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LILENNOX INTERNATIONAL Lennox International Reports Record First Quarter Revenue and Profit and Raises 2021 Guidance April 26 , 2021 - Revenue up 29 % to first - quarter record $ 931 million , led by 37 % Residential growth - · GAAP EPS from continuing operations up 588 % to first - quarter record $ 2.20 - Adjusted EPS from continuing operations up 305 % to first - quarter record $ 2.27 - Repurchased $ 200 million of stock and $ 200 million more planned for 2021 - Raising 2021 guidance for revenue growth from 4-8 % to 7-11 % Raising 2021 guidance for GAAP EPS from continuing operations from $ 10.55- $ 11.15 to $ 11.33- $ 11.93 - Raising 2021 guidance for adjusted EPS from continuing operations from $ 10.55- $ 11.15 to $ 11.40- $ 12.00 DALLAS , April 26 , 2021 / PRNewswire / -- Lennox International Inc. ( NYSE : LII ) , a global leader in energy - efficient climate - control solutions , today reported financial results for the first quarter of 2021. All comparisons are to the prior - year period . Lennox International reported record first - quarter revenue of $ 931 million , up 29 % . Foreign exchange had a positive 1 % impact to revenue growth . GAAP operating income was a first - quarter record $ 114 million , up 213 % . GAAP earnings per share from continuing operations was a first - quarter record $ 2.20 , up 588 % . Total segment profit was a first - quarter record $ 116 million , up 208 % . Total segment margin expanded 720 basis points to 12.4 % . Adjusted earnings per share from continuing operations was a first - quarter record $ 2.27 , up 305 % . " Lennox International posted record first - quarter revenue , profit and earnings per share in the quarter with double - digit revenue growth and margin expansion in all three of our businesses , " said Chairman and CEO Todd Bluedorn . " Our Residential business set new first - quarter highs for revenue and profit . Revenue was up 37 % on strong growth in both replacement and new construction business . Profit rose 197 % . Segment margin expanded 850 basis points to 15.9 % . " In Commercial , our business set new first - quarter highs for segment revenue , profit and margin . Segment revenue was up 12 % led by high - teens growth in replacement business and high - single digit growth in new construction . Commercial profit rose 47 % , and segment margin expanded 330 basis points to 13.8 % . In Refrigeration , revenue was up 21 % . North America revenue was up more than 25 % , and Europe revenue was up low - double digits . Segment margin expanded 560 basis points to 6.3 % , and profit rose to $ 8 million for the quarter . " Demand remained strong across all our businesses entering the second quarter , and we are capitalizing on market growth and share gain opportunities with strong operational execution . Looking ahead for 2021 overall , we are raising guidance for revenue and earnings , as well as for free cash flow - now approximately $ 375 million for the full year . We have repurchased $ 200 million of stock this year and plan to buy $ 200 million more in 2021. " FINANCIAL HIGHLIGHTS Revenue : Revenue was a first - quarter record $ 931 million , up 29 % with volume , price , mix and foreign exchange favorable to revenue . Gross Profit : Gross profit was $ 257 million , up 55 % , and gross margin was 27.6 % , up 470 basis points . Gross profit was positively impacted by higher volume , favorable price , mix and foreign exchange , factory productivity , distribution and freight savings , and sourcing and engineering - led cost reductions . Partial offsets included higher commodity , warranty , and other product costs . Income from Continuing Operations : On a GAAP basis , income from continuing operations for the first quarter was $ 84.2 million , or $ 2.20 per share , compared to $ 12.5 million , or $ 0.32 per share , in the prior - year quarter . Adjusted income from continuing operations in the first quarter was $ 86.9 million , or $ 2.27 per share , compared to $ 21.7 million , or $ 0.56 per share , in the prior - year quarter . Adjusted income from continuing operations for the first quarter of 2021 excludes net after - tax charges of $ 2.7 million , consisting of : a $ 2.0 million charge for other tax items , net ; a $ 1.9 million net charge in total for various other items ; and a benefit of $ 1.2 million for excess tax benefits from share - based compensation . Cash from Operations , Free Cash Flow and Total Debt : Net cash used in operations in the first quarter was $ 18 million compared to $ 99 million in the prior - year quarter . Capital expenditures were approximately $ 24 million in the first quarter and in the prior - year quarter . Free cash flow was ( $ 42 ) million compared to ( $ 123 ) million in the first quarter a year ago . Total debt at the end of the first quarter was $ 1.17 billion . Total cash , cash equivalents and short - term investments were $ 40 million at the end of the quarter . The company paid approximately $ 30 million in dividends in the first quarter and repurchased $ 200 million of stock . BUSINESS SEGMENT HIGHLIGHTS Residential Heating & Cooling Revenue in the Residential Heating & Cooling business segment was up 37 % to a first - quarter record $ 606 million . Foreign exchange was neutral to revenue . Segment profit rose 197 % to a first - quarter record $ 96 million . Segment margin expanded 850 basis points to 15.9 % . Residential results were primarily impacted by higher volume , favorable price and mix , higher factory productivity , sourcing and engineering - led cost reductions , distribution and freight savings , and favorable foreign exchange . Partial offsets included higher commodity , warranty and other product costs , and higher SG & A . Commercial Heating & Cooling