WILSONVILLE, OR--(Marketwired - Feb 7, 2014) - FLIR Systems, Inc. (
Cash provided by operations in the fourth quarter was $105.2 million, a decrease of 7% compared to the fourth quarter of 2012. During the quarter, FLIR repurchased one million shares of its common stock at an average price of $28.95 per share.
Revenue from FLIR's Commercial Systems division increased 15% from the fourth quarter of 2012, to $244.6 million. Within the Commercial Systems division, revenue from the Thermal Vision and Measurement segment was $208.5 million, an increase of 16% from the fourth quarter results last year. The Raymarine segment contributed $36.1 million of revenue during the fourth quarter, up 10% from the prior year.
Revenue from FLIR's Government Systems division decreased 10% from the fourth quarter of 2012, to $155.7 million. Within the Government Systems division, revenue from the Surveillance segment was $124.7 million, a decrease of 9% from the fourth quarter of 2012. Revenue from the Detection segment was $13.2 million, an increase of 3% compared to the fourth quarter of 2012, and the Integrated Systems segment contributed $17.9 million of revenue during the fourth quarter, compared with revenue of $24.4 million in the prior year.
For the full year, revenue was $1,496.4 million, up 6% compared to $1,405.4 million for the year ended December 31, 2012. Operating income for 2013 was $240.7 million compared to $303.3 million in 2012. Net income for 2013 was $177 million, or $1.22 per diluted share, compared with 2012 net income of $222.4 million, or $1.45 per diluted share. Cash provided by operations reached a record high $355 million during the year, growing 24% over 2012.
FLIR's backlog of firm orders for delivery within the next twelve months was approximately $490 million as of December 31, 2013, a decrease of $33 million during the quarter. Backlog in the Government Systems division was $294 million, decreasing $41 million during the quarter. Backlog in the Commercial Systems division was $196 million, up $8 million during the quarter.
"The new products and core technologies we've recently introduced coupled with the organizational changes we launched in the fourth quarter of 2013 paves the way for FLIR's entrance into several new high volume markets," said Andy Teich, President and CEO of FLIR. "Our financial results were impacted by slowed activity from domestic defense customers and our planned spending and restructuring charges; however, we recorded a record level of cash flow in 2013. Our recent realigning of our operations will create a streamlined organizational structure that focuses on our customers, leverages our vertical integration, employs our CDMQ model for government markets, and furthers our ability to deliver on our goal of 'infrared everywhere.'"
Revenue and Earnings Outlook for 2014
FLIR also announced today that it currently expects revenue in 2014 to be in the range of $1.45 billion to $1.55 billion and net earnings excluding restructuring charges associated with the business realignment to be in the range of $1.40 to $1.50 per diluted share.
Dividend Increase and Declaration
FLIR's Board of Directors has approved a quarterly cash dividend of $0.10 per share on FLIR common stock, an increase of 11% over the previous paid quarterly dividend of $0.09 per share. The Board of Directors has declared the dividend payable March 7, 2014, to shareholders of record as of close of business on February 19, 2014.
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 a link in the Events & Presentations 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 can be accessed online soon after the release of the fourth quarter results from the Financial Info Database link at 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. FLIR's advanced systems and components are used for a wide variety of thermal imaging, situational awareness, and security applications, including airborne and ground-based surveillance, condition monitoring, navigation, recreation, research and development, manufacturing process control, search and rescue, drug interdiction, transportation safety, border and maritime patrol, environmental monitoring, and chemical, biological, radiological, nuclear, and explosives (CBRNE) threat detection. For more information, visit FLIR's web site at www.FLIR.com.
Forward-Looking Statements
The statements in this release by Andy Teich and the statements in the section captioned "Revenue and Earnings Outlook for 2014" 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 FLIR'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 FLIR's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, FLIR'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 FLIR to act as a federal contractor, the amount and availability of appropriated government procurement funds and other risks discussed from time to time in FLIR'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 FLIR 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.
