PORTLAND, OR--(Marketwire - Feb 10, 2012) - FLIR Systems, Inc. (
Revenue from the Company's Commercial Systems division increased 3% from the fourth quarter of 2010, to $224.8 million. Within the Commercial Systems division, revenue from the Thermal Vision and Measurement segment was $189.5 million, an increase of 7% over the fourth quarter combined results of Thermography and Commercial Vision Systems last year. Commercial Systems' Raymarine segment contributed $35.3 million of revenue during the quarter, a decrease of 12% compared to the fourth quarter of 2010.
Revenue from the Company's Government Systems division decreased 18% from the fourth quarter of 2010, to $180.4 million. Within the Government Systems division, revenue from the Surveillance segment was $146.4 million, a decrease of 19% from the fourth quarter of 2010 results of the Company's legacy Government Systems business. Revenues from Government Systems' other two segments, Detection and Integrated Systems were $23.6 and $10.4 million, respectively.
For the full year, revenue was $1,544.1 million, up 11% compared to $1,388.4 million for the year ended December 31, 2010. Operating income for 2011 was $313.2 million, down 13% from $360.3 million in 2010. Net income from continuing operations for 2011 was $222.7 million, or $1.38 per diluted share, compared with 2010 net income from continuing operations of $248.4 million, or $1.54 per diluted share. Excluding the net after tax impact of litigation and severance costs, 2011 net income from continuing operations was $254.4 million, or $1.58 per diluted share. Cash provided by operations during the year was $243.9 million.
The Company's backlog of firm orders for delivery within the next twelve months was approximately $456 million at December 31, 2011, a decrease of $90 million during the quarter. Backlog in the Government Systems division was $314 million, decreasing $60 million during the quarter. Backlog in the Commercial Systems division was $142 million, down $30 million during the quarter.
"The fourth quarter showcased our ability to adapt and persevere through a challenging macro environment. During the quarter, we expanded margins -- gross, operating, and net income -- to their highest levels in over a year and cash flow from operations reached its highest quarterly total ever," said Earl Lewis, President and CEO of FLIR. "Our focus on operational efficiency and innovation throughout 2011 enabled us to drive profitability and has positioned the company for success in the future."
Revenue and Earnings Outlook for 2012
FLIR also announced today that it expects revenue in 2012 to be in the range of $1.55 billion to $1.65 billion, an increase of approximately 0% to 7% compared to 2011, and net income to be in the range of $1.60 to $1.70 per diluted share, an increase of approximately 16% to 23% compared to 2011.
Dividend Increase and Declaration
FLIR's Board of Directors has approved a quarterly cash dividend of $0.07 per share on FLIR common stock, an increase of 17% over the previous paid quarterly dividend of $0.06 per share. The Board of Directors has declared the dividend payable March 9, 2012, to shareholders of record as of close of business on February 21, 2012.
Conference Call
FLIR has scheduled a conference call at 11:00 a.m. ET (8:00 a.m. PT) today to discuss its results for the quarter and year. A simultaneous webcast of the conference call may be accessed online from a link in the Upcoming Events section of www.FLIR.com/investor. A replay will be available after 2:00 p.m. ET (5:00 p.m. PT) at this same internet address. For a telephone replay, dial (855) 859-2056, Conference ID #45459716 after 2:00 p.m. ET. Summary fourth quarter and historical financial data, including segment details, may be accessed online from the Summary Financial Data section at www.FLIR.com/investor.
About FLIR Systems
FLIR Systems, Inc. is a world leader in the design, manufacture, and marketing of sensor systems that enhance perception and awareness. The Company's advanced thermal imaging and threat detection systems are used for a wide variety of imaging, thermography, and security applications, including airborne and ground-based surveillance, condition monitoring, research and development, manufacturing process control, search and rescue, drug interdiction, navigation, transportation safety, border and maritime patrol, environmental monitoring, and chemical, biological, radiological, nuclear, and explosives (CBRNE) detection. Visit the Company's web site at www.FLIR.com.
