Q3 Highlights
(All comparisons are year-over-year,
unless otherwise noted)
(Prior-year adjusted results and core revenue exclude European
operations that were divested in the 4Q 2023)
- Revenue $1.5 billion – Core
revenue up 15%, including 2% growth from acquisitions
- GAAP Operating Income $303
million – Adjusted segment profit up 21% to $303 million
- GAAP diluted EPS $6.68 – Adjusted
diluted EPS up 24% to $6.68
- Net cash from operations was $452
million – Free cash flow was $412
million, up 50%
- Raising FY guidance to 10% revenue growth, EPS to $20.75-$21.00 and
cash flow to $575 - $650 million
Highlights from recent press announcements:
Company announced CLO, John
Torres, has elected to retire and is being succeeded by
Monica Brown, effective January 1, 2025.
DALLAS, Oct. 23,
2024 /PRNewswire/ -- Lennox (NYSE: LII), a
leader in energy-efficient climate-control solutions, today
reported third quarter financial results with $1.5 billion of revenue, a record $303 million of operating income and $6.68 GAAP diluted earnings per share.
Core revenue grew 15% to $1.5
billion. Adjusted segment profit rose 21% to $303 million. Adjusted segment margin was up 90
basis points to a record 20.2%. Adjusted diluted earnings per share
rose 24% to $6.68.
"The Lennox team is proud to deliver another exceptional quarter
driven by the effective execution of our transformation plan," said
Chief Executive Officer, Alok
Maskara. "We also successfully operationalized the Samsung
Lennox joint venture, started production at our new Saltillo commercial factory, and integrated
AES ahead of schedule. Our low GWP transition plan and products are
strengthening our competitive edge, and we are well-positioned to
capture market share in the years ahead. This gives us confidence
to raise our full year guidance once again."
"In addition to the impressive third quarter results, we
announced this morning that Monica
Brown will be appointed Chief Legal Officer of Lennox,
effective January 1, 2025, given the
planned retirement of John Torres,
our current Chief Legal Officer, in February
2025. I want to thank John for his invaluable counsel and
leadership at Lennox and congratulate Monica on her new role,"
Maskara continued.
The Home Comfort Solutions segment generated 15% revenue growth
in the third quarter, driven by impressive sales volume and
continued focus on pricing. Sales volume benefited from industry
R-410A availability challenges and restocking of depleted industry
inventories. The segment maintained steady margin expansion,
effectively offsetting the impact of inflation and ongoing
investments.
The Business Climate Solutions segment revenue grew 15% this
quarter. The AES business continues to perform well, contributing
6% revenue growth to the segment. The integration of the AES
acquisition was successfully completed ahead of schedule. Segment
profit margin continues to be impacted by ongoing investments to
ramp up our new factory in Saltillo,
Mexico.
THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS
(All
comparisons are year-over-year, unless otherwise noted)
Revenue: $1.5 billion was up 10% and up 15% for core
operations, with organic revenue up 13% driven by favorable sales
volume as well as price/mix benefits.
Operating Income: $303
million, up 62%, with operating profit margin of 20.2%, up
650 basis points.
Adjusted Segment Profit: $303
million, up 21%, and adjusted segment profit margin of
20.2%, up 90 basis points. Profit growth was driven by
$47 million in organic and inorganic
sales volume, and $43 million of
price/mix benefits. This was partially offset by inflation and new
factory expenses, SG&A, and distribution investments.
Net Income: $239 million,
or $6.68 per share, compared to
$130 million, or $3.65 per share, in the prior-year quarter.
Adjusted Net Income: $239 million,
or $6.68 per share, compared to
$192 million, or $5.37 per share, in the prior-year quarter.
Cash Flow: Operating cash flow was $452 million compared to $313 million in the prior-year quarter. Capital
expenditures were $41 million
compared to $40 million in the
prior-year quarter. This quarter the company repurchased
$13 million in shares.
