Lennox International Q3 gross profit increased $310 million
Staff Writer |
Lennox International reported financial results for the third quarter of 2016.
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Revenue was $1.01 billion, up 6%. Foreign exchange was neutral to revenue in the quarter. GAAP operating income increased 24% to a third-quarter record $157 million.
GAAP earnings per share from continuing operations was a third-quarter record $2.33, up 32%. Adjusted earnings per share from continuing operations was a third-quarter record $2.33, up 28%.
Revenue for the third quarter was $1.01 billion, up 6%. Foreign exchange was neutral to revenue. Volume and price/mix were up on a revenue basis.
Gross profit was $310 million, up 13%. Gross margin was 30.7%, up 210 basis points.
Gross profit was positively impacted by higher volume, higher factory productivity, and lower material costs, with partial offsets from investments in distribution expansion and other product costs.
On a GAAP basis, income from continuing operations for the third quarter was $101.7 million, or $2.33 per share, compared to $80.3 million, or $1.76 per share, in the prior-year quarter.
Adjusted income from continuing operations in the third quarter was $101.9 million, or $2.33 per share, compared to $83.2 million, or $1.82 per share, in the prior-year quarter.
Adjusted earnings from continuing operations for the third quarter of 2016 excludes $0.2 million in net after-tax charges: a $0.7 million gain for the net change in unrealized gains on unsettled future contracts, a charge of $0.4 million for restructuring activities, and charges of $0.5 million for other items, net.
In the third quarter, net cash from operations was $148 million, capital expenditures totaled $18 million, and free cash flow was $130 million.
This includes a $50 million use of cash for a discretionary pension contribution. In the prior-year quarter, net cash from operations was $159 million, capital expenditures totaled $14 million, and free cash flow was $145 million.
Total debt at the end of the third quarter was $1.06 billion. Total cash and cash equivalents were $48 million at the end of the quarter.
The company paid $19 million in dividends in the third quarter and paid $100 million in conjunction with an accelerated share repurchase program over the third and fourth quarters. ■