Exhibit 99.1
 | NEWS RELEASE
Company Contact: Tony Trunzo +1 503.498.3547 www.flir.com |
FLIR Systems Announces First Quarter 2008 Financial Results
Operating Income Up 53%; Earnings Per Share Up 33%
Backlog Up $78 Million; Operating Cash Flow a Record $55 Million
PORTLAND, OR - April 24, 2008 —FLIR Systems, Inc. (NASDAQ:FLIR) today announced financial results for the first quarter ended March 31, 2008. Revenue was $236.9 million, up 47% compared to first quarter 2007 revenue of $161.4 million. Excluding the impact of the previously announced acquisitions of Extech Instruments and Cedip Infrared Systems, revenue increased by 35% compared to the first quarter of 2007. Operating income for the quarter was $55.1 million, up 53% from $36.0 million in the first quarter of 2007. Net income for the quarter was $37.3 million, or $0.24 per diluted share, compared with net income of $26.3 million, or $0.18 per diluted share on a split-adjusted basis, in the first quarter a year ago.
Revenue from the Company’s Government Systems division increased 40% over the first quarter of 2007, to $113.7 million, driven by strength across all served markets, including airborne, land, and maritime. Revenue from the Company’s Commercial Vision Systems division increased 67% over the first quarter of last year, to a record $43.7 million, reflecting strong growth across all served markets. Revenue from the Company’s Thermography division increased 47% over the first quarter of last year, to $79.5 million. Excluding the impact of the Extech Instruments and Cedip Infrared Systems acquisitions, Thermography revenue increased 17% during the first quarter, reflecting strong demand for the T-Series, R&D, and GasFindIRTMproduct lines. Revenue contribution to other divisions related to the Cedip and Extech acquisitions was not significant.
The backlog of firm orders for delivery within the next twelve months was approximately $471 million at March 31, 2008, an increase of $78 million compared with backlog at December 31, 2007. Backlog in the Government System’s division was $371 million, up $66 million during the quarter due to strong order activity both in the U.S. and internationally. Backlog in the Commercial Vision System’s division was $80 million, up $12 million during the quarter. Backlog in the Thermography division was $20 million, flat with the prior quarter. Backlog of $17 million was acquired during the quarter as a result of the Cedip acquisition, primarily in the Commercial Vision Systems and Government Systems divisions, respectively.
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FLIR Systems Announces First Quarter 2008 Financial Results
April 24, 2008
Page Two
Cash provided by operations during the quarter was a record $55.2 million. Cash used during the quarter included $68.2 million net for the acquisition of Cedip Infrared Systems, $19.0 million to repay the remaining balance on a credit facility, and $17.8 million to repurchase 700,000 shares of FLIR common stock. At March 31, 2008, cash and cash equivalents were $159.1 million, compared with $203.7 million at December 31, 2007.
“We are quite pleased with the start to the year. Our first quarter financial performance was very good and our long-term strategies continue to deliver results,” noted Earl R. Lewis, President and CEO. “Demand was excellent, particularly in our Government Systems and Commercial Vision Systems divisions, as backlog at the end of the quarter again set a record. Based on the quarter’s results, and the expectations for the remainder of the year, we are reaffirming our outlook for strong growth in 2008.”
Revenue and Earnings Outlook for 2008
Based on its financial results for the first quarter of 2008, and the outlook for the remainder of the year, management today is reaffirming its outlook for revenue and earnings per share for the full year 2008. Management currently expects revenue for 2008 to be in the range of $1 billion to $1.05 billion, and net earnings to be in the range of $1.13 to $1.20 per diluted share.
Conference Call
FLIR has scheduled a conference call at 11:00 am EDT today. A simultaneous webcast will be available from theInvestor Relationslink at www.FLIR.com. A replay will be available after 2:30 PM EDT at this same internet address. For a telephone replay, dial (800) 642-1687, Conference ID #40744334 after 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.
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FLIR Systems Announces First Quarter 2008 Financial Results
April 24, 2008
Page Three
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in the section captioned “Revenue and Earnings Outlook for 2008” 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: the possibility that the Company will experience difficulties in the integration of the operations, employees, strategies, technologies and products of Extech or Cedip, the potential inability to realize expected benefits and synergies from the Extech or Cedip transactions, 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 export licenses for international shipments, 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.
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FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2008 | 2007 | |||||||
Revenue | $ | 236,906 | $ | 161,363 | ||||
Cost of goods sold | 106,111 | 71,541 | ||||||
Gross profit | 130,795 | 89,822 | ||||||
Operating expenses: | ||||||||
Research and development | 23,110 | 18,016 | ||||||
Selling, general and administrative | 52,579 | 35,824 | ||||||
Total operating expenses | 75,689 | 53,840 | ||||||
Earnings from operations | 55,106 | 35,982 | ||||||
Interest expense | 2,471 | 2,740 | ||||||
Other income, net | (18 | ) | (2,409 | ) | ||||
Earnings before income taxes | 52,653 | 35,651 | ||||||
Income tax provision | 15,319 | 9,387 | ||||||
Net earnings | $ | 37,334 | $ | 26,264 | ||||
Net earnings per share: | ||||||||
Basic | $ | 0.27 | $ | 0.20 | ||||
Diluted | $ | 0.24 | $ | 0.18 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 136,992 | 132,084 | ||||||
Diluted | 161,488 | 156,068 | ||||||
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
| March 31, 2008 | December 31, 2007 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 159,087 | $ | 203,681 | ||
Accounts receivable, net | 208,804 | 203,371 | ||||
Inventories, net | 196,264 | 179,366 | ||||
Prepaid expenses and other current assets | 68,531 | 58,056 | ||||
Deferred income taxes, net | 10,882 | 11,033 | ||||
Total current assets | 643,568 | 655,507 | ||||
Property and equipment, net | 129,586 | 120,873 | ||||
Deferred income taxes, net | 2,370 | 2,237 | ||||
Goodwill | 177,725 | 176,230 | ||||
Intangible assets, net | 50,812 | 52,819 | ||||
Other assets | 83,379 | 16,650 | ||||
| $ | 1,087,440 | $ | 1,024,316 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Notes payable | $ | 1,835 | $ | 19,000 | ||
Accounts payable | 63,444 | 53,990 | ||||
Deferred revenue | 22,534 | 19,612 | ||||
Accrued payroll and related liabilities | 34,755 | 39,431 | ||||
Accrued product warranties | 7,807 | 6,594 | ||||
Advance payments from customers | 14,341 | 9,156 | ||||
Other current liabilities | 18,979 | 14,600 | ||||
Accrued income taxes | 7,640 | 3,752 | ||||
Current portion of long-term debt | 7 | 7 | ||||
Total current liabilities | 171,342 | 166,142 | ||||
Long-term debt | 208,106 | 207,889 | ||||
Deferred tax liability, net | 1,950 | 1,902 | ||||
Accrued income taxes | 4,738 | 4,295 | ||||
Pension and other long-term liabilities | 22,092 | 20,813 | ||||
Commitments and contingencies | ||||||
Shareholders’ equity | 679,212 | 623,275 | ||||
| $ | 1,087,440 | $ | 1,024,316 | |||