% increase in its dividend to $0.36 per share on a quarterly basis. The company's previously announced $450 million accelerated stock repurchase program continues and is still expected to be completed in the second half of 2015. ■