 | | NEWS RELEASE |
| |
Company contact: Steve Bailey FLIR Systems, Inc. (503) 684-3731 www.flir.com | | Investor Contact: Neil Berkman Associates (310) 277-5162 info@BerkmanAssociates.com |
FLIR Systems Announces Second Quarter
2003 Financial Results
Management Increases 2003 Revenue And Earnings Guidance
PORTLAND, Ore. — July 23, 2003 —FLIR Systems, Inc. (NASDAQ:FLIR) announced today that revenue for the second quarter ended June 30, 2003 increased 18% to $75.2 million from $63.6 million for the second quarter of 2002. Earnings from operations increased 34% to $15.5 million, or 21% of revenue, from $11.6 million, or 18% of revenue, for the second quarter of 2002. Net earnings for this year’s second quarter increased 2% to $9.7 million, or $0.27 per diluted share, reflecting a 33% tax rate. This compares to net earnings for the second quarter of 2002 of $9.6 million, also at $0.27 per diluted share, reflecting a 15% tax rate.
For the first half of 2003, revenue increased 19% to $144.3 million from $121.7 million for the same period last year. Earnings from operations for the first six months of 2003 increased 33% to $29.2 million, or 20% of revenue, from $22.0 million, or 18% of revenue, for the first half of 2002. Net earnings for that period increased 4% to $18.9 million, or $0.52 per diluted share. This compares to net earnings of $18.2 million, or $0.51 per diluted share, for the first six months of 2002. All per share amounts have been adjusted to reflect the 2-for-1 stock split that was effective on May 29, 2003.
Thermography product revenue for the second quarter increased 38% over the second quarter last year, primarily due to higher sales of the Company’s new E-Series handheld cameras and favorable currency exchange rates. Imaging product revenue increased 9%, reflecting sales gains for the Company’s ground-based and maritime Imaging systems.
The backlog of orders grew to approximately $119 million at June 30, 2003, as compared to $113 million at March 31, 2003. Cash generated from operations totaled $3.5 million for the second quarter of 2003. At June 30, 2003, the Company had cash and cash equivalents of approximately $204 million, which includes approximately $150 million from the placement of convertible notes and the concurrent repurchase of the Company’s common stock.
“Our financial performance in the second quarter continued to demonstrate strong demand for our full range of products. I am particularly encouraged by both the increase in our backlog and the significant increase in sales of our Thermography systems. The Company is well positioned to achieve our goals for 2003 as we head into the second half, which is seasonally our strongest part of the year,” said President and CEO Earl R. Lewis.
(more)
The Forward Looking Infrared Company
FLIR Systems, Inc. | 16505 SW 72nd Avenue | Portland, OR 97224 | USA
Telephone: +1(800) 322 3731 | www.flir.com
FLIR Systems Announces Second Quarter 2003 Financial Results
July 23, 2003
Page Two
Revenue and Earnings Guidance for 2003
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
Based on its financial results to date, management currently expects revenue for 2003 in the range of approximately $300 to $305 million and net earnings in the range of approximately $1.20 to $1.25 per diluted share, reflecting an estimated tax rate of 33% versus 15% in 2002. The Company had previously provided 2003 guidance for total revenue of between $290 and $300 million and net earnings, on a post-split basis, of between $1.18 and $1.23 per diluted share.
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in the Revenue and Earnings Guidance for 2003 above are forward-looking statements. 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, constraints on supplies of critical components, excess or shortage of production capacity, 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.
Conference Call
FLIR has scheduled a conference call at 11:00 am EDT today. A simultaneous Web Cast of the conference call may be accessed online at www.CompanyBoardroom.com or www.FLIR.com. A replay will be available approximately one hour after the Web Cast at these same Internet addresses. For a telephone replay, dial (800) 633-8284, reservation #21153789 beginning at approximately 1:00 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.
