PORTLAND, OR--(Marketwired - Jul 25, 2013) - FLIR Systems, Inc. (
Revenue from the Company's Commercial Systems division increased 17% from the second quarter of 2012, to $221.8 million. Within the Commercial Systems division, revenue from the Thermal Vision and Measurement segment was $175 million, an increase of 23% from the second quarter results last year. The Raymarine segment contributed $46.9 million of revenue during the second quarter, down 1% from the prior year.
Revenue from the Company's Government Systems division increased 13% from the second quarter of 2012, to $167.5 million. Within the Government Systems division, revenue from the Surveillance segment was $118.6 million, a decrease of 1% from the second quarter of 2012. Revenue from the Detection segment was $14.4 million, a decrease of 9% compared to the second quarter of 2012. The Integrated Systems segment contributed $34.5 million of revenue during the second quarter, an increase of 160% from the prior year as a result of deliveries under the MSC program to U.S. Customs and Border Protection.
The Company's backlog of firm orders for delivery within the next twelve months was approximately $528 million as of June 30, 2013, an increase of $23 million during the quarter and $30 million from a year ago. Backlog in the Government Systems division was $339 million, increasing $5 million during the quarter and over the prior year. Backlog in the Commercial Systems division was $190 million, an increase of $18 million during the quarter and $25 million over the prior year.
"We saw solid growth in revenue, operating income, cash flow, and earnings per share in the second quarter, and increased backlog in both divisions," noted Andy Teich, President and CEO of FLIR. "We introduced several new products during the quarter, with more on the horizon. I am very excited about our future given our market presence, product suite, and ability to execute for our customers and our shareholders."
Revenue and Earnings Outlook for 2013 Based on financial results for the first six months of 2013 and the outlook for the remainder of the year, FLIR is reaffirming its outlook for revenue and earnings per share for the full year 2013. Management expects revenue for 2013 to be in the range of $1.5 billion to $1.6 billion and net earnings to be in the range of $1.56 to $1.66 per diluted share.
Dividend Declaration FLIR's Board of Directors has declared a quarterly cash dividend of $0.09 per share on FLIR common stock, payable September 6, 2013, to shareholders of record as of close of business on August 19, 2013.
Conference Call FLIR has scheduled a conference call at 8:00 a.m. ET (5:00 a.m. PT) today to discuss its results for the quarter. A simultaneous webcast of the conference call may be accessed online from the Upcoming Events link at the Investor Relations page of www.FLIR.com . A replay will be available after 11:00 a.m. ET (8:00 a.m. PT) at this same Internet address. Summary second quarter and historical financial data, including segment details, may be accessed online from the Summary Financial Data section of 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 Andy Teich and the statements in the section captioned "Revenue and Earnings Outlook for 2013" 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 FLIR'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 FLIR's products, product mix, the timing of customer orders and deliveries, the ability to develop new products in an efficient and timely manner, the impact of competitive products and pricing, FLIR'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 FLIR to act as a federal contractor, the amount and availability of appropriated government procurement funds and other risks discussed from time to time in FLIR'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 FLIR 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, | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Revenue | $ | 389,329 | $ | 338,291 | $ | 737,912 | $ | 686,743 | ||||||||||
| Cost of goods sold | 199,288 | 168,262 | 363,884 | 333,988 | ||||||||||||||
| Gross profit | 190,041 | 170,029 | 374,028 | 352,755 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 39,601 | 37,510 | 76,285 | 74,080 | ||||||||||||||
| Selling, general and administrative | 80,168 | 71,798 | 158,341 | 149,658 | ||||||||||||||
| Total operating expenses | 119,769 | 109,308 | 234,626 | 223,738 | ||||||||||||||
| Earnings from operations | 70,272 | 60,721 | 139,402 | 129,017 | ||||||||||||||
| Interest expense | 3,767 | 2,768 | 6,664 | 5,834 | ||||||||||||||
| Interest income | (274 | ) | (377 | ) | (465 | ) | (805 | ) | ||||||||||
| Other expense (income), net | 175 | 240 | (589 | ) | (984 | ) | ||||||||||||
| Earnings from continuing operations before income taxes | 66,604 | 58,090 | 133,792 | 124,972 | ||||||||||||||
| Income tax provision | 16,446 | 15,685 | 31,998 | 33,742 | ||||||||||||||
| Earnings from continuing operations | 50,158 | 42,405 | 101,794 | 91,230 | ||||||||||||||
| Loss from discontinued operations, net of tax | - | (1,312 | ) | - | (1,998 | ) | ||||||||||||
| Net earnings | $ | 50,158 | $ | 41,093 | $ | 101,794 | $ | 89,232 | ||||||||||