Home Comfort Solutions: Business segment revenue was
$1.0 billion, up 15%. Segment profit
was $227 million, up 25%, and segment
margin was 21.9%, up 170 basis points. Segment profit increased
$45 million compared to the
prior-year quarter. The increase was attributed to $35 million
in sales volume and $33 million in
price/mix benefits. This was partially offset by a $23 million impact from inflation and investments
in distribution and selling.
Building Climate Solutions: Business segment revenue was
$465 million, up 15%. Organic revenue
was $442 million, up 9%. Segment
profit was $106 million, up
$9 million or 9%, and segment margin
decreased 120 basis points to 22.8%. This profit improvement was
driven by a $12 million increase in
organic and inorganic sales volume and $10
million in price/mix improvement. This was offset by
$10 million of expense related to the
new factory ramp-up and manufacturing inefficiencies at existing
facilities, in addition to $3 million
of inflationary wage impacts.
Corporate and Other: Corporate expenses were $29 million, an increase of $2 million versus the prior-year quarter adjusted
amount.
FULL YEAR 2024 GUIDANCE
For full year 2024, we are
increasing revenue guidance to approximately 10%, with 2% of
benefit from the AES acquisition.
Earnings per share revised range is $20.75 to $21.00
versus the prior range of $19.50 to
$20.25.
Free Cash Flow is estimated to be within the range of
$575 million to $650 million compared to the prior range of
$500 million to $600 million.
CONFERENCE CALL INFORMATION
A conference call to
discuss the company's third quarter results and 2024 outlook will
be held this morning at 8:30 a.m. Central
Time. To participate in the earnings conference, please call
800-245-3047 (U.S.) or +1 203-518-9765 (international) at least 10
minutes prior to the scheduled start time and use conference ID
LIIQ324. The conference call also will be webcast live on the
company's investor relations web site at investor.lennox.com. A
replay of the conference call will be available until October 30, 2024, by calling toll-free
800-925-9940 (U.S.) or +1 402-220-5394 (international). The call
will also be archived on the company's investor relations website
at investor.lennox.com.
ABOUT LENNOX
Lennox (NYSE: LII) is
a 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 cooling, heating, indoor air quality, and refrigeration
systems. Additional information on Lennox is available
at Lennox.com or by contacting
investor@lennox.com.
FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL
MEASURES
The statements in this document that are not
historical statements, including statements regarding the 2024
full-year outlook and expected consolidated and segment financial
results, as well as financial targets for future years, 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 that the North
American unitary HVAC and refrigeration markets perform worse than
current assumptions. Additional risks include but are not limited
to competition in the HVACR business; our ability to successfully
develop and market new products or execute our business strategy;
our ability to meet and anticipate customer demands; our ability to
continue to license or enforce our intellectual property rights;
our ability to attract, motivate, develop, and retain our
employees, as well as labor relations problems; a decline in new
construction activity and related demand for our products and
services; the impact of weather on our business; the impact of
higher raw material prices and significant supply interruptions;
changes in environmental and climate-related legislation or
government regulations or policies; changes in tax legislation; the
impact of new or increased trade tariffs; warranty, intellectual
property infringement, product liability and other claims;
litigation risks; general economic conditions in the United States and abroad; extraordinary
events beyond our control; foreign currency fluctuations and
changes in local government regulation associated with our
international operations; cyber attacks and other disruptions or
misuse of information systems; our ability to successfully realize,
complete and integrate acquisitions; and impairment of the value of
our goodwill.
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.
A reconciliation of non-GAAP financial measures appearing in
this document to financial measures prepared in accordance with
U.S. Generally Accepted Accounting Principles (GAAP) are included
in the Annex to this document.
