WILSONVILLE, OR -- (Marketwired - April 25, 2014) - FLIR Systems, Inc. (NASDAQ: FLIR) today announced financial results for the first quarter ended March 31, 2014. Revenue was $351.5 million, up 1% compared to first quarter 2013 revenue of $348.6 million. Operating income in the first quarter was $42.5 million, compared to $69.1 million in the first quarter of 2013, and was impacted by $8.4 million in pretax charges related to previously-announced restructuring initiatives. First quarter 2014 net income was $29.9 million, or $0.21 per diluted share, compared with net income of $51.6 million, or $0.35 per diluted share in the first quarter a year ago. The net after tax impact of the restructuring charges in the first quarter was approximately $6.4 million, or $0.04 per diluted share. Cash provided by operations in the first quarter was $59.8 million, a decrease of 3% compared to the first quarter of 2013.
Revenue from FLIR's Surveillance segment was $117.2 million, a decrease of 1% from the first quarter results last year. The Instruments segment contributed $84.1 million of revenue during the first quarter, up 7% from the prior year. The OEM & Emerging Markets segment had $53.8 million of revenue, an increase of 7% over the prior year. Revenue from the Maritime segment was $52.6 million, and was up 4% over the first quarter of 2013. FLIR's Security segment recorded revenue of $29.3 million in the first quarter, down 1% from the prior year. The Detection segment contributed $14.6 million of revenue, a decrease of 33% from the prior year.
FLIR's backlog of firm orders for delivery within the next twelve months was approximately $514 million as of March 31, 2014, an increase of $24 million during the quarter.
"Our first quarter results were in-line with our expectations. Healthy growth in our commercial-oriented markets was offset by declines in government-funded sectors. We continued executing on our realignment plan, which we believe will be a valuable investment for our long-term performance," said Andy Teich, President and CEO of FLIR. "We expect continued improvement as we move throughout this year and are excited about our product pipeline that is enabled by our new Lepton core."
Revenue and Earnings Outlook for 2014
Based on financial results for the first three months of 2014 and the outlook for the remainder of the year, FLIR is reaffirming its outlook for revenue and earnings per share for the full year 2014. Management expects revenue for 2014 to be in the range of $1.45 billion to $1.55 billion and net earnings excluding restructuring charges associated with the business realignment to be in the range of $1.40 to $1.50 per diluted share.
Dividend Declaration
FLIR's Board of Directors has declared a quarterly cash dividend of $0.10 per share on FLIR common stock, payable June 6, 2014, to shareholders of record as of close of business on May 20, 2014.
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 the year. A simultaneous webcast of the conference call may be accessed online from a link in the Events & Presentations section of www.FLIR.com/investor. A replay will be available after 2:00 p.m. ET (11:00 a.m. PT) at this same Internet address. Summary first quarter and historical financial data can be accessed online from the Financial Info Database link 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. FLIR's advanced systems and components are used for a wide variety of thermal imaging, situational awareness, and security applications, including airborne and ground-based surveillance, condition monitoring, navigation, recreation, research and development, manufacturing process control, search and rescue, drug interdiction, transportation safety, border and maritime patrol, environmental monitoring, and chemical, biological, radiological, nuclear, and explosives (CBRNE) threat detection. For more information, visit FLIR'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 2014" 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 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.