Forward-Looking Statements
The statements in this release by Earl Lewis and the statements in the section captioned "Revenue and Earnings Outlook for 2012" 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: 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 U.S. export control laws and regulations, the timely receipt of any required export licenses, 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 | Twelve Months Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2011 | 2010(1) | 2011 | 2010(1) | |||||||||||||||
| Revenue | $ | 405,212 | $ | 437,509 | $ | 1,544,062 | $ | 1,388,437 | ||||||||||
| Cost of goods sold | 180,427 | 204,653 | 715,458 | 624,796 | ||||||||||||||
| Gross profit | 224,785 | 232,856 | 828,604 | 763,641 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 34,920 | 35,003 | 147,177 | 116,635 | ||||||||||||||
| Selling, general and administrative | 80,197 | 97,486 | 368,232 | 286,695 | ||||||||||||||
| Total operating expenses | 115,117 | 132,489 | 515,409 | 403,330 | ||||||||||||||
| Earnings from operations | 109,668 | 100,367 | 313,195 | 360,311 | ||||||||||||||
| Interest expense | 3,175 | 412 | 5,487 | 2,884 | ||||||||||||||
| Interest income | (768 | ) | (359 | ) | (1,273 | ) | (1,258 | ) | ||||||||||
| Other income, net | (892 | ) | (1,596 | ) | (2,098 | ) | (4,015 | ) | ||||||||||
| Earnings from continuing operations before income taxes | 108,153 | 101,910 | 311,079 | 362,700 | ||||||||||||||
| Income tax provision | 31,318 | 31,840 | 88,427 | 114,326 | ||||||||||||||
| Earnings from continuing operations | 76,835 | 70,070 | 222,652 | 248,374 | ||||||||||||||
| Loss from discontinued operations, net of tax | (705 | ) | (248 | ) | (1,178 | ) | (248 | ) | ||||||||||
| Net earnings | $ | 76,130 | $ | 69,822 | $ | 221,474 | $ | 248,126 | ||||||||||
| Basic earnings per share: | ||||||||||||||||||
| Earnings from continuing operations | $ | 0.49 | $ | 0.44 | $ | 1.41 | $ | 1.59 | ||||||||||
| Discontinued operations | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.00 | ) | ||||||||||
| Basic earnings per share | $ | 0.49 | $ | 0.44 | $ | 1.40 | $ | 1.59 | ||||||||||
| Diluted earnings per share: | ||||||||||||||||||
| Earnings from continuing operations | $ | 0.49 | $ | 0.43 | $ | 1.38 | $ | 1.54 | ||||||||||
| Discontinued operations | (0.00 | ) | (0.00 | ) | $ | (0.01 | ) | (0.00 | ) | |||||||||
| Diluted earnings per share | $ | 0.48 | $ | 0.43 | $ | 1.38 | $ | 1.54 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 155,647 | 158,867 | 158,323 | 156,141 | ||||||||||||||
| Diluted | 157,611 | 161,510 | 160,851 | 161,630 | ||||||||||||||
| (1) | Amounts have been adjusted for the reclassification of certain discontinued operations to continued operations. | |
| FLIR SYSTEMS, INC. | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (In thousands)(Unaudited) | |||||||||
| December 31, | December 31, | ||||||||
| 2011 | 2010 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 440,846 | $ | 193,137 | |||||
| Accounts receivable, net | 325,370 | 339,723 | |||||||
| Inventories | 336,051 | 303,156 | |||||||
| Prepaid expenses and other current assets | 104,285 | 95,663 | |||||||
| Deferred income taxes, net | 27,304 | 23,128 | |||||||
| Total current assets | 1,233,856 | 954,807 | |||||||
| Property and equipment, net | 186,269 | 189,119 | |||||||
| Deferred income taxes, net | 31,078 | 22,742 | |||||||
| Goodwill | 498,343 | 482,019 | |||||||
| Intangible assets, net | 164,440 | 177,385 | |||||||
