PORTLAND, OR--(Marketwire - Apr 27, 2012) - FLIR Systems, Inc. (
Revenue from the Company's Commercial Systems division increased 4% from the first quarter of 2011, to $202.3 million. Within the Commercial Systems division, revenue from the Thermal Vision and Measurement segment was $155.7 million, an increase of 7% over the first quarter results last year. Commercial Systems' Raymarine segment contributed $46.6 million of revenue during the first quarter, down 8% from the prior year.
Revenue from the Company's Government Systems division decreased 19% from the first quarter of 2011, to $146.1 million. Within the Government Systems division, revenue from the Surveillance segment was $114.6 million, a decrease of 24% from the first quarter of 2011. Revenue from Government Systems' Detection segment was $19.4 million, an increase of 8% compared to the first quarter of 2011. Government Systems' Integrated Systems segment contributed $12.2 million of revenue during the first quarter, a decrease of 5% from the prior year.
The Company's backlog of firm orders for delivery within the next twelve months was approximately $457 million as of March 31, 2012, an increase of $2 million during the quarter. Backlog in the Government Systems division was $312 million, decreasing $2 million during the quarter. Backlog in the Commercial Systems division was $145 million, up $4 million during the quarter.
"While not up to our standards, first quarter performance was about as anticipated," noted Earl Lewis, President and CEO of FLIR. "A difficult market environment impacted our Government Systems business, but we successfully stabilized backlog as Government Systems orders equaled revenue for the quarter. Our Commercial Systems business was slow in the first quarter, however, we continue to expect improved results as we go through the year. It is clearly our task to improve in the future, and we believe these efforts will show in the second half of 2012."
Revenue and Earnings Outlook for 2012
Based on financial results for the first three months of 2012 and the outlook for the remainder of the year, FLIR is reaffirming its outlook for earnings per share for the full year 2012. Management expects net earnings to be in the range of $1.60 to $1.70 per diluted share, and revenue for the full year 2012 to be in the range of $1.55 billion to $1.65 billion.
Dividend Declaration
FLIR's Board of Directors has declared a quarterly cash dividend of $0.07 per share on FLIR common stock, payable June 8, 2012, to shareholders of record as of close of business on May 21, 2012.
Conference Call
FLIR has scheduled a conference call at 11:00 a.m. ET (8:00 a.m. PT) today to discuss its results for the quarter and year. A simultaneous webcast of the conference call may be accessed online from a link in the Upcoming Events section of www.FLIR.com/investor. A replay will be available after 2:00 p.m. ET (11:00 a.m. PT) at this same internet address. For a telephone replay, dial (855) 859-2056, Conference ID #72740597 after 2:00 p.m. ET. Summary first quarter and historical financial data, including segment details, may be accessed online from the Summary Financial Data section of www.FLIR.com/investor.
About FLIR Systems
FLIR Systems, Inc. is a world leader in the design, manufacture, and marketing of sensor systems that enhance perception and awareness. The Company's advanced thermal imaging and threat detection systems are used for a wide variety of imaging, thermography, and security applications, including airborne and ground-based surveillance, condition monitoring, research and development, manufacturing process control, search and rescue, drug interdiction, navigation, transportation safety, border and maritime patrol, environmental monitoring, and chemical, biological, radiological, nuclear, and explosives (CBRNE) detection. Visit the Company's web site at www.FLIR.com.
Forward-Looking Statements
The statements in this release by Earl Lewis and the statements in the section captioned "Revenue and Earnings Outlook for 2012" above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, the Company's continuing compliance with U.S. export control laws and regulations, the timely receipt of any required export licenses, constraints on supplies of critical components, excess or shortage of production capacity, the ability to manufacture and ship the products in the time period required, actual purchases under agreements, the continuing eligibility of the Company to act as a federal contractor, the amount and availability of appropriated government procurement funds and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes made to this document by wire services or Internet service providers.
