PORTLAND, OR -- (Marketwire) -- 04/27/12 -- FLIR Systems, Inc. (NASDAQ: FLIR) today announced financial results for the first quarter ended March 31, 2012. Revenue was $348.5 million, down 7% compared to first quarter 2011 revenue of $376.0 million. Operating income in the first quarter was $68.3 million, compared to $76.3 million in the first quarter of 2011. First quarter 2012 net income was $48.1 million, or $0.31 per diluted share, compared with net income of $51.3 million, or $0.32 per diluted share in the first quarter a year ago. Cash provided by operations in the first quarter was $49.0 million. During the quarter, the Company repurchased 1 million shares of its common stock at an average price of $25.39 per share.
Revenue from the Company's Commercial Systems division increased 4% from the first quarter of 2011, to $202.3 million. Within the Commercial Systems division, revenue from the Thermal Vision and Measurement segment was $155.7 million, an increase of 7% over the first quarter results last year. Commercial Systems' Raymarine segment contributed $46.6 million of revenue during the first quarter, down 8% from the prior year.
Revenue from the Company's Government Systems division decreased 19% from the first quarter of 2011, to $146.1 million. Within the Government Systems division, revenue from the Surveillance segment was $114.6 million, a decrease of 24% from the first quarter of 2011. Revenue from Government Systems' Detection segment was $19.4 million, an increase of 8% compared to the first quarter of 2011. Government Systems' Integrated Systems segment contributed $12.2 million of revenue during the first quarter, a decrease of 5% from the prior year.
The Company's backlog of firm orders for delivery within the next twelve months was approximately $457 million as of March 31, 2012, an increase of $2 million during the quarter. Backlog in the Government Systems division was $312 million, decreasing $2 million during the quarter. Backlog in the Commercial Systems division was $145 million, up $4 million during the quarter.
"While not up to our standards, first quarter performance was about as anticipated," noted Earl Lewis, President and CEO of FLIR. "A difficult market environment impacted our Government Systems business, but we successfully stabilized backlog as Government Systems orders equaled revenue for the quarter. Our Commercial Systems business was slow in the first quarter, however, we continue to expect improved results as we go through the year. It is clearly our task to improve in the future, and we believe these efforts will show in the second half of 2012."
Revenue and Earnings Outlook for 2012
Based on financial results for the first three months of 2012 and the outlook for the remainder of the year, FLIR is reaffirming its outlook for earnings per share for the full year 2012. Management expects net earnings to be in the range of $1.60 to $1.70 per diluted share, and revenue for the full year 2012 to be in the range of $1.55 billion to $1.65 billion.
Dividend Declaration
FLIR's Board of Directors has declared a quarterly cash dividend of $0.07 per share on FLIR common stock, payable June 8, 2012, to shareholders of record as of close of business on May 21, 2012.
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 year. A simultaneous webcast of the conference call may be accessed online from a link in the Upcoming Events 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. For a telephone replay, dial (855) 859-2056, Conference ID #72740597 after 2:00 p.m. ET. Summary first 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 Earl Lewis and the statements in the section captioned "Revenue and Earnings Outlook for 2012" 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: 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, 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 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.
FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
Three Months Ended
March 31,
--------------------------
2012 2011(1)
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Revenue $ 348,452 $ 375,969
Cost of goods sold 165,725 179,457
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Gross profit 182,727 196,512
Operating expenses:
Research and development 36,571 37,589
Selling, general and administrative 77,860 82,607
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Total operating expenses 114,431 120,196
Earnings from operations 68,296 76,316
Interest expense 3,066 350
Interest income (428) (264)
Other income, net (1,225) 852
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Earnings from continuing operations before
income taxes 66,883 75,378
Income tax provision 18,058 23,772
------------ ------------
Earnings from continuing operations 48,825 51,606
Loss from discontinued operations, net of tax (686) (291)
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Net earnings $ 48,139 $ 51,315
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Basic earnings per share:
Earnings from continuing operations $ 0.32 $ 0.32
Discontinued operations (0.00) (0.00)
------------ ------------
Basic earnings per share $ 0.31 $ 0.32
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Diluted earnings per share:
Earnings from continuing operations $ 0.31 $ 0.32
Discontinued operations (0.00) (0.00)
------------ ------------
Diluted earnings per share $ 0.31 $ 0.32
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Weighted average shares outstanding:
Basic 154,485 159,400
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Diluted 156,972 162,310
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(1) Amounts have been adjusted for the reclassification of certain
discontinued operations to continued operations.
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
March 31, December 31,
2012 2011
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 448,166 $ 440,846
Accounts receivable, net 298,798 325,370
Inventories 351,232 336,051
Prepaid expenses and other current assets 117,964 104,285
Deferred income taxes, net 27,164 27,443
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Total current assets 1,243,324 1,233,995
Property and equipment, net 191,876 186,269
Deferred income taxes, net 31,684 31,644
Goodwill 502,951 498,343
Intangible assets, net 164,390 164,440
Other assets 37,819 32,338
------------ ------------
$ 2,172,044 $ 2,147,029
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 77,026 $ 84,190
Deferred revenue 26,331 24,046
Accrued payroll and related liabilities 44,389 49,475
Accrued product warranties 13,592 13,370
Advance payments from customers 12,296 13,219
Accrued expenses 30,464 41,183
Other current liabilities 3,322 3,886
Accrued income taxes 206 2,161
------------ ------------
Total current liabilities 207,626 231,530
Long-term debt 247,976 247,861
Deferred income taxes 16,981 17,237
Accrued income taxes 21,501 17,537
Pension and other long-term liabilities 57,222 53,835
Commitments and contingencies
Shareholders' equity 1,620,738 1,579,029
------------ ------------
$ 2,172,044 $ 2,147,029
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FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)(Unaudited)
Three Months Ended
March 31,
--------------------------
2012 2011
------------ ------------
Cash Provided By Operating Activities:
Net earnings $ 48,139 $ 51,315
Income items not affecting cash:
Depreciation and amortization 15,207 19,893
Deferred income taxes 10 (65)
Stock-based compensation arrangements 5,535 6,288
Other non-cash items (5,406) 3,426
Changes in operating assets and liabilities (14,490) (18,471)
------------ ------------
Cash provided by operating activities 48,995 62,386
------------ ------------
Cash Used By Investing Activities:
Additions to property and equipment, net (12,935) (4,267)
------------ ------------
Cash used by investing activities (12,935) (4,267)
------------ ------------
Cash Used by Financing Activities:
Repurchase of common stock (25,389) (6,775)
Dividends paid (10,784) (9,571)
Proceeds from shares issued pursuant to stock-
based compensation plans 876 7,033
Excess tax benefit of stock options exercised 338 1,592
Other financing activities (44) (24)
------------ ------------
Cash used by financing activities (35,003) (7,745)
------------ ------------
Effect of exchange rate changes on cash 6,263 6,718
------------ ------------
Net increase in cash and cash equivalents 7,320 57,092
Cash and cash equivalents, beginning of year 440,846 193,137
------------ ------------
Cash and cash equivalents, end of year $ 448,166 $ 250,229
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Company Contact:
Shane Harrison
+1 503.498.3547
www.flir.com
