Lennox International (LII) FY2020 results: revenue $3.6 billion, down 4.5% on the year

Lennox International Inc. (LII) reported revenue of $3.6 billion for fiscal 2020, the year ended 31 December 2020, down 4.5% on the year before. Net income was $356 million, down 12.8%, and diluted earnings per share $9.24. The figures are the company's own, from the 10-K it filed with the SEC on 16 February 2021.

Revenue

$3.6 billion

-4.5% on the year

FY2013FY2020

Operating margin

13.2%

17.3% a year earlier

FY2013FY2020

Net income

$356 million

-12.8% on the year

FY2013FY2020

Diluted EPS

$9.24

-11.0% on the year

FY2013FY2020

this yearthe year beforeHover a bar for its figure.

The year in brief

Income statement (profit and loss)

$ million	FY2020	FY2019	FY2018	On the year
Revenue	3,634	3,807	3,884	-4.5%
Cost of revenue	2,594	2,727	2,773	-4.9%
Gross profit	1,040	1,080	1,111	-3.7%
Gross margin	28.6%	28.4%	28.6%
Research and development	66.8	69.9	72.2	-4.4%
Selling, general and administrative	556	586	608	-5.1%
Operating income	478	657	510	-27.2%
Operating margin	13.2%	17.3%	13.1%
Interest expense	28.3	47.5	38.3	-40.4%
Pre-tax income	445	508	468	-12.3%
Income tax	88.1	99.1	108	-11.1%
Effective tax rate	19.8%	19.5%	23.0%
Net income	356	409	359	-12.8%
Net margin	9.8%	10.7%	9.2%
Diluted EPS	$9.24	$10.38	$8.74	-11.0%

$ million except per share.

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

$ million	FY2020	FY2019	FY2018	On the year
Operating cash flow	612	396	496	+54.6%
Capital expenditure	78.5	106	95.2	-25.7%
Free cash flow	534	290	400	+83.8%
Free cash flow margin	14.7%	7.6%	10.3%
Cash from investing	-79.7	15.9	30.5
Cash from financing	-442	-423	-538
Depreciation and amortisation	72.6	71.1	66.0	+2.1%
Share-based compensation	24.3	21.3	26.3	+14.1%
Buybacks	100	400	450	-75.0%
Dividends paid	118	110	93.9	+6.9%
Dividend per share	$3.08	$2.95	$2.43	+4.4%
Diluted shares, weighted	39m	39m	41m	-2.0%

Balance sheet

$ million	FY2020	FY2019	FY2018	On the year
Shareholders' equity	-17.1	-170	-150
Debt	981	1,171	1,041	-16.3%
Operating lease liabilities	143	131	0.0	+9.0%
Finance lease liabilities	29.3	25.9	n/a	+13.1%
Other liabilities	897	877	926	+2.3%
Total liabilities and equity	2,032	2,035	1,817	-0.1%
Fixed assets	464	445	408	+4.2%
Goodwill	187	186	187	+0.2%
Investments	5.1	2.9	0.0	+75.9%
Cash and equivalents	124	37.3	46.3	+232.2%
Receivables	448	478	473	-6.2%
Inventory	439	544	510	-19.2%
Other assets	365	341	194	+7.0%
Total assets	2,032	2,035	1,817	-0.1%

10-K for the year ended 31 December 2020, filed 16 February 2021: the filing.