This document includes forward-looking statements regarding core
revenue, segment profit, adjusted segment profit, adjusted net
income, adjusted diluted earnings per share, free cash flow, and
Debt to EBITDA, which are non-GAAP financial measures. These
non-GAAP financial measures are derived by excluding certain
amounts from the corresponding financial measures determined in
accordance with GAAP. The determination of the amounts excluded is
a matter of management judgment and depends upon, among other
factors, the nature of the underlying expense or income amounts
recognized in a given period and the high variability of certain
amounts, such as unusual gains and losses, the ultimate outcome of
pending litigation, fluctuations in foreign currency exchange
rates, changes in environmental liabilities, the impact and timing
of potential acquisitions and divestitures, future restructuring
costs, and other structural changes or their probable significance.
Core revenue, adjusted segment profit, and adjusted diluted
earnings per share exclude net sales and profit/(loss) from our
European portfolio, which was sold in 4Q 2023. We are unable to
present a quantitative reconciliation of the aforementioned
forward-looking non-GAAP financial measures to their most directly
comparable forward-looking GAAP financial measures because such
information is not available, and management cannot reliably
predict the necessary components of such GAAP measures without
unreasonable effort or expense. The unavailable information could
have a significant impact on LII's full year GAAP financial
results.
|
LENNOX INTERNATIONAL INC. AND
SUBSIDIARIES
|
|
Consolidated
Statements of Operations
|
|
(Unaudited)
|
|
|
(Amounts in
millions, except per share data)
|
For the Three Months
Ended
September 30,
|
|
For the Nine Months
Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net
sales
|
$
1,498.1
|
|
$
1,366.3
|
|
$
3,996.3
|
|
$
3,827.1
|
|
Cost of goods
sold
|
1,009.7
|
|
937.8
|
|
2,679.7
|
|
2,634.1
|
|
Gross
profit
|
488.4
|
|
428.5
|
|
1,316.6
|
|
1,193.0
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
184.4
|
|
178.9
|
|
523.6
|
|
527.6
|
|
Losses and other
expenses, net
|
3.1
|
|
3.5
|
|
10.5
|
|
5.2
|
|
Restructuring
charges
|
—
|
|
0.3
|
|
—
|
|
0.2
|
|
Gain on sale from
previous dispositions
|
—
|
|
—
|
|
(1.6)
|
|
—
|
|
Impairment on assets
held for sale
|
—
|
|
63.2
|
|
—
|
|
63.2
|
|
Income from equity
method investments
|
(2.4)
|
|
(4.2)
|
|
(6.1)
|
|
(8.0)
|
|
Operating
income
|
303.3
|
|
186.8
|
|
790.2
|
|
604.8
|
|
Pension
settlements
|
0.1
|
|
0.3
|
|
0.4
|
|
0.4
|
|
Interest expense,
net
|
8.9
|
|
11.2
|
|
33.2
|
|
40.4
|
|
Other expense (income),
net
|
0.4
|
|
0.1
|
|
1.5
|
|
(0.1)
|
|
Income before income
taxes
|
293.9
|
|
175.2
|
|
755.1
|
|
564.1
|
|
Provision for income
taxes
|
54.9
|
|
44.8
|
|
145.9
|
|
118.5
|
|
Net
income
|
$
239.0
|
|
$
130.4
|
|
$
609.2
|
|
$
445.6
|
|
|
|
|
|
|
|
|
|
Earnings per
share – Basic:
|
$
6.71
|
|
$
3.67
|
|
$
17.11
|
|
$
12.55
|
|
|
|
|
|
|
|
|
|
Earnings per
