Lennox International Inc (LII) has reported a 260.71 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $40.40 million, or $0.93 a share in the quarter, compared with $11.20 million, or $0.25 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $65.20 million, or $1.50 a share compared with $50.30 million or $1.11 a share, a year ago.
Revenue during the quarter grew 7.58 percent to $897.30 million from $834.10 million in the previous year period. Gross margin for the quarter expanded 254 basis points over the previous year period to 29.82 percent. Total expenses were 92.42 percent of quarterly revenues, down from 97.55 percent for the same period last year. This has led to an improvement of 513 basis points in operating margin to 7.58 percent.
Operating income for the quarter was $68 million, compared with $20.40 million in the previous year period.
"2016 was a year of record margin, profit, and cash flow for the company," said chairman and chief executive officer Todd Bluedorn. "All three of our businesses were up in 2016, and Residential and Commercial set new highs for sales, margin, and profit. In Refrigeration, profit rose 30% as margin expanded 210 basis points to 9.5%. The company generated a record $355 million in cash from operations for the year, and we continued to make investments for the future growth and profitability of the company, as well as raise the dividend and repurchase company stock.
For the fiscal year 2017, Lennox International Inc forecasts revenue to grow in the range of 3 percent to 7 percent for the fiscal year 2017. The company expects diluted earnings per share to be in the range of $7.55 to $8.15. It company expects diluted earnings per share to be in the range of $7.55 to $8.15 on adjusted basis.
Operating cash flow improves
Lennox International Inc has generated cash of $354.50 million from operating activities during the year, up 7.04 percent or $23.30 million, when compared with the last year. The company has spent $84.10 million cash to meet investing activities during the year as against cash outgo of $69.80 million in the last year. It has incurred net capital expenditure of $84.10 million on net basis during the year, up 20.49 percent or $14.30 million from year ago.
The company has spent $255.20 million cash to carry out financing activities during the year as against cash outgo of $248.70 million in the last year period.
Cash and cash equivalents stood at $50.20 million as on Dec. 31, 2016, up 29.05 percent or $11.30 million from $38.90 million on Dec. 31, 2015.
Debt moves up
Lennox International Inc has witnessed an increase in total debt over the last one year. It stood at $868.20 million as on Dec. 31, 2016, up 17.15 percent or $127.10 million from $741.10 million on Dec. 31, 2015. Total debt was 49.32 percent of total assets as on Dec. 31, 2016, compared with 44.11 percent on Dec. 31, 2015. Debt to equity ratio was at 22.85 as on Dec. 31, 2016, up from 7.29 as on Dec. 31, 2015. Interest coverage ratio improved to 9.19 for the quarter from 3.52 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
