Lennox International Inc. Q3 FY2023 results: revenue $1.4 billion, up 9.8% on the year

Lennox International Inc. (LII) reported revenue of $1.4 billion for Q3 FY2023, the quarter ended 30 September 2023, up 9.8% on the same quarter a year earlier. Net income was $130 million, down 8.1% on the year, and diluted earnings per share $3.65. The figures are the company's own, from the 10-Q it filed with the SEC on 26 October 2023.

Revenue$1.4 billionup 9.8%

Net income$130 milliondown 8.1%

Diluted EPS$3.65

QuarterQ3 FY2023ended 30 September 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Q2 FY2023	A year earlier	Change on the year
Revenue	1,366	1,411	n/a	n/a
Cost of revenue	938	954	n/a	n/a
Gross profit	428	458	n/a	n/a
Gross margin	31.4%	32.4%	n/a
Selling, general and administrative	179	181	n/a	n/a
Operating income	187	279	n/a	n/a
Operating margin	13.7%	19.8%	n/a
Interest expense	11.2	15.0	n/a	n/a
Pre-tax income	175	264	n/a	n/a
Income tax	44.8	46.5	n/a	n/a
Effective tax rate	25.6%	17.6%	n/a
Net income	130	217	n/a	n/a
Net margin	9.5%	15.4%	n/a
Diluted EPS	$3.65	$6.10	n/a	n/a

$ 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 and capital returned

Line	Q3 FY2023	Q2 FY2023	A year earlier	Change on the year
Operating cash flow	313	196	n/a	n/a
Capital expenditure	39.7	49.9	n/a	n/a
Free cash flow	274	146	n/a	n/a
Free cash flow margin	20.0%	10.3%	n/a
Depreciation and amortisation	21.5	20.9	n/a	n/a
Share-based compensation	9.7	7.7	n/a	n/a
Buybacks	0.0	0.0	n/a	n/a
Dividends paid	78.2	37.6	n/a	n/a
Diluted shares, weighted	36m	36m	n/a	n/a
Shares outstanding at period end	36m	36m	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	Q3 FY2023	Q2 FY2023	A year earlier	Change on the year
Total assets	2,890	2,981	n/a	n/a
Cash and equivalents	132	51.4	n/a	n/a
Receivables	695	844	n/a	n/a
Inventory	748	856	n/a	n/a
Goodwill	182	186	n/a	n/a
Long-term debt including finance leases	1,122	818	n/a	n/a
Operating lease liabilities	162	160	n/a	n/a
Finance lease liabilities	31.9	31.0	n/a	n/a
Shareholders' equity	160	62.6	n/a	n/a

Quarterly results, the last 12 quarters

	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025	Q1 FY2026
Revenue	1,411	1,366	1,155	1,047	1,451	1,498	1,345	1,073	1,501	1,427	1,195	1,135
Cost of revenue	954	938	800	707	963	1,010	890	744	978	958	806	784
Gross profit	458	428	355	340	488	488	455	328	522	469	389	351
Gross margin	32%	31%	31%	32%	34%	33%	34%	31%	35%	33%	33%	31%
SG&A	181	179	178	171	168	184	207	171	173	162	175	185
Operating income	279	187	185	167	320	303	245	156	354	310	196	164
Operating margin	20%	14%	16%	16%	22%	20%	18%	15%	24%	22%	16%	14%
Interest expense	15.0	11.2	11.3	11.8	12.5	8.9	5.5	6.2	8.3	10.5	15.9	15.2
Pre-tax income	264	175	174	154	307	294	239	148	345	299	179	147
Tax rate	18%	26%	17%	19%	20%	19%	17%	19%	20%	18%	20%	20%
Net income	217	130	144	124	246	239	198	120	278	246	142	117
Net margin	15%	10%	13%	12%	17%	16%	15%	11%	18%	17%	12%	10%
Diluted EPS	$6.10	$3.65	$4.04	$3.47	$6.87	$6.68	$5.52	$3.37	$7.82	$6.98	$4.07	$3.35
Operating cash flow	196	313	306	-22.8	184	452	332	-35.8	86.8	301	406	16.1
Capital expenditure	49.9	39.7	125	29.5	32.7	41.2	60.2	25.5	28.5	35.6	29.2	55.5
Free cash flow	146	274	181	-52.3	151	411	272	-61.3	58.3	265	377	-39.4
Buybacks	0.0	0.0	0.0	0.0	0.0	12.9	40.7	85.2	210	37.0	150	19.5
Dividends paid	37.6	78.2	0.0	39.1	39.2	41.0	41.0	40.9	40.8	45.7	45.6	45.2
Shares outstanding	36m	36m	36m	36m	36m	36m	36m	35m	35m	35m	35m	35m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

* 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. 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 30 September 2023, filed 26 October 2023, accession 0001628280-23-035265: the filing on EDGAR. All of Lennox International Inc.'s filings: EDGAR company page.

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