LENNOX INTERNATIONAL INC

For the period ended Jun 30, 2024. Filed Jul 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.

Jun 30, 2024 · Filed Jul 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 June 30, 2024	As of December 31, 2023
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$47.6	$60.7
Short-term investments	10.2	8.4
Accounts and notes receivable, net of allowances of $16.1 and $14.4 in 2024 and 2023, respectively	858.6	594.6
Inventories, net	776.3	699.1
Other assets	72.6	70.7
Total current assets	1,765.3	1,433.5
Property, plant and equipment, net of accumulated depreciation of $936.5 and $910.8 in 2024 and 2023, respectively	740.8	720.4
Right-of-use assets from operating leases	271.6	213.6
Goodwill	219.9	222.1
Deferred income taxes	63.0	51.8
Other assets, net	161.3	156.9
Total assets	$3,221.9	$2,798.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$450.8	$374.7
Accrued expenses	393.0	416.1
Income taxes payable	33.1	4.2
Commercial paper	147.0	150.0
Current maturities of long-term debt	14.0	12.1
Current operating lease liabilities	66.6	57.5
Total current liabilities	1,104.5	1,014.6
Long-term debt	1,126.8	1,143.1
Long-term operating lease liabilities	215.2	164.6
Pensions	18.1	22.5
Other liabilities	179.9	168.2
Total liabilities	2,644.5	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	1,197.9	1,184.6
Retained earnings	3,796.0	3,506.2
Accumulated other comprehensive loss	(60.8)	(56.9)
Treasury stock, at cost, 51,538,343 shares and 51,588,103 shares for 2024 and 2023, respectively	(4,356.6)	(4,349.5)
Total stockholders' equity	577.4	285.3
Total liabilities and stockholders' equity	$3,221.9	$2,798.3

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in millions, except per share data)	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2024	2023	2024	2023
Net sales	$1,451.1	$1,411.4	$2,498.2	$2,460.7
Cost of goods sold	962.9	953.6	1,670.0	1,696.2
Gross profit	488.2	457.8	828.2	764.5
Operating Expenses:
Selling, general and administrative expenses	168.5	181.3	339.2	348.8
Losses and other expenses, net	3.7	0.8	7.4	1.1
Gain on sale from previous dispositions	(1.6)	—	(1.6)	—
Income from equity method investments	(2.5)	(3.1)	(3.7)	(3.8)
Operating income	320.1	278.8	486.9	418.4
Pension settlements	0.3	0.1	0.3	0.3
Interest expense, net	12.5	15.0	24.3	29.2
Other expense, net	0.3	—	1.1	—
Net income before income taxes	307.0	263.7	461.2	388.9
Provision for income taxes	61.1	46.5	91.0	73.7
Net income	$245.9	$217.2	$370.2	$315.2
Earnings per share – Basic:	$6.91	$6.12	$10.40	$8.88
Earnings per share – Diluted:	$6.87	$6.10	$10.34	$8.85
Weighted Average Number of Shares Outstanding - Basic	35.6	35.5	35.6	35.5
Weighted Average Number of Shares Outstanding - Diluted	35.8	35.6	35.8	35.6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in millions)	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2024	2023	2024	2023
Net income	$245.9	$217.2	$370.2	$315.2
Other comprehensive income (loss):
Foreign currency translation adjustments	(6.2)	7.5	(9.5)	14.3
Net change in pension and post-retirement liabilities	(1.0)	(0.6)	(1.1)	(0.7)
Reclassification of pension and post-retirement benefit losses into earnings	0.1	0.2	0.4	0.4
Pension settlements	0.3	0.1	0.3	0.3
Net change in fair value of cash flow hedges	5.2	(5.8)	5.9	0.5
Reclassification of cash flow hedge (gains) losses into earnings	(1.6)	—	0.4	0.4
Other comprehensive (loss) income before taxes	(3.2)	1.4	(3.6)	15.2
Tax benefit (expense)	0.3	1.4	(0.3)	(0.4)
Other comprehensive (loss) income, net of tax	(2.9)	2.8	(3.9)	14.8
Comprehensive income	$243.0	$220.0	$366.3	$330.0

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

For the three and six months ended June 30, 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 June 30, 2024) · Shares · Amount
Balance as of March 31, 2024	$0.9	$1,190.6	$3,591.1	$(57.9)	51.5	$(4,355.9)	$368.8
Net income	—	—	245.9	—	—	—	245.9
Dividends, $1.15 per share	—	—	(41.0)	—	—	—	(41.0)
Foreign currency translation adjustments	—	—	—	(6.2)	—	—	(6.2)
Pension and post-retirement liability changes, net of tax benefit of $0.2	—	—	—	(0.7)	—	—	(0.7)
Stock-based compensation expense	—	6.4	—	—	—	—	6.4
Change in cash flow hedges, net of tax benefit of $0.6	—	—	—	4.0	—	—	4.0
Treasury shares reissued for common stock	—	0.9	—	—	—	0.4	1.3
Treasury stock purchases	—	—	—	—	—	(1.1)	(1.1)
Balance as of June 30, 2024	$0.9	$1,197.9	$3,796.0	$(60.8)	51.5	$(4,356.6)	$577.4

