PORTLAND, Ore., Apr 22, 2003 (BUSINESS WIRE) -- FLIR Systems, Inc. (Nasdaq:FLIR) announced today that revenue for the first quarter ended March 31, 2003 increased 19% to $69.2 million from $58.1 million for the first quarter of 2002. Income before taxes increased 34% to $13.7 million from $10.2 million. Net earnings for this year's first quarter increased 6% to $9.2 million, or $0.51 per diluted share, reflecting a 33% tax rate. This compares to net earnings for the first quarter of 2002 of $8.7 million, or $0.49 per diluted share, reflecting a 15% tax rate.
Thermography product revenue increased 21% over the first quarter last year, primarily because of higher sales of the company's new E-Series handheld cameras. Imaging product revenue increased 18%, reflecting sales gains for both the Company's ground-based and airborne Imaging systems.
The backlog of orders grew to approximately $113 million at March 31, 2003, as compared to $92 million at December 31, 2002.
"Our first quarter 2003 financial performance puts FLIR in an excellent position to accomplish our goals for 2003. I am particularly encouraged by our healthy book-to-bill ratio during a normally slower quarter in terms of orders," said President and CEO Earl R. Lewis.
Cash generated from operations totaled $6.7 million for the first quarter of 2003. The Company has no outstanding debt and cash on hand of approximately $48 million.
Reiterates 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.
As previously announced, the Company continues to estimate revenue for 2003 in the range of $290 to $300 million, and net earnings of approximately $2.35 to $2.45 per diluted share, reflecting an estimated tax rate of 32%-34% versus 15% in 2002.
The statements in this release by Earl R. Lewis and the statements in the Reiterates Revenue and Earnings Guidance for 2003 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 am ET today. A simultaneous Web Cast 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 Web Cast at these same Internet addresses. For a telephone replay, dial 800/633-8284, reservation #21140600 beginning at approximately 1:00 PM ET.
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, 2003 2002 Revenue $ 69,171 $ 58,098 Cost of goods sold 33,128 26,799 Gross profit 36,043 31,299 Operating expenses: Research and development 7,598 7,089 Selling, general and administrative 14,718 13,819 Total operating expenses 22,316 20,908 Earnings from operations 13,727 10,391 Interest expense 177 318 Other income, net (107) (124) Earnings before income taxes 13,657 10,197 Income tax provision 4,507 1,529 Net earnings $ 9,150 $ 8,668 Net earnings per share: Basic $ 0.53 $ 0.52 Diluted $ 0.51 $ 0.49 Weighted average shares outstanding: Basic 17,333 16,650 Diluted 18,032 17,797 FLIR SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except par value) March 31, Dec. 31, 2003 2002 (Unaudited) ASSETS Current assets: Cash and cash equivalents $48,087 $46,606 Accounts receivable, net 57,748 55,798 Inventories 52,864 50,141 Prepaid expenses and other current assets 15,522 12,673 Deferred income taxes 8,887 8,887 Total current assets 183,108 174,105 Property and equipment, net 12,261 12,678 Deferred income taxes, net 25,977 25,977 Intangible assets, net 16,602 16,647 Other assets 5,918 4,415 $ 243,866 $ 233,822 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $18,893 $16,465 Deferred revenue 4,481 4,770 Accrued payroll and related liabilities 8,438 11,030 Accrued product warranties 3,449 3,432 Advance payments from customers 10,637 8,030 Other current liabilities 6,516 6,341 Accrued income taxes 3,154 2,558 Total current liabilities 55,568 52,626 Pension and other long-term liabilities 9,386 8,869 Commitments and contingencies Shareholders' equity: Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at March 31, 2003, and December 31, 2002 -- -- Common stock, $0.01 par value, 30,000 shares authorized, 17,306 and 17,300 shares issued at March 31, 2003, and December 31, 2002, respectively 173 173 Additional paid-in capital 214,834 217,879 Accumulated deficit (34,155) (43,305) Accumulated other comprehensive loss (1,940) (2,420) Total shareholders' equity 178,912 172,327 $ 243,866 $ 233,822
FLIR Systems, Inc.
Steve Bailey / Jim Fitzhenry, 503/684-3731
Neil Berkman Associates