Science & Technology
Science and Technology
Science and Technology
Thu, July 23, 2009 FLIR Systems, Inc.: FLIR Systems Announces Second Quarter 2009 Financial Results
PORTLAND, OR--(Marketwire - July 23, 2009) - FLIR Systems, Inc. (
Revenue from the Company's Government Systems division increased 22% over the second quarter of 2008, to $160.4 million, with strength in stabilized gimbaled systems. Revenue from the Company's Commercial Vision Systems division increased 4% over the second quarter of last year, to $50.8 million, reflecting growth in the cores and components markets. Revenue from the Company's Thermography division decreased 17% from the second quarter of last year, to $66.8 million, primarily due to changes in exchange rates and lower demand for high-value products for the predictive maintenance market. Excluding the effect of exchange rates, Thermography revenue decreased 9% in the quarter.
The Company's backlog of firm orders for delivery within the next twelve months was approximately $598 million at June 30, 2009, a decrease of $19 million during the quarter. Backlog in the Government System's division was $467 million, down $37 million during the quarter. Backlog in the Commercial Vision Systems division was $108 million, up $13 million during the quarter, while backlog in the Thermography division was $23 million, up $5 million during the quarter.
"We are pleased with our performance in the second quarter. Gross and operating margins remained at record levels, operating cash flow remained strong, and backlog in our commercial businesses increased significantly. We achieved this performance through continued solid execution in a difficult economy, as all three divisions once again improved gross and operating margins over the prior year," noted Earl Lewis, President and CEO.
Revenue and Earnings Outlook for 2009
Based on its financial results for the first half of 2009, and the outlook for the remainder of the year, FLIR announced today that it is revising its outlook for revenue and earnings per share for the full year 2009. Management currently expects revenue for 2009 to be in the range of $1.1 billion to $1.15 billion, a reduction of $100 million compared with the previous outlook. In the first half of 2009, the effect of currency rates reduced revenue by approximately $33 million, and such effects are expected to continue in the second half. As a result of lower revenue, management has narrowed its earnings per share outlook to the low end of its previous outlook and currently expects net earnings to be in the range of $1.40 to $1.44 per diluted share, compared with the previous outlook of $1.40 to $1.47 per diluted share.
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 #17141344 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 Outlook for 2009" 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 US 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 Six Months Ended June 30, June 30, ------------------------- ------------------------- 2009 2008 2009 2008 ------------ ----------- ------------ ----------- (As Adjusted) (As Adjusted) (1) (1) Revenue $ 277,978 $ 260,978 $ 549,974 $ 497,884 Cost of goods sold 116,030 114,364 230,311 220,475 ------------ ----------- ------------ ----------- Gross profit 161,948 146,614 319,663 277,409 Operating expenses: Research and development 23,232 23,547 45,641 46,657 Selling, general and administrative 54,055 58,394 105,995 110,973 ------------ ----------- ------------ ----------- Total operating expenses 77,287 81,941 151,636 157,630 Earnings from operations 84,661 64,673 168,027 119,779 Interest expense 1,727 3,634 4,505 7,427 Other expense (income), net 1,092 (3,637) 68 (3,655) ------------ ----------- ------------ ----------- Earnings before income taxes 81,842 64,676 163,454 116,007 Income tax provision 26,189 20,059 53,529 34,870 ------------ ----------- ------------ ----------- Net earnings $ 55,653 $ 44,617 $ 109,925 $ 81,137 ============ =========== ============ =========== Net earnings per share: Basic $ 0.37 $ 0.32 $ 0.75 $ 0.59 ============ =========== ============ =========== Diluted $ 0.35 $ 0.29 $ 0.70 $ 0.52 ============ =========== ============ =========== Weighted average shares outstanding: Basic 149,948 138,054 146,901 137,523 ============ =========== ============ =========== Diluted 161,354 162,344 162,041 161,899 ============ =========== ============ =========== (1) The Company has adjusted its financial statements for the retrospective application of the Financial Accounting Standards Board Staff Position APB 14-1, "Accounting for Convertible Debt Instruments That May be Settled in Cash upon Conversion (Including Partial Cash Settlement)." FLIR SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands)(Unaudited) June 30, December 31, 2009 2008 ---------------- ---------------- ASSETS (As Adjusted)(1) Current assets: Cash and cash equivalents $ 346,402 $ 289,442 Accounts receivable, net 214,594 239,183 Inventories 219,682 207,487 Prepaid expenses and other current assets 66,284 59,824 Deferred income taxes, net 16,652 16,566 ---------------- ---------------- Total current assets 863,614 812,502 Property and equipment, net 137,984 122,304 Deferred income taxes, net 5,277 2,217 Goodwill 226,940 225,685 Intangible assets, net 50,838 56,174 Other assets 36,187 22,195 ---------------- ---------------- $ 1,320,840 $ 1,241,077 ================ ================ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 59,136 $ 47,823 Deferred revenue 23,951 27,554 Accrued payroll and related liabilities 30,852 43,337 Accrued product warranties 8,095 7,826 Advance payments from customers 12,304 19,183 Accrued expenses 20,840 21,978 Other current liabilities 1,607 4,553 Current portion of long-term debt 21 21 ---------------- ---------------- Total current liabilities 156,806 172,275 Long-term debt 88,886 182,825 Deferred income taxes 4,966 5,983 Accrued income taxes 6,183 5,697 Pension and other long-term liabilities 34,879 29,572 Commitments and contingencies Shareholders’ equity 1,029,120 844,725 ---------------- ---------------- $ 1,320,840 $ 1,241,077 ================ ================ (1) The Company has adjusted its financial statements for the retrospective application of the Financial Accounting Standards Board Staff Position APB 14-1, "Accounting for Convertible Debt Instruments That May be Settled in Cash upon Conversion (Including Partial Cash Settlement)."
