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PORTLAND, OR, Jul 21, 2005 (MARKET WIRE via COMTEX) -- FLIR Systems, Inc. (NASDAQ: FLIR) announced today that revenue for
the second quarter ended June 30, 2005 increased 10% to $131.0
million from $119.3 million for the second quarter of 2004. Earnings
from operations increased 19% to $32.3 million, or 25% of revenue,
compared with $27.2 million, or 23% of revenue, for the second
quarter of 2004. Net earnings for this year's second quarter
increased 37% to $24.6 million, or $0.31 per diluted share, compared
to net earnings for the second quarter of 2004 of $17.9 million, or
$0.24 per diluted share. All per share amounts have been adjusted to
reflect the 2-for-1 stock split that was effective on February 2,
2005.
For the first six months of 2005, revenue increased 5% to $239.3
million from $228.2 million for the same period last year. Earnings
from operations for the first six months of 2005 increased 9% to $53.5
million, or 22% of revenue, from $49.1 million, also 22% of revenue,
for the first six months of 2004. Net earnings increased 28% to
$39.3 million, or $0.50 per diluted share, compared to net earnings
of $30.6 million, or $0.41 per diluted share, for the first six
months of 2004.
Revenue from the Company's Thermography division increased 18% over
the second quarter last year, as a result of continued strong demand
for the company's E-Series™ camera line, as well as continued
strength in the OEM segment.
Revenue from the Company's Imaging division increased 6% over the
second quarter of last year, reflecting good demand for the company's
large stabilized camera systems, as well as improved demand in the
company's land systems business.
The backlog of orders for delivery within the next twelve months was
approximately $170 million at June 30, 2005, compared to $165 million
at March 31, 2005.
Cash generated from operations totaled $19 million for the second
quarter of 2005, and $31 million for the first six months of the year.
At June 30, 2005, the Company had cash and cash equivalents of $108
million. During the quarter, the Company repurchased 1 million
shares of its common stock in the open market at an average price of
approximately $25.50.
Earl Lewis, President and CEO, stated, "After a slow start to the
year, we had record orders in our Imaging business and added
significantly to long term backlog in the second quarter. We
launched several new products, and expanded our internal optics
capability with the acquisition of Brysen Optical Corporation, a
small maker of advanced optical coatings. Our Thermography Division
began test marketing its newest camera series, with encouraging
results. Our margins continue to improve, reflecting savings from
the integration of our own detectors into our systems and improved
production efficiency at our Imaging plants. We are confident in our
outlook for the remainder of 2005 and are thus increasing our
earnings per share guidance for the year." Revenue and Earnings Guidance for 2005
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 2005, and
the outlook for the remainder of the year, management currently
expects revenue for 2005 to be approximately $545 million to $555
million and net earnings in the range of approximately $1.17 to $1.22
per diluted share. This compares with management's previous
expectations for 2005 of revenue of $545 million to $560 million and
earnings per share of $1.12 to $1.18.
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in
the Revenue and Earnings Guidance for 2005 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.
Conference Call
FLIR has scheduled a conference call at 11:00 am EDT today. A
simultaneous web cast 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 web cast at these same Internet addresses. For a telephone
replay, dial (800) 633-8284, reservation #21250310 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.
Company Contact: SOURCE: FLIR Systems, Inc.
http://www.flir.com
FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
--------- --------- --------- ---------
Revenue $ 130,966 $ 119,295 $ 239,283 $ 228,156
Cost of goods sold 59,639 58,271 109,370 113,712
--------- --------- --------- ---------
Gross profit 71,327 61,024 129,913 114,444
Operating expenses:
Research and development 13,970 10,784 27,225 21,382
Selling, general
and administrative 25,031 23,026 49,227 43,986
--------- --------- --------- ---------
Total operating expenses 39,001 33,810 76,452 65,368
Earnings from operations 32,326 27,214 53,461 49,076
Interest expense 1,972 2,006 3,967 4,107
Other (income) expenses, net (2,852) (224) (3,586) 608
--------- --------- --------- ---------
Earnings before
income taxes 33,206 25,432 53,080 44,361
Income tax provision 8,634 7,506 13,801 13,752
--------- --------- --------- ---------
Net earnings $ 24,572 $ 17,926 $ 39,279 $ 30,609
========= ========= ========= =========
Net earnings per share:
Basic $ 0.35 $ 0.27 $ 0.56 $ 0.46
--------- --------- --------- ---------
Diluted $ 0.31 $ 0.24 $ 0.50 $ 0.41
========= ========= ========= =========
Weighted average
shares outstanding:
Basic 69,519 67,204 69,536 66,815
--------- --------- --------- ---------
Diluted 81,990 80,700 82,273 80,197
--------- --------- --------- ---------
2004 per share amounts have been adjusted to reflect the two-for-one stock
split and the effect of the restatement for the assumed conversion of the
convertible notes.
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)(Unaudited)
June 30, December 31,
2005 2004
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 107,982 $ 120,692
Accounts receivable, net 109,092 116,928
Inventories, net 100,067 98,258
Prepaid expenses and other current assets 21,454 21,769
Deferred income taxes, net 9,771 9,771
--------- ---------
Total current assets 348,366 367,418
Property and equipment, net 47,930 34,778
Deferred income taxes, net 18,709 12,573
Goodwill 149,475 149,475
Intangible assets, net 43,926 47,180
Other assets 17,791 8,691
--------- ---------
$ 626,197 $ 620,115
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 32,249 $ 32,321
Deferred revenue 8,250 7,601
Accrued payroll and related liabilities 16,197 22,375
Accrued product warranties 5,581 5,465
Advance payments from customers 3,267 5,009
Other current liabilities 7,335 10,585
Accrued income taxes 2,979 5,626
Current portion of long-term debt 106 105
--------- ---------
Total current liabilities 75,964 89,087
Long-term debt 205,720 205,335
Pension and other long-term liabilities 16,668 12,520
Commitments and contingencies
Shareholder's equity 327,845 313,173
--------- ---------
$ 626,197 $ 620,115
========= =========
Tony Trunzo
503.498.3547
www.flir.com
