Q4 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 $1.3 billion – Core
revenue up 22%, including 1% growth from acquisitions
- GAAP diluted EPS $5.52 – Adjusted
diluted EPS up 54% to $5.60
- Net cash from operations was $332
million – Free cash flow was $273
million, up 50%
2024 Full Year Highlights
(All comparisons are
year-over-year, unless otherwise noted)
- Revenue $5.3 billion – Core
revenue up 13%, including 2% growth from acquisitions
- GAAP diluted EPS $22.54 –
Adjusted diluted EPS up 26% to $22.58
- Net cash from operations was $946
million – Free cash flow was $785
million, up 61%
DALLAS, Jan. 29,
2025 /PRNewswire/ -- Lennox (NYSE: LII), a
leader in energy-efficient climate-control solutions, today
reported fourth quarter financial results with $1.3 billion of revenue, a record $245 million of operating income and $5.52 GAAP diluted earnings per share.
Core revenue grew 22% to $1.3
billion. Adjusted segment profit rose 41% to $248 million. Adjusted segment margin was up 250
basis points to a record 18.4%. Adjusted diluted earnings per share
rose 54% to $5.60.
"2024 was a remarkable year filled with record achievements, and
last quarter continued that momentum as we delivered impressive
results across the board," said CEO, Alok
Maskara. "Our significant progress in cash conversion
reflects a relentless focus on operational excellence. We
successfully navigated the complex product transition to the new
refrigerant while maintaining a disciplined approach to M&A.
These accomplishments not only highlight the strength of our
execution but also reinforce our confidence in driving
differentiated growth and creating long-term value for our
stakeholders."
The Home Comfort Solutions segment delivered 25% revenue growth
in the fourth quarter, fueled by strong sales volume and continued
pricing excellence. Sales volume benefited from industry R-410A
prebuy ahead of the refrigerant transition in 2025. Segment profit
margins increased by 550 basis points, driven by strong volume
leverage, favorable trends in component and commodity costs, and
significant gains in factory productivity.
Building Climate Solutions segment revenue increased by 17% this
quarter, partially driven by early benefits from the new commercial
factory. The new factory ramp-up costs, along with existing factory
inefficiencies, put pressure on segment profit margins compared to
the fourth quarter of last year. The AES integration continues to
outperform expectations, exceeding synergies and driving notable
customer wins. Additionally, early results from the emergency
replacement pilot launch set a promising foundation for volume
growth in 2025.
FOURTH QUARTER 2024 FINANCIAL HIGHLIGHTS
(All
comparisons are year-over-year, unless otherwise noted)
Revenue: $1.3 billion was up 16% and up 22% for core
operations, with organic revenue up 21% driven by favorable sales
volume as well as price/mix benefits.
Operating Income: $245
million, up 32%, with operating profit margin of 18.2%, up
220 basis points.
Adjusted Segment Profit: $248
million, up 41%, and adjusted segment profit margin of
18.4%, up 250 basis points. Profit growth was driven by
$75 million in organic and inorganic
sales volume, and $35 million of
price/mix benefits. This was partially offset by inflation and
the new commercial factory, SG&A, and distribution
investments.
Net Income: $198 million,
or $5.52 per share, compared to
$145 million, or $4.04 per share, in the prior-year quarter.
Adjusted Net Income: $201 million,
or $5.60 per share, compared to
$130 million, or $3.63 per share, in the prior-year quarter.
Cash Flow: Operating cash flow was $332 million compared to $306 million in the prior-year quarter. Capital
expenditures were $60 million
compared to $125 million in the
prior-year quarter. This quarter the company repurchased
$41 million in shares.
Home Comfort Solutions: Business segment revenue was
$887 million, up 25%. Segment profit
was $193 million, up 67%, and segment
margin was 21.7%, up 550 basis points. Segment profit increased
$78 million compared to the
prior-year quarter. The increase was attributed to $56 million
in sales volume and $28 million in
price/mix benefits. Additional benefits from factory productivity
and favorable product costs, including LIFO, contributed an
additional $16 million in profit.
This was partially offset by a $22
million impact from inflation and investments in
distribution and selling.
