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PORTLAND, Ore., Apr 20, 2005 (BUSINESS WIRE) -- FLIR Systems, Inc. (NASDAQ:FLIR) announced today that
net earnings in its first fiscal quarter ended March 31, 2005
increased by 16% to $14.7 million, from $12.7 million in the first
quarter of 2004. Revenue for the quarter was $108.3 million,
approximately unchanged from $108.9 million in the first quarter of
2004. Earnings from operations declined 3% to $21.1 million from $21.9
million for the first quarter of 2004. Net earnings per fully diluted
share were $0.19, compared with $0.17 in the first quarter 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 18%
over the first quarter last year, primarily due to continued strong
international sales, and strong demand for the company's E-Series
camera line.
Revenue from the Company's Imaging Division declined by 9% due to
slower order activity from the US Government and delays in the receipt
of export licenses to certain international customers.
The backlog of orders grew by 4% to approximately $165 million at
March 31, 2005, as compared to $159 million at December 31, 2004.
Cash generated from operations totaled $12 million for the first
quarter of 2005. At March 31, 2005, the Company had cash and cash
equivalents of approximately $126 million.
"Our financial performance in the first quarter was slightly below
our internal expectations, largely as a result of slow order placement
activity by the US Government and delays in receiving certain export
licenses. However we expect improved order activity as the year
progresses, and thus remain comfortable with our outlook for the full
year," said FLIR President and CEO Earl R. Lewis. "Our current
expectation for the full year 2005 is for earnings per share in the
range of $1.12 to $1.18, and revenue in the range of $545 million to
$560 million."
Forward-Looking Statements
The statements in this release by Earl R. Lewis regarding the
expectation of achieving the Company's revenue and earnings per share
objectives for 2005 and improving order activity 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. Further, such statements are subject to the risks
inherent in acquisitions 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 11:00 a.m. EDT today. A
simultaneous Web Cast of the conference call may be accessed online at
www.earnings.com or from the Calendar of Events link at investor
relations page of www.FLIR.com. A replay will be available after 1:00
p.m. EDT at these same Internet addresses. For a telephone replay,
dial (800) 633-8284, reservation #21243541 after 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.
SOURCE: FLIR Systems, Inc.
FLIR Systems, Inc.FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)(Unaudited)
Three Months Ended
March 31,
2005 2004
Revenue $108,317 $108,861
Cost of goods sold 49,731 55,441
Gross profit 58,586 53,420
Operating expenses:
Research and development 13,255 10,598
Selling, general and administrative 24,196 20,960
Total operating expenses 37,451 31,558
Earnings from operations 21,135 21,862
Interest expense 1,995 2,101
Other (income) expenses, net (734) 832
Earnings before income taxes 19,874 18,929
Income tax provision 5,167 6,246
Net earnings $14,707 $12,683
Net earnings per share:
Basic $0.21 $0.19
Diluted $0.19 $0.17
Weighted average shares outstanding:
Basic 69,554 66,425
Diluted 82,556 79,683
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)
Mar. 31, Dec. 31,
2005 2004
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $125,613 $120,692
Accounts receivable, net 106,997 116,928
Inventories, net 108,279 98,258
Prepaid expenses and other current assets 21,310 21,769
Deferred income taxes, net 9,771 9,771
Total current assets 371,970 367,418
Property and equipment, net 45,181 34,778
Deferred income taxes, net 17,565 12,573
Goodwill 149,475 149,475
Intangible assets, net 45,569 47,180
Other assets 14,507 8,691
$644,267 $620,115
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $32,268 $32,321
Deferred revenue 11,760 7,601
Accrued payroll and related liabilities 16,288 22,375
Accrued product warranties 5,345 5,465
Advance payments from customers 5,860 5,009
Other current liabilities 10,728 10,585
Accrued income taxes 2,770 5,626
Current portion of long-term debt 105 105
Total current liabilities 85,124 89,087
Long-term debt 205,528 205,335
Pension and other long-term liabilities 16,503 12,520
Commitments and contingencies
Shareholders' equity 337,112 313,173
$644,267 $620,115
Anthony Trunzo, 503-684-3731
www.flir.com
or
Investor Contact:
Neil Berkman Associates, 310-277-5162
info@BerkmanAssociates.com
