Lincoln Electric Holdings (LECO) Q1 FY2024 earnings: revenue $981 million, down 5.6% on the year

Lincoln Electric Holdings Inc. (LECO) reported revenue of $981 million for Q1 FY2024, the quarter ended 31 March 2024, down 5.6% on the same quarter a year earlier. Net income was $123 million, up 1.2% on the year, and diluted earnings per share $2.14. The figures are the company's own, from the 10-Q it filed with the SEC on 25 April 2024.

Revenue$981 milliondown 5.6%

Net income$123 millionup 1.2%

Diluted EPS$2.14

QuarterQ1 FY2024ended 31 March 2024

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Revenue	981	1,059	n/a	n/a
Cost of revenue	613	687	n/a	n/a
Gross profit	368	371	n/a	n/a
Gross margin	37.5%	35.1%	n/a
Selling, general and administrative	199	189	n/a	n/a
Operating income	165	204	n/a	n/a
Operating margin	16.8%	19.3%	n/a
Interest expense	12.0	11.9	n/a	n/a
Pre-tax income	159	197	n/a	n/a
Income tax	35.1	40.4	n/a	n/a
Effective tax rate	22.2%	20.5%	n/a
Net income	123	157	n/a	n/a
Net margin	12.6%	14.8%	n/a
Diluted EPS	$2.14	$2.70	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Operating cash flow	133	122	n/a	n/a
Capital expenditure	26.3	24.5	n/a	n/a
Free cash flow	107	97.1	n/a	n/a
Free cash flow margin	10.9%	9.2%	n/a
Cash from investing	-25.9	26.4	n/a	n/a
Cash from financing	-125	-101	n/a	n/a
Depreciation and amortisation	21.6	22.0	n/a	n/a
Share-based compensation	14.2	4.1	n/a	n/a
Buybacks	110	68.2	n/a	n/a
Dividends paid	41.3	36.7	n/a	n/a
Dividend per share	$0.71	n/a	n/a	n/a
Diluted shares, weighted	58m	58m	n/a	n/a
Shares outstanding at period end	57m	57m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Q4 FY2023	A year earlier	Change on the year
Shareholders' equity	1,308	1,309	n/a	n/a
Debt	1,103	1,105	n/a	n/a
Operating lease liabilities	40.7	41.6	n/a	n/a
Other liabilities	928	922	n/a	n/a
Total liabilities and equity	3,380	3,377	n/a	n/a
Fixed assets	582	575	n/a	n/a
Goodwill	690	694	n/a	n/a
Intangible assets	n/a	187	n/a	n/a
Cash and equivalents	375	394	n/a	n/a
Receivables	545	539	n/a	n/a
Inventory	567	563	n/a	n/a
Other assets	621	425	n/a	n/a
Total assets	3,380	3,377	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,033	1,059	981	1,022	984	1,022	1,004	1,089	1,061	1,079	1,121	1,220
Cost of revenue	668	687	613	638	632	653	639	683	672	705	722	771
Gross profit	366	371	368	384	352	369	365	406	389	374	399	449
Gross margin	35%	35%	38%	38%	36%	36%	36%	37%	37%	35%	36%	37%
SG&A	187	189	199	208	186	187	197	211	207	184	211	225
Operating income	171	204	165	149	146	177	165	192	177	184	186	221
Operating margin	17%	19%	17%	15%	15%	17%	16%	18%	17%	17%	17%	18%
Interest expense	12.7	11.9	12.0	12.6	14.1	14.2	14.4	14.3	15.1	14.6	14.8	14.3
Pre-tax income	161	197	159	137	132	167	153	184	166	173	173	208
Tax rate	20%	21%	22%	26%	24%	16%	23%	22%	26%	21%	21%	24%
Net income	129	157	123	102	101	140	118	143	123	136	136	159
Net margin	13%	15%	13%	10%	10%	14%	12%	13%	12%	13%	12%	13%
Diluted EPS	$2.22	$2.70	$2.14	$1.77	$1.77	$2.47	$2.10	$2.56	$2.21	$2.45	$2.47	$2.88
Operating cash flow	223	122	133	171	199	95.8	186	144	237	95.0	102	254
Capital expenditure	25.9	24.5	26.3	23.1	35.7	31.5	26.9	25.4	31.6	42.9	39.2	31.4
Free cash flow	197	97.1	107	148	163	64.3	159	118	205	52.0	63.0	222
Buybacks	45.4	68.2	110	50.4	50.4	52.5	107	127	52.7	51.8	56.7	76.1
Dividends paid	36.8	36.7	41.3	40.4	40.3	40.2	43.0	41.9	41.6	41.8	44.1	43.4
Shares outstanding	57m	57m	57m	57m	56m	56m	56m	55m	55m	55m	55m	55m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 March 2024, filed 25 April 2024, accession 0000059527-24-000015: the filing on EDGAR. All of Lincoln Electric Holdings Inc.'s filings: EDGAR company page.

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