FLIR Systems Announces Second Quarter
2003 Financial Results;
Management Increases 2003 Revenue and
Earnings Guidance
PORTLAND, Ore., Jul 23, 2003
(BUSINESS WIRE) -- 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.
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 U.S. 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.
FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Six Months
Ended Ended
June 30, 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, Dec. 31,
2003 2002
ASSETS (Unaudited)
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
SOURCE: FLIR Systems, Inc.
Company contact:
FLIR
Systems, Inc.
Steve Bailey, 503-684-3731
www.FLIR.com
or
Investor
contact:
Neil Berkman Associates,
310-277-5162
info@BerkmanAssociates.com