PORTLAND, OR--(Marketwire - October 23, 2008) - FLIR Systems, Inc. (
NASDAQ:
FLIR) today
announced financial results for the third quarter ended September 30, 2008.
Revenue was $276.7 million, up 45% compared to third quarter 2007 revenue
of $191.1 million. Operating income for the quarter was $76.7 million, up
48% from $51.8 million in the third quarter of 2007. Net income for the
quarter was $55.6 million, or $0.35 per diluted share, compared with net
income of $34.8 million, or $0.22 per diluted share on a split-adjusted
basis, in the third quarter a year ago. Cash provided by operations during
the quarter was $66.4 million.
Revenue from the Company's Government Systems division increased 57% over
the third quarter of 2007, to a record $151.7 million, driven by strength
in land-based and maritime applications. Revenue from the Company's
Commercial Vision Systems division increased 34% over the third quarter of
last year, to $45.8 million, reflecting strong growth in each served
market. Revenue from the Company's Thermography division increased 32%
over the third quarter of last year, to $79.2 million. Excluding the
impact of the Extech Instruments and Cedip Infrared Systems acquisitions,
Thermography revenue increased 7% during the third quarter, due to
increased demand for the T-Series and i5 product lines, and reduced demand
for high end products, including GasFindIR®.
The backlog of firm orders for delivery within the next twelve months was
approximately $650 million at September 30, 2008, an increase of $78
million compared with backlog at June 30, 2008. Backlog in the Government
System's division was $547 million, up $83 million during the quarter due
to strong order activity both in the U.S. and internationally. Backlog in
the Commercial Vision System's division was $81 million, down $5 million
during the quarter. Backlog in the Thermography division was $22 million,
unchanged from the prior quarter.
During the quarter, the Company repurchased 681,000 shares of its common
stock for $22.9 million, and expended $5.0 million for the purchase of
property, plant, and equipment. At September 30, 2008, cash and cash
equivalents were $206.1 million, compared with $177.0 million at June 30,
2008.
"The third quarter was another outstanding quarter for the Company, as we
set quarterly records for orders, backlog, revenue, operating profit,
operating cash flow, and earnings per share," noted Earl R. Lewis,
President and CEO. "Demand was excellent, particularly in our Government
Systems division, as we continue to expand our base of long term contracts.
Based on the quarter's results, and the expectations for the remainder of
the year, we are narrowing the range of our outlook for the year."
Revenue and Earnings Per Share Outlook for 2008
Based on the financial results for the quarter, and the outlook for the
remainder of the year, the Company is revising the range of its revenue and
earnings per share outlook for 2008 to the upper end of the previous range.
The Company currently expects net revenue in fiscal 2008 to be in the range
of $1.075 billion to $1.1 billion, and net earnings to be in the range of
$1.21 to $1.25 per diluted share. This guidance utilizes a planned tax
rate for the year of approximately 30%, and an average share count of
approximately 163 million diluted shares.
Conference Call
FLIR has scheduled a conference call at 11:00 am EDT today. A simultaneous
webcast will be available from the Investor Relations link at
www.FLIR.com.
A replay will be available after 2:30 PM EDT at this same internet address.
For a telephone replay, dial (800) 642-1687, Conference ID #66411502 after
2:30 PM EDT.
About FLIR Systems
FLIR Systems, Inc. is a world leader in the design, manufacture, and
marketing of thermal imaging and stabilized camera systems for a wide
variety of thermography and imaging applications including condition
monitoring, research and development, manufacturing process control,
airborne observation and broadcast, search and rescue, drug interdiction,
surveillance and reconnaissance, navigation safety, border and maritime
patrol, environmental monitoring and ground-based security. Visit the
Company's web site at
www.FLIR.com.
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in the
section captioned "Revenue and Earnings Per Share Outlook for 2008" 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: the
possibility that the Company will experience difficulties in the
integration of the operations, employees, strategies, technologies and
products of Extech or Cedip, the potential inability to realize expected
benefits and synergies from the Extech or Cedip transactions, 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 US export control laws and
regulations, the timely receipt of export licenses for international
shipments, 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 Nine Months Ended
September 30, September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenue $ 276,740 $ 191,104 $ 774,624 $ 536,763
Cost of goods sold 121,478 84,081 341,969 240,772
--------- --------- --------- ---------
Gross profit 155,262 107,023 432,655 295,991
Operating expenses:
Research and development 21,639 15,692 68,296 51,623
Selling, general and
administrative 56,973 39,508 167,946 115,400
--------- --------- --------- ---------
Total operating expenses 78,612 55,200 236,242 167,023
Earnings from operations 76,650 51,823 196,413 128,968
Interest expense 2,110 2,245 6,880 7,549
Other income, net (4,956) (957) (8,627) (4,535)
--------- --------- --------- ---------
Earnings before income
taxes 79,496 50,535 198,160 125,954
Income tax provision 23,863 15,770 59,750 35,840
--------- --------- --------- ---------
Net earnings $ 55,633 $ 34,765 $ 138,410 $ 90,114
========= ========= ========= =========
Net earnings per share:
Basic $ 0.40 $ 0.26 $ 1.00 $ 0.67
========= ========= ========= =========
Diluted $ 0.35 $ 0.22 $ 0.87 $ 0.59
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 139,211 135,130 138,090 133,577
========= ========= ========= =========
Diluted 163,124 159,535 162,393 157,892
========= ========= ========= =========
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
September 30, December 31,
2008 2007
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 206,103 $ 203,681
Accounts receivable, net 241,652 203,371
Inventories, net 215,118 179,366
Prepaid expenses and other current assets 75,116 58,056
Deferred income taxes, net 10,961 11,033
------------ ------------
Total current assets 748,950 655,507
Property and equipment, net 124,929 120,873
Deferred income taxes, net 3,532 2,237
Goodwill 224,668 176,230
Intangible assets, net 61,081 52,819
Other assets 24,715 16,650
------------ ------------
$ 1,187,875 $ 1,024,316
============ ============
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
Notes payable $ 1,110 $ 19,000
Accounts payable 63,286 53,990
Deferred revenue 31,471 19,612
Accrued payroll and related liabilities 39,069 39,431
Accrued product warranties 7,964 6,594
Advance payments from customers 16,012 9,156
Other current liabilities 22,505 14,600
Accrued income taxes -- 3,752
Current portion of long-term debt 21 7
------------ ------------
Total current liabilities 181,438 166,142
Long-term debt 208,572 207,889
Deferred income taxes 1,649 1,902
Accrued income taxes 5,114 4,295
Pension and other long-term liabilities 23,306 20,813
Commitments and contingencies
Shareholders equity 767,796 623,275
------------ ------------
$ 1,187,875 $ 1,024,316
============ ============
Contact Information: Company Contact:
Tony Trunzo
+1 503.498.3547
www.flir.com