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Actionable news in LII: LENNOX INTERNATIONAL Inc,

Lennox: Hot Stock For Cool Performance

Lennox International Inc. (NYSE:LII) has been in business for over 100 years and is still doing a great job in the refrigeration and climate control business. LII designs, manufactures, and markets climate control products for the heating, ventilation, air conditioning, and refrigeration markets. Results from operation for the third quarter were strong across the board.

Gross profit in the third quarter was $273 million, up 11% from $247 million in the prior-year quarter. Gross margin was 28.6%, up from 27.5% in the prior year quarter. Gross profit was positively impacted by higher volume, favorable price, lower material costs, and higher productivity, with partial offsets from negative mix, unfavorable foreign exchange, and investments in distribution expansion.

Adjusted income from continuing operations in the third quarter was $83.2 million, or $1.82 per share, compared to $70.3 million, or $1.44 per share, in the prior year quarter. Adjusted earnings from continuing operations for the third quarter of 2015 excludes $2.9 million in after-tax charges: $0.8 million for special legal contingency charges, $0.7 million related to contractor tax payments in a non-U.S. subsidiary, $0.5 million for the net change in unrealized losses on unsettled future contracts, and $0.9 million, net, for other items.

Income from continuing operations for the third quarter was $80.3 million, or $1.76 per share, compared to $67.5 million, or $1.38 per share, in the prior year quarter. This is an exceptional quarter by any comparison for Lennox. This is an increase in net income of 19% over the prior year quarter.

Net cash from operations in the third quarter was $159 million compared to $97 million in the prior year quarter. Capital expenditures were $14 million in the third quarter compared to $19 million in the third quarter a year ago. Free cash flow was $145 million compared to $78 million in the prior year quarter. Total debt at the end of the third quarter was $918 million. Total cash and cash...


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