Operating Profit up by 31%; Earnings per Share up by 21%
PORTLAND, OR -- (Marketwire) -- 07/23/09 -- FLIR Systems, Inc. (NASDAQ: FLIR) today
announced financial results for the second quarter ended June 30, 2009.
Revenue was $278.0 million, up 7% compared to second quarter 2008 revenue
of $261.0 million. Excluding the effects of exchange rates, revenue
increased by 12% in the second quarter. Operating income in the second
quarter was $84.7 million, up 31% from $64.7 million in the second quarter
of 2008. Second quarter 2009 net income was $55.7 million, or $0.35 per
diluted share, compared with net income of $44.6 million, or $0.29 per
diluted share, in the second quarter a year ago. Cash provided by
operations during the quarter was $57.7 million.
Revenue from the Company's Government Systems division increased 22% over
the second quarter of 2008, to $160.4 million, with strength in stabilized
gimbaled systems. Revenue from the Company's Commercial Vision Systems
division increased 4% over the second quarter of last year, to $50.8
million, reflecting growth in the cores and components markets. Revenue
from the Company's Thermography division decreased 17% from the second
quarter of last year, to $66.8 million, primarily due to changes in
exchange rates and lower demand for high-value products for the predictive
maintenance market. Excluding the effect of exchange rates, Thermography
revenue decreased 9% in the quarter.
The Company's backlog of firm orders for delivery within the next twelve
months was approximately $598 million at June 30, 2009, a decrease of $19
million during the quarter. Backlog in the Government System's division
was $467 million, down $37 million during the quarter. Backlog in the
Commercial Vision Systems division was $108 million, up $13 million during
the quarter, while backlog in the Thermography division was $23 million, up
$5 million during the quarter.
"We are pleased with our performance in the second quarter. Gross and
operating margins remained at record levels, operating cash flow remained
strong, and backlog in our commercial businesses increased significantly.
We achieved this performance through continued solid execution in a
difficult economy, as all three divisions once again improved gross and
operating margins over the prior year," noted Earl Lewis, President and
CEO.
Revenue and Earnings Outlook for 2009
Based on its financial results for the first half of 2009, and the outlook
for the remainder of the year, FLIR announced today that it is revising its
outlook for revenue and earnings per share for the full year 2009.
Management currently expects revenue for 2009 to be in the range of $1.1
billion to $1.15 billion, a reduction of $100 million compared with the
previous outlook. In the first half of 2009, the effect of currency rates
reduced revenue by approximately $33 million, and such effects are expected
to continue in the second half. As a result of lower revenue, management
has narrowed its earnings per share outlook to the low end of its previous
outlook and currently expects net earnings to be in the range of $1.40 to
$1.44 per diluted share, compared with the previous outlook of $1.40 to
$1.47 per diluted share.
Conference Call
FLIR has scheduled a conference call at 8:00 am EDT today. A simultaneous
webcast will be available from the Investor Relations link at www.FLIR.com.
A replay will be available after 12:00 PM EDT at this same internet
address. For a telephone replay, dial (800) 642-1687, Conference ID
#17141344 after 12:00 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 Outlook for 2009" 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 US 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 Six Months Ended
June 30, June 30,
------------------------- -------------------------
2009 2008 2009 2008
------------ ----------- ------------ -----------
(As Adjusted) (As Adjusted)
(1) (1)
Revenue $ 277,978 $ 260,978 $ 549,974 $ 497,884
Cost of goods sold 116,030 114,364 230,311 220,475
------------ ----------- ------------ -----------
Gross profit 161,948 146,614 319,663 277,409
Operating expenses:
Research and
development 23,232 23,547 45,641 46,657
Selling, general and
administrative 54,055 58,394 105,995 110,973
------------ ----------- ------------ -----------
Total operating
expenses 77,287 81,941 151,636 157,630
Earnings from
operations 84,661 64,673 168,027 119,779
Interest expense 1,727 3,634 4,505 7,427
Other expense (income),
net 1,092 (3,637) 68 (3,655)
------------ ----------- ------------ -----------
Earnings before
income taxes 81,842 64,676 163,454 116,007
Income tax provision 26,189 20,059 53,529 34,870
------------ ----------- ------------ -----------
Net earnings $ 55,653 $ 44,617 $ 109,925 $ 81,137
============ =========== ============ ===========
Net earnings per share:
Basic $ 0.37 $ 0.32 $ 0.75 $ 0.59
============ =========== ============ ===========
Diluted $ 0.35 $ 0.29 $ 0.70 $ 0.52
============ =========== ============ ===========
Weighted average shares
outstanding:
Basic 149,948 138,054 146,901 137,523
============ =========== ============ ===========
Diluted 161,354 162,344 162,041 161,899
============ =========== ============ ===========
(1) The Company has adjusted its financial statements for the retrospective
application of the Financial Accounting Standards Board Staff Position
APB 14-1, "Accounting for Convertible Debt Instruments That May be
Settled in Cash upon Conversion (Including Partial Cash Settlement)."
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
June 30, December 31,
2009 2008
---------------- ----------------
ASSETS (As Adjusted)(1)
Current assets:
Cash and cash equivalents $ 346,402 $ 289,442
Accounts receivable, net 214,594 239,183
Inventories 219,682 207,487
Prepaid expenses and other current
assets 66,284 59,824
Deferred income taxes, net 16,652 16,566
---------------- ----------------
Total current assets 863,614 812,502
Property and equipment, net 137,984 122,304
Deferred income taxes, net 5,277 2,217
Goodwill 226,940 225,685
Intangible assets, net 50,838 56,174
Other assets 36,187 22,195
---------------- ----------------
$ 1,320,840 $ 1,241,077
================ ================
LIABILITIES AND SHAREHOLDERSÂ’ EQUITY
Current liabilities:
Accounts payable $ 59,136 $ 47,823
Deferred revenue 23,951 27,554
Accrued payroll and related liabilities 30,852 43,337
Accrued product warranties 8,095 7,826
Advance payments from customers 12,304 19,183
Accrued expenses 20,840 21,978
Other current liabilities 1,607 4,553
Current portion of long-term debt 21 21
---------------- ----------------
Total current liabilities 156,806 172,275
Long-term debt 88,886 182,825
Deferred income taxes 4,966 5,983
Accrued income taxes 6,183 5,697
Pension and other long-term liabilities 34,879 29,572
Commitments and contingencies
ShareholdersÂ’ equity 1,029,120 844,725
---------------- ----------------
$ 1,320,840 $ 1,241,077
================ ================
(1) The Company has adjusted its financial statements for the retrospective
application of the Financial Accounting Standards Board Staff Position
APB 14-1, "Accounting for Convertible Debt Instruments That May be
Settled in Cash upon Conversion (Including Partial Cash Settlement)."
Company Contact:
Tony Trunzo
+1 503.498.3547
www.flir.com
