DALLAS, Aug. 20, 2018 /PRNewswire/ -- Lennox
International Inc. (NYSE: LII) today announced the estimated
financial impacts and insurance offsets expected for the company
following the tornado that damaged its manufacturing facility in
Marshalltown, Iowa on July 19, as previously announced.
For the second half of 2018, the company estimates approximately
$100 million in lost revenue in the
Residential Heating & Cooling business segment as a result of
the tornado, and approximately $55
million in lost profit. In addition to the lost revenue
impact, the company currently estimates special pre-tax charges
related to the tornado of approximately $80
million in 2018, including site clean-up costs, asset
write-offs, and factory-inefficiency costs. Over the course of 2018
and 2019, Lennox International expects business interruption and
property insurance proceeds to offset both the earnings impact from
lower revenue and the special non-core charges resulting from the
tornado.
The company is updating 2018 guidance for GAAP revenue growth
from 4-6% to 2-4%. The company is updating 2018 guidance for
adjusted revenue growth from 6-8% to 4-6%. Adjusted revenue growth
excludes the impact of the company's divestitures within its
Refrigeration business this year.
The $55 million of lower profit
expected in the Residential segment in 2018 equates to
approximately $1.05 of impact to EPS
from continuing operations. The offsetting proceeds from business
interruption insurance are expected in either the second half of
2018 or in 2019. Assuming proceeds are not received until 2019, the
company expects a negative $1.05
impact to 2018 EPS and a $1.05
benefit to 2019 EPS. The offsetting proceeds from property
insurance that will cover the special pre-tax charges of
approximately $80 million are
expected in 2018. Accordingly, the company is updating 2018
guidance for GAAP EPS from continuing operations from $9.43-$9.83 to a
new range of $8.38-$8.78. The company is updating 2018 guidance for
adjusted EPS from continuing operations from $9.95-$10.35 to a
new range of $8.90-$9.30.
The company reiterates 2018 guidance for $450 million of stock repurchases in total for
the year.
"The strong focus and commitment to serving our customers across
North America continues," said
Chairman and CEO Todd Bluedorn.
"While we have lots of hard work in front of us, I am extremely
confident in the LII team's ability to mitigate the impact from the
tornado and execute the recovery process."
CONFERENCE CALL INFORMATION
A conference call with
remarks and a question and answer session with Chairman & CEO
Todd Bluedorn and CFO Joe Reitmeier will be held on Tuesday, August 21 at 7:30
a.m. Central time. To listen, call the conference call line
at 612-332-0226 at least 10 minutes prior to the scheduled start
time and use reservation number 453317. The conference call also
will be webcast on Lennox International's web site at
www.lennoxinternational.com. A replay will be available from
10:00 a.m. Central time on
August 21 through September 4, 2018
by dialing 800-475-6701 (U.S.) or 320-365-3844 (international) and
using access code 453317. The call also will be archived on the
company's website.
About Lennox International
Lennox International Inc.
is a global leader in the heating, air conditioning, and
refrigeration markets. Lennox International stock is listed on the
New York Stock Exchange and traded under the symbol "LII".
Additional information is available at: www.lennoxinternational.com
or by contacting Steve Harrison,
Vice President, Investor Relations, at 972-497-6670.
FORWARD-LOOKING STATEMENTS
The statements in this news
release that are not historical statements, including statements
regarding the financial and operational impact of the tornado
damage to LII's manufacturing facility in Marshalltown, Iowa, 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 as of the date of this news release. These statements
are subject to numerous risks and uncertainties, that could cause
actual results to differ materially from such statements, include,
but are not limited to: (1) the impact of the damage on LII's
results of operations and financial condition, (2) the cost and
timing to rebuild the Marshalltown
manufacturing facility and to repair or replace the necessary
manufacturing equipment, (3) the timing of the receipt of insurance
proceeds for property damage and business interruption losses and
the dollar amount of these proceeds, and (4) the accounting
treatment and related financial statement impact resulting from the
tornado damage and insurance recoveries. For information concerning
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.
View original content with
multimedia:http://www.prnewswire.com/news-releases/lennox-international-announces-estimated-financial-impacts-from-tornado-and-offsets-from-insurance-coverage-300699792.html
SOURCE Lennox International Inc.