share – Diluted:
|
$
6.68
|
|
$
3.65
|
|
$
17.02
|
|
$
12.51
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding - Basic
|
35.6
|
|
35.5
|
|
35.6
|
|
35.5
|
|
Weighted Average
Number of Shares Outstanding - Diluted
|
35.8
|
|
35.7
|
|
35.8
|
|
35.6
|
|
LENNOX INTERNATIONAL INC. AND
SUBSIDIARIES
|
|
Segment Net Sales
and Profit (Loss)
|
|
(Unaudited)
|
|
|
(Amounts in
millions)
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
Home Comfort
Solutions
|
$
1,032.8
|
|
$
896.3
|
|
$
2,689.7
|
|
$
2,513.6
|
|
Building Climate
Solutions
|
465.3
|
|
405.5
|
|
1,306.6
|
|
1,121.5
|
|
Corporate and other
(1)
|
—
|
|
64.5
|
|
—
|
|
192.0
|
|
Total segment
sales
|
$
1,498.1
|
|
$
1,366.3
|
|
$
3,996.3
|
|
$
3,827.1
|
|
|
|
|
|
|
|
|
|
Segment Profit
(Loss) (2)
|
|
|
|
|
|
|
|
|
Home Comfort
Solutions
|
$
226.5
|
|
$
181.4
|
|
$
567.1
|
|
$
495.2
|
|
Building Climate
Solutions
|
105.9
|
|
97.3
|
|
298.1
|
|
250.3
|
|
Corporate and
other
|
(29.1)
|
|
(23.4)
|
|
(76.6)
|
|
(65.2)
|
|
Total segment
profit
|
303.3
|
|
255.3
|
|
788.6
|
|
680.3
|
|
Reconciliation to
Operating income:
|
|
|
|
|
|
|
|
|
Gain on sale from
previous dispositions
|
—
|
|
—
|
|
$
(1.6)
|
|
—
|
|
Impairment of net
assets held for sale
|
—
|
|
63.2
|
|
—
|
|
63.2
|
|
Items in Losses and
other expenses, net which are excluded from
segment profit (loss) (2)
|
—
|
|
5.0
|
|
—
|
|
12.1
|
|
Restructuring
charges
|
—
|
|
0.3
|
|
—
|
|
0.2
|
|
Operating
income
|
$
303.3
|
|
$
186.8
|
|
$
790.2
|
|
$
604.8
|
|
|
|
(1)
|
The Corporate and Other
segment included our European portfolio. In the fourth quarter of
2023 we completed the divestiture of our European
operations.
|
|
(2)
|
We define segment
profit (loss) as a segment's operating income (loss) included in
the accompanying Consolidated Statements of Operations,
excluding:
|
|
|
• The following
items in Losses and other expenses, net:
|
|
|
|
◦ Net change in
unrealized losses (gains) on unsettled futures
contracts,
|
|
|
|
◦ Environmental
liabilities and special litigation charges, and;
|
|
|
|
◦ Other items,
net
|
|
|
|
• Restructuring
charges,
|
|
|
|
• Impairment on
assets held for sale, and;
|
|
|
|
• Gain on sale of
previous dispositions
|
|
|
LENNOX INTERNATIONAL INC. AND
SUBSIDIARIES
|
|
Consolidated Balance
Sheets
|
|
|
(Amounts in
millions, except shares and par values)
|
As of September 30,
2024
|
|
As of December 31,
2023
|
|
ASSETS
|
(Unaudited)
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
243.1
|
|
$
60.7
|
|
Short-term
investments
|
12.6
|
|
8.4
|
|
Accounts and notes
receivable, net of allowances of $16.2 and $14.4 in
2024 and 2023, respectively
|
816.5
|
|
594.6
|
|
Inventories,
net
|
689.2
|
|
699.1
|
|
Other
assets
|
69.6
|
|
70.7
|
|
Total current
assets
|
1,831.0
|
|
1,433.5
|
|
Property, plant and
equipment, net of accumulated depreciation of
$952.6 and $910.8 in 2024 and 2023, respectively
|
754.8
|
|
720.4
|
|
Right-of-use assets
from operating leases
|
270.5
|
|
213.6
|
|
Goodwill
|
219.9
|
|
222.1
|
|
Deferred income
taxes
|
71.2
|
|
51.8
|
|
Other assets,
net
|
