FLIR Systems Announces Fourth Quarter and Full Year 2012 Financial Results

FLIR Systems Announces Fourth Quarter and Full Year 2012 Financial Results 
Fourth Quarter EPS Increases 8%; Expects 2013 EPS to Rise 8% to 14%;
Announces 29% Increase in Dividend and 25 Million Share Repurchase
Authorization 
PORTLAND, OR -- (Marketwire) -- 02/07/13 --   FLIR Systems, Inc.
(NASDAQ: FLIR) today announced financial results for the fourth
quarter ended December 31, 2012. Revenue was $386.4 million, down 5%
compared to fourth quarter 2011 revenue of $405.2 million. Operating
income in the fourth quarter was $100.1 million, compared to $109.7
million in the fourth quarter of 2011. Fourth quarter 2012 net income
was $77.3 million, or $0.52 per diluted share, compared with net
income of $76.1 million, or $0.48 per diluted share in the fourth
quarter a year ago. Cash provided by operations in the fourth quarter
was $112.9 million. During the quarter, the Company repurchased 4.5
million shares of its common stock at an average price of $18.84 per
share. 
Revenue from the Company's Commercial Systems division decreased 5%
from the fourth quarter of 2011, to $212.8 million. Within the
Commercial Systems division, revenue from the Thermal Vision and
Measurement segment was $180.1 million, a decrease of 5% from the
fourth quarter results last year. The Raymarine segment contributed
$32.7 million of revenue during the fourth quarter, down 7% from the
prior year.  
Revenue from the Company's Government Systems division decreased 4%
from the fourth quarter of 2011, to $173.5 million. Within the
Government Systems division, revenue from the Surveillance segment
was $136.4 million, a decrease of 7% from the fourth quarter of 2011.
Revenue from the Detection segment was $12.8 million, a decrease of
46% compared to the fourth quarter of 2011, and the Integrated
Systems segment contributed $24.4 million of revenue during the
fourth quarter, an increase of 134% from the prior year. 
For the full year, revenue was $1,405.4 million, down 9% compared to
$1,544.1 million for the year ended December 31, 2011. Operating
income for 2012 was $303.3 million, down 3% from $313.2 million in
2011. Net income for 2012 was $222.4 million, or $1.45 per diluted
share, compared with 2011 net income of $221.5 million, or $1.38 per
diluted share. Cash provided by operations during the year was $285.5
million. 
The Company's backlog of firm orders for delivery within the next
twelve months was approximately $520 million as of December 31, 2012,
a decrease of $45 million during the quarter. Backlog in the
Government Systems division was $356 million, decreasing $36 million
during the quarter. Backlog in the Commercial Systems division was
$164 million, down $9 million during the quarter.  
"The fourth quarter was an encouraging end to a 2012 that was focused
on rationalizing our businesses to enhance operating leverage and
prepare us well for 2013," said Earl Lewis, President and CEO of
FLIR. "We saw higher bookings in the fourth quarter versus the prior
year, helping us end 2012 with over $60 million more in order backlog
than 2011. We also reached record operating cash flow for the year,
which allowed us to acquire two very strategically significant
businesses and return a significant amount of capital to our
shareholders through repurchasing 10.5 million of our shares and
distributing $42 million in dividends." 
Revenue and Earnings Outlook for 2013 
 FLIR also announced today
that it expects revenue in 2013 to be in the range of $1.5 billion to
$1.6 billion, an increase of approximately 7% to 14% compared to
2012, and net earnings to be in the range of $1.56 to $1.66 per
diluted share, an increase of approximately 8% to 14% compared to
2012.  
Dividend Increase and Declaration
 FLIR's Board of Directors has
approved a quarterly cash dividend of $0.09 per share on FLIR common
stock, an increase of 29% over the previous paid quarterly dividend
of $0.07 per share. The Board of Directors has declared the dividend
payable March 8, 2013, to shareholders of record as of close of
business on February 19, 2013. 
Share Repurchase Program
 Also today, FLIR announced that its Board
of Directors approved a new share repurchase program that authorizes
up to 25 million shares to be repurchased over the next two years,
replacing the previous program that expires on February 9, 2013. This
authorization represents approximately 17% of FLIR's outstanding
common stock as of December 31, 2012. 
Any purchases made under the repurchase program may be made from time
to time in the open market or through privately negotiated
transactions. All purchases are subject to stock price, market
conditions, corporate and legal requirements, and other factors. The
timing of repurchases and the exact number of shares of common stock
to be purchased will be determined by the Company's management, in
its discretion, and will depend upon market conditions and other
factors. The Company expects to fund the repurchases using the
Company's cash on hand and cash generated from operations. The
program may be extended, suspended, or discontinued at any time. 
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
the year. A simultaneous webcast of the conference call may be
accessed online from 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. Summary fourth 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 2013" 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 agree
ments, 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      Twelve Months Ended  
                                  December 31,            December 31,      
                             ----------------------  ---------------------- 
                                2012        2011        2012        2011    
                             ----------  ----------  ----------  ---------- 
                                                                            
