PORTLAND, OR--(Marketwire - Feb 7, 2013) - FLIR Systems, Inc. (
Revenue from the Company's Commercial Systems division decreased 5% from the fourth quarter of 2011, to $212.8 million. Within the Commercial Systems division, revenue from the Thermal Vision and Measurement segment was $180.1 million, a decrease of 5% from the fourth quarter results last year. The Raymarine segment contributed $32.7 million of revenue during the fourth quarter, down 7% from the prior year.
Revenue from the Company's Government Systems division decreased 4% from the fourth quarter of 2011, to $173.5 million. Within the Government Systems division, revenue from the Surveillance segment was $136.4 million, a decrease of 7% from the fourth quarter of 2011. Revenue from the Detection segment was $12.8 million, a decrease of 46% compared to the fourth quarter of 2011, and the Integrated Systems segment contributed $24.4 million of revenue during the fourth quarter, an increase of 134% from the prior year.
For the full year, revenue was $1,405.4 million, down 9% compared to $1,544.1 million for the year ended December 31, 2011. Operating income for 2012 was $303.3 million, down 3% from $313.2 million in 2011. Net income for 2012 was $222.4 million, or $1.45 per diluted share, compared with 2011 net income of $221.5 million, or $1.38 per diluted share. Cash provided by operations during the year was $285.5 million.
The Company's backlog of firm orders for delivery within the next twelve months was approximately $520 million as of December 31, 2012, a decrease of $45 million during the quarter. Backlog in the Government Systems division was $356 million, decreasing $36 million during the quarter. Backlog in the Commercial Systems division was $164 million, down $9 million during the quarter.
"The fourth quarter was an encouraging end to a 2012 that was focused on rationalizing our businesses to enhance operating leverage and prepare us well for 2013," said Earl Lewis, President and CEO of FLIR. "We saw higher bookings in the fourth quarter versus the prior year, helping us end 2012 with over $60 million more in order backlog than 2011. We also reached record operating cash flow for the year, which allowed us to acquire two very strategically significant businesses and return a significant amount of capital to our shareholders through repurchasing 10.5 million of our shares and distributing $42 million in dividends."
Revenue and Earnings Outlook for 2013
FLIR also announced today that it expects revenue in 2013 to be in the range of $1.5 billion to $1.6 billion, an increase of approximately 7% to 14% compared to 2012, and net earnings to be in the range of $1.56 to $1.66 per diluted share, an increase of approximately 8% to 14% compared to 2012.
Dividend Increase and Declaration
FLIR's Board of Directors has approved a quarterly cash dividend of $0.09 per share on FLIR common stock, an increase of 29% over the previous paid quarterly dividend of $0.07 per share. The Board of Directors has declared the dividend payable March 8, 2013, to shareholders of record as of close of business on February 19, 2013.
Share Repurchase Program
Also today, FLIR announced that its Board of Directors approved a new share repurchase program that authorizes up to 25 million shares to be repurchased over the next two years, replacing the previous program that expires on February 9, 2013. This authorization represents approximately 17% of FLIR's outstanding common stock as of December 31, 2012.
Any purchases made under the repurchase program may be made from time to time in the open market or through privately negotiated transactions. All purchases are subject to stock price, market conditions, corporate and legal requirements, and other factors. The timing of repurchases and the exact number of shares of common stock to be purchased will be determined by the Company's management, in its discretion, and will depend upon market conditions and other factors. The Company expects to fund the repurchases using the Company's cash on hand and cash generated from operations. The program may be extended, suspended, or discontinued at any time.
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 the year. A simultaneous webcast of the conference call may be accessed online from 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. Summary fourth 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 2013" 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 | Twelve Months Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Revenue | $ | 386,385 | $ | 405,212 | $ | 1,405,358 | $ | 1,544,062 | ||||||||||
| Cost of goods sold | 181,104 | 180,427 | 673,968 | 715,458 | ||||||||||||||
| Gross profit | 205,281 | 224,785 | 731,390 | 828,604 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 34,088 | 34,920 | 137,762 | 147,177 | ||||||||||||||
| Selling, general and administrative | 71,117 | 80,197 | 290,298 | 368,232 | ||||||||||||||
| Total operating expenses | 105,205 | 115,117 | 428,060 | 515,409 | ||||||||||||||
| Earnings from operations | 100,076 | 109,668 | 303,330 | 313,195 | ||||||||||||||
| Interest expense | 2,729 | 3,175 | 11,659 | 5,487 | ||||||||||||||
| Interest income | (509 | ) | (768 | ) | (1,582 | ) | (1,273 | ) | ||||||||||
| Other expense (income), net | 151 | (892 | ) | 1,341 | (2,098 | ) | ||||||||||||
