"The first quarter is typically one of the seasonally weaker quarters of the year in our industry, therefore FLIR's performance for the period is especially gratifying and confirms our outlook for 2002 as a whole," said President and CEO Earl R. Lewis
Lewis said that the increase in revenue for the first quarter of 2002 primarily reflected higher sales of FLIR's ground-based imaging systems. Gross margins were 54%, unchanged from the same period last year. Earnings from operations increased by 33% to $10.4 million, or 17.9% of revenue, for the 2002 first quarter compared to $7.8 million, or 15.5% of revenue, for the first quarter of 2001. Cash from operations totaled $13.7 million for the first quarter of 2002 as compared to $8.7 million for the first quarter of 2001.
Interest expense declined to $0.3 million for the 2002 first quarter as compared to $3.5 million for the first quarter of 2001, reflecting the reduction of the Company's debt. During this year's first quarter, FLIR repaid all amounts outstanding under its December 16, 1999 Credit Agreement and entered into a new credit agreement.
The backlog of firm orders at March 31, 2002 increased to $85 million from $82 million at December 31, 2001.
Earnings Guidance for 2002
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
As previously announced, the Company continues to estimate revenue for 2002 in the range of $250 to $260 million. Based on first quarter 2002 results and its outlook for the remainder of the year, the Company has increased its guidance for net earnings for the year to be in the range of approximately $2.20 to $2.25 per diluted share, based on an estimated effective tax rate of 15%. Previously, the Company had estimated net earnings for 2002 to be in the range of $2.10 to $2.15 per diluted share.
The statements in this release by Earl R. Lewis and the statements in the Earnings Guidance for 2002 paragraph 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, constraints on supplies of critical components, excess or shortage of production capacity, actual purchases under agreements, 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, including the Company's Annual Report on Form 10-K for the year ended December 31, 2001. 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.
FLIR has scheduled a conference call at 11:00 am EDT today. A simultaneous WebCast of the conference call may be accessed online at www.CompanyBoardroom.com or www.FLIR.com. A replay will be available approximately one hour after the WebCast at these same Internet addresses. For a telephone replay, dial (800) 633-8284, reservation #20521857 beginning at approximately 1:00 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
FLIR SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2002 2001 Revenue $ 58,098 $ 50,472 Cost of goods sold 26,799 23,181 Gross profit 31,299 27,291 Operating expenses: Research and development 7,089 6,105 Selling, general and administrative 13,819 13,362 Total operating expenses 20,908 19,467 Earnings from operations 10,391 7,824 Interest expense 318 3,454 Other income, net (124) (188) Earnings before income taxes 10,197 4,558 Income tax provision 1,529 684 Net earnings $ 8,668 $ 3,874 Net earnings per share: Basic $ 0.52 $ 0.27 Diluted $ 0.49 $ 0.27 Weighted average shares outstanding: Basic 16,650 14,561 Diluted 17,797 14,604 FLIR SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except par value) March 31, Dec. 31, 2002 2001 ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 8,271 $ 15,514 Accounts receivable, net 50,894 57,965 Inventories 52,368 46,560 Prepaid expenses and other current assets 12,605 11,548 Deferred income taxes 8,834 8,834 Total current assets 132,972 140,421 Property and equipment, net 12,530 10,806 Deferred income taxes, net 15,087 15,087 Intangible assets, net 16,731 16,811 Other assets 2,783 1,913 $180,103 $185,038 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Notes payable $ 3,748 $ 23,370 Accounts payable 21,995 18,428 Deferred revenue 5,017 5,314 Accrued payroll and other liabilities 22,765 22,538 Accrued income taxes 1,812 747 Current portion of capital lease obligations 397 584 Total current liabilities 55,714 70,981 Pension and other long-term liabilities 8,960 9,209 Commitments and contingencies Shareholders' equity: Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at March 31, 2002, and December 31, 2001 -- -- Common stock, $0.01 par value, 30,000 shares authorized; 16,720 and 16,555 shares issued at March 31, 2002, and December 31, 2001, respectively 166 165 Additional paid-in capital 196,158 194,338 Accumulated deficit (76,196) (84,864) Accumulated other comprehensive loss (4,699) (4,791) Total shareholders' equity 115,429 104,848 $180,103 $185,038 CONTACT: FLIR Systems Inc., Portland Steve Bailey, 978/901-8000 www.flir.com or Neil Berkman Associates, Los Angeles (Investors) 310/277-5162 info@BerkmanAssociates.com URL: http://www.businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. Copyright (C) 2002 Business Wire. All rights reserved.