LENNOX INTERNATIONAL INC

For the period ended Mar 31, 2024. Filed Apr 24, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed Apr 24, 2024

LII$349.47+2.2%Stored close · as of Nov 9, 2026

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Contents

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS

(Amounts in millions, except shares and par values)	As of March 31, 2024	As of December 31, 2023
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$45.7	$60.7
Short-term investments	11.9	8.4
Accounts and notes receivable, net of allowances of $15.4 and $14.4 in 2024 and 2023, respectively	616.0	594.6
Inventories, net	823.4	699.1
Other assets	67.5	70.7
Total current assets	1,564.5	1,433.5
Property, plant and equipment, net of accumulated depreciation of $928.1 and $910.8 in 2024 and 2023, respectively	759.1	720.4
Right-of-use assets from operating leases	223.7	213.6
Goodwill	219.9	222.1
Deferred income taxes	60.3	51.8
Other assets, net	157.9	156.9
Total assets	$2,985.4	$2,798.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$437.8	$374.7
Accrued expenses	302.3	416.1
Income taxes payable	28.1	4.2
Commercial paper	250.0	150.0
Current maturities of long-term debt	22.5	12.1
Current operating lease liabilities	56.7	57.5
Total current liabilities	1,097.4	1,014.6
Long-term debt	1,153.7	1,143.1
Long-term operating lease liabilities	174.3	164.6
Pensions	17.5	22.5
Other liabilities	173.7	168.2
Total liabilities	2,616.6	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	1,190.6	1,184.6
Retained earnings	3,591.1	3,506.2
Accumulated other comprehensive loss	(57.9)	(56.9)
Treasury stock, at cost, 51,548,073 shares and 51,588,103 shares for 2024 and 2023, respectively	(4,355.9)	(4,349.5)
Total stockholders' equity	368.8	285.3
Total liabilities and stockholders' equity	$2,985.4	$2,798.3

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in millions, except per share data)	For the Three Months Ended March 31,
	2024	2023
Net sales	$1,047.1	$1,049.4
Cost of goods sold	707.1	742.8
Gross profit	340.0	306.6
Operating Expenses:
Selling, general and administrative expenses	170.7	167.5
Losses (gains) and other expenses, net	3.7	0.3
Income from equity method investments	(1.2)	(0.7)
Operating income	166.8	139.5
Pension settlements	—	0.2
Interest expense, net	11.8	14.2
Other expense (income), net	0.8	—
Net income before income taxes	154.2	125.1
Provision for income taxes	29.9	27.1
Net income	$124.3	$98.0
Earnings per share – Basic:	$3.49	$2.76
Earnings per share – Diluted:	$3.47	$2.75
Weighted Average Number of Shares Outstanding - Basic	35.6	35.5
Weighted Average Number of Shares Outstanding - Diluted	35.8	35.6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in millions)	For the Three Months Ended March 31,
	2024	2023
Net income	$124.3	$98.0
Other comprehensive income (loss):
Foreign currency translation adjustments	(3.3)	6.8
Net change in pension and post-retirement liabilities	(0.1)	(0.1)
Reclassification of pension and post-retirement benefit losses into earnings	0.3	0.2
Pension settlements	—	0.2
Net change in fair value of cash flow hedges	0.7	6.3
Reclassification of cash flow hedge losses into earnings	2.0	0.4
Other comprehensive (loss) income before taxes	(0.4)	13.8
Tax expense	(0.6)	(1.8)
Other comprehensive (loss) income, net of tax	(1.0)	12.0
Comprehensive income	$123.3	$110.0

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

For the three months ended March 31, 2024 and 2023

(In millions, except per share data)