| Basic earnings per share: | ||||||||||||||||||
| Earnings from continuing operations | $ | 0.35 | $ | 0.28 | $ | 0.71 | $ | 0.59 | ||||||||||
| Discontinued operations | - | (0.01 | ) | - | (0.01 | ) | ||||||||||||
| Basic earnings per share | $ | 0.35 | $ | 0.27 | $ | 0.71 | $ | 0.58 | ||||||||||
| Diluted earnings per share: | ||||||||||||||||||
| Earnings from continuing operations | $ | 0.35 | $ | 0.27 | $ | 0.70 | $ | 0.58 | ||||||||||
| Discontinued operations | - | (0.01 | ) | - | (0.01 | ) | ||||||||||||
| Diluted earnings per share | $ | 0.35 | $ | 0.27 | $ | 0.70 | $ | 0.57 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 142,085 | 153,172 | 143,350 | 153,829 | ||||||||||||||
| Diluted | 143,774 | 155,033 | 144,981 | 155,983 | ||||||||||||||
| FLIR SYSTEMS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands)(Unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2013 | 2012 | |||||||
| ASSETS | As adjusted (1) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 492,433 | $ | 321,739 | ||||
| Accounts receivable, net | 278,265 | 335,163 | ||||||
| Inventories | 364,671 | 381,378 | ||||||
| Prepaid expenses and other current assets | 102,530 | 96,006 | ||||||
| Deferred income taxes, net | 30,953 | 30,960 | ||||||
| Total current assets | 1,268,852 | 1,165,246 | ||||||
| Property and equipment, net | 216,855 | 211,615 | ||||||
| Deferred income taxes, net | 31,826 | 32,223 | ||||||
| Goodwill | 558,281 | 560,784 | ||||||
| Intangible assets, net | 162,806 | 175,888 | ||||||
| Other assets | 47,896 | 41,377 | ||||||
| $ | 2,286,516 | $ | 2,187,133 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 89,797 | $ | 94,156 | ||||
| Deferred revenue | 26,715 | 29,465 | ||||||
| Accrued payroll and related liabilities | 49,565 | 41,506 | ||||||
| Accrued product warranties | 13,638 | 13,169 | ||||||
| Advance payments from customers | 15,854 | 12,150 | ||||||
| Accrued expenses | 43,971 | 32,772 | ||||||
| Other current liabilities | 4,403 | 6,406 | ||||||
| Accrued income taxes | 5,914 | 11,943 | ||||||
| Current portion long-term debt | 15,000 | - | ||||||
| Total current liabilities | 264,857 | 241,567 | ||||||
| Long-term debt | 379,799 | 248,319 | ||||||
| Deferred income taxes | 15,777 | 15,549 | ||||||
| Accrued income taxes | 22,398 | 22,812 | ||||||
| Pension and other long-term liabilities | 45,676 | 58,985 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity | 1,558,009 | 1,599,901 | ||||||
| $ | 2,286,516 | $ | 2,187,133 | |||||
| (1) Amounts have been adjusted for the reclassification of goodwill and intangible assets related to business acquisitions made in December 2012. |
| FLIR SYSTEMS, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
| (In thousands)(Unaudited) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net earnings | $ | 50,158 | $ | 41,093 | $ | 101,794 | $ | 89,232 | ||||||||||
| Income items not affecting cash: | ||||||||||||||||||
| Depreciation and amortization | 15,231 | 14,809 | 30,102 | 30,016 | ||||||||||||||
| Deferred income taxes | (18 | ) | 86 | 26 | 95 | |||||||||||||
| Stock-based compensation arrangements | 7,630 | 7,865 | 13,327 | 13,400 | ||||||||||||||
| Other non-cash items | (2,951 | ) | 4,056 | (577 | ) | (1,350 | ) | |||||||||||
| Changes in operating assets and liabilities, net of acquisitions | 64,234 | 9,328 | 51,571 | (5,162 | ) | |||||||||||||
| Cash provided by operating activities | 134,284 | 77,237 | 196,243 | 126,231 | ||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Additions to property and equipment, net | (10,643 | ) | (13,494 | ) | (23,291 | ) | (26,429 | ) | ||||||||||
| Business acquisitions, net of cash acquired | (5,165 | ) | - | (5,165 | ) | - | ||||||||||||
| Other investments | - | (3,000 | ) | - | (3,000 | ) | ||||||||||||
| Cash used by investing activities | (15,808 | ) | (16,494 | ) | (28,456 | ) | (29,429 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Proceeds from long term debt | 150,000 | - | 150,000 | - | ||||||||||||||
| Repayments of long term debt | (3,750 | ) | - | (3,750 | ) | - | ||||||||||||
| Repurchase of common stock | (8,469 | ) | (64,812 | ) | (116,830 | ) | (90,201 | ) | ||||||||||
| Dividends paid | (12,802 | ) | (10,700 | ) | (25,909 | ) | (21,485 | ) | ||||||||||
| Proceeds from shares issued pursuant to stock-based compensation plans | 2,706 | 4,780 | 3,885 | 5,656 | ||||||||||||||
| Excess tax benefit of stock options exercised | 236 | 214 | 469 | 552 | ||||||||||||||
| Other financing activities | 74 | (98 | ) | 54 | (140 | ) | ||||||||||||
| Cash provided (used) by financing activities | 127,995 | (70,616 | ) | 7,919 | (105,618 | ) | ||||||||||||
| Effect of exchange rate changes on cash | (45 | ) | (8,522 | ) | (5,012 | ) | (2,259 | ) | ||||||||||
| Net increase (decrease) in cash and cash equivalents | 246,426 | (18,395 | ) | 170,694 | (11,075 | ) | ||||||||||||
| Cash and cash equivalents, beginning of period | 246,007 | 448,166 | 321,739 | 440,846 | ||||||||||||||
| Cash and cash equivalents, end of period | $ | 492,433 | $ | 429,771 | $ | 492,433 | $ | 429,771 | ||||||||||
Company Contact: Shane Harrison +1 503.498.3547 www.flir.com
