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PORTLAND, OR, Oct 26, 2006 (MARKET WIRE via COMTEX News Network) -- FLIR Systems, Inc. (NASDAQ: FLIR) announced today that revenue for
the third quarter ended September 30, 2006 increased 18% to $133.2
million from $113.0 million for the third quarter of 2005. Earnings
from operations increased 29% to $34.0 million, or 25% of revenue,
compared with $26.3 million, or 23% of revenue, for the third quarter
of 2005. Net earnings for this year's third quarter increased 56% to
$27.1 million, or $0.36 per diluted share, compared to net earnings
for the third quarter of 2005 of $17.3 million, or $0.22 per diluted
share. The Company's income tax rate for the third quarter was 18%,
compared with 26% in the third quarter of 2005. During the third
quarter, the Company's tax expense was reduced by $3.1 million
related primarily to the recognition of deferred tax assets not
recognizable in previous periods. Stock based compensation expense
for the third quarter of 2006 was $2.8 million, or approximately
$0.03 per fully diluted share.
For the first nine months of 2006, revenue increased 10% to $389.1
million from $352.3 million for the same period last year. Earnings
from operations for the first nine months of 2006 increased 3% to
$81.9 million, or 21% of revenue, from $79.8 million, or 23% of
revenue, for the first nine months of 2005. Net earnings increased
8% to $61.1 million, or $0.80 per diluted share, compared to net
earnings of $56.6 million, or $0.73 per diluted share, for the first
nine months of 2005. The Company recognized stock based compensation
expense totaling $7.8 million for the first nine months of 2006, or
approximately $0.08 per fully diluted share.
Revenue from the Company's Thermography Division increased 29% over
the third quarter of 2005, as a result of stronger international
markets and the recent introduction of several new products,
including the ThermaCAM ® P640, the recently redesigned
ThermaCAM® E-Series and the InfraCAM®.
Revenue from the Company's Government Systems Division increased by
6% in the third quarter to $56.9 million, due to strength in certain
major government programs and higher international sales.
Revenue from the Company's Commercial Vision Systems Division
increased 29% over the third quarter of last year, to $26.6 million,
reflecting strong component and core sales and rapid growth in
security applications.
The backlog of orders for delivery within the next twelve months was
approximately $244 million at September 30, 2006, an increase of $71
million from the June 30, 2006 backlog of $173 million. The
Company's Government Systems Division experienced record orders during
the third quarter and accounted for the majority of the backlog
increase.
Cash generated from operations totaled $21 million for the third
quarter of 2006, and $75 million for the first nine months of the
year. At September 30, 2006, the Company had cash and cash
equivalents of $112 million. During the quarter, the Company
repurchased approximately 4 million shares of its common stock at an
average price of approximately $25.36 per share.
Earl Lewis, President and CEO, stated, "I am very pleased with our
results for the third quarter. The Government Systems Division had
excellent order activity, and we are seeing renewed growth in this
business. Our new Thermography products have been very well
received, and the Commercial Vision Systems Division is executing
well on its focused strategies of building distribution and expanding
its product offerings. We are confident in our outlook for the
remainder of 2006 and are encouraged by the prospects for 2007." Revenue and Earnings Guidance for 2006
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 nine months of 2006, and
the outlook for the remainder of the year, management currently
expects revenue for 2006 to be in the previously announced range of
$570 million to $580 million, and net earnings to be in the range of
approximately $1.27 to $1.32 per fully diluted share. This compares
with management's previous expectations for 2006 earnings of $1.20 to
$1.30 per fully diluted share.
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in
the Revenue and Earnings Guidance for 2006 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 8:00 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 #21304781 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 Nine Months Ended
September 30, September 30,
-------------------- --------------------
2006 2005 2006 2005
--------- ---------- --------- ---------
Revenue $ 133,212 $ 113,031 $ 389,101 $ 352,314
Cost of goods sold 57,501 52,911 178,631 162,281
--------- ---------- --------- ---------
Gross profit 75,711 60,120 210,470 190,033
Operating expenses:
Research and development 13,928 11,777 44,323 39,002
Selling, general and
administrative 27,816 22,002 84,265 71,229
--------- ---------- --------- ---------
Total operating expenses 41,744 33,779 128,588 110,231
Earnings from operations 33,967 26,341 81,882 79,802
Interest expense 2,266 1,954 6,143 5,921
Other (income) expense, net (1,448) 949 (4,874) (2,637)
--------- ---------- --------- ---------
Earnings before income
taxes 33,149 23,438 80,613 76,518
Income tax provision 6,079 6,094 19,473 19,895
--------- ---------- --------- ---------
Net earnings $ 27,070 $ 17,344 $ 61,140 $ 56,623
========= ========== ========= =========
Net earnings per share:
Basic $ 0.40 $ 0.25 $ 0.89 $ 0.81
--------- ---------- --------- ---------
Diluted $ 0.36 $ 0.22 $ 0.80 $ 0.73
========= ========== ========= =========
Weighted average shares
outstanding:
Basic 67,478 69,777 68,577 69,617
--------- ---------- --------- ---------
Diluted 79,052 82,292 80,256 82,286
========= ========== ========= =========
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
September 30, December 31,
2006 2005
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 112,370 $ 107,057
Accounts receivable, net 133,902 142,782
Inventories, net 129,262 103,837
Prepaid expenses and other current assets 39,141 33,153
Deferred income taxes, net 21,285 18,709
-------------- --------------
Total current assets 435,960 405,538
Property and equipment, net 76,383 59,479
Deferred income taxes, net 9,405 8,415
Goodwill 159,021 158,065
Intangible assets, net 42,495 46,901
Other assets 17,108 15,981
-------------- --------------
$ 740,372 $ 694,379
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 53,000 $ --
Accounts payable 34,692 34,477
Deferred revenue 11,618 10,297
Accrued payroll and related liabilities 22,157 20,374
Accrued product warranties 5,029 5,059
Advance payments from customers 5,294 5,013
Other current liabilities 11,888 11,626
Accrued income taxes 17,920 3,148
Current portion of long-term debt 7 56
-------------- --------------
Total current liabilities 161,605 90,050
Long-term debt 206,807 206,155
Deferred tax liability, net 2,799 10,779
Pension and other long-term liabilities 19,728 18,413
Commitments and contingencies
Shareholders' equity 349,433 368,982
-------------- --------------
$ 740,372 $ 694,379
============== ==============
Tony Trunzo
+1 503.498.3547
www.flir.com
