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PORTLAND, OR, Feb 08, 2006 (MARKET WIRE via COMTEX News Network) -- FLIR Systems, Inc. (NASDAQ: FLIR) announced today that net earnings
for the fourth quarter ended December 31, 2005 increased 42% to $34.1
million, or $0.43 per diluted share, compared to net earnings for the
fourth quarter of 2004 of $24.1 million, or $0.31 per diluted share.
Revenue for the 2005 fourth quarter increased 9% to $156.2 million,
up from $143.7 million for the fourth quarter of 2004. The Company's
operating margin in the fourth quarter was 29.5%, compared with 23.9%
in the fourth quarter of 2004. Revenue at the Company's Imaging
division increased 8%, while revenue at the Company's Thermography
division increased 10% as compared to the fourth quarter last year.
For the twelve months ended December 31, 2005, net earnings rose 27%
to a record $90.8 million, or $1.16 per diluted share, compared to
net earnings for the full year 2004 of $71.5 million, or $0.94 per
diluted share. Revenue for 2005 was $508.6 million, an increase of 5%
from the $482.7 million generated in 2004. The Company's operating
margin for the full year was a record 24.8%, as compared with 22.6%
in 2004. Revenue from the Company's Imaging division increased by
2%, while revenue from the Company's Thermography division increased
by 13% compared to the prior year.
Cash generated from operations totaled $15.9 million for the fourth
quarter and $73.1 million for 2005. At December 31, 2005 the Company
had cash on hand of $107 million. During the fourth quarter, the
Company repurchased 1 million shares of its common stock for $23
million.
The backlog of firm orders for delivery within the next twelve months
was approximately $193 million at December 31, 2005 an increase of 21%
as compared to backlog of $159 million at December 31, 2004.
The Company also announced it currently expects net revenue in fiscal
2006 to be in the range of $590 million to $600 million, and net
earnings to be in the range of $1.20 to $1.30 per fully diluted
share, which includes share based compensation expense of
approximately $0.10 per fully diluted share.
FLIR also announced that its Board of Directors has authorized the
repurchase of up to an additional 5 million shares of its common
stock. The timing and the amount of any repurchases will be determined
by the Company's management based on its evaluation of prevailing
market conditions and other factors. The repurchase program may be
suspended or discontinued at any time whether or not the
authorization has been utilized.
"Overall, we are pleased with our fourth quarter and full year 2005
performance. While revenue growth in our Imaging division was lower
than anticipated, we again achieved record revenue and net earnings.
We saw a significant expansion in our operating margins, reflecting
the benefits of the Indigo acquisition and improved manufacturing
efficiency," commented Earl R. Lewis, President and CEO of FLIR. "We
expect better revenue growth in both divisions in 2006, as a result
of recent investment in R & D, which has yielded numerous exciting
new products, and remain optimistic about the future," he concluded. Forward-Looking Statements
The statements in this release by Earl R. Lewis regarding the
Company's expectation of better revenue growth in both divisions and
commentary about the Company's outlook for 2006 as to revenue and net
earnings per share are forward-looking statements within the meaning
of the 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, 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.
Conference Call
FLIR has scheduled a conference call at 11:00 am EST today. A
simultaneous WebCast will be available from the Investor Relations
link at www.FLIR.com. A replay will be available after 1:00 PM EST at
this same internet address. For a telephone replay, dial (800)
633-8284, reservation #21281132 after 1:00 PM EST.
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
Contacts: SOURCE: http://www.FLIR.comFLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2005 2004 2005 2004
-------- -------- -------- --------
Revenue $156,247 $143,726 $508,561 $482,651
Cost of goods sold 69,586 67,991 231,867 233,492
-------- -------- -------- --------
Gross profit 86,661 75,735 276,694 249,159
Operating expenses:
Research and development 12,512 13,090 51,514 45,796
Selling, general and
administrative 27,998 28,254 99,227 94,237
-------- -------- -------- --------
Total operating expenses 40,510 41,344 150,741 140,033
Earnings from operations 46,151 34,391 125,953 109,126
Interest expense 2,001 2,031 7,922 8,092
Other (income) expenses, net (1,556) 88 (4,193) 1,125
-------- -------- -------- --------
Earnings before income taxes 45,706 32,272 122,224 99,909
Income tax provision 11,564 8,210 31,459 28,414
-------- -------- -------- --------
Net earnings $ 34,142 $ 24,062 $ 90,765 $ 71,495
======== ======== ======== ========
Net earnings per share:
Basic $ 0.49 $ 0.35 $ 1.30 $ 1.06
-------- -------- -------- --------
Diluted $ 0.43 $ 0.31 $ 1.16 $ 0.94
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 69,468 68,709 69,723 67,566
-------- -------- -------- --------
Diluted 81,222 81,972 82,173 81,108
======== ======== ======== ========
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
December 31, December 31,
2005 2004
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 107,057 $ 120,692
Accounts receivable, net 142,782 116,928
Inventories, net 103,837 98,258
Prepaid expenses and other
current assets 33,153 21,769
Deferred income taxes, net 11,240 9,771
-------- --------
Total current assets 398,069 367,418
Property and equipment, net 59,479 34,778
Deferred income taxes, net 16,313 20,055
Goodwill 150,669 149,475
Intangible assets, net 43,139 47,180
Other assets 27,139 8,691
--------- ---------
$ 694,808 $ 627,597
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 34,477 $ 32,321
Deferred revenue 10,297 7,601
Accrued payroll and related liabilities 20,374 22,375
Accrued product warranties 5,059 5,465
Advance payments from customers 5,013 5,009
Other current liabilities 11,626 10,585
Accrued income taxes 3,577 5,626
Current portion of long-term debt 56 105
--------- ---------
Total current liabilities 90,479 89,087
Long-term debt 206,155 205,335
Deferred income taxes 10,779 7,482
Pension and other long-term liabilities 18,413 12,520
Commitments and contingencies
Shareholders' equity 368,982 313,173
--------- ---------
$ 694,808 $ 627,597
========= =========
Tony Trunzo
Steve Bailey
FLIR Systems, Inc.
(503) 498-3547
www.FLIR.com
FLIR Systems, Inc.