(Tables Below)
| FLIR SYSTEMS, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
| (In thousands, except per share amounts)(Unaudited) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Revenue | $ | 400,319 | $ | 386,385 | $ | 1,496,372 | $ | 1,405,358 | ||||||||||
| Cost of goods sold | 210,228 | 181,010 | 759,362 | 670,174 | ||||||||||||||
| Gross profit | 190,091 | 205,375 | 737,010 | 735,184 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 38,425 | 33,704 | 147,696 | 137,354 | ||||||||||||||
| Selling, general and administrative | 88,033 | 70,482 | 322,739 | 292,500 | ||||||||||||||
| Restructuring expenses | 25,832 | 1,113 | 25,832 | 2,000 | ||||||||||||||
| Total operating expenses | 152,290 | 105,299 | 496,267 | 431,854 | ||||||||||||||
| Earnings from operations | 37,801 | 100,076 | 240,743 | 303,330 | ||||||||||||||
| Interest expense | 3,731 | 2,729 | 14,091 | 11,659 | ||||||||||||||
| Interest income | (337 | ) | (509 | ) | (1,058 | ) | (1,582 | ) | ||||||||||
| Other (income) expense, net | (741 | ) | 151 | (1,276 | ) | 1,341 | ||||||||||||
| Earnings from continuing operations before income taxes | 35,148 | 97,705 | 228,986 | 291,912 | ||||||||||||||
| Income tax provision | 6,413 | 19,528 | 51,971 | 66,556 | ||||||||||||||
| Earnings from continuing operations | 28,735 | 78,177 | 177,015 | 225,356 | ||||||||||||||
| Loss from discontinued operations, net of tax | - | (916 | ) | - | (2,958 | ) | ||||||||||||
| Net earnings | $ | 28,735 | $ | 77,261 | $ | 177,015 | $ | 222,398 | ||||||||||
| Basic earnings per share: | ||||||||||||||||||
| Earnings from continuing operations | $ | 0.20 | $ | 0.53 | $ | 1.24 | $ | 1.49 | ||||||||||
| Discontinued operations | - | (0.01 | ) | - | (0.02 | ) | ||||||||||||
| Basic earnings per share | $ | 0.20 | $ | 0.52 | $ | 1.24 | $ | 1.47 | ||||||||||
| Diluted earnings per share: | ||||||||||||||||||
| Earnings from continuing operations | $ | 0.20 | $ | 0.52 | $ | 1.22 | $ | 1.47 | ||||||||||
| Discontinued operations | - | (0.01 | ) | - | (0.02 | ) | ||||||||||||
| Diluted earnings per share | $ | 0.20 | $ | 0.52 | $ | 1.22 | $ | 1.45 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 141,250 | 148,103 | 142,446 | 151,634 | ||||||||||||||
| Diluted | 143,441 | 149,419 | 144,595 | 153,595 | ||||||||||||||
| FLIR SYSTEMS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands)(Unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 542,476 | $ | 321,739 | ||||
| Accounts receivable, net | 286,573 | 335,163 | ||||||
| Inventories | 344,719 | 379,080 | ||||||
| Prepaid expenses and other current assets | 97,574 | 98,304 | ||||||
| Deferred income taxes, net | 35,456 | 30,960 | ||||||
| Total current assets | 1,306,798 | 1,165,246 | ||||||
| Property and equipment, net | 234,041 | 211,615 | ||||||
| Deferred income taxes, net | 20,663 | 32,223 | ||||||
| Goodwill | 575,701 | 564,306 | ||||||
| Intangible assets, net | 154,195 | 175,823 | ||||||
| Other assets | 51,808 | 41,442 | ||||||
| $ | 2,343,206 | $ | 2,190,655 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 85,730 | $ | 94,156 | ||||
| Deferred revenue | 28,844 | 29,465 | ||||||
| Accrued payroll and related liabilities | 62,069 | 41,506 | ||||||
| Accrued expenses | 39,316 | 32,772 | ||||||
| Other current liabilities | 44,893 | 31,725 | ||||||
| Accrued income taxes | 663 | 11,943 | ||||||
| Current portion long-term debt | 15,000 | - | ||||||
| Total current liabilities | 276,515 | 241,567 | ||||||
| Long-term debt | 372,528 | 248,319 | ||||||
| Deferred income taxes | 12,101 | 19,071 | ||||||
| Accrued income taxes | 19,996 | 22,812 | ||||||
| Pension and other long-term liabilities | 48,686 | 58,985 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity | 1,613,380 | 1,599,901 | ||||||
