Lennox International reported financial results for the third quarter of 2015. Revenue was $955 million, up 6% from the prior-year quarter including the negative impact from foreign exchange.
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At constant currency, revenue was up 11%. Adjusted earnings per share from continuing operations was a third-quarter record $1.82, up 26% from the prior-year quarter.
On a GAAP basis, earnings per share from continuing operations was a third-quarter record $1.76, up 28% from the prior-year quarter.
Gross profit in the third quarter was $273 million, up 11% from $247 million in the prior-year quarter. Gross margin was 28.6%, up 110 basis points from 27.5% in the prior-year quarter.
Gross profit was positively impacted by higher volume, favorable price, lower material costs, and higher productivity, with partial offsets from negative mix, unfavorable foreign exchange, and investments in distribution expansion.
Adjusted income from continuing operations in the third quarter was $83.2 million, or $1.82 per share, compared to $70.3 million, or $1.44 per share, in the prior-year quarter.
Adjusted earnings from continuing operations for the third quarter of 2015 excludes $2.9 million in after-tax charges: $0.8 million for special legal contingency charges, $0.7 million related to contractor tax payments in a non-U.S. subsidiary, $0.5 million for the net change in unrealized losses on unsettled future contracts, and $0.9 million, net, for other items.
On a GAAP basis, income from continuing operations for the third quarter was $80.3 million, or $1.76 per share, compared to $67.5 million, or $1.38 per share, in the prior-year quarter.
Net cash from operations in the third quarter was $159 million compared to $97 million in the prior-year quarter. Capital expenditures were $14 million in the third quarter compared to $19 million in the third quarter a year ago.
Free cash flow was $145 million compared to $78 million in the prior-year quarter.
Total debt at the end of the third quarter was $918 million. Total cash and cash equivalents were $35 million at the end of the quarter. The company paid $16 million in dividends in the third quarter. The company's previously announced $450 ■