SOURCE: FLIR Systems, Inc.
FLIR Systems Announces Second Quarter 2008 Financial Results
Operating Income Up 57%; Earnings per Share Up 53%; Backlog Up $101 Million to a Record $572 Million; Company Increases 2008 Revenue and EPS Outlook
PORTLAND, OR--(Marketwire - July 24, 2008) - FLIR Systems, Inc. (
Revenue from the Company's Government Systems division increased 46% over the second quarter of 2007, to a record $131.6 million, driven by strength in airborne and land-based applications. Revenue from the Company's Commercial Vision Systems division increased 32% over the second quarter of last year, to a record $48.8 million, reflecting strong growth in the security and maritime markets. Revenue from the Company's Thermography division increased 40% over the second quarter of last year, to $80.6 million. Excluding the impact of the Extech Instruments Corporation and Cedip Infrared Systems acquisitions, Thermography revenue increased 16% during the second quarter, due to strong demand for the T-Series, i5, and R&D product lines.
The backlog of firm orders for delivery within the next twelve months was approximately $572 million at June 30, 2008, an increase of $101 million compared with backlog at March 31, 2008. Backlog in the Government System's division was $464 million, up $93 million during the quarter due to strong order activity both in the U.S. and internationally. Backlog in the Commercial Vision System's division was $86 million, up $6 million during the quarter. Backlog in the Thermography division was $22 million, up $2 million during the quarter.
Cash provided by operations during the quarter was $8.2 million. In addition, the Company received $30.8 million from cash receipts and tax benefits from the exercise of stock options. Cash used during the quarter included $16.1 million for strategic acquisitions and investments and $6.1 million for property, plant, and equipment. At June 30, 2008, cash and cash equivalents were $177.0 million, compared with $159.1 million at March 31, 2008.
"The second quarter was another outstanding quarter for the Company, as we set quarterly records for orders, backlog, revenue, and operating profit," noted Earl R. Lewis, President and CEO. "Demand was excellent, particularly in our Government Systems division, and backlog at the end of the quarter was again at a record level. Based on the quarter's results, and the expectations for the remainder of the year, we are increasing our outlook for Revenue and Earnings Per Share for the year."
Revenue and Earnings Per Share Outlook for 2008
Based on the financial results for the quarter, and the outlook for the remainder of the year, the Company is increasing its revenue and earnings guidance for 2008. The Company currently expects net revenue in fiscal 2008 to be in the range of $1.05 billion to $1.1 billion, and net earnings to be in the range of $1.18 to $1.25 per diluted share. This guidance utilizes a planned tax rate for the year of approximately 31%, and an average share count of approximately 162 million diluted shares.
Conference Call
FLIR has scheduled a conference call at 8:00 AM EDT today. A simultaneous webcast will be available from the Investor Relations link at www.FLIR.com. A replay will be available after 12:00 PM EDT at this same internet address. For a telephone replay, dial (800) 642-1687, Conference ID #52517616 after 12:00 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.
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in the section captioned "Revenue and Earnings Per Share Outlook for 2008" above 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: the possibility that the Company will experience difficulties in the integration of the operations, employees, strategies, technologies and products of Extech or Cedip, the potential inability to realize expected benefits and synergies from the Extech or Cedip transactions, 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, the timely receipt of export licenses for international shipments, constraints on supplies of critical components, excess or shortage of production capacity, the ability to manufacture and ship the products in the time period required, 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, or for changes made to this document by wire services or Internet service providers.
FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
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2008 2007 2008 2007
--------- --------- --------- ---------
Revenue $ 260,978 $ 184,296 $ 497,884 $ 345,659
Cost of goods sold 114,364 85,150 220,475 156,691
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Gross profit 146,614 99,146 277,409 188,968
Operating expenses:
Research and development 23,547 17,915 46,657 35,931
Selling, general and
administrative 58,394 40,068 110,973 75,892
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Total operating expenses 81,941 57,983 157,630 111,823
Earnings from operations 64,673 41,163 119,779 77,145
Interest expense 2,299 2,564 4,770 5,304
Other income, net (3,637) (1,169) (3,655) (3,578)
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Earnings before income
taxes 66,011 39,768 118,664 75,419
Income tax provision 20,568 10,683 35,887 20,070
--------- --------- --------- ---------
Net earnings $ 45,443 $ 29,085 $ 82,777 $ 55,349
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Net earnings per share:
Basic $ 0.33 $ 0.22 $ 0.60 $ 0.42
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Diluted $ 0.29 $ 0.19 $ 0.52 $ 0.37
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Weighted average shares
outstanding:
Basic 138,054 133,484 137,523 132,787
========= ========= ========= =========
Diluted 162,344 157,825 161,899 156,805
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FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
June 30, December 31,
2008 2007
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ASSETS
Current assets:
Cash and cash equivalents $ 177,002 $ 203,681
Accounts receivable, net 230,359 203,371
Inventories, net 213,792 179,366
Prepaid expenses and other current assets 86,289 58,056
Deferred income taxes, net 10,919 11,033
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Total current assets 718,361 655,507
Property and equipment, net 129,919 120,873
Deferred income taxes, net 2,486 2,237
Goodwill 177,846 176,230
Intangible assets, net 62,916 52,819
Other assets 88,484 16,650
------------ ------------
$ 1,180,012 $ 1,024,316
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 1,396 $ 19,000
Accounts payable 67,333 53,990
Deferred revenue 24,071 19,612
Accrued payroll and related liabilities 36,484 39,431
Accrued product warranties 7,961 6,594
Advance payments from customers 17,909 9,156
Other current liabilities 21,041 14,600
Accrued income taxes -- 3,752
Current portion of long-term debt 22 7
------------ ------------
Total current liabilities 176,217 166,142
Long-term debt 208,361 207,889
Deferred income taxes 2,010 1,902
Accrued income taxes 4,904 4,295
Pension and other long-term liabilities 23,424 20,813
Commitments and contingencies
Shareholders' equity 765,096 623,275
------------ ------------
$ 1,180,012 $ 1,024,316
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