Building Climate Solutions: Business segment revenue was
$458 million, up 17%. Organic revenue
was $448 million, up 14%. Segment
profit was $99 million, up
$8 million or 9%, and segment margin
decreased 160 basis points to 21.6%. This profit improvement was
driven by a $19 million increase in
organic and inorganic sales volume, $7
million in price/mix improvement and $2 million in distribution
productivity. This was offset by $20
million in expenses related to the new factory ramp-up,
manufacturing inefficiencies at existing facilities, and
inflationary impacts.
Corporate and Other: Corporate expenses were $44 million, an increase of $13 million versus the prior-year quarter
adjusted amount. This increase was primarily driven by SG&A
expenses related to inflation, investments and timing of incentive
compensation.
FULL YEAR 2024 FINANCIAL HIGHLIGHTS
(All comparisons
are year-over-year, unless otherwise noted)
Revenue: $5.3 billion was up 7% and up 13% for core
operations, with organic revenue up 11% driven by favorable sales
volume as well as price/mix benefits.
Operating Income: $1.0
billion, up 31%, with operating profit margin of 19.4%, up
350 basis points.
Adjusted Segment Profit: $1.0
billion, up 22%, and adjusted segment profit margin of
19.4%, up 150 basis points. Profit growth was driven by
$149 million in organic and inorganic
sales volume, and $162 million of
price/mix benefits. This was partially offset by $124 million of inflation as well as investments
in the new commercial factory, SG&A, and distribution.
Net Income: $807 million,
or $22.54 per share, compared to
$590 million, or $16.54 per share, in the prior year.
Adjusted Net Income: $808 million,
or $22.58 per share, compared to
$641 million, or $17.96 per share, in the prior year.
Cash Flow: Operating cash flow was $946 million compared to $736 million in the prior year. Net capital
expenditures were $161 million
compared to $248 million in the prior
year. This year the company repurchased $54
million in shares.
Home Comfort Solutions: Business segment revenue was
$3.6 billion, up 11%. Segment profit
was $760 million, up 25%, and segment
margin was 21.2%, up 230 basis points. Segment profit increased
$150 million compared to the prior
year. The increase was attributed to $90 million in sales
volume and $122 million in price/mix
benefits. Benefits from factory productivity and favorable product
costs, including LIFO, contributed an additional $10 million in profit. This was partially offset
by a $72 million impact from
inflation and investments in distribution and selling.
Building Climate Solutions: Business segment revenue was
$1.8 billion, up 17%. Organic revenue
was $1.7 billion, up 12%. Segment
profit was $397 million, up
$56 million or 16%, and segment
margin was flat at 22.5%. This profit improvement was driven by a
$59 million increase in organic and
inorganic sales volume and $39
million in price/mix improvement. This was offset by
$33 million in higher product costs
primarily related to the new factory ramp-up and manufacturing
inefficiencies at existing facilities. In addition, there were
$9 million of other expense
increases related to SG&A, inflation, and investments.
Corporate and Other: Corporate expenses were $120 million, an increase of $19 million versus the prior-year adjusted
amount.
FULL YEAR 2025 GUIDANCE
For full year 2025, core
revenue is anticipated to increase by approximately 2%, primarily
driven by the mix of new refrigerant products, along with low
single-digit increases in price and volume. Volume expectations
were tempered by the effects of the pre-buy for legacy refrigerant
products in 2024.
Adjusted earnings per share is expected to be within the range
of $22.00 to $23.50.
Capital expenditures are projected to be approximately
$150 million, and Free Cash Flow is
estimated to fall within the range of $650
million to $800
million.