165.8
|
|
156.9
|
|
Total
assets
|
$
3,313.2
|
|
$
2,798.3
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
$
477.5
|
|
$
374.7
|
|
Accrued
expenses
|
444.7
|
|
416.1
|
|
Income taxes
payable
|
13.3
|
|
4.2
|
|
Commercial
paper
|
—
|
|
150.0
|
|
Current maturities of
long-term debt
|
312.7
|
|
12.1
|
|
Current operating
lease liabilities
|
67.8
|
|
57.5
|
|
Total current
liabilities
|
1,316.0
|
|
1,014.6
|
|
Long-term
debt
|
827.6
|
|
1,143.1
|
|
Long-term operating
lease liabilities
|
214.9
|
|
164.6
|
|
Pensions
|
16.3
|
|
22.5
|
|
Other
liabilities
|
184.4
|
|
168.2
|
|
Total
liabilities
|
2,559.2
|
|
2,513.0
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
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
|
1,204.9
|
|
1,184.6
|
|
Retained
earnings
|
3,994.0
|
|
3,506.2
|
|
Accumulated other
comprehensive loss
|
(70.7)
|
|
(56.9)
|
|
Treasury stock, at
cost, 51,537,964 shares and 51,588,103 shares for
2024 and 2023, respectively
|
(4,375.1)
|
|
(4,349.5)
|
|
Total stockholders'
equity
|
754.0
|
|
285.3
|
|
Total liabilities
and stockholders' equity
|
$
3,313.2
|
|
$
2,798.3
|
|
LENNOX INTERNATIONAL INC. AND
SUBSIDIARIES
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
(Amounts in
millions)
|
For the Nine Months
Ended September 30,
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
609.2
|
|
445.6
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Gain on sale from
previous dispositions
|
(1.6)
|
|
—
|
|
Income from equity
method investments
|
(6.1)
|
|
(8.0)
|
|
Dividends from
affiliates
|
2.5
|
|
—
|
|
Impairment on assets
held for sale
|
—
|
|
63.2
|
|
Provision for credit
losses
|
4.6
|
|
4.7
|
|
Unrealized (gains)
losses, net on derivative contracts
|
(6.7)
|
|
5.6
|
|
Stock-based
compensation expense
|
20.1
|
|
23.5
|
|
Depreciation and
amortization
|
69.6
|
|
62.0
|
|
Deferred income
taxes
|
(21.5)
|
|
(24.9)
|
|
Pension
expense
|
3.5
|
|
2.4
|
|
Pension
contributions
|
(9.1)
|
|
(2.8)
|
|
Other items,
net
|
—
|
|
(1.4)
|
|
Changes in assets and
liabilities, net of effects of acquisitions and
divestitures:
|
|
|
|
|
Accounts and notes
receivable
|
(229.1)
|
|
(142.5)
|
|
Inventories
|
9.1
|
|
(44.9)
|
|
Accounts
payable
|
104.6
|
|
(10.9)
|
|
Accrued
expenses
|
31.3
|
|
69.4
|
|
Income taxes payable
and receivable, net
|
20.4
|
|
(6.7)
|
|
Leases, net
|
3.8
|
|
3.4
|
|
Other, net
|
8.7
|
|
(7.8)
|
|
Net cash provided by
operating activities
|
613.3
|
|
429.9
|
|
Cash flows from
investing activities:
|
|
|
|
|
Proceeds from the
disposal of property, plant and equipment
|
1.9
|
|
1.6
|
|
Purchases of property,
plant and equipment
|
(103.4)
|
|
(125.0)
|
|
Net proceeds from
previous disposition
|
4.1
|
|
—
|
|
Acquisitions, net of
cash
|
1.8
|
|
—
|
|
Purchases of
investments
|
(12.5)
|
|
(1.1)
|
|
Net cash used in
investing activities
|
(108.1)
|
|
(124.5)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Commercial paper
borrowings
|
424.1
|
|
—
|
|
Commercial paper
payments
|
(574.1)
|
|
—
|
|
Borrowings from debt
arrangements
|
156.7
|
|
1,737.5
|
|
Payments on debt
