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Lennox International Reports Third Quarter Results
  • Record $1.10 adjusted earnings per diluted share and $0.96 GAAP earnings per diluted share
  • Free cash flow up more than 50% year-to-date to $102 million
  • In softer macroeconomic environment, lowering 2008 revenue guidance from down 0-2% to down 3-5%
  • Reducing 2008 adjusted EPS guidance from $2.85-$3.00 to $2.65-$2.75; GAAP guidance now $2.29-$2.39

DALLAS, Oct. 22 /PRNewswire-FirstCall/ -- Lennox International Inc. (NYSE: LII) today reported financial results for the third quarter of 2008.

Revenue for the third quarter was $974 million, 5% below the prior-year quarter. Excluding the positive impact of foreign exchange, revenue would have been down 7%. Diluted earnings per share on an adjusted basis, a non-GAAP measure, was $1.10, up 17% from $0.94 in the year-ago quarter. Diluted earnings per share on a GAAP basis was $0.96, up 9% from $0.88 in the year-ago quarter.

"Strong operational execution offset market headwinds and enabled Lennox to post solid earnings results and strong cash generation in the third quarter," said Todd Bluedorn, Chief Executive Officer. "Looking ahead, we expect market conditions to remain challenging as end markets continue to soften. We therefore continue to accelerate cost reduction and operational efficiency initiatives. Our adjusted EPS guidance is now a range of 6-10% above last year."

(Note: See attached schedules for financial details, reconciliations of non-GAAP financial measures, and a description of adjusting items.)

FINANCIAL HIGHLIGHTS

Revenue: Revenue for the third quarter was $974 million, 5% below the prior year. Excluding the positive impact of foreign exchange, revenue would have been down 7%. Lower volume across all business segments impacted revenue growth.

Gross Profit: Gross profit for the third quarter was $281 million, down 4% from $294 million in the year-ago quarter. Gross profit margin improved over last year by 40 basis points to 28.9%. This improvement was the result of greater manufacturing efficiencies and higher pricing, which offset higher commodity costs.

Net Income: For the third quarter of 2008, adjusted net income was $62.8 million, or $1.10 diluted earnings per share, compared to $65.4 million, or $0.94 diluted earnings per share in the third quarter of 2007. On a GAAP basis, third quarter of 2008 net income was $54.9 million, or $0.96 diluted earnings per share, compared to $61.2 million, or $0.88 diluted earnings per share in the prior-year quarter.

Adjusted net income results for the third quarter of 2008 exclude the following items (after-tax):

  • $6.2 million charge from restructuring activities primarily in the Commercial and Refrigeration businesses, of which $3.6 million was from projects announced in the third quarter.
  • $1.7 million loss from the net change in unrealized losses on open futures contracts, and other items.

Free Cash Flow and Total Debt: Net cash provided by operations in the third quarter was $116 million, consistent with $116 million in the prior-year quarter. The company invested $16 million in capital assets resulting in free cash flow of $100 million for the quarter. Free cash flow for the first 9 months of the year was $102 million, up $36 million over the same period a year ago. Total debt at the end of September 2008 was $402 million and net debt was $261 million, down $80 million from the end of June. Total cash, cash equivalents and short-term investments were $141 million, and the current ratio exceeded 1.5.

BUSINESS SEGMENT HIGHLIGHTS

Residential Heating & Cooling

Third quarter 2008 revenue from the Residential Heating & Cooling business segment was $414 million, a decrease of 9% from $456 million in the year-ago quarter. Segment profit was $55 million and segment profit margin was 13%, compared to $64 million and segment profit margin of 14% a year ago. Results were impacted by lower volume and higher commodity costs, partially offset by favorable pricing, product mix, and cost reductions.

Commercial Heating & Cooling

Revenue in the Commercial Heating & Cooling business segment was $251 million, down 1% from $255 million in the year-ago quarter. Total segment profit was a record $40 million and segment profit margin was 16%, compared to $38 million and segment profit margin of 15% in the year-ago quarter. Commercial performance was led by strong sales and profit growth in Europe. Overall results for Commercial benefited from cost reductions, improved pricing, and foreign exchange, with offsets from lower volume, mix, and higher commodity costs.