| Earnings from continuing operations before income taxes | 97,705 | 108,153 | 291,912 | 311,079 | ||||||||||||||
| Income tax provision | 19,528 | 31,318 | 66,556 | 88,427 | ||||||||||||||
| Earnings from continuing operations | 78,177 | 76,835 | 225,356 | 222,652 | ||||||||||||||
| Loss from discontinued operations, net of tax | (916 | ) | (705 | ) | (2,958 | ) | (1,178 | ) | ||||||||||
| Net earnings | $ | 77,261 | $ | 76,130 | $ | 222,398 | $ | 221,474 | ||||||||||
| Basic earnings per share: | ||||||||||||||||||
| Earnings from continuing operations | $ | 0.53 | $ | 0.49 | $ | 1.49 | $ | 1.41 | ||||||||||
| Discontinued operations | (0.01 | ) | (0.00 | ) | (0.02 | ) | (0.01 | ) | ||||||||||
| Basic earnings per share | $ | 0.52 | $ | 0.49 | $ | 1.47 | $ | 1.40 | ||||||||||
| Diluted earnings per share: | ||||||||||||||||||
| Earnings from continuing operations | $ | 0.52 | $ | 0.49 | $ | 1.47 | $ | 1.38 | ||||||||||
| Discontinued operations | (0.01 | ) | (0.00 | ) | (0.02 | ) | (0.01 | ) | ||||||||||
| Diluted earnings per share | $ | 0.52 | $ | 0.48 | $ | 1.45 | $ | 1.38 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 148,103 | 155,647 | 151,634 | 158,323 | ||||||||||||||
| Diluted | 149,419 | 157,611 | 153,595 | 160,851 | ||||||||||||||
| FLIR SYSTEMS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) (Unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 321,739 | $ | 440,846 | ||||
| Accounts receivable, net | 335,163 | 329,581 | ||||||
| Inventories | 381,378 | 336,051 | ||||||
| Prepaid expenses and other current assets | 96,006 | 104,285 | ||||||
| Deferred income taxes, net | 30,960 | 27,443 | ||||||
| Total current assets | 1,165,246 | 1,238,206 | ||||||
| Property and equipment, net | 211,615 | 186,269 | ||||||
| Deferred income taxes, net | 32,223 | 31,644 | ||||||
| Goodwill | 503,078 | 498,343 | ||||||
| Intangible assets, net | 140,621 | 164,440 | ||||||
| Other assets | 124,722 | 32,338 | ||||||
| $ | 2,177,505 | $ | 2,151,240 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 94,156 | $ | 84,190 | ||||
| Deferred revenue | 29,465 | 28,257 | ||||||
| Accrued payroll and related liabilities | 41,506 | 49,475 | ||||||
| Accrued product warranties | 13,169 | 13,370 | ||||||
| Advance payments from customers | 12,150 | 13,219 | ||||||
| Accrued expenses | 32,772 | 41,183 | ||||||
| Other current liabilities | 4,331 | 3,886 | ||||||
| Accrued income taxes | 11,943 | 2,161 | ||||||
| Total current liabilities | 239,492 | 235,741 | ||||||
| Long-term debt | 248,319 | 247,861 | ||||||
| Deferred income taxes | 7,996 | 17,237 | ||||||
| Accrued income taxes | 22,812 | 17,537 | ||||||
| Pension and other long-term liabilities | 58,985 | 53,835 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity | 1,599,901 | 1,579,029 | ||||||
| $ | 2,177,505 | $ | 2,151,240 | |||||
| FLIR SYSTEMS, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
| (In thousands) (Unaudited) | ||||||||||||||||||
| Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net earnings | $ | 77,261 | $ | 76,130 | $ | 222,398 | $ | 221,474 | ||||||||||
| Income items not affecting cash: | ||||||||||||||||||
| Depreciation and amortization | 14,857 | 16,290 | 59,715 | 77,498 | ||||||||||||||
| Deferred income taxes | (11,539 | ) | (10,291 | ) | (10,940 | ) | (12,195 | ) | ||||||||||
| Stock-based compensation arrangements | 6,252 | 5,604 | 26,250 | 24,917 | ||||||||||||||
| Other non-cash items | 4,522 | 9,647 | (1,810 | ) | 12,654 | |||||||||||||
| Changes in operating assets and liabilities, net of acquisitions | 21,521 | 18,816 | (10,068 | ) | (80,457 | ) | ||||||||||||
| Cash provided by operating activities | 112,874 | 116,196 | 285,545 | 243,891 | ||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Additions to property and equipment, net | (18,901 | ) | (10,850 | ) | (58,089 | ) | (41,946 | ) | ||||||||||
| Business acquisitions, net of cash acquired | (105,909 | ) | - | (105,909 | ) | (27,182 | ) | |||||||||||
| Other investments | (2 | ) | 1,991 | (3,002 | ) | 1,991 | ||||||||||||
| Cash used by investing activities | (124,812 | ) | (8,859 | ) | (167,000 | ) | (67,137 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Proceeds from long term debt, net | - | - | - | 247,708 | ||||||||||||||
| Repurchase of common stock | (85,185 | ) | (36,286 | ) | (214,195 | ) | (160,669 | ) | ||||||||||
| Dividends paid | (10,428 | ) | (9,350 | ) | (42,450 | ) | (38,037 | ) | ||||||||||
| Proceeds from shares issued pursuant to stock- based compensation plans | 4,080 | 6,620 | 11,198 | 21,706 | ||||||||||||||
| Excess tax benefit of stock options exercised | 53 | 727 | 1,284 | 5,195 | ||||||||||||||
| Other financing activities | (28 | ) | (140 | ) | (166 | ) | (458 | ) | ||||||||||
| Cash (used) provided by financing activities | (91,508 | ) | (38,429 | ) | (244,329 | ) | 75,445 | |||||||||||
| Effect of exchange rate changes on cash | 696 | (2,561 | ) | 6,677 | (4,490 | ) | ||||||||||||
| Net (decrease) increase in cash and cash equivalents | (102,750 | ) | 66,347 | (119,107 | ) | 247,709 | ||||||||||||
| Cash and cash equivalents, beginning of period | 424,489 | 374,499 | 440,846 | 193,137 | ||||||||||||||
| Cash and cash equivalents, end of period | $ | 321,739 | $ | 440,846 | $ | 321,739 | $ | 440,846 | ||||||||||
Contact Information:
Company Contact:
Shane Harrison
+1 503.498.3547
www.flir.com