arrangements
|
(190.2)
|
|
(2,290.1)
|
|
Issuance of senior
unsecured notes
|
—
|
|
500.0
|
|
Payments of deferred
financing costs
|
—
|
|
(5.4)
|
|
Proceeds from employee
stock purchases
|
3.3
|
|
2.9
|
|
Repurchases of common
stock
|
(12.9)
|
|
—
|
|
Repurchases of common
stock to satisfy employee withholding tax obligations
|
(15.0)
|
|
(7.1)
|
|
Cash dividends
paid
|
(119.3)
|
|
(153.4)
|
|
Net cash used in
financing activities
|
(327.4)
|
|
(215.6)
|
|
Increase in cash and
cash equivalents
|
177.8
|
|
89.8
|
|
Cash balances
classified as assets held for sale
|
—
|
|
(7.6)
|
|
Effect of exchange
rates on cash and cash equivalents
|
4.6
|
|
(2.8)
|
|
Cash and cash
equivalents, beginning of period
|
60.7
|
|
52.6
|
|
Cash and cash
equivalents, end of period
|
$
243.1
|
|
$
132.0
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
Interest
paid
|
$
44.7
|
|
$
42.0
|
|
Income taxes paid (net
of refunds)
|
$
145.5
|
|
$
151.3
|
|
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 (loss) presented in accordance with U.S. GAAP,
additional non-GAAP financial measures are provided and reconciled
in the following tables. 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 and enhance
the ability of investors to analyze the Company's business trends
and operating performance.
|
|
Reconciliation of
Net income, a GAAP measure, to Adjusted net income, a Non-GAAP
measure
|
|
For the Three Months
Ended
September 30,
|
|
For the Nine Months
Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Amount
after tax
|
Per
Diluted
Share
|
|
Amount
after tax
|
Per
Diluted
Share
|
|
Amount
after tax
|
Per
Diluted
Share
|
|
Amount
after tax
|
Per
Diluted
Share
|
|
Net income, a GAAP
measure
|
$
239.0
|
$
6.68
|
|
$
130.4
|
$
3.65
|
|
$
609.2
|
$
17.02
|
|
$
445.6
|
$
12.51
|
|
Restructuring
charges
|
—
|
—
|
|
0.3
|
0.01
|
|
—
|
—
|
|
0.2
|
0.01
|
|
Gain on sale from
previous dispositions
|
—
|
—
|
|
—
|
—
|
|
(1.6)
|
(0.04)
|
|
—
|
—
|
|
Pension
settlements
|
—
|
—
|
|
0.2
|
0.01
|
|
—
|
—
|
|
0.3
|
0.01
|
|
Items in Losses and
other expenses, net which are
excluded from segment profit (loss) (a)
|
—
|
—
|
|
4.3
|
0.11
|
|
—
|
—
|
|
9.6
|
0.26
|
|
Excess tax benefit
from share-based compensation (b)
|
—
|
—
|
|
(2.3)
|
(0.06)
|
|
—
|
—
|
|
(2.4)
|
(0.07)
|
|
Other tax items, net
(b)
|
—
|
|
|
—
|
—
|
|
—
|
—
|
|
0.4
|
0.01
|
|
Impairment on assets
held for sale (c)
|
—
|
—
|
|
62.0
|
1.74
|
|
—
|
—
|
|
62.0
|
1.74
|
|
Non-core business
results (d)
|
—
|
—
|
|
(3.3)
|
(0.09)
|
|
—
|
—
|
|
(4.8)
|
(0.13)
|
|
Adjusted net income,
a non-GAAP measure
|
$
239.0
|
$
6.68
|
|
$
191.6
|
$ 5.37
|
|
$
607.6
|
$
16.98
|
|
$
510.9
|
$
14.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Recorded in Losses
and other expenses, net in the Consolidated Statements of
Operations
|
|
|
|
|
|
|
|
(b) Recorded in
Provision for income taxes in the Consolidated Statements of
Operations
|
|
|
|
|
|
|
|
(c) Impairment on
assets held for sale relate to the divestiture of our European
operations that was completed in the fourth quarter of
2023.
