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PORTLAND, OR, Feb 08, 2007 (MARKET WIRE via COMTEX News Network) -- FLIR Systems, Inc. (NASDAQ: FLIR) announced today that net earnings
for the fourth quarter ended December 31, 2006 increased 16% to a
record $39.8 million, or $0.53 per diluted share, compared to net
earnings for the fourth quarter of 2005 of $34.1 million, or $0.43
per diluted share. Revenue for the 2006 fourth quarter increased 19%
to $185.9 million, up from $156.2 million for the fourth quarter of
2005. The Company's operating margin in the fourth quarter was 29.6%,
compared with 29.5% in the fourth quarter of 2005. Stock-based
compensation expense for the fourth quarter of 2006 was $3.1 million,
or approximately $0.03 per fully diluted share.
Revenue from the Company's Thermography division increased 23% over
the fourth quarter of 2005, to $72.2 million, due to strong demand
across all major product lines. Revenue from the Company's
Government Systems division increased by 19% in the fourth quarter to
$86.2 million, driven by continued strength in the STAR-class
products in Portland, and improved performance in the land and
maritime markets. Revenue from the Company's Commercial Vision
Systems division increased 10% over the fourth quarter of last year,
to $27.5 million, reflecting good growth across numerous product
lines.
For the twelve months ended December 31, 2006, net earnings rose 11%
to a record $100.9 million, or $1.32 per diluted share, compared to
net earnings for the full year 2005 of $90.8 million, or $1.16 per
diluted share. Revenue for 2006 was $575.0 million, an increase of
13% from the $508.6 million generated in 2005. The Company's
operating margin for the full year was 23.8%, as compared with 24.8%
in 2005. For all of 2006, stock-based compensation expense totaled
$10.9 million or $0.11 per diluted share.
Revenue from the Company's Thermography division increased 19% in
2006, while revenue from the Company's Government Systems Division
grew by 7%, and Commercial Vision Systems revenue increased 16% for
the full year.
Cash generated from operations totaled a record $38.8 million for the
fourth quarter and $113.5 million for the full year. At December 31,
2006 the Company had cash on hand of $138.6 million. The backlog of
firm orders for delivery within the next twelve months was
approximately $274 million at December 31, 2006, an increase of 42%
compared to backlog of $193 million at December 31, 2005.
Revenue and Earnings Guidance for 2007
FLIR also announced today that it expects net revenue in fiscal 2007
to be in the range of $670 million to $680 million, and net earnings
to be in the range of $1.48 to $1.53 per diluted share, which
includes stock-based compensation expense of approximately $0.16 per
diluted share. This guidance assumes a tax rate for the year of
approximately 27% to 29%, and an average share count of approximately
80 million diluted shares.
"We are very pleased with our fourth quarter and full year 2006
performance. Thermography had another outstanding year, and continues
to execute well on its strategy. Government Systems saw significantly
better order activity and revenue growth in the second half of the
year, and our newest division, Commercial Vision Systems, got off to
a very good start, and is positioned for significant future growth,"
commented Earl R. Lewis, President and CEO of FLIR. "Our strategy of
stimulating demand with lower cost infrared technology is clearly
working, and our expanding distribution channels are driving
increasing sales. Government Systems is again growing revenue,
driven by expanded product lines and the success of our commercially
developed military qualified model in winning new program business.
As a result, we are introducing guidance for 2007 reflecting
continued growth," he concluded.
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 #21320581 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.
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in
the section captioned "Revenue and Earnings Guidance for 2007" 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.
Company Contact: SOURCE: FLIR Systems, Inc.
http://www.flir.com FLIRSYSTEMS,INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- --------------------
2006 2005 2006 2005
---------- --------- --------- ---------
Revenue $ 185,899 $ 156,247 $ 575,000 $ 508,561
Cost of goods sold 81,456 69,586 260,087 231,867
---------- --------- --------- ---------
Gross profit 104,443 86,661 314,913 276,694
Operating expenses:
Research and development 16,261 12,512 60,584 51,514
Selling, general and
administrative 33,109 27,998 117,374 99,227
---------- --------- --------- ---------
Total operating expenses 49,370 40,510 177,958 150,741
Earnings from operations 55,073 46,151 136,955 125,953
Interest expense 2,813 2,001 8,956 7,922
Other expense (income), net 262 (1,556) (4,612) (4,193)
---------- --------- --------- ---------
Earnings before income
taxes 51,998 45,706 132,611 122,224
Income tax provision 12,242 11,564 31,715 31,459
---------- --------- --------- ---------
Net earnings $ 39,756 $ 34,142 $ 100,896 $ 90,765
========== ========= ========= =========
Net earnings per share:
Basic $ 0.61 $ 0.49 $ 1.49 $ 1.30
---------- --------- --------- ---------
Diluted $ 0.53 $ 0.43 $ 1.32 $ 1.16
========== ========= ========= =========
Weighted average shares outstanding:
Basic 65,673 69,468 67,845 69,580
---------- --------- --------- ---------
Diluted 77,620 81,222 79,778 82,029
---------- --------- --------- ---------
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
December 31, December 31,
2006 2005
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 138,623 $ 107,057
Accounts receivable, net 167,502 142,782
Inventories, net 135,928 103,837
Prepaid expenses and other current assets 29,155 33,153
Deferred income taxes, net 19,460 18,709
------------ ------------
Total current assets 490,668 405,538
Property and equipment, net 92,156 59,479
Deferred income taxes, net 3,369 8,415
Goodwill 159,802 158,065
Intangible assets, net 40,917 46,901
Other assets 15,116 15,981
------------ ------------
$ 802,028 $ 694,379
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 45,500 $ --
Accounts payable 40,608 34,477
Deferred revenue 13,709 10,297
Accrued payroll and related liabilities 24,030 20,374
Accrued product warranties 5,174 5,059
Advance payments from customers 10,064 5,013
Other current liabilities 12,149 11,626
Accrued income taxes 10,749 3,148
Current portion of long-term debt 7 56
------------ ------------
Total current liabilities 161,990 90,050
Long-term debt 207,024 206,155
Deferred tax liability, net 2,392 10,779
Pension and other long-term liabilities 19,607 18,413
Commitments and contingencies
Shareholders' equity 411,015 368,982
------------ ------------
$ 802,028 $ 694,379
============ ============
Tony Trunzo
+1 503.498.3547
www.flir.com