Service Experts

Revenue in the Service Experts business segment was $168 million for the third quarter, down 9% from $184 million in the year-ago quarter. Segment profit was $5 million and segment profit margin was 3%, compared to $9 million segment profit and 5% segment profit margin in the year-ago quarter. Financial results were impacted by lower residential volume, partially offset by ongoing cost reduction and operational efficiency initiatives.

Refrigeration

Revenue in the Refrigeration business segment increased 3% to $163 million, including favorable foreign exchange impact. Segment profit declined to $17 million from $18 million in the year-ago quarter, and segment profit margin declined to 10% from 11%. Volume was down, mix was flat, and pricing and foreign exchange were favorable.

FULL-YEAR OUTLOOK

As global markets have become more challenging and effects of the economic downturn are being seen on a broader basis, the company is lowering its revenue and EPS guidance for 2008.

  • Reducing 2008 full-year revenue guidance to a range of down 3-5% versus the previous range of down 0-2%.
  • Reducing 2008 adjusted EPS guidance to a range of $2.65-$2.75 versus the previous range of $2.85-$3.00.
  • GAAP earnings per share guidance for 2008 is now $2.29-$2.39 versus the previous target of $2.61-$2.76, reflecting the full-year impact of $4.9 million after tax of additional restructuring charges announced in the third quarter.
  • Further lowering 2008 capital spending guidance to approximately $70 million compared to previous guidance of $75 million.
  • Corporate expense guidance is now approximately $60 million for 2008 compared to previous guidance of $60-65 million.

CONFERENCE CALL INFORMATION

A conference call to discuss the company's third quarter results will be held this morning at 9:30 a.m. (CDT). To listen, please call the conference call line at 612-234-9959 at least 10 minutes prior to the scheduled start time and use reservation number 963684. This conference call will also be webcast on Lennox International's web site at http://www.lennoxinternational.com.

If you are unable to participate in this conference call, a replay will be available from 12:00 p.m. (Central) October 22 through October 29 by dialing 800-475-6701 (US) or 320-365-3844 (International) using access code 963684. This call will also be archived on the company's web site.

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

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties including the impact of higher raw material prices, LII's ability to implement price increases for its products and services, and the impact of unfavorable weather and a decline in new construction activity on the demand for products and services that could cause actual results to differ materially from such statements. For information concerning these 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.



                  LENNOX INTERNATIONAL INC. AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS
       For the Three and Nine Months Ended September 30, 2008 and 2007
               (Unaudited, in millions, except per share data)

                                         For the                For the
                                   Three Months Ended      Nine Months Ended
                                      September 30,          September 30,
                                    2008        2007        2008       2007

    NET SALES                    $  974.0   $ 1,029.8   $ 2,744.0   $ 2,863.1
    COST OF GOODS SOLD              692.8       736.2     1,972.8     2,075.8
          Gross profit              281.2       293.6       771.2       787.3
    OPERATING EXPENSES:
      Selling, general and
       administrative expenses      180.5       194.3       570.8       582.7
      Losses (gains) and other
       expenses, net                  3.2        (1.2)       (4.6)       (5.2)
      Restructuring charges           8.4         4.3        18.9        14.2
      Impairment of equity
       method investment                -           -         2.3           -
      Income from equity method
       investments                   (2.0)       (2.7)       (8.0)       (8.9)
          Operational income         91.1        98.9       191.8       204.5
    INTEREST EXPENSE, net             3.8         1.9        10.3         4.8
    OTHER EXPENSE, NET                0.1         0.2         0.2         0.3
          Income before income
           taxes                     87.2        96.8       181.3       199.4
    PROVISION FOR INCOME TAXES       32.3        35.6        68.9        69.3
          Net income             $   54.9   $    61.2   $   112.4   $   130.1

    NET INCOME PER SHARE:
        Basic                    $   0.99   $    0.92   $    1.96   $    1.93
        Diluted                  $   0.96   $    0.88   $    1.90   $    1.84

    AVERAGE SHARES OUTSTANDING:
        Basic                        55.3        66.6        57.2        67.4
        Diluted                      57.0        69.8        59.1        70.7