CONFERENCE CALL INFORMATION
A conference call to
discuss the company's fourth quarter and full year results, as well
as 2025 full year guidance, will be held this morning at
8:30 a.m. Central Time. To
participate in the earnings conference, please call 800-445-7795
(U.S.) or +1 785-424-1699 (international) at least 10 minutes prior
to the scheduled start time and use conference ID LIIQ424. 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 February 5, 2025, by calling toll-free
800-839-3742 (U.S.) or +1 402-220-2979 (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 2025
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
December 31,
|
|
For the Years
Ended
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net
sales
|
$
1,345.0
|
|
$
1,154.8
|
|
$
5,341.3
|
|
$
4,981.9
|
|
Cost of goods
sold
|
889.7
|
|
800.0
|
|
3,569.4
|
|
3,434.1
|
|
Gross
profit
|
455.3
|
|
354.8
|
|
1,771.9
|
|
1,547.8
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
207.0
|
|
177.8
|
|
730.6
|
|
705.5
|
|
Losses and other
expenses, net
|
2.4
|
|
3.4
|
|
12.9
|
|
8.5
|
|
Restructuring
charges
|
—
|
|
2.9
|
|
—
|
|
3.1
|
|
Loss (gain) on sale
from previous dispositions
|
3.1
|
|
(14.1)
|
|
1.5
|
|
(14.1)
|
|
Impairment on assets
held for sale
|
—
|
|
—
|
|
—
|
|
63.2
|
|
Income from equity
method investments
|
(1.8)
|
|
(0.5)
|
|
(7.9)
|
|
(8.5)
|
|
Operating
income
|
244.6
|
|
185.3
|
|
1,034.8
|
|
790.1
|
|
Pension
settlements
|
—
|
|
0.2
|
|
0.4
|
|
0.8
|
|
Interest expense,
net
|
5.5
|
|
11.3
|
|
38.7
|
|
51.7
|
|
Other expense (income),
net
|
0.4
|
|
0.4
|
|
1.9
|
|
0.1
|
|
Income before income
taxes
|
238.7
|
|
173.4
|
|
993.8
|
|
737.5
|
|
Provision for income
taxes
|
41.0
|
|
28.9
|
|
186.9
|
|
147.4
|
|
Net
income
|
$
197.7
|
|
$
144.5
|
|
$
806.9
|
|
$
590.1
|
|
|
|
|
|
|
|
|
|
Earnings per
share – Basic:
|
$
5.55
|
|
$
4.07
|
|
$
22.67
|
|
$
16.61
|
|
|
|
|
|
|
|
|
|
Earnings per
share – Diluted:
|
$
5.52
|
|
$
4.04
|
|
$
22.54
|
|
$
16.54
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding - Basic
|
35.6
|
|
35.6
|
|
35.6
|
|
35.5
|
|
Weighted Average
Number of Shares Outstanding - Diluted
|
35.8
|
|
35.8
|
|
35.8
|
|
35.7
|
|
LENNOX INTERNATIONAL
INC. AND SUBSIDIARIES
Segment Net Sales
and Profit (Loss)
(Unaudited)
|
|
(Amounts in
millions)
|
For the Three
Months
Ended December 31,
|
|
For the Years
Ended
December 31,
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
Home Comfort
Solutions
|
$
887.4
|
|
$
709.4
|
|
$
3,577.1
|
|
$
3,222.9
|
|
Building Climate
Solutions
|
457.6
|
|
390.0
|
|
1,764.2
|
|
1,511.4
|
|
Corporate and other
(1)
|
—
|
|
55.4
|
|
—
|
|
247.6
|
|
Total segment
sales
|
$
1,345.0
|
|
$
1,154.8
|
|
$
5,341.3
|
|
$
4,981.9
|
|
|
|
|
|
|
|
|
|
Segment Profit
(Loss) (2)
|
|
|
|
|
|
|
|
|
Home Comfort
Solutions
|
$
192.6
|
|
$
115.0
|
|
$
759.7
|
|
$
610.2
|
|
Building Climate
Solutions
|
98.8
|
|
90.5
|
|
396.9
|
|
340.8
|
|
