Stock Monitor: Tennant Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 07, 2018 / If you want access to our free earnings report on Lennox International Inc. (NYSE: LII), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LII. Lennox reported its first quarter fiscal 2018 operating and financial results on April 23, 2018. This Climate control solutions provider outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Tennant Company (NYSE: TNC), which also belongs to the Industrial Goods sector as the Company Lennox Intl. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Lennox International most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

On a GAAP basis, Lennox's revenue was a Q1 record $835 million, up 5% on a y-o-y basis. On an adjusted basis, the Company's revenue was a Q1 record $788 million, up 6%. On a y-o-y basis. foreign exchange was a 2% benefit to Lennox's adjusted revenue growth. Volume and price were up, and mix was neutral. The Company's reported numbers topped analysts' estimates of $815.0 million.

During Q1 2018, Lennox's GAAP gross profit was $223 million, up 6% on a y-o-y basis. The Company's gross margin was 26.7%, up 10 basis points. On an adjusted basis, Lennox's gross profit advanced 7% on a y-o-y basis to $210 million, while adjusted gross margin expanded 30 basis points to 26.6%. Lennox's GAAP and adjusted gross profit were positively impacted by higher volume, favorable price, sourcing and engineering-led cost reductions, favorable foreign exchange, and lower warranty and other product costs.

For Q1 2018, Lennox's GAAP income from continuing operations was $37.9 million, or $0.90 per share, compared to $43.5 million, or $1.00 per share, in Q1 2017. The Company's adjusted income from continuing operations in the reported quarter was $47.3 million, or $1.13 per share, compared to $36.8 million, or $0.85 per share, in the prior year's same quarter. Lennox's Q1 2018 adjusted earnings excluded net after-tax charges of $9.4 million. The Company's earnings beat Wall Street's estimates of $1.08 per share.

Lennox International's Segment Results

During Q1 2018, Lennox's revenue in the Residential Heating & Cooling business segment rose 8% to a Q1 record $453.7 million compared to $419.8 million in Q1 2017. The segment's profit was a Q1 record of $51.3 million, up 21% compared to $42.5 million in the year ago corresponding period. The segment's margin was a Q1 record of 11.3%, up 120 basis points. Results were positively impacted by higher volume and factory productivity, favorable price and mix, and sourcing and engineering-led cost reductions.

For Q1 2018, the Company's revenue in the Commercial Heating & Cooling business segment was a Q1 record $205.5 million, up 5% compared to $195.5 million in Q1 2017. The segment's profit was a Q1 record of $19.5 million, up 2% versus $19.1 million in the prior year's comparable quarter. The segment's margin was 9.5%, down 30 basis points from the year ago same period. The Commercial Heating & Cooling Business' results were positively impacted by higher volume, higher price, sourcing and engineering-led cost reductions, lower other product costs, and lower selling, general, and administrative (SG&A).

The Refrigeration business segment's adjusted revenue was $128.6 million, down 2% compared to revenue of $131.0 million in Q1 2017. At a constant currency, revenue was down 5%. The segment's profit was down 14% to $9.5 million compared to $11.0 million in the prior year's corresponding quarter. The segment's margin was down 100 basis points to 7.4%. The Refrigeration Business' Q1 2018 results were negatively impacted by lower volume and factory absorption, and higher commodity costs.

Cash Matters

During Q1 2018, Lennox's net cash used in operations was $83 million compared to $108 million in Q1 2017. The Company's reported quarter capital expenditures were $23 million compared to $25 million in the prior year's same quarter. Lennox's Q1 2018 free cash flow was approximately negative $106 million compared to approximately negative $132 million in Q1 2017.

As of March 31, 2018, Lennox's total debt was $1.29 billion, while the Company's total cash and cash equivalents were $57 million. In Q1 2018, Lennox paid approximately $21 million in dividends and $150 million for stock repurchases.

Stock Performance Snapshot

May 04, 2018 - At Friday's closing bell, Lennox International's stock rose 2.58%, ending the trading session at $199.55.

Volume traded for the day: 362.98 thousand shares.

Stock performance in the previous six-month period ? up 5.10%; and past twelve-month period ? up 18.88%

After last Friday's close, Lennox International's market cap was at $8.28 billion.

Price to Earnings (P/E) ratio was at 25.46.

The stock has a dividend yield of 1.02%.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry. This sector was up 1.0% at the end of the session.

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