    CASH DIVIDENDS DECLARED
     PER SHARE                   $   0.14   $    0.13   $    0.42   $    0.39



                  LENNOX INTERNATIONAL INC. AND SUBSIDIARIES

                         SEGMENT NET SALES AND PROFIT
    For the Three Months and Nine Months Ended September 30, 2008 and 2007
                           (Unaudited, in millions)

                                         For the                For the
                                   Three Months Ended      Nine Months Ended
                                      September 30,           September 30,
                                    2008        2007        2008       2007
    Net Sales
      Residential Heating
       & Cooling                  $ 414.0   $   456.5  $  1,193.9  $  1,315.5
      Commercial Heating
       & Cooling                    251.4       255.1       646.1       650.6
      Service Experts               168.0       183.9       491.0       512.0
      Refrigeration                 162.9       157.5       486.8       450.1
      Eliminations (A)              (22.3)      (23.2)      (73.8)      (65.1)
                                  $ 974.0   $ 1,029.8  $  2,744.0  $  2,863.1

    Segment Profit (Loss) (B)
      Residential Heating
       & Cooling                  $  55.3   $    63.7  $    118.5  $    143.2
      Commercial Heating
       & Cooling                     40.3        37.8        73.2        76.6
      Service Experts                 4.5         9.2        10.8        18.4
      Refrigeration                  16.7        17.8        48.9        46.6
      Corporate and other           (16.3)      (23.4)      (37.2)      (64.2)
      Eliminations (A)                1.8           -        (0.3)       (0.2)
                                    102.3       105.1       213.9       220.4
      Reconciliation to income
       before income taxes:
          Losses (gains) and
           other expenses, net        3.2        (1.2)       (4.6)       (5.2)
          Restructuring charges       8.4         4.3        18.9        14.2
          Impairment of equity
           investment                   -           -         2.3           -
          Interest expense, net       3.8         1.9        10.3         4.8
          Other expense, net          0.1         0.2         0.2         0.3

          Less: Realized gains on
                settled futures
                contracts not
                designated as cash
                flow hedges           0.1         1.5         1.2         3.2
          Less: Foreign currency
                exchange (losses)
                gains                (0.5)        1.6         4.3         3.7
                                  $  87.2   $    96.8  $    181.3  $    199.4

       (A) Eliminations consist of intercompany sales between business
           segments, such as products sold to Service Experts by the
           Residential Heating & Cooling segment.

       (B) The Company defines segment profit and loss as a segment's income
           or loss before income taxes included in the accompanying
           Consolidated Statements of Operations:
               Excluding:
                 o  Gains and/or losses and other expenses, net.
                 o  Restructuring charges.
                 o  Goodwill and equity method investment impairments.
                 o  Interest expense, net.
                 o  Other expense, net.
                 Less amounts included in Gains and Other Expenses, net:
                    o  Realized gains and/or losses on settled futures
                       contracts not designated as cash flow hedges.
                    o  Foreign currency exchange gains and/or losses.



                  LENNOX INTERNATIONAL INC. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS
                As of September 30, 2008 and December 31, 2007
                (In millions, except share and per share data)

                                                  September 30,   December 31,
                                                      2008           2007
                                                  (unaudited)
                                      ASSETS
    CURRENT ASSETS:
      Cash and cash equivalents                    $   107.1       $   145.5
      Short-term investments                            34.0            27.7
      Accounts and notes receivable, net               552.6           492.5
      Inventories, net                                 353.1           325.7
      Deferred income taxes                             30.6            30.9
      Other assets                                      49.2            48.4
          Total current assets                       1,126.6         1,070.7
    PROPERTY, PLANT AND EQUIPMENT, net                 334.9           317.9
    GOODWILL, net                                      256.2           262.8
    DEFERRED INCOME TAXES                               82.3            94.0
    OTHER ASSETS                                        73.8            69.2
          TOTAL ASSETS                             $ 1,873.8       $ 1,814.6

              LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES:
      Short-term debt                              $     5.4       $     4.8
      Current maturities of long-term debt              11.2            36.4
      Accounts payable                                 349.0           289.8
      Accrued expenses                                 342.6           352.1
      Income taxes payable                              16.3             1.1
          Total current liabilities                    724.5           684.2
    LONG-TERM DEBT                                     384.9           166.7
    POSTRETIREMENT BENEFITS, OTHER THAN PENSIONS        15.5            16.2
    PENSIONS                                            34.0            34.8
    OTHER LIABILITIES                                  109.6           104.2
          Total liabilities                          1,268.5         1,006.1

    COMMITMENTS AND CONTINGENCIES
    STOCKHOLDERS' EQUITY:
      Preferred stock, $.01 par value,
       25,000,000 shares authorized, no shares
       issued or outstanding                               -               -
      Common stock, $.01 par value, 200,000,000
       shares authorized, 83,816,213 shares and
       81,897,439 shares issued for 2008 and 2007,
       respectively                                      0.8             0.8
      Additional paid-in capital                       799.2           760.7
      Retained earnings                                536.1           447.4
      Accumulated other comprehensive income            40.8            63.6
      Treasury stock, at cost, 28,455,830 shares
       and 19,844,677 shares for 2008 and 2007,
       respectively                                   (771.6)         (464.0)
          Total stockholders' equity                   605.3           808.5
          TOTAL LIABILITIES AND STOCKHOLDERS'
           EQUITY                                  $ 1,873.8       $ 1,814.6



                  LENNOX INTERNATIONAL INC. AND SUBSIDIARIES

    Reconciliation to U.S. GAAP (Generally Accepted Accounting Principles)
                                   Measures
          (Unaudited, in millions, except per share and ratio data)

    Reconciliation of Net Income to Adjusted Net Income

                               For the Three Months Ended September 30, 2008
                                       Net Change in
                                        Unrealized
                                         Losses on
                                       Open Futures
                                       Contracts and
                                As      Other Items,   Restructuring     As
                             Reported       Net           Charges     Adjusted
    NET SALES                $ 974.0      $    -        $    -        $ 974.0
    COST OF GOODS SOLD         692.8           -             -          692.8
          Gross profit         281.2           -             -          281.2
    OPERATING EXPENSES:
      Selling, general and
       administrative
       expenses                180.5           -             -          180.5
      Losses (gains) and
       other expenses, net(1)    3.2        (2.7)            -            0.5
      Restructuring charges      8.4           -          (8.4)             -
      Income from equity
       method investments       (2.0)          -             -           (2.0)
          Operational income    91.1         2.7           8.4          102.2
    INTEREST EXPENSE, net        3.8           -             -            3.8
    OTHER EXPENSE, NET           0.1           -             -            0.1
          Income before
           income taxes         87.2         2.7           8.4           98.3
    PROVISION FOR INCOME TAXES  32.3         1.0           2.2           35.5

              Net income     $  54.9      $  1.7        $  6.2        $  62.8

    NET INCOME PER
     SHARE - DILUTED         $  0.96      $ 0.03        $ 0.11        $  1.10

    Note: Management uses adjusted net income, which is not defined by U.S.
          GAAP, to measure the Company's operating performance and to analyze
          period-over-period changes in operating income with and without the
          effects of certain gains and other expenses, net, restructuring
          charges and impairment of equity method investment.  Management
          believes that excluding these effects is helpful in assessing the
          overall performance of the Company.

    (1)   Losses (gains) and other expenses, net include the following:


                                 For the Three Months Ended September 30, 2008
                                       Pre-tax    Tax Provision   After-tax
                                     (Gain) Loss    (Benefit)    (Gain) Loss
    Net change in unrealized
     losses on open futures
     contracts                            2.8         (1.0)          1.8
    Foreign currency exchange loss        0.5         (0.3)          0.2
    Other items, net                     (0.1)           -          (0.1)
    Losses (gains) and other
     expenses, net                       $3.2        $(1.3)         $1.9