Corporate and
other
|
(43.7)
|
|
(28.7)
|
|
(120.3)
|
|
(93.9)
|
|
Total segment
profit
|
247.7
|
|
176.8
|
|
1,036.3
|
|
857.1
|
|
Reconciliation to
Operating income:
|
|
|
|
|
|
|
|
|
Loss (gain) on sale
from previous dispositions
|
3.1
|
|
(14.1)
|
|
1.5
|
|
(14.1)
|
|
Impairment of net
assets held for sale
|
—
|
|
—
|
|
—
|
|
63.2
|
|
Items in Losses and
other expenses, net which are excluded from segment
profit (loss) (2)
|
—
|
|
2.7
|
|
—
|
|
14.8
|
|
Restructuring
charges
|
—
|
|
2.9
|
|
—
|
|
3.1
|
|
Operating
income
|
$
244.6
|
|
$
185.3
|
|
$
1,034.8
|
|
$
790.1
|
|
|
|
(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;
|
|
• Loss (Gain) on
sale of previous dispositions
|
|
LENNOX INTERNATIONAL
INC. AND SUBSIDIARIES
Consolidated Balance
Sheets
(Unaudited)
|
|
|
(Amounts in
millions, except shares and par values)
|
As of December 31,
2024
|
|
As of December 31,
2023
|
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
415.1
|
|
$
60.7
|
|
Short-term
investments
|
7.2
|
|
8.4
|
|
Accounts and notes
receivable, net of allowances of $17.8 and $14.4 in 2024 and 2023,
respectively
|
661.1
|
|
594.6
|
|
Inventories,
net
|
704.8
|
|
699.1
|
|
Other
assets
|
96.0
|
|
70.7
|
|
Total current
assets
|
1,884.2
|
|
1,433.5
|
|
Property, plant and
equipment, net of accumulated depreciation of $956.8 and $910.8 in
2024 and 2023, respectively
|
800.1
|
|
720.4
|
|
Right-of-use assets
from operating leases
|
327.2
|
|
213.6
|
|
Goodwill
|
220.0
|
|
222.1
|
|
Deferred income
taxes
|
75.1
|
|
51.8
|
|
Other assets,
net
|
165.2
|
|
156.9
|
|
Total
assets
|
$
3,471.8
|
|
$
2,798.3
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
$
490.0
|
|
$
374.7
|
|
Accrued
expenses
|
435.4
|
|
416.1
|
|
Income taxes
payable
|
—
|
|
4.2
|
|
Commercial
paper
|
—
|
|
150.0
|
|
Current maturities of
long-term debt
|
314.5
|
|
12.1
|
|
Current operating
lease liabilities
|
73.4
|
|
57.5
|
|
Total current
liabilities
|
1,313.3
|
|
1,014.6
|
|
Long-term
debt
|
833.1
|
|
1,143.1
|
|
Long-term operating
lease liabilities
|
267.6
|
|
164.6
|
|
Pensions
|
18.9
|
|
22.5
|
|
Other
liabilities
|
188.7
|
|
168.2
|
|
Total
liabilities
|
2,621.6
|
|
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
|
1,213.3
|
|
1,184.6
|
|
Retained
earnings
|
4,150.8
|
|
3,506.2
|
|
Accumulated other
comprehensive loss
|
(93.7)
|
|
(56.9)
|
|
Treasury stock, at
cost, 51,573,986 shares and 51,588,103 shares for 2024
and 2023, respectively
|
(4,421.1)
|
|
(4,349.5)
|
|
Total stockholders'
equity
|
850.2
|
|
285.3
|
|
Total liabilities
and stockholders' equity
|
$
3,471.8
|
|
$
2,798.3
|
|
LENNOX INTERNATIONAL
INC. AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(Unaudited)
|
|
(Amounts in
millions)
|
For the Years Ended
December 31,
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
806.9
|
|
$
590.1
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Loss (gain) on sale
from previous dispositions