| FLIR SYSTEMS, INC. | ||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
| (In thousands, except per share amounts)(Unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2012 | 2011(1) | |||||||||
| Revenue | $ | 348,452 | $ | 375,969 | ||||||
| Cost of goods sold | 165,725 | 179,457 | ||||||||
| Gross profit | 182,727 | 196,512 | ||||||||
| Operating expenses: | ||||||||||
| Research and development | 36,571 | 37,589 | ||||||||
| Selling, general and administrative | 77,860 | 82,607 | ||||||||
| Total operating expenses | 114,431 | 120,196 | ||||||||
| Earnings from operations | 68,296 | 76,316 | ||||||||
| Interest expense | 3,066 | 350 | ||||||||
| Interest income | (428 | ) | (264 | ) | ||||||
| Other income, net | (1,225 | ) | 852 | |||||||
| Earnings from continuing operations before income taxes | 66,883 | 75,378 | ||||||||
| Income tax provision | 18,058 | 23,772 | ||||||||
| Earnings from continuing operations | 48,825 | 51,606 | ||||||||
| Loss from discontinued operations, net of tax | (686 | ) | (291 | ) | ||||||
| Net earnings | $ | 48,139 | $ | 51,315 | ||||||
| Basic earnings per share: | ||||||||||
| Earnings from continuing operations | $ | 0.32 | $ | 0.32 | ||||||
| Discontinued operations | (0.00 | ) | (0.00 | ) | ||||||
| Basic earnings per share | $ | 0.31 | $ | 0.32 | ||||||
| Diluted earnings per share: | ||||||||||
| Earnings from continuing operations | $ | 0.31 | $ | 0.32 | ||||||
| Discontinued operations | (0.00 | ) | (0.00 | ) | ||||||
| Diluted earnings per share | $ | 0.31 | $ | 0.32 | ||||||
| Weighted average shares outstanding: | ||||||||||
| Basic | 154,485 | 159,400 | ||||||||
| Diluted | 156,972 | 162,310 | ||||||||
| (1) | Amounts have been adjusted for the reclassification of certain discontinued operations to continued operations. | ||
| FLIR SYSTEMS, INC. | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (In thousands)(Unaudited) | |||||||||
| March 31, | December 31, | ||||||||
| 2012 | 2011 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 448,166 | $ | 440,846 | |||||
| Accounts receivable, net | 298,798 | 325,370 | |||||||
| Inventories | 351,232 | 336,051 | |||||||
| Prepaid expenses and other current assets | 117,964 | 104,285 | |||||||
| Deferred income taxes, net | 27,164 | 27,443 | |||||||
| Total current assets | 1,243,324 | 1,233,995 | |||||||
| Property and equipment, net | 191,876 | 186,269 | |||||||
| Deferred income taxes, net | 31,684 | 31,644 | |||||||
| Goodwill | 502,951 | 498,343 | |||||||
| Intangible assets, net | 164,390 | 164,440 | |||||||
| Other assets | 37,819 | 32,338 | |||||||
| $ | 2,172,044 | $ | 2,147,029 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 77,026 | $ | 84,190 | |||||
| Deferred revenue | 26,331 | 24,046 | |||||||
| Accrued payroll and related liabilities | 44,389 | 49,475 | |||||||
| Accrued product warranties | 13,592 | 13,370 | |||||||
| Advance payments from customers | 12,296 | 13,219 | |||||||
| Accrued expenses | 30,464 | 41,183 | |||||||
| Other current liabilities | 3,322 | 3,886 | |||||||
| Accrued income taxes | 206 | 2,161 | |||||||
| Total current liabilities | 207,626 | 231,530 | |||||||
| Long-term debt | 247,976 | 247,861 | |||||||
| Deferred income taxes | 16,981 | 17,237 | |||||||
| Accrued income taxes | 21,501 | 17,537 | |||||||
| Pension and other long-term liabilities | 57,222 | 53,835 | |||||||
| Commitments and contingencies | |||||||||
| Shareholders' equity | 1,620,738 | 1,579,029 | |||||||
| $ | 2,172,044 | $ | 2,147,029 | ||||||
| FLIR SYSTEMS, INC. | |||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (In thousands)(Unaudited) | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| 2012 | 2011 | ||||||||
| Cash Provided By Operating Activities: | |||||||||
| Net earnings | $ | 48,139 | $ | 51,315 | |||||
| Income items not affecting cash: | |||||||||
| Depreciation and amortization | 15,207 | 19,893 | |||||||
| Deferred income taxes | 10 | (65 | ) | ||||||
| Stock-based compensation arrangements | 5,535 | 6,288 | |||||||
| Other non-cash items | (5,406 | ) | 3,426 | ||||||
| Changes in operating assets and liabilities | (14,490 | ) | (18,471 | ) | |||||
| Cash provided by operating activities | 48,995 | 62,386 | |||||||
| Cash Used By Investing Activities: | |||||||||
| Additions to property and equipment, net | (12,935 | ) | (4,267 | ) | |||||
| Cash used by investing activities | (12,935 | ) | (4,267 | ) | |||||
| Cash Used by Financing Activities: | |||||||||
| Repurchase of common stock | (25,389 | ) | (6,775 | ) | |||||
| Dividends paid | (10,784 | ) | (9,571 | ) | |||||
| Proceeds from shares issued pursuant to stock- based compensation plans | 876 | 7,033 | |||||||
| Excess tax benefit of stock options exercised | 338 | 1,592 | |||||||
| Other financing activities | (44 | ) | (24 | ) | |||||
| Cash used by financing activities | (35,003 | ) | (7,745 | ) | |||||
| Effect of exchange rate changes on cash | 6,263 | 6,718 | |||||||
| Net increase in cash and cash equivalents | 7,320 | 57,092 | |||||||
| Cash and cash equivalents, beginning of year | 440,846 | 193,137 | |||||||
| Cash and cash equivalents, end of year | $ | 448,166 | $ | 250,229 | |||||
Contact Information:
Company Contact:
Shane Harrison
+1 503.498.3547
www.flir.com