PORTLAND, OR -- (MARKET WIRE) -- February 8, 2007 --FLIR Systems, Inc. (
NASDAQ:
FLIR) announced
today that net earnings for the fourth quarter ended December 31, 2006
increased 16% to a record $39.8 million, or $0.53 per diluted share,
compared to net earnings for the fourth quarter of 2005 of $34.1 million,
or $0.43 per diluted share. Revenue for the 2006 fourth quarter increased
19% to $185.9 million, up from $156.2 million for the fourth quarter of
2005. The Company's operating margin in the fourth quarter was 29.6%,
compared with 29.5% in the fourth quarter of 2005. Stock-based compensation
expense for the fourth quarter of 2006 was $3.1 million, or approximately
$0.03 per fully diluted share.
Revenue from the Company's Thermography division increased 23% over the
fourth quarter of 2005, to $72.2 million, due to strong demand across all
major product lines. Revenue from the Company's Government Systems
division increased by 19% in the fourth quarter to $86.2 million, driven by
continued strength in the STAR-class products in Portland, and improved
performance in the land and maritime markets. Revenue from the Company's
Commercial Vision Systems division increased 10% over the fourth quarter of
last year, to $27.5 million, reflecting good growth across numerous product
lines.
For the twelve months ended December 31, 2006, net earnings rose 11% to a
record $100.9 million, or $1.32 per diluted share, compared to net earnings
for the full year 2005 of $90.8 million, or $1.16 per diluted share.
Revenue for 2006 was $575.0 million, an increase of 13% from the $508.6
million generated in 2005. The Company's operating margin for the full year
was 23.8%, as compared with 24.8% in 2005. For all of 2006, stock-based
compensation expense totaled $10.9 million or $0.11 per diluted share.
Revenue from the Company's Thermography division increased 19% in 2006,
while revenue from the Company's Government Systems Division grew by 7%,
and Commercial Vision Systems revenue increased 16% for the full year.
Cash generated from operations totaled a record $38.8 million for the
fourth quarter and $113.5 million for the full year. At December 31, 2006
the Company had cash on hand of $138.6 million. The backlog of firm orders
for delivery within the next twelve months was approximately $274 million
at December 31, 2006, an increase of 42% compared to backlog of $193
million at December 31, 2005.
Revenue and Earnings Guidance for 2007
FLIR also announced today that it expects net revenue in fiscal 2007 to be
in the range of $670 million to $680 million, and net earnings to be in the
range of $1.48 to $1.53 per diluted share, which includes stock-based
compensation expense of approximately $0.16 per diluted share. This
guidance assumes a tax rate for the year of approximately 27% to 29%, and
an average share count of approximately 80 million diluted shares.
"We are very pleased with our fourth quarter and full year 2006
performance. Thermography had another outstanding year, and continues to
execute well on its strategy. Government Systems saw significantly better
order activity and revenue growth in the second half of the year, and our
newest division, Commercial Vision Systems, got off to a very good start,
and is positioned for significant future growth," commented Earl R. Lewis,
President and CEO of FLIR. "Our strategy of stimulating demand with lower
cost infrared technology is clearly working, and our expanding distribution
channels are driving increasing sales. Government Systems is again growing
revenue, driven by expanded product lines and the success of our
commercially developed military qualified model in winning new program
business. As a result, we are introducing guidance for 2007 reflecting
continued growth," he concluded.
Conference Call
FLIR has scheduled a conference call at 11:00 am EST today. A simultaneous
WebCast will be available from the Investor Relations link at
www.FLIR.com.
A replay will be available after 1:00 PM EST at this same internet address.
For a telephone replay, dial (800) 633-8284, reservation #21320581 after
1:00 PM EST.
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.
Forward-Looking Statements
The statements in this release by Earl R. Lewis and the statements in the
section captioned "Revenue and Earnings Guidance for 2007" 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.
FLIR SYSTEMS,INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- --------------------
2006 2005 2006 2005
---------- --------- --------- ---------
Revenue $ 185,899 $ 156,247 $ 575,000 $ 508,561
Cost of goods sold 81,456 69,586 260,087 231,867
---------- --------- --------- ---------
Gross profit 104,443 86,661 314,913 276,694
Operating expenses:
Research and development 16,261 12,512 60,584 51,514
Selling, general and
administrative 33,109 27,998 117,374 99,227
---------- --------- --------- ---------
Total operating expenses 49,370 40,510 177,958 150,741
Earnings from operations 55,073 46,151 136,955 125,953
Interest expense 2,813 2,001 8,956 7,922
Other expense (income), net 262 (1,556) (4,612) (4,193)
---------- --------- --------- ---------
Earnings before income
taxes 51,998 45,706 132,611 122,224
Income tax provision 12,242 11,564 31,715 31,459
---------- --------- --------- ---------
Net earnings $ 39,756 $ 34,142 $ 100,896 $ 90,765
========== ========= ========= =========
Net earnings per share:
Basic $ 0.61 $ 0.49 $ 1.49 $ 1.30
---------- --------- --------- ---------
Diluted $ 0.53 $ 0.43 $ 1.32 $ 1.16
========== ========= ========= =========
Weighted average shares outstanding:
Basic 65,673 69,468 67,845 69,580
---------- --------- --------- ---------
Diluted 77,620 81,222 79,778 82,029
---------- --------- --------- ---------
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)(Unaudited)
December 31, December 31,
2006 2005
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 138,623 $ 107,057
Accounts receivable, net 167,502 142,782
Inventories, net 135,928 103,837
Prepaid expenses and other current assets 29,155 33,153
Deferred income taxes, net 19,460 18,709
------------ ------------
Total current assets 490,668 405,538
Property and equipment, net 92,156 59,479
Deferred income taxes, net 3,369 8,415
Goodwill 159,802 158,065
Intangible assets, net 40,917 46,901
Other assets 15,116 15,981
------------ ------------
$ 802,028 $ 694,379
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 45,500 $ --
Accounts payable 40,608 34,477
Deferred revenue 13,709 10,297
Accrued payroll and related liabilities 24,030 20,374
Accrued product warranties 5,174 5,059
Advance payments from customers 10,064 5,013
Other current liabilities 12,149 11,626
Accrued income taxes 10,749 3,148
Current portion of long-term debt 7 56
------------ ------------
Total current liabilities 161,990 90,050
Long-term debt 207,024 206,155
Deferred tax liability, net 2,392 10,779
Pension and other long-term liabilities 19,607 18,413
Commitments and contingencies
Shareholders equity 411,015 368,982
------------ ------------
$ 802,028 $ 694,379
============ ============
Contact Information: Company Contact:
Tony Trunzo
+1 503.498.3547
www.flir.com