Lennox International Raises 2020 Revenue, Profit and Free Cash Flow Guidance, and Announces 2021 Financial Guidance

DALLAS, Dec. 16, 2020 /PRNewswire/ -- Lennox International Inc. (NYSE: LII) today announced that it is raising 2020 revenue, profit and free cash flow guidance for the full year. For 2020, the company is:

• Raising revenue guidance from a decline of 5-9% to a decline of 4-6%
• Raising GAAP EPS from continuing operations guidance from $8.35-$8.95 to a new range of $8.85-$9.05
• Raising adjusted EPS from continuing operations guidance from $9.05-$9.65 to a new range of $9.55-$9.75
• Reiterating corporate expense guidance of approximately $90 million
• Reiterating effective tax rate guidance of 19-20% on an adjusted basis for the full year
• Updating capital expenditure guidance from approximately $100 million to approximately $85 million
• Raising free cash flow guidance from approximately $425 million to approximately $475 million

The company is also introducing financial guidance for 2021. For the full year, the company expects:

• Revenue growth of 4-8%
• GAAP and adjusted EPS from continuing operations of $10.55-$11.15
• Corporate expenses of approximately $90 million
• Effective tax rate of approximately 21% on an adjusted basis for the full year
• Capital expenditures of approximately $135 million, including $25 million funded with insurance proceeds previously received for property damage
• Free cash flow of approximately $325 million
• Stock repurchases of $400 million

As previously announced, Lennox International is hosting a virtual investment community meeting today, starting at 9:00 a.m. Central time. The company will discuss strategic, operational and financial information, including the company's outlook for 2021 and beyond. The presentation will be webcast and presentation materials will be accessible on the company's website at www.lennoxinternational.com.

Lennox International Inc. is a global leader in the heating, air conditioning, and refrigeration markets. Lennox International stock is listed on the New York Stock Exchange and traded under the symbol "LII". Additional information is available at: www.lennoxinternational.com or by contacting Steve Harrison, Vice President, Investor Relations, at 972-497-6670.

FORWARD-LOOKING STATEMENTS

The statements in this news release that are not historical statements, including statements regarding the 2020 and 2021 full-year outlook and expected share repurchases, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available as well as management's assumptions and beliefs today. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the statements, and investors should not place undue reliance on them. Risks and uncertainties that could cause actual results to differ materially from such statements include risks associated with  a worsening economic impact of the COVID-19 pandemic on the company and its employees, customers and suppliers; risks that the North American unitary HVAC and refrigeration markets perform worse than current assumptions. Additional statements include, but are not limited to: the impact of higher raw material prices, the impact of new or increased trade tariffs, LII's ability to implement price increases for its products and services, economic conditions in our markets, regulatory changes, the impact of unfavorable weather, and a decline in new construction activity and related demand for products and services. For information concerning these and other risks and uncertainties, see LII's publicly available filings with the Securities and Exchange Commission. LII disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Lennox International Inc.