                               For the Three Months Ended September 30, 2007
                                       Net Change in
                                        Unrealized
                                         Losses on
                                       Open Futures
                                       Contracts and
                                As      Other Items,   Restructuring    As
                             Reported        Net          Charges    Adjusted
    NET SALES              $ 1,029.8      $    -        $    -      $ 1,029.8
    COST OF GOODS SOLD         736.2           -             -          736.2
          Gross profit         293.6           -             -          293.6
    OPERATING EXPENSES:
      Selling, general and
       administrative
       expenses                194.3           -             -          194.3
      Gains and other
       expenses, net(2)         (1.2)       (1.9)            -           (3.1)
      Restructuring charges      4.3           -          (4.3)             -
      Income from equity
       method investments       (2.7)          -             -           (2.7)
          Operational income    98.9         1.9           4.3          105.1
    INTEREST EXPENSE, net        1.9           -             -            1.9
    OTHER EXPENSE, NET           0.2           -             -            0.2
          Income before income
           taxes                96.8         1.9           4.3          103.0
    PROVISION FOR INCOME
     TAXES                      35.6         0.5           1.5           37.6
              Net income    $   61.2      $  1.4        $  2.8       $   65.4

    NET INCOME PER
     SHARE - DILUTED        $   0.88      $ 0.02        $ 0.04       $   0.94

    (2) Gains and other expenses, net include the following:


                                 For the Three Months Ended September 30, 2007
                                      Pre-tax     Tax Provision   After-tax
                                    (Gain) Loss     (Benefit)    (Gain) Loss
    Realized gains on settled
     futures contracts                  $(1.5)        $0.5          $(1.0)
    Net change in unrealized
     losses on open futures
     contracts                            1.4         (0.5)           0.9
    Foreign currency exchange gain       (1.6)         0.6           (1.0)
    Other items, net                      0.5            -            0.5
    Gains and other expenses, net       $(1.2)        $0.6          $(0.6)



                             For the Nine Months Ended September 30, 2008
                               Net Change in
                                Unrealized
                                 Losses on
                                Open Futures              Impairment
                                 Contracts                 of Equity
                          As     and Other  Restructuring   Method      As
                       Reported  Items, Net    Charges    Investment  Adjusted
    NET SALES         $ 2,744.0   $    -      $    -       $    -   $ 2,744.0
    COST OF GOODS
     SOLD               1,972.8        -           -            -     1,972.8
          Gross profit    771.2        -           -            -       771.2
    OPERATING EXPENSES:
      Selling, general
       and administrative
       expenses           570.8        -           -            -       570.8
      Gains and other
       expenses , net(3)   (4.6)    (0.7)          -            -        (5.3)
      Restructuring
       charges             18.9        -       (18.9)           -           -
      Impairment of
       equity method
       investment           2.3        -           -         (2.3)          -
      Income from equity
       method investments  (8.0)       -           -            -        (8.0)
          Operational
           income         191.8      0.7        18.9          2.3       213.7
    INTEREST EXPENSE,
     net                   10.3        -           -            -        10.3
    OTHER EXPENSE, NET      0.2        -           -            -         0.2
          Income before
           income taxes   181.3      0.7        18.9          2.3       203.2
    PROVISION FOR INCOME
     TAXES                 68.9      0.2         5.9            -        75.0
              Net
               income  $  112.4   $  0.5      $ 13.0       $  2.3    $  128.2

    NET INCOME PER
     SHARE - DILUTED   $   1.90   $ 0.01      $ 0.22       $ 0.04    $   2.17

    (3) Gains and other expenses, net include the following:


                                  For the Nine Months Ended September 30, 2008
                                        Pre-tax    Tax Provision   After-tax
                                      (Gain) Loss    (Benefit)    (Gain) Loss
    Realized gains on settled
     futures contracts                   $(1.0)         $0.4           $(0.6)
    Net change in unrealized
     losses on open futures
     contracts                             0.4          (0.1)            0.3
    Foreign currency exchange gain        (4.3)            -            (4.3)
    Other items, net                       0.3          (0.1)            0.2
    Gains and other expenses, net        $(4.6)         $0.2           $(4.4)