Common Stock Issued · Additional Paid-In Capital · Retained Earnings · Accumulated Other Comprehensive Loss · Treasury Stock at Cost · Total Stockholders' Equity
(For the three months ended March 31, 2024) · Shares · Amount
Balance as of December 31, 2023	$0.9	$1,184.6	$3,506.2	$(56.9)	51.6	$(4,349.5)	$285.3
Net income	—	—	124.3	—	—	—	124.3
Dividends, $1.10 per share	—	—	(39.4)	—	—	—	(39.4)
Foreign currency translation adjustments	—	—	—	(3.3)	—	—	(3.3)
Pension and post-retirement liability changes, net of tax expense of $0.1	—	—	—	0.1	—	—	0.1
Stock-based compensation expense	—	6.6	—	—	—	—	6.6
Change in cash flow hedges, net of tax expense of $0.5	—	—	—	2.2	—	—	2.2
Treasury shares reissued for common stock	—	(0.6)	—	—	(0.1)	1.7	1.1
Treasury stock purchases	—	—	—	—	—	(8.1)	(8.1)
Balance as of March 31, 2024	$0.9	$1,190.6	$3,591.1	$(57.9)	51.5	$(4,355.9)	$368.8

Common Stock Issued · Additional Paid-In Capital · Retained Earnings · Accumulated Other Comprehensive Loss · Treasury Stock at Cost · Total Stockholders' Deficit
(For the three months ended March 31, 2023) · Shares · Amount
Balance as of December 31, 2022	$0.9	$1,155.2	$3,070.6	$(90.6)	51.7	$(4,339.2)	$(203.1)
Net income	—	—	98.0	—	—	—	98.0
Dividends, $1.06 per share	—	—	(37.7)	—	—	—	(37.7)
Foreign currency translation adjustments	—	—	—	6.8	—	—	6.8
Pension and post-retirement liability changes, net of tax expense of $0.0	—	—	—	0.2	—	—	0.2
Stock-based compensation expense	—	6.1	—	—	—	—	6.1
Change in cash flow hedges, net of tax benefit of $1.8	—	—	—	5.0	—	—	5.0
Treasury shares reissued for common stock	—	(0.2)	—	—	—	1.0	0.8
Treasury stock purchases	—	—	—	—	—	(2.0)	(2.0)
Balance as of March 31, 2023	$0.9	$1,161.1	$3,130.9	$(78.6)	51.7	$(4,340.2)	$(125.9)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)	For the Three Months Ended March 31,
	2024	2023
Cash flows from operating activities:
Net income	$124.3	$98.0
Adjustments to reconcile net income to net cash used in operating activities:
Income from equity method investments	(1.2)	(0.7)
Provision for credit losses	1.8	2.0
Unrealized losses, net on derivative contracts	4.4	1.6
Stock-based compensation expense	6.6	6.1
Depreciation and amortization	24.0	19.6
Deferred income taxes	(9.3)	(8.2)
Pension expense	0.1	0.7
Pension contributions	(5.1)	(1.2)
Other items, net	(0.1)	(0.3)
Changes in assets and liabilities, net of effects of acquisitions and divestitures:
Accounts and notes receivable	(24.9)	(34.9)
Inventories	(125.4)	(150.4)
Other current assets	(7.7)	1.2
Accounts payable	65.0	22.3
Accrued expenses	(113.8)	(32.5)
Income taxes payable and receivable, net	34.7	0.8
Leases, net	(1.1)	0.1
Other, net	4.9	(3.0)
Net cash used in operating activities	(22.8)	(78.8)
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.5	0.3
Purchases of property, plant and equipment	(29.5)	(35.4)
Acquisitions, net of cash	1.8	—
(Purchases of) proceeds from short-term investments	(3.5)	1.4
Net cash used in investing activities	(30.7)	(33.7)
Cash flows from financing activities:
Commercial paper payments	(76.4)	—
Commercial paper borrowings	176.4	—
Asset securitization payments	—	(53.0)
Long-term debt payments	(3.5)	(3.2)
Borrowings from credit facility	127.2	610.5
Payments on credit facility	(135.2)	(414.5)
Proceeds from employee stock purchases	1.1	0.9
Repurchases of common stock to satisfy employee withholding tax obligations	(8.1)	(2.0)
Cash dividends paid	(39.1)	(37.6)
Net cash provided by financing activities	42.4	101.1
Decrease in cash and cash equivalents	(11.1)	(11.4)
Effect of exchange rates on cash and cash equivalents	(3.9)	(0.8)
Cash and cash equivalents, beginning of period	60.7	52.6
Cash and cash equivalents, end of period	$45.7	$40.4
Supplemental disclosures of cash flow information:
Interest paid	$21.8	$13.0
Income taxes paid (net of refunds)	$4.0	$34.4

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.