Revenue                      $  386,385  $  405,212  $1,405,358  $1,544,062 
Cost of goods sold              181,104     180,427     673,968     715,458 
                             ----------  ----------  ----------  ---------- 
    Gross profit                205,281     224,785     731,390     828,604 
                                                                            
Operating expenses:                                                         
  Research and development       34,088      34,920     137,762     147,177 
  Selling, general and                                                      
   administrative                71,117      80,197     290,298     368,232 
                             ----------  ----------  ----------  ---------- 
    Total operating expenses    105,205     115,117     428,060     515,409 
                                                                            
    Earnings from operations    100,076     109,668     303,330     313,195 
                                                                            
Interest expense                  2,729       3,175      11,659       5,487 
Interest income                    (509)       (768)     (1,582)     (1,273)
Other expense (income), net         151        (892)      1,341      (2,098)
                             ----------  ----------  ----------  ---------- 
                                                                            
    Earnings from continuing                                                
     operations before                                                      
     income taxes                97,705     108,153     291,912     311,079 
                                                                            
Income tax provision             19,528      31,318      66,556      88,427 
                             ----------  ----------  ----------  ---------- 
                                                                            
    Earnings from continuing                                                
     operations                  78,177      76,835     225,356     222,652 
                                                                            
Loss from discontinued                                                      
 operations, net of tax            (916)       (705)     (2,958)     (1,178)
                             ----------  ----------  ----------  ---------- 
                                                                            
    Net earnings             $   77,261  $   76,130  $  222,398  $  221,474 
                             ==========  ==========  ==========  ========== 
                                                                            
Basic earnings per share:                                                   
  Earnings from continuing                                                  
   operations                $     0.53  $     0.49  $     1.49  $     1.41 
  Discontinued operations         (0.01)      (0.00)      (0.02)      (0.01)
                             ----------  ----------  ----------  ---------- 
    Basic earnings per share $     0.52  $     0.49  $     1.47  $     1.40 
                             ==========  ==========  ==========  ========== 
                                                                            
Diluted earnings per share:                                                 
  Earnings from continuing                                                  
   operations                $     0.52  $     0.49  $     1.47  $     1.38 
  Discontinued operations         (0.01)      (0.00)      (0.02)      (0.01)
                             ----------  ----------  ----------  ---------- 
    Diluted earnings per                                                    
     share                   $     0.52  $     0.48  $     1.45  $     1.38 
                             ==========  ==========  ==========  ========== 
                                                                            
Weighted average shares                                                     
 outstanding:                                                               
  Basic                         148,103     155,647     151,634     158,323 
                             ==========  ==========  ==========  ========== 
  Diluted                       149,419     157,611     153,595     160,851 
                             ==========  ==========  ==========  ========== 
                                                                            
                                                                            
                                                                            
                             FLIR SYSTEMS, INC.                             
                         CONSOLIDATED BALANCE SHEETS                        
                         (In thousands) (Unaudited)                         
                                                                            
                                                   December 31, December 31,
                                                       2012         2011    
                                                   ------------ ------------
                      ASSETS                                                
                                                                            
Current assets:                                                             
  Cash and cash equivalents                        $    321,739 $    440,846
  Accounts receivable, net    
                          335,163      329,581
  Inventories                                           381,378      336,051
  Prepaid expenses and other current assets              96,006      104,285
  Deferred income taxes, net                             30,960       27,443
                                                   ------------ ------------
    Total current assets                              1,165,246    1,238,206
                                                                            
Property and equipment, net                             211,615      186,269
Deferred income taxes, net                               32,223       31,644
Goodwill                                                503,078      498,343
Intangible assets, net                                  140,621      164,440
Other assets                                            124,722       32,338
                                                   ------------ ------------
                                                   $  2,177,505 $  2,151,240
                                                   ============ ============
                                                                            