|
1.5
|
|
(14.1)
|
|
Income from equity
method investments
|
(7.9)
|
|
(8.5)
|
|
Dividends from
affiliates
|
3.0
|
|
0.5
|
|
Impairment on assets
held for sale
|
—
|
|
63.2
|
|
Restructuring charges,
net of cash paid
|
—
|
|
2.6
|
|
Provision for credit
losses
|
8.0
|
|
9.8
|
|
Unrealized (gains)
losses, net on derivative contracts
|
(2.3)
|
|
6.0
|
|
Stock-based
compensation expense
|
28.5
|
|
30.1
|
|
Depreciation and
amortization
|
95.1
|
|
86.0
|
|
Deferred income
taxes
|
(24.5)
|
|
(26.0)
|
|
Pension
expense
|
4.2
|
|
3.2
|
|
Pension
contributions
|
(9.3)
|
|
(15.0)
|
|
Other items,
net
|
—
|
|
(0.5)
|
|
Changes in assets and
liabilities, net of effects of acquisitions and
divestitures:
|
|
|
|
|
Accounts and notes
receivable
|
(80.4)
|
|
(32.7)
|
|
Inventories
|
(10.1)
|
|
11.1
|
|
Other current
assets
|
(8.3)
|
|
7.1
|
|
Accounts
payable
|
115.0
|
|
(29.2)
|
|
Accrued
expenses
|
30.4
|
|
65.0
|
|
Income taxes payable
and receivable, net
|
(21.9)
|
|
(24.1)
|
|
Leases, net
|
5.5
|
|
3.1
|
|
Other, net
|
12.3
|
|
8.5
|
|
Net cash provided by
operating activities
|
945.7
|
|
736.2
|
|
Cash flows from
investing activities:
|
|
|
|
|
Proceeds from the
disposal of property, plant and equipment
|
2.5
|
|
2.1
|
|
Purchases of property,
plant and equipment
|
(163.6)
|
|
(250.2)
|
|
Net proceeds from
previous disposition
|
(7.7)
|
|
23.2
|
|
Acquisitions, net of
cash
|
1.8
|
|
(94.9)
|
|
(Purchases of)
proceeds from investments
|
(7.4)
|
|
0.1
|
|
Net cash used in
investing activities
|
(174.4)
|
|
(319.7)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Commercial paper
borrowings
|
424.1
|
|
150.0
|
|
Commercial paper
payments
|
(574.1)
|
|
—
|
|
Borrowings from debt
arrangements
|
156.7
|
|
1,911.0
|
|
Payments on debt
arrangements
|
(194.3)
|
|
(2,797.4)
|
|
Issuance of senior
unsecured notes
|
—
|
|
500.0
|
|
Payments of deferred
financing costs
|
—
|
|
(5.4)
|
|
Proceeds from employee
stock purchases
|
4.5
|
|
3.9
|
|
Repurchases of common
stock
|
(53.6)
|
|
—
|
|
Repurchases of common
stock to satisfy employee withholding tax obligations
|
(21.6)
|
|
(14.9)
|
|
Cash dividends
paid
|
(160.3)
|
|
(153.4)
|
|
Net cash used in
financing activities
|
(418.6)
|
|
(406.2)
|
|
Increase in cash and
cash equivalents
|
352.7
|
|
10.3
|
|
Effect of exchange
rates on cash and cash equivalents
|
1.7
|
|
(2.2)
|
|
Cash and cash
equivalents, beginning of period
|
60.7
|
|
52.6
|
|
Cash and cash
equivalents, end of period
|
$
415.1
|
|
$
60.7
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
Interest
paid
|
$
45.2
|
|
$
50.2
|
|
Income taxes paid (net
of refunds)
|
$
231.9
|
|
$
197.8
|
|
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.
In our reconciliation
of Net Income, a GAAP measure, to Adjusted net income, a Non-GAAP
measure, certain items are no longer excluded from GAAP net income
for the periods related to 2024 in the table presented
below.