Common Stock Issued · Additional Paid-In Capital · Retained Earnings · Accumulated Other Comprehensive Loss · Treasury Stock at Cost · Total Stockholders' Equity (Deficit)
(For the three months ended June 30, 2023) · Shares · Amount
Balance as of March 31, 2023	$0.9	$1,161.1	$3,130.9	$(78.6)	51.7	$(4,340.2)	$(125.9)
Net income	—	—	217.2	—	—	—	217.2
Dividends, $1.10 per share	—	—	(39.1)	—	—	—	(39.1)
Foreign currency translation adjustments	—	—	—	7.5	—	—	7.5
Pension and post-retirement liability changes, net of tax expense of $0.0	—	—	—	(0.3)	—	—	(0.3)
Stock-based compensation expense	—	7.7	—	—	—	—	7.7
Change in cash flow hedges, net of tax benefit of $1.4	—	—	—	(4.4)	—	—	(4.4)
Treasury shares reissued for common stock	—	0.5	—	—	—	0.6	1.1
Treasury stock purchases	—	—	—	—	—	(1.2)	(1.2)
Balance as of June 30, 2023	$0.9	$1,169.3	$3,309.0	$(75.8)	51.7	$(4,340.8)	$62.6

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

For the three and six months ended June 30, 2024 and 2023 (Unaudited)

(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 six months ended June 30, 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	—	—	370.2	—	—		—		370.2
Dividends, $2.25 per share	—	—	(80.4)	—	—		—		(80.4)
Foreign currency translation adjustments	—	—	—	(9.5)	—		—		(9.5)
Pension and post-retirement liability changes, net of tax benefit of $0.2	—	—	—	(0.6)	—		—		(0.6)
Stock-based compensation expense	—	13.3	—	—	—		—		13.3
Change in cash flow hedges, net of tax benefit of $0.1	—	—	—	6.2	—		—		6.2
Treasury shares reissued for common stock	—	—	—	—	(0.1)		2.0		2.0
Treasury stock purchases	—	—	—	—		(9.1)		(9.1)
Balance as of June 30, 2024	$0.9	$1,197.9	$3,796.0	$(60.8)	51.5		$(4,356.6)		$577.4

Common Stock Issued · Additional Paid-In Capital · Retained Earnings · Accumulated Other Comprehensive Loss · Treasury Stock at Cost · Total Stockholders' Equity (Deficit)
(For the six months ended June 30, 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	—	—	315.2	—	—	—	315.2
Dividends, $2.16 per share	—	—	(76.8)	—	—	—	(76.8)
Foreign currency translation adjustments	—	—	—	14.3	—	—	14.3
Stock-based compensation expense	—	13.8	—	—	—	—	13.8
Change in cash flow hedges, net of tax expense of $0.4	—	—	—	0.5	—	—	0.5
Treasury shares reissued for common stock	—	0.3	—	—	—	1.6	1.9
Treasury stock purchases	—	—	—	—	—	(3.2)	(3.2)
Balance as of June 30, 2023	$0.9	$1,169.3	$3,309.0	$(75.8)	51.7	$(4,340.8)	$62.6

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)	For the Six Months Ended June 30,
	2024	2023
Cash flows from operating activities:
Net income	$370.2	$315.2
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	(3.7)	(3.8)
Provision for credit losses	3.4	3.8
Unrealized losses, net on derivative contracts	0.5	3.9
Stock-based compensation expense	13.3	13.8
Depreciation and amortization	49.2	40.5
Deferred income taxes	(13.4)	(18.9)
Pension expense	2.0	1.4
Pension contributions	(5.1)	(2.0)
Other items, net	(0.1)	(1.2)
Changes in assets and liabilities, net of effects of acquisitions and divestitures:
Accounts and notes receivable	(270.8)	(236.5)
Inventories	(78.9)	(100.4)
Other current assets	(2.5)	8.7
Accounts payable	76.2	45.4
Accrued expenses	(22.1)	45.6
Income taxes payable and receivable, net	40.1	4.1
Leases, net	1.8	3.3
Other, net	2.7	(6.2)
Net cash provided by operating activities	161.2	116.7
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	1.1	1.5
Purchases of property, plant and equipment	(62.2)	(85.3)
Net proceeds from previous disposition	4.1	—
Acquisitions, net of cash	1.8	—
(Purchases of) proceeds from short-term investments	(2.0)	1.5
Net cash used in investing activities	(57.2)	(82.3)
Cash flows from financing activities:
Asset securitization borrowings	—	140.0
Commercial paper borrowings	374.0	—
Commercial paper payments	(377.0)	—
Asset securitization payments	—	(90.0)
Long-term debt payments	(9.9)	(7.3)
Borrowings from credit facility	156.7	1,182.0
Payments on credit facility	(176.7)	(1,182.0)
Proceeds from employee stock purchases	2.0	1.9
Repurchases of common stock to satisfy employee withholding tax obligations	(9.1)	(3.2)
Cash dividends paid	(78.3)	(75.2)
Net cash used in financing activities	(118.3)	(33.8)
(Decrease) increase in cash and cash equivalents	(14.3)	0.6
Effect of exchange rates on cash and cash equivalents	1.2	(1.8)
Cash and cash equivalents, beginning of period	60.7	52.6
Cash and cash equivalents, end of period	$47.6	$51.4
Supplemental disclosures of cash flow information:
Interest paid	$25.6	$27.1
Income taxes paid (net of refunds)	$60.2	$88.4

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