(Tables Below)
FLIR SYSTEMS, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts)(Unaudited) Three Months Ended March 31, -------------------- 2014 2013 --------- --------- Revenue $ 351,542 $ 348,583 Cost of goods sold 183,010 164,596 --------- --------- Gross profit 168,532 183,987 Operating expenses: Research and development 36,326 36,684 Selling, general and administrative 81,942 78,173 Restructuring expenses 7,813 - --------- --------- Total operating expenses 126,081 114,857 Earnings from operations 42,451 69,130 Interest expense 3,708 2,897 Interest income (264) (191) Other income, net (198) (764) --------- --------- Earnings from continuing operations before income taxes 39,205 67,188 Income tax provision 9,311 15,552 --------- --------- Net earnings $ 29,894 $ 51,636 ========= ========= Earnings per share: Basic $ 0.21 $ 0.36 ========= ========= Diluted $ 0.21 $ 0.35 ========= ========= Weighted average shares outstanding: Basic 140,932 144,629 ========= ========= Diluted 143,828 146,291 ========= =========
FLIR SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands)(Unaudited) March 31, December 31, 2014 2013 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 584,095 $ 542,476 Accounts receivable, net 270,165 286,573 Inventories 338,894 344,719 Prepaid expenses and other current assets 98,386 97,574 Deferred income taxes, net 38,660 38,389 ------------ ------------ Total current assets 1,330,200 1,309,731 Property and equipment, net 232,904 234,041 Deferred income taxes, net 18,079 17,883 Goodwill 574,007 575,701 Intangible assets, net 159,602 154,195 Other assets 52,359 51,808 ------------ ------------ $ 2,367,151 $ 2,343,359 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 91,965 $ 85,730 Deferred revenue 23,951 28,844 Accrued payroll and related liabilities 60,370 62,069 Accrued expenses 36,159 39,316 Accrued income taxes 138 663 Other current liabilities 43,578 44,893 Current portion long-term debt 15,000 15,000 ------------ ------------ Total current liabilities 271,161 276,515 Long-term debt 368,892 372,528 Deferred income taxes 12,339 12,255 Accrued income taxes 20,763 19,996 Other long-term liabilities 49,966 48,685 Commitments and contingencies Shareholders' equity 1,644,030 1,613,380 ------------ ------------ $ 2,367,151 $ 2,343,359 ============ ============ FLIR SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)(Unaudited) Three Months Ended March 31, -------------------- 2014 2013 --------- --------- Cash flows from operating activities: Net earnings $ 29,894 $ 51,636 Income items not affecting cash: Depreciation and amortization 16,470 14,871 Deferred income taxes (235) 44 Stock-based compensation arrangements 8,756 5,696 Other non-cash items (1,564) 2,374 Changes in operating assets and liabilities, net of acquisitions 6,504 (12,662) --------- --------- Cash provided by operating activities 59,825 61,959 --------- --------- Cash flows from investing activities: Additions to property and equipment, net (9,590) (12,648) --------- --------- Cash used by investing activities (9,590) (12,648) --------- --------- Cash flows from financing activities: Repayments of long term debt (3,750) - Repurchase of common stock (1,766) (108,361) Dividends paid (14,085) (13,106) Proceeds from shares issued pursuant to stock-based compensation plans 8,876 1,179 Excess tax benefit of stock options exercised 2,698 234 Other financing activities 252 (22) --------- --------- Cash used by financing activities (7,775) (120,076) --------- --------- Effect of exchange rate changes on cash (841) (4,967) --------- --------- Net increase (decrease) in cash and cash equivalents 41,619 (75,732) Cash and cash equivalents, beginning of period 542,476 321,739 --------- --------- Cash and cash equivalents, end of period $ 584,095 $ 246,007 ========= ========= FLIR SYSTEMS, INC. REVENUE AND EARNINGS FROM OPERATIONS BY SEGMENT (In thousands)(Unaudited) Three Months Ended March 31, -------------------- 2014 2013 --------- --------- REVENUE - EXTERNAL CUSTOMERS Surveillance $ 117,201 $ 117,987 Instruments 84,056 78,550 OEM and Emerging Markets 53,801 50,285 Maritime 52,575 50,462 Security 29,309 29,472 Detection 14,600 21,827 --------- --------- $ 351,542 $ 348,583 ========= ========= EARNINGS (LOSS) FROM OPERATIONS Surveillance $ 20,361 $ 33,726 Instruments 20,450 20,024 OEM and Emerging Markets 11,711 14,596 Maritime 8,830 8,107 Security 1,686 4,389 Detection (1,800) 2,545 Other (18,787) (14,257) --------- --------- $ 42,451 $ 69,130 ========= =========
Company Contact: Shane Harrison +1 503.498.3547 www.flir.com