|
|
Reconciliation of
Net income, a GAAP measure, to Adjusted net income, a Non-GAAP
measure
|
|
For the Three Months
Ended December 31,
|
|
For the Years Ended
December 31,
|
|
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
|
$
197.7
|
$
5.52
|
|
$
144.5
|
$
4.04
|
|
$
806.9
|
$
22.54
|
|
$
590.1
|
$
16.54
|
|
Restructuring
charges
|
—
|
—
|
|
2.2
|
0.06
|
|
—
|
—
|
|
2.4
|
0.07
|
|
Loss (gain) on sale
from previous dispositions
|
3.1
|
0.08
|
|
(11.1)
|
(0.31)
|
|
1.5
|
0.04
|
|
(11.1)
|
(0.31)
|
|
Pension
settlements
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
0.3
|
0.01
|
|
Items in Losses and
other expenses, net which are excluded
from segment profit (loss) (a)
|
—
|
—
|
|
1.5
|
0.05
|
|
—
|
—
|
|
11.1
|
0.31
|
|
Excess tax benefit
from share-based compensation (b)
|
—
|
—
|
|
(2.8)
|
(0.08)
|
|
—
|
—
|
|
(5.2)
|
(0.15)
|
|
Other tax items, net
(b)
|
—
|
|
|
(4.1)
|
(0.11)
|
|
—
|
—
|
|
(3.7)
|
(0.10)
|
|
Impairment on assets
held for sale (c)
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
62.0
|
1.74
|
|
Non-core business
results (d)
|
—
|
—
|
|
(0.6)
|
(0.02)
|
|
—
|
—
|
|
(5.4)
|
(0.15)
|
|
Adjusted net income,
a non-GAAP measure
|
$
200.8
|
$
5.60
|
|
$
129.6
|
$ 3.63
|
|
$
808.4
|
$
22.58
|
|
$
640.5
|
$
17.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
December 31,
|
|
For the Years
Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net cash provided by
operating activities
|
$
332.4
|
|
$
306.3
|
|
$
945.7
|
|
$
736.2
|
|
Purchases of property,
plant and equipment
|
(60.2)
|
|
(125.2)
|
|
(163.6)
|
|
(250.2)
|
|
Proceeds from the
disposal of property, plant and equipment
|
0.6
|
|
0.5
|
|
2.5
|
|
2.1
|
|
Free cash flow, a
Non-GAAP measure
|
$
272.8
|
|
$
181.6
|
|
$
784.6
|
|
$
488.1
|
|
Reconciliation of
Net sales, a GAAP measure to Core net sales, a Non-GAAP
measure
|
|
For the Three Months
Ended December 31,
|
|
Corporate and
Other
|
|
Consolidated
|
|
2023
|
|
2023
|
|
Net sales, a GAAP
measure
|
$
55.4
|
|
$
1,154.8
|
|
Net sales from non-core
businesses (a)
|
(55.4)
|
|
(55.4)
|
|
Core net sales, a
Non-GAAP measure
|
$
—
|
|
$
1,099.4
|
|
|
|
|
|
(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 Years Ended
December 31,
|
|
Corporate and
Other
|
|
Consolidated
|
|
2023
|
|
2023
|
|
Net sales, a GAAP
measure
|
$
247.6
|
|
$
4,981.9
|
|
Net sales from non-core
businesses (a)
|
(247.6)
|
|
(247.6)
|
|
Core net sales, a
Non-GAAP measure
|
$
—
|
|
$
4,734.3
|
|
|
|
|
|
(a) Non-Core businesses
represent our business operations in Europe, which were sold in the
fourth quarter of 2023.
|
|
|
|
|
|
Reconciliation of
Segment profit (loss), a Non-GAAP measure to Adjusted Segment
profit (loss), a Non-GAAP measure
|
|
For the Three Months
Ended December 31,
|
|
Corporate and
Other
|
|
Consolidated
|
|
2023
|
|
2023
|
|
Segment profit (loss),
a Non-GAAP measure
|
$
(28.7)
|
|
$
176.8
|
|
Profit from non-core
businesses (a)
|
1.6
|
|
1.6
|
|
Adjusted Segment profit
(loss), a Non-GAAP measure
|
$
(30.3)
|
|
$
175.2
|
|
|
|
|
|
(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 Years Ended
December 31,
|
|
Corporate and
Other
|
|
Consolidated
|
|
2023
|
|
2023
|
|
Segment profit (loss),
a Non-GAAP measure
|
$
(93.9)
|
|
$
857.1
|
|
Profit from non-core
businesses (a)
|
7.6
|
|
7.6
|
|
Adjusted Segment profit
(loss), a Non-GAAP measure
|
$
(101.5)
|
|
$
849.5
|
|
|
|
|
|
(a) Non-Core businesses
represent our business operations in Europe, which were sold in the
fourth quarter of 2023.
|
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SOURCE Lennox International Inc.
