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PORTLAND, OR, Oct 19, 2005 (MARKET WIRE via COMTEX News Network) -- FLIR Systems, Inc. (NASDAQ: FLIR) announced today that revenue for
the third quarter ended September 30, 2005 increased 2% to $113.0
million from $110.8 million in the third quarter of 2004. Earnings
from operations increased 3% to $26.3 million, or 23% of revenue,
from $25.7 million, also 23% of revenue, for the third quarter of
2004. Net earnings for this year's third quarter increased 3% to $17.3
million, or $0.22 per diluted share, compared to net earnings for the
third quarter of 2004 of $16.8 million, also $0.22 per diluted share.
For the first nine months of 2005, revenue increased 4% to $352.3
million from $338.9 million for the same period last year. Earnings
from operations for the first nine months of 2005 increased 7% to
$79.8 million, or 23% of revenue, from $74.7 million, or 22% of
revenue, for the first nine months of 2004. Net earnings increased
19% to $56.6 million, or $0.73 per diluted share, compared to net
earnings of $47.4 million, or $0.63 per diluted share, for the first
nine months of 2004. All per share amounts have been adjusted to
reflect the 2-for-1 stock split that was effective on February 2,
2005.
Revenue from the Company's Thermography Division increased 5% over
the third quarter last year, as weakness in certain European countries
offset strong growth in the Americas and Asia. Revenue from the
Company's Imaging Division was virtually unchanged from the third
quarter of 2004. Imaging revenue was negatively impacted by lower
than expected book and ship revenue at the end of the quarter and the
delay of certain orders under existing delivery contracts.
The backlog of orders for delivery within the next twelve months
increased by 22% in the third quarter, from $170 million at June 30,
2005 to $207 million at September 30, 2005.
Cash generated from operations totaled $26 million for the third
quarter of 2005, and $57 million for the first nine months of 2005.
At September 30, 2005, the Company had cash and cash equivalents of
$134 million.
"Our revenue and earnings in the third quarter were disappointing, as
neither of our businesses achieved their expected results," said FLIR
President and CEO Earl R. Lewis. "Thermography experienced slow
orders in several European countries, while Imaging experienced an
imbalance of orders and production caused by lower than expected book
and ship activity and a delay in certain program deliveries.
Nevertheless, we are pleased with the good order intake, solid cash
flow and strong margins achieved in the quarter. While we do not
expect to recoup the third quarter revenue and earnings shortfall in
the fourth quarter, and are thus lowering our revenue and EPS outlook
for the year, we remain optimistic about the future."
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 nine months of 2005, and
the outlook for the remainder of the year, management currently
expects revenue for 2005 to be approximately $510 million to $520
million and net earnings in the range of approximately $1.12 to $1.17
per diluted share. This compares with management's previous
expectations for 2005 of revenue of $545 million to $555 million and
earnings per share of $1.17 to $1.22.
Forward-Looking Statements
The statements in this release regarding the Company's expectations
as to revenue and earnings per share for the year ending December 31,
2005 and the statements by Earl R. Lewis regarding the Company's
inability to recoup the third quarter revenue and earnings shortfall
in the fourth quarter of 2005 are forward-looking statements within
the meaning of the Private 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 ability of the
Company to manufacture and deliver its products within the time
period specified in the contracts it receives, 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. Further, such statements are subject
to the risks inherent inacquisitions of technologies and businesses,
including the timing and successful completion of technology and
product development through volume production, integration issues,
unanticipated costs and expenditures, changing relationships with
customers, suppliers and strategic partners, potential contractual,
intellectual property or employment issues, accounting treatment and
charges, and the risks that the acquisition cannot be completed
successfully or that anticipated benefits are not realized. 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 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
#21264277 beginning at approximately 11:00 PM 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.
SOURCE: FLIR Systems, Inc.
http://www.flir.comFLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
--------- --------- --------- ---------
Revenue $ 113,031 $ 110,769 $ 352,314 $ 338,925
Cost of goods sold 52,911 51,789 162,281 165,501
--------- --------- --------- ---------
Gross profit 60,120 58,980 190,033 173,424
Operating expenses:
Research and development 11,777 11,324 39,002 32,706
Selling, general
and administrative 22,002 21,997 71,229 65,983
--------- --------- --------- ---------
Total operating expenses 33,779 33,321 110,231 98,689
Earnings from operations 26,341 25,659 79,802 74,735
Interest expense 1,954 1,954 5,921 6,061
Other expenses (income), net 949 429 (2,637) 1,037
--------- --------- --------- ---------
Earnings before
income taxes 23,438 23,276 76,518 67,637
Income tax provision 6,094 6,452 19,895 20,204
--------- --------- --------- ---------
Net earnings $ 17,344 $ 16,824 $ 56,623 $ 47,433
========= ========= ========= =========
Net earnings per share:
Basic $ 0.25 $ 0.25 $ 0.81 $ 0.71
========= ========= ========= =========
Diluted $ 0.22 $ 0.22 $ 0.73 $ 0.63
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 69,777 67,910 69,617 67,182
========= ========= ========= =========
Diluted 82,292 81,709 82,286 80,793
========= ========= ========= =========
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)(Unaudited)
September 30, December 31,
2005 2004
--------- ---------
ASSETS
------
Current assets:
Cash and cash equivalents $ 133,884 $ 120,692
Accounts receivable, net 111,470 116,928
Inventories, net 103,817 98,258
Prepaid expenses and
other current assets 22,902 21,769
Deferred income taxes, net 9,771 9,771
--------- ---------
Total current assets 381,844 367,418
Property and equipment, net 51,111 34,778
Deferred income taxes, net 24,008 12,573
Goodwill 149,475 149,475
Intangible assets, net 45,900 47,180
Other assets 15,813 8,691
--------- ---------
$ 668,151 $ 620,115
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 33,569 $ 32,321
Deferred revenue 9,561 7,601
Accrued payroll and related liabilities 16,861 22,375
Accrued product warranties 5,843 5,465
Advance payments from customers 4,159 5,009
Other current liabilities 9,898 10,585
Accrued income taxes 5,863 5,626
Current portion of long-term debt 81 105
--------- ---------
Total current liabilities 85,835 89,087
Long-term debt 205,937 205,335
Pension and other long-term liabilities 16,869 12,520
Commitments and contingencies
Shareholder's equity 359,510 313,173
--------- ---------
$ 668,151 $ 620,115
========= =========
Company contact:
Anthony Trunzo
FLIR Systems, Inc.
(503) 498-3547
www.flir.com
