PORTLAND, Ore.--(BUSINESS WIRE)--July 22, 2004--FLIR Systems, Inc. (Nasdaq:FLIR) announced today that revenue for the second quarter ended June 30, 2004 increased 59% to $119.3 million from $75.2 million for the second quarter of 2003. Excluding the impact of the Indigo Systems Corporation acquisition, which closed on January 6, 2004, revenue for the second quarter increased 37%. Earnings from operations increased 75% to $27.2 million, or 23% of revenue, compared with $15.6 million, or 21% of revenue, for the second quarter of 2003. Net earnings for this year's second quarter increased 85% to $17.9 million, or $0.50 per diluted share compared to net earnings for the second quarter of 2003 of $9.7 million, or $0.27 per diluted share.
For the first six months of 2004, revenue increased 58% to $228.2 million from $144.3 million for the same period last year. Excluding the impact of the Indigo acquisition, revenue for the first six months of 2004 increased 37%. Earnings from operations for the first six months of 2004 increased 67% to $49.1 million, or 22% of revenue, from $29.4 million, or 20% of revenue, for the first six months of 2003. Net earnings increased 62% to $30.6 million, or $0.87 per diluted share, compared to net earnings of $18.9 million, or $0.52 per diluted share, for the first six months of 2003.
Revenue from the sale of the Company's Thermography products increased 37% over the second quarter last year, primarily due to growth in demand from new markets such as building inspection and continued strength in traditional predictive and preventive maintenance markets. Excluding the impact of the Indigo acquisition, Thermography revenue rose 24% for the second quarter.
Revenue from the sale of the Company's Imaging products increased 72% in the second quarter, reflecting strength across virtually all product lines. Excluding the impact of the Indigo acquisition, Imaging revenue rose 45% for the second quarter.
The backlog of orders for delivery within the next twelve months was approximately $183 million at June 30, 2004, compared to $180 million at March 31, 2004.
Cash generated from operations totaled $20 million for the second quarter of 2004, and $39 million for the first six months. At June 30, 2004, the Company had cash and cash equivalents of $67 million.
Earl Lewis, President and CEO, stated, "I am extremely pleased with our financial performance in the second quarter. All of our businesses are performing well, and our manufacturing facilities were able to keep pace with very strong order intake and achieve record revenue and operating profit. Our margins are again trending up, and our cash flow has been very good. I am confident we will see continued strong financial results for the remainder of 2004, so we are increasing both revenue and earning per share guidance for the year."
Revenue and Earnings Guidance for 2003
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
Based on its financial results for the first six months of 2004, and the outlook for the remainder of the year, management currently expects revenue for 2004 to be approximately $470 million to $480 million and net earnings in the range of approximately $1.88 to $1.98 per diluted share, with an estimated effective tax rate of 29%. This compares with management's previous expectations for 2004 of revenue of $425 million to $435 million and earnings per share of $1.55 to $1.60.
The statements in this release by Earl R. Lewis and the statements in the Revenue and Earnings Guidance for 2004 above are forward-looking statements. 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, constraints on supplies of critical components, excess or shortage of production capacity, 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.
FLIR has scheduled a conference call at 11:00 a.m. EDT today. A simultaneous webcast of the conference call may be accessed online from the Calendar of Events link at the investor relations page of 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 #21200423 after approximately 1:00 p.m. 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 Six Months Ended June 30, June 30, 2004 2003 2004 2003 Revenue $119,295 $75,162 $228,156 $144,333 Cost of goods sold 58,271 36,041 113,712 69,169 Gross profit 61,024 39,121 114,444 75,164 Operating expenses: Research and development 10,784 7,785 21,382 15,383 Selling, general and administrative 23,026 15,749 43,986 30,385 Total operating expenses 33,810 23,534 65,368 45,768 Earnings from operations 27,214 15,587 49,076 29,396 Interest expense 2,006 530 4,107 789 Other expenses (income), net (224) 557 608 450 Earnings before income taxes 25,432 14,500 44,361 28,157 Income tax provision 7,506 4,785 13,752 9,292 Net earnings $17,926 $9,715 $30,609 $18,865 Net earnings per share: Basic $0.53 $0.28 $0.92 $0.55 Diluted $ 0.50 $ 0.27 $ 0.87 $ 0.52 Weighted average shares outstanding: Basic 33,602 34,492 33,407 34,579 Diluted 35,619 35,945 35,367 36,020 FLIR SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except par value) June 30, December 31, 2004 2003 ASSETS (Unaudited) Current assets: Cash and cash equivalents $67,003 $197,993 Accounts receivable, net 89,056 79,332 Inventories, net 86,915 75,959 Prepaid expenses and other current assets 19,880 19,997 Deferred income taxes 9,908 8,832 Total current assets 272,762 382,113 Property and equipment, net 31,887 22,758 Deferred income taxes, net 6,500 21,146 Goodwill 149,475 12,500 Intangible assets, net 49,991 4,036 Other assets 8,887 7,870 $519,502 $450,423 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $29,083 $26,427 Deferred revenue 5,075 4,540 Accrued payroll and related liabilities 14,664 12,778 Accrued product warranties 5,031 3,511 Advance payments from customers 8,531 12,112 Other current liabilities 10,456 8,227 Accrued income taxes 194 2,742 Current portion of long-term debt 128 -- Total current liabilities 73,162 70,337 Long-term debt 204,950 204,369 Pension and other long-term liabilities 11,332 10,875 Commitments and contingencies Shareholder's equity 230,058 164,842 $519,502 $450,423
CONTACT: FLIR Systems, Inc.
Anthony Trunzo, 503-684-3731
Neil Berkman Associates (Investor Contact)
SOURCE: FLIR Systems, Inc.