                              For the Nine Months Ended September 30, 2007
                                Net Change in
                                 Unrealized
                                  Losses on                Change in
                                 Open Futures              Estimated
                                  Contracts                 Tax Gain
                           As     and Other  Restructuring from Prior    As
                        Reported  Items, Net    Charges       Year    Adjusted
    NET SALES          $2,863.1   $    -      $    -      $    -     $2,863.1
    COST OF GOODS SOLD  2,075.8        -           -           -      2,075.8
          Gross profit    787.3        -           -           -        787.3
    OPERATING EXPENSES:
      Selling, general
       and administrative
       expenses           582.7        -           -           -        582.7
      Gains and other
       expenses, net(4)    (5.2)    (1.7)          -           -         (6.9)
      Restructuring
       charges             14.2        -       (14.2)          -            -
      Income from equity
       method investments  (8.9)       -           -           -         (8.9)
          Operational
           income         204.5      1.7        14.2           -        220.4
    INTEREST EXPENSE, net   4.8        -           -           -          4.8
    OTHER EXPENSE, NET      0.3        -           -           -          0.3
          Income before
           income taxes   199.4      1.7        14.2           -        215.3
    PROVISION FOR INCOME
     TAXES                 69.3      0.4         5.1         3.2         78.0
            Net income
             (loss)    $  130.1   $  1.3     $   9.1      $ (3.2)    $  137.3
    NET INCOME (LOSS)
     PER SHARE
     - DILUTED         $   1.84   $ 0.02     $  0.13      $(0.05)    $   1.94

    (4) Gains and other expenses, net include the following:


                                  For the Nine Months Ended September 30, 2007
                                      Pre-tax    Tax Provision   After-tax
                                    (Gain) Loss    (Benefit)    (Gain) Loss
    Realized gains on settled
     futures contracts                 $(3.2)         $1.2        $(2.0)
    Net change in unrealized losses
     on open futures contracts           1.1          (0.4)         0.7
    Foreign currency exchange gain      (3.7)          1.3         (2.4)
    Other items, net                     0.6             -          0.6
    Gains and other expenses, net      $(5.2)         $2.1        $(3.1)



    Reconciliation of Estimated Adjusted Net Income to GAAP Net Income per
Share - Diluted

                                                          For the Year
                                                             Ended
                                                       December 31, 2008
                                                           ESTIMATED
    Adjusted net income per share - diluted              $2.65 - $2.75
    Restructuring charges                                    (0.32)
    Impairment of equity method investment                   (0.04)
    GAAP net income per share - diluted                  $2.29 - $2.39



    Free Cash Flow

                                   For the Three Months   For the Three Months
                                          Ended                  Ended
                                    September 30, 2008     September 30, 2007
    Net cash provided by operating
     activities                           $116.0                 $115.8
    Purchase of property, plant and
     equipment                             (15.6)                 (19.5)
    Free cash flow                        $100.4                 $ 96.3



                                   For the Nine Months    For the Nine Months
                                          Ended                  Ended
                                    September 30, 2008     September 30, 2007
    Net cash provided by operating
     activities                           $138.8                 $110.5
    Purchase of property, plant and
     equipment                             (37.3)                 (44.5)
    Free cash flow                        $101.5                 $ 66.0



    Operational Working Capital

                                       September 30,             September 30,
                                           2008                      2007
                          September 30,  Trailing   September 30,  Trailing
                              2008      12 Mo. Avg.     2007      12 Mo. Avg.
    Accounts and Notes
     Receivable, Net          $552.6                    $630.8
      Allowance for Doubtful
       Accounts                 19.2                      18.9
    Accounts and Notes
     Receivable, Gross         571.8       $556.6        649.7       $577.1

    Inventories                353.1                     358.7
      Excess of Current Cost
       Over Last-in, First-out  73.8                      73.9
    Inventories as Adjusted    426.9        438.1        432.6        439.6

    Accounts Payable          (349.0)      (336.0)      (349.4)      (340.7)

    Operating Working
     Capital (a)               649.7        658.7        732.9        676.0

    Net Sales, Trailing
     Twelve Months (b)       3,630.6      3,630.6      3,736.8      3,736.8

    Operational Working
     Capital Ratio (a/b)        17.9%        18.1%        19.6%        18.1%

    Note:  Management uses free cash flow and operational working capital,
           which are not defined by U.S. GAAP, to measure the Company's
           operating performance.  Free cash flow and operational working
           capital are also two of several measures used to determine
           incentive compensation for certain employees.

SOURCE Lennox International Inc.