PORTLAND, Ore., Oct 17, 2002 (BUSINESS WIRE) -- FLIR Systems, Inc. (Nasdaq:FLIR) announced today that net earnings for the third quarter ended September 30, 2002 increased 73% to a third quarter record $10.7 million, or $0.60 per diluted share. This compares to net earnings for the third quarter of 2001 of $6.2 million, or $0.38 per diluted share. Revenue increased 36% to a third quarter record $64.5 million from $47.5 million for the same period last year.
For the nine months, 2002 net earnings increased 84% to $28.9 million, or $1.62 per diluted share, from $15.7 million, or $1.01 per diluted share, for the nine months of 2001. Revenue for the nine month period increased 25% to $186.2 million from $149.4 million for the same period last year.
The increase in revenue for the third quarter of 2002 reflected higher sales of FLIR's imaging products, particularly its airborne and ground-based imaging systems, which increased 48% over the same period last year, and an increase in sales of the Company's thermography products, which increased 19% over the same period last year. Gross margins were 53% compared to 55% for the same period last year. Earnings from operations increased 44% to $12.8 million, or 20% of revenue, for the 2002 third quarter compared to $8.9 million, or 19% of revenue, for the third quarter of 2001.
"In addition to excellent revenue and earnings growth from both our Imaging and Thermography Divisions for the third quarter, we also achieved a 20 percent operating margin and generated a record $23 million in cash from operations, underscoring the strength of our balance sheet. This puts us in an excellent position as we enter the fourth quarter and 2003," said FLIR President and CEO Earl R. Lewis.
Announces Authorization to Repurchase Shares The Company also announced that the Board of Directors has approved the repurchase of up to 1.5 million shares of FLIR common stock from time to time in open market or private transactions at the sole discretion of management. "In the interests of building value for our shareholders, we believe that it makes sense for the Company to have the flexibility to repurchase shares whenever we see an opportunity to do so on favorable terms," Lewis said.
Increases Earnings Guidance for 2002
The following statements are based on current expectations. These
statements are forward-looking, and actual results may differ
Lewis concluded, "Based on FLIR's performance during the first nine months of the year and our strong backlog, we are increasing our earnings guidance for 2002 to approximately $2.30 per diluted share. We expect revenue for the year to be approximately $260 million." In its first quarter earnings press release dated April 24, 2002, the Company provided earnings guidance for 2002 in the range of $2.20 to $2.25 per diluted share and revenue guidance in the range of $250 to $260 million.
The statements in this release by Earl R. Lewis are forward-looking statements that 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 applicable export regulations, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, actual purchases under agreements, the availability and amount of government contracts 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 (8:00 AM PDT) today. A simultaneous Web Cast of the conference call may be accessed online at http://www.companyboardroom.com/company.asp?client=cb&ticker=flir or from the Investor Relations page at http://www.FLIR.com. A replay will be available approximately one hour after the Web Cast at these same Internet addresses. For a telephone replay, dial 800/633-8284, reservation #20679609 beginning after 1:00 PM EDT (10:00 AM PDT).
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 Nine Months Ended September 30, June 30, 2002 2001 2002 2001Revenue $64,455 $47,499 $186,147 $149,366 Cost of goods sold 30,632 21,537 88,208 67,418
Gross profit 33,823 25,962 97,939 81,948
Operating expenses: Research and development 6,211 6,053 19,759 18,793 Selling, general and administrative 14,794 11,005 43,374 37,857 Total operating expenses 21,005 17,058 63,133 56,650 Earnings from operations 12,818 8,904 34,806 25,298
Interest expense 390 2,846 1,533 8,304 Other income, net (101) (180) (697) (418)
Earnings before income taxes 12,529 6,238 33,970 17,412
Income tax provision 1,879 65 5,096 1,741 Net earnings $10,650 $ 6,173 $ 28,874 $ 15,671
Net earnings per share: Basic $ 0.63 $ 0.41 $ 1.72 $ 1.06 Diluted $ 0.60 $ 0.38 $ 1.62 $ 1.01
Weighted Average shares outstanding: Basic 16,875 15,130 16,774 14,802 Diluted 17,757 16,223 17,794 15,587 FLIR SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except par value)September 30, December 31,
Cash and cash equivalents $ 27,720 $ 15,514
Accounts receivable, net 52,613 57,965
Inventories 49,533 46,560
Prepaid expenses and other current assets 15,083 11,548
Deferred income taxes 8,834 8,834
Total current assets 153,783 140,421 Property and equipment, net 12,879 10,806 Deferred income taxes, net 15,087 15,087 Intangible assets, net 16,676 16,811 Other assets 2,962 1,913
$ 201,387 $ 185,038
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable $ -- $ 23,370
Accounts payable 18,929 18,428
Deferred revenue 5,314 5,314
Accrued payroll and other liabilities 27,091 22,538
Accrued income taxes 3,165 747
Current portion of capital lease obligations 3 584
Total current liabilities 54,502 70,981
Pension and other long-term liabilities 6,432 9,209
Commitments and contingencies
Preferred stock, $0.01 par value, 10,000
shares authorized; no shares issued at
September 30, 2002, and December 31, 2001 -- --
Common stock, $0.01 par value, 30,000
shares authorized, 16,887 and 16,555 shares
issued at September 30, 2002, and December
31, 2001, respectively 169 165
Additional paid-in capital 200,709 194,338
Accumulated deficit (55,990) (84,864)
Accumulated other comprehensive loss (4,435) (4,791)
Total shareholders' equity 140,453 104,848
$ 201,387 $ 185,038 *T
FLIR Systems, Inc., Portland
Steve Bailey, 503/684-3731
Neil Berkman Associates (Investor Contact)
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