       LIABILITIES AND SHAREHOLDERS' EQUITY                                 
                                                                            
Current liabilities:                                                        
  Accounts payable                                 $     94,156 $     84,190
  Deferred revenue                                       29,465       28,257
  Accrued payroll and related liabilities                41,506       49,475
  Accrued product warranties                             13,169       13,370
  Advance payments from customers                        12,150       13,219
  Accrued expenses                                       32,772       41,183
  Other current liabilities                               4,331        3,886
  Accrued income taxes                                   11,943        2,161
                                                   ------------ ------------
    Total current liabilities                           239,492      235,741
                                                                            
Long-term debt                                          248,319      247,861
Deferred income taxes                                     7,996       17,237
Accrued income taxes                                     22,812       17,537
Pension and other long-term liabilities                  58,985       53,835
                                                                            
Commitments and contingencies                                               
                                                                            
Shareholders' equity                                  1,599,901    1,579,029
                                                   ------------ ------------
                                                   $  2,177,505 $  2,151,240
                                                   ============ ============
                                                                            
                                                                            
                                                                            
                             FLIR SYSTEMS, INC.                             
                   CONSOLIDATED STATEMENTS OF CASH FLOWS                    
                         (In thousands) (Unaudited)                         
                                                                            
                            Three Months Ended        Twelve Months Ended   
                               December 31,              December 31,       
                         ------------------------  ------------------------ 
                             2012         2011         2012         2011    
                         -----------  -----------  -----------  ----------- 
                                                                            
Cash flows from                                                             
 operating activities:                                                      
  Net earnings           $    77,261  $    76,130  $   222,398  $   221,474 
  Income items not                                                          
   affecting cash:                                                          
    Depreciation and                                                        
     amortization             14,857       16,290       59,715       77,498 
    Deferred income                                                         
     taxes                   (11,539)     (10,291)     (10,940)     (12,195)
    Stock-based                                                             
     compensation                                                           
     arrangements              6,252        5,604       26,250       24,917 
  Other non-cash items         4,522        9,647       (1,810)      12,654 
  Changes in operating                                                      
   assets and                                                               
   liabilities, net of                                                      
   acquisitions               21,521       18,816      (10,068)     (80,457)
                         -----------  -----------  -----------  ----------- 
Cash provided by                                                            
 operating activities        112,874      116,196      285,545      243,891 
                         -----------  -----------  -----------  ----------- 
                                                                            
Cash flows from                                                             
 investing activities:                                                      
  Additions to property                                                     
   and equipment, net        (18,901)     (10,850)     (58,089)     (41,946)
  Business acquisitions,                                                    
   net of cash acquired     (105,909)           -     (105,909)     (27,182)
  Other investments               (2)       1,991       (3,002)       1,991 
                         -----------  -----------  -----------  ----------- 
Cash used by investing                                                      
 activities                 (124,812)      (8,859)    (167,000)     (67,137)
                         -----------  -----------  -----------  ----------- 
                                                                            
Cash flows from                                                             
 financing activities:                                                      
  Proceeds from long                                                        
   term debt, net                  -            -            -      247,708 
  Repurchase of common                                                      
   stock                     (85,185)     (36,286)    (214,195)    (160,669)
  Dividends paid             (10,428)      (9,350)     (42,450)     (38,037)
  Proceeds from shares                                                      
   issued pursuant to                                                       
   stock- based                                                             
   compensation plans          4,080        6,620       11,198       21,706 
  Excess tax benefit of                                                     
   stock options                                                            
   exercised                      53          727        1,284        5,195 
  Other financing                                                           
   activities                    (28)        (140)        (166)        (458)
                         -----------  -----------  -----------  ----------- 
Cash (used) provided by         
                                            
 financing activities        (91,508)     (38,429)    (244,329)      75,445 
                         -----------  -----------  -----------  ----------- 
                                                                            
Effect of exchange rate                                                     
 changes on cash                 696       (2,561)       6,677       (4,490)
                         -----------  -----------  -----------  ----------- 
                                                                            
Net (decrease) increase                                                     
 in cash and cash                                                           
 equivalents                (102,750)      66,347     (119,107)     247,709 
Cash and cash                                                               
 equivalents, beginning                                                     
 of period                   424,489      374,499      440,846      193,137 
                         -----------  -----------  -----------  ----------- 
Cash and cash                                                               
 equivalents, end of                                                        
 period                  $   321,739  $   440,846  $   321,739  $   440,846 
                         ===========  ===========  ===========  =========== 

  
Company Contact:
Shane Harrison
+1 503.498.3547
www.flir.com 
 
 
Press spacebar to pause and continue. Press esc to stop.