(tables attached)
#335x
FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)(Unaudited)
| | | Three Months Ended
June 30,
| | | Six Months Ended
June 30,
| |
| | | 2003
| | 2002
| | | 2003
| | 2002
| |
Revenue | | $ | 75,162 | | $ | 63,595 | | | $ | 144,333 | | $ | 121,693 | |
Cost of goods sold | | | 36,041 | | | 30,777 | | | | 69,169 | | | 57,576 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
Gross profit | | | 39,121 | | | 32,818 | | | | 75,164 | | | 64,117 | |
| | | | |
Operating expenses: | | | | | | | | | | | | | | |
Research and development | | | 7,785 | | | 6,460 | | | | 15,383 | | | 13,549 | |
Selling, general and administrative | | | 15,834 | | | 14,762 | | | | 30,552 | | | 28,581 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
Total operating expenses | | | 23,619 | | | 21,222 | | | | 45,935 | | | 42,130 | |
| | | | |
Earnings from operations | | | 15,502 | | | 11,596 | | | | 29,229 | | | 21,987 | |
| | | | |
Interest expense | | | 445 | | | 825 | | | | 622 | | | 1,143 | |
Other expenses (income), net | | | 557 | | | (473 | ) | | | 450 | | | (597 | ) |
| | |
|
| |
|
|
| |
|
| |
|
|
|
Earnings before income taxes | | | 14,500 | | | 11,244 | | | | 28,157 | | | 21,441 | |
| | | | |
Income tax provision | | | 4,785 | | | 1,687 | | | | 9,292 | | | 3,216 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
Net earnings | | $ | 9,715 | | $ | 9,557 | | | $ | 18,865 | | $ | 18,225 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
| | | | |
Net earnings per share: | | | | | | | | | | | | | | |
Basic | | $ | 0.28 | | $ | 0.28 | | | $ | 0.55 | | $ | 0.54 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
Diluted | | $ | 0.27 | | $ | 0.27 | | | $ | 0.52 | | $ | 0.51 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
| | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | |
Basic | | | 34,492 | | | 33,588 | | | | 34,579 | | | 33,445 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
Diluted | | | 35,945 | | | 35,636 | | | | 36,020 | | | 35,614 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
All per share amounts have been adjusted to reflect the two-for-one stock split.
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
| | | June 30, 2003
| | December 31, 2002
| |
| | | (Unaudited) | | | |
| ASSETS | | | | | | | |
Current assets: | | | | | | | |
Cash and cash equivalents | | $ | 204,207 | | $ | 46,606 | |
Accounts receivable, net | | | 65,857 | | | 55,798 | |
Inventories, net | | | 55,272 | | | 50,141 | |
Prepaid expenses and other current assets | | | 18,501 | | | 12,673 | |
Deferred income taxes | | | 8,887 | | | 8,887 | |
| | |
|
| |
|
|
|
Total current assets | | | 352,724 | | | 174,105 | |
| | |
Property and equipment, net | | | 12,027 | | | 12,678 | |
Deferred income taxes, net | | | 25,977 | | | 25,977 | |
Intangible assets, net | | | 16,589 | | | 16,647 | |
Other assets | | | 5,904 | | | 4,415 | |
| | |
|
| |
|
|
|
| | | $ | 413,221 | | $ | 233,822 | |
| | |
|
| |
|
|
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | |
Current liabilities: | | | | | | | |
Accounts payable | | $ | 18,817 | | $ | 16,465 | |
Deferred revenue | | | 4,989 | | | 4,770 | |
Accrued payroll and related liabilities | | | 9,207 | | | 11,030 | |
Accrued product warranties | | | 3,566 | | | 3,432 | |
Advance payments from customers | | | 11,570 | | | 8,030 | |
Other current liabilities | | | 6,918 | | | 6,341 | |
Accrued income taxes | | | 945 | | | 2,558 | |
| | |
|
| |
|
|
|
Total current liabilities | | | 56,012 | | | 52,626 | |
| | |
Long-term debt | | | 203,965 | | | — | |
Pension and other long-term liabilities | | | 9,974 | | | 8,869 | |
| | |
Commitments and contingencies | | | | | | | |
| | |
Shareholders’ equity: | | | | | | | |
Preferred stock, $.01 par value, 10,000 shares authorized; no shares issued at June 30, 2003, and December 31, 2002 | | | — | | | — | |
Common stock, $.01 par value, 100,000 shares authorized, 33,202 and 34,599 shares issued at June 30, 2003, & December 31, 2002, respectively, and additional paid-in capital | | | 167,571 | | | 218,052 | |
Accumulated deficit | | | 24,440 | | | (43,305 | ) |
Accumulated other comprehensive loss | | | 139 | | | (2,420 | ) |
| | |
|
| |
|
|
|
Total shareholders’ equity | | | 143,270 | | | 172,327 | |
| | |
|
| |
|
|
|
| | | $ | 413,221 | | $ | 233,822 | |
| | |
|
| |
|
|
|