| Other assets | 32,338 | 31,280 | |||||||
| $ | 2,146,324 | $ | 1,857,352 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 84,190 | $ | 85,881 | |||||
| Deferred revenue | 24,046 | 17,867 | |||||||
| Accrued payroll and related liabilities | 49,475 | 54,894 | |||||||
| Accrued product warranties | 13,370 | 15,711 | |||||||
| Advance payments from customers | 13,219 | 22,616 | |||||||
| Accrued expenses | 41,183 | 36,578 | |||||||
| Other current liabilities | 3,886 | 8,186 | |||||||
| Accrued income taxes | 2,161 | 8,218 | |||||||
| Total current liabilities | 231,530 | 249,951 | |||||||
| Long-term debt | 247,861 | - | |||||||
| Deferred income taxes | 16,532 | 13,163 | |||||||
| Accrued income taxes | 17,537 | 19,793 | |||||||
| Pension and other long-term liabilities | 53,835 | 51,897 | |||||||
| Commitments and contingencies | |||||||||
| Shareholders' equity | 1,579,029 | 1,522,548 | |||||||
| $ | 2,146,324 | $ | 1,857,352 | ||||||
| FLIR SYSTEMS, INC. | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
| (In thousands)(Unaudited) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| Cash Provided By Operating Activities: | |||||||||||||||||
| Net earnings | $ | 76,130 | $ | 69,822 | $ | 221,474 | $ | 248,126 | |||||||||
| Income items not affecting cash: | |||||||||||||||||
| Depreciation and amortization | 16,290 | 21,831 | 77,498 | 61,297 | |||||||||||||
| Deferred income taxes | (10,291 | ) | (5,702 | ) | (12,195 | ) | (14,099 | ) | |||||||||
| Stock-based compensation arrangements | 5,604 | 6,565 | 24,917 | 25,575 | |||||||||||||
| Other non-cash items | 9,647 | 9,518 | 12,654 | 10,320 | |||||||||||||
| Changes in operating assets and liabilities, net of acquisitions | 18,816 | (56,728 | ) | (80,457 | ) | (75,968 | ) | ||||||||||
| Cash provided by operating activities | 116,196 | 45,306 | 243,891 | 255,251 | |||||||||||||
| Cash Used By Investing Activites: | |||||||||||||||||
| Additions to property and equipment, net | (10,850 | ) | (14,748 | ) | (41,946 | ) | (65,748 | ) | |||||||||
| Business acquisitions, net of cash acquired | - | (228,026 | ) | (27,182 | ) | (402,721 | ) | ||||||||||
| Other investments | 1,991 | - | 1,991 | 3,080 | |||||||||||||
| Cash used by investing activities | (8,859 | ) | (242,774 | ) | (67,137 | ) | (465,389 | ) | |||||||||
| Cash (Used) Provided by Financing Activities: | |||||||||||||||||
| Proceeds from long term debt, net | - | - | 247,708 | - | |||||||||||||
| Repurchase of common stock | (36,286 | ) | - | (160,669 | ) | (35,725 | ) | ||||||||||
| Dividends paid | (9,350 | ) | - | (38,037 | ) | - | |||||||||||
| Proceeds from shares issued pursuant to stock-based compensation plans | 6,620 | 9,485 | 21,706 | 21,469 | |||||||||||||
| Excess tax benefit of stock options exercised | 727 | 2,057 | 5,195 | 7,649 | |||||||||||||
| Other financing activities | (140 | ) | 103 | (458 | ) | 120 | |||||||||||
| Cash (used) provided by financing activities | (38,429 | ) | 11,645 | 75,445 | (6,487 | ) | |||||||||||
| Effect of exchange rate changes on cash | (2,561 | ) | (943 | ) | (4,490 | ) | (12,285 | ) | |||||||||
| Net increase (decrease) in cash and cash equivalents | 66,347 | (186,766 | ) | 247,709 | (228,910 | ) | |||||||||||
| Cash and cash equivalents, beginning of year | 374,499 | 379,903 | 193,137 | 422,047 | |||||||||||||
| Cash and cash equivalents, end of year | $ | 440,846 | $ | 193,137 | $ | 440,846 | $ | 193,137 | |||||||||
Contact Information:
Company Contact:
Shane Harrison
+1 503.498.3547
www.flir.com