| $ | 2,343,206 | $ | 2,190,655 | |||||
| FLIR SYSTEMS, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
| (In thousands)(Unaudited) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net earnings | $ | 28,735 | $ | 77,261 | $ | 177,015 | $ | 222,398 | ||||||||||
| Income items not affecting cash: | ||||||||||||||||||
| Depreciation and amortization | 17,818 | 14,857 | 62,796 | 59,715 | ||||||||||||||
| Deferred income taxes | (950 | ) | (9,819 | ) | (988 | ) | (9,220 | ) | ||||||||||
| Stock-based compensation arrangements | 7,150 | 6,252 | 27,823 | 26,250 | ||||||||||||||
| Other non-cash items | 3,080 | 3,953 | 4,564 | 2,088 | ||||||||||||||
| Changes in operating assets and liabilities, net of acquisitions | 49,341 | 20,370 | 83,755 | (15,686 | ) | |||||||||||||
| Cash provided by operating activities | 105,174 | 112,874 | 354,965 | 285,545 | ||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Additions to property and equipment, net | (15,065 | ) | (18,901 | ) | (52,061 | ) | (58,089 | ) | ||||||||||
| Business acquisitions, net of cash acquired | - | (105,909 | ) | (20,073 | ) | (105,909 | ) | |||||||||||
| Other investments | - | (2 | ) | - | (3,002 | ) | ||||||||||||
| Cash used by investing activities | (15,065 | ) | (124,812 | ) | (72,134 | ) | (167,000 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Proceeds from long term debt | - | - | 150,000 | - | ||||||||||||||
| Repayments of long term debt | (3,750 | ) | - | (11,250 | ) | - | ||||||||||||
| Repurchase of common stock | (29,028 | ) | (85,185 | ) | (162,078 | ) | (214,195 | ) | ||||||||||
| Dividends paid | (12,709 | ) | (10,428 | ) | (51,404 | ) | (42,450 | ) | ||||||||||
| Proceeds from shares issued pursuant to stock-based compensation plans | 2,698 | 4,080 | 8,650 | 11,198 | ||||||||||||||
| Excess tax benefit of stock options exercised | 141 | 53 | 1,069 | 1,284 | ||||||||||||||
| Other financing activities | 172 | (28 | ) | (1,100 | ) | (166 | ) | |||||||||||
| Cash provided (used) by financing activities | (42,476 | ) | (91,508 | ) | (66,113 | ) | (244,329 | ) | ||||||||||
| Effect of exchange rate changes on cash | 2,644 | 696 | 4,019 | 6,677 | ||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 50,277 | (102,750 | ) | 220,737 | (119,107 | ) | ||||||||||||
| Cash and cash equivalents, beginning of period | 492,199 | 424,489 | 321,739 | 440,846 | ||||||||||||||
| Cash and cash equivalents, end of period | $ | 542,476 | $ | 321,739 | $ | 542,476 | $ | 321,739 | ||||||||||
| FLIR SYSTEMS, INC. | ||||||||||||||||
| REVENUE AND EARNINGS FROM OPERATIONS BY SEGMENT | ||||||||||||||||
| (In thousands)(Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| REVENUE - EXTERNAL CUSTOMERS | ||||||||||||||||
| Thermal Vision and Measurement | $ | 208,486 | $ | 180,097 | $ | 727,938 | $ | 628,019 | ||||||||
| Raymarine | 36,113 | 32,740 | 163,200 | 158,183 | ||||||||||||
| Surveillance | 124,665 | 136,351 | 456,490 | 486,355 | ||||||||||||
| Detection | 13,175 | 12,844 | 53,191 | 63,312 | ||||||||||||
| Integrated Systems | 17,880 | 24,353 | 95,553 | 69,489 | ||||||||||||
| $ | 400,319 | $ | 386,385 | $ | 1,496,372 | $ | 1,405,358 | |||||||||
| EARNINGS (LOSS) FROM OPERATIONS | ||||||||||||||||
| Thermal Vision and Measurement | $ | 35,797 | $ | 61,629 | $ | 161,307 | $ | 171,280 | ||||||||
| Raymarine | (160 | ) | 1,230 | 14,184 | 11,173 | |||||||||||
| Surveillance | 25,199 | 45,253 | 126,034 | 160,219 | ||||||||||||
| Detection | (3,449 | ) | 289 | (184 | ) | 1,089 | ||||||||||
| Integrated Systems | (2,019 | ) | 3,901 | (1,907 | ) | 5,168 | ||||||||||
| Other | (17,567 | ) | (12,226 | ) | (58,691 | ) | (45,599 | ) | ||||||||
| $ | 37,801 | $ | 100,076 | $ | 240,743 | 303,330 | ||||||||||
Contact Information:
Company Contact:
Shane Harrison
+1 503.498.3547
www.flir.com