|
|
|
|
|
|
|
|
(d) Non-core business
results represent activity related to our business operations in
Europe not included elsewhere in the reconciliations.
|
|
|
|
|
|
|
|
Reconciliation of
Net Cash Provided by Operating Activities, a GAAP measure, to Free
Cash Flow, a Non-GAAP measure
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net cash provided by
operating activities
|
$
452.1
|
|
$
313.2
|
|
$
613.3
|
|
$
429.9
|
|
Purchases of property,
plant and equipment
|
(41.2)
|
|
(39.7)
|
|
(103.4)
|
|
(125.0)
|
|
Proceeds from the
disposal of property, plant and equipment
|
0.8
|
|
0.1
|
|
1.9
|
|
1.6
|
|
Free cash flow, a
Non-GAAP measure
|
$
411.7
|
|
$
273.6
|
|
$
511.8
|
|
$
306.5
|
|
Reconciliation of
Net sales, a GAAP measure to Core net sales, a Non-GAAP
measure
|
|
For the Three Months
Ended September 30,
|
|
Corporate and
Other
|
|
Consolidated
|
|
2023
|
|
2023
|
|
Net sales, a GAAP
measure
|
$
64.5
|
|
$
1,366.3
|
|
Net sales from non-core
businesses (a)
|
(64.5)
|
|
(64.5)
|
|
Core net sales, a
Non-GAAP measure
|
$
—
|
|
$
1,301.8
|
|
|
|
|
|
(a) Non-Core businesses
represent our business operations in Europe, which were sold in the
fourth quarter of 2023.
|
|
|
|
|
|
Reconciliation of
Net sales, a GAAP measure to Core net sales, a Non-GAAP
measure
|
|
For the Nine Months
Ended September 30,
|
|
Corporate and
Other
|
|
Consolidated
|
|
2023
|
|
2023
|
|
Net sales, a GAAP
measure
|
$
192.0
|
|
$
3,827.1
|
|
Net sales from non-core
businesses (a)
|
(192.0)
|
|
(192.0)
|
|
Core net sales, a
Non-GAAP measure
|
$
—
|
|
$
3,635.1
|
|
|
|
|
|
(a) Non-Core businesses
represent our business operations in Europe
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment profit (loss), a Non-GAAP measure to Adjusted Segment
profit (loss), a Non-GAAP measure
|
|
For the Three Months
Ended September 30,
|
|
Corporate and
Other
|
|
Consolidated
|
|
2023
|
|
2023
|
|
Segment profit (loss),
a Non-GAAP measure
|
$
(23.4)
|
|
$
255.3
|
|
Profit from non-core
businesses (a)
|
3.9
|
|
3.9
|
|
Adjusted Segment profit
(loss), a Non-GAAP measure
|
$
(27.3)
|
|
$
251.4
|
|
|
|
|
|
(a) Non-Core businesses
represent our business operations in Europe, which were sold in the
fourth quarter of 2023.
|
|
|
|
|
|
Reconciliation of
Segment profit, a Non-GAAP measure to Adjusted Segment profit, a
Non-GAAP measure
|
|
For the Nine Months
Ended September 30,
|
|
Corporate and
Other
|
|
Consolidated
|
|
2023
|
|
2023
|
|
Segment profit (loss),
a Non-GAAP measure
|
$
(65.2)
|
|
$
680.3
|
|
Profit from non-core
businesses (a)
|
6.1
|
|
6.1
|
|
Adjusted Segment profit
(loss), a Non-GAAP measure
|
$
(71.3)
|
|
$
674.2
|
|
|
|
|
|
(a) Non-Core businesses
represent our business operations in Europe
|
|
|
|
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SOURCE Lennox International Inc.