WILSONVILLE, OR--(Marketwired - Feb 6, 2015) - FLIR Systems, Inc. (
Revenue from the Surveillance segment was $150.1 million, an increase of 8% from the fourth quarter results last year. The Instruments segment contributed $103.5 million of revenue during the fourth quarter, up 2% from the prior year. The OEM & Emerging Markets segment had $58 million of revenue, an increase of 8% over the prior year. FLIR's Security segment recorded revenue of $56.4 million in the fourth quarter, up 35% from the prior year. Revenue from the Maritime segment was $40.1 million, and was down 6% over the fourth quarter of 2013. The Detection segment contributed $26.2 million of revenue, an increase of 19% from the prior year.
For the full year, revenue was $1,530.7 million, up 2% compared to $1,496.4 million for the year ended December 31, 2013. Operating income for 2014 was $259.2 million compared to $240.7 million in 2013. Net income for 2014 was $200.3 million, or $1.39 per diluted share, compared with 2013 net income of $177 million, or $1.22 per diluted share. Cash provided by operations was $226.2 million during the year.
FLIR's backlog of firm orders for delivery within the next twelve months was approximately $547 million as of December 31, 2014, a decrease of $32 million, or 6%, during the quarter and an increase of $57 million, or 12%, compared to the end of 2013.
"We are pleased with the results of the fourth quarter and full year 2014 as they further demonstrate the progress we have made in reaching our goal of becoming 'the world's sixth sense.' During the year we introduced several new products that revolutionized our industry, opened up large consumer markets, and expanded the accessibility of our advanced sensor technologies to a much broader set of people. We were very successful in realigning our operations to better serve our existing and future customers while also reducing our operating costs. And we deployed our capital efficiently and broadly to best position us for growth and to best serve our shareholders," said Andy Teich, President and CEO of FLIR. "Our innovation engine and initiatives for continuous improvement resulted in increased revenue and meaningful growth in profitability during 2014. There remains more to be accomplished and we look forward to executing our strategies for sustained long term growth."
Revenue and Earnings Outlook for 2015
FLIR also announced today that it currently expects revenue in 2015 to be in the range of $1.55 billion to $1.6 billion and net earnings to be in the range of $1.60 to $1.70 per diluted share.
Dividend Increase and Declaration
FLIR's Board of Directors has approved a quarterly cash dividend of $0.11 per share on FLIR common stock, an increase of 10% over the previous paid quarterly dividend of $0.10 per share. The Board of Directors has declared the dividend payable March 6, 2015, to shareholders of record as of close of business on February 20, 2015.
Share Repurchase Program
Also today, FLIR announced that its Board of Directors approved a new share repurchase program that authorizes the repurchase of up to 15 million shares from time to time over the next two years. This authorization represents approximately 11% of FLIR's outstanding common stock as of December 31, 2014.
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 a link in the Events & Presentations 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. A summary presentation of fourth quarter financial results and operating highlights is also available online from a link in the Events & Presentations section of www.FLIR.com/investor. Summary fourth quarter and historical financial data may be accessed online from the Financial Info Database link at 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. FLIR's advanced systems and components are used for a wide variety of thermal imaging, situational awareness, and security applications, including airborne and ground-based surveillance, condition monitoring, navigation, recreation, research and development, manufacturing process control, search and rescue, drug interdiction, transportation safety, border and maritime patrol, environmental monitoring, and chemical, biological, radiological, nuclear, and explosives (CBRNE) threat detection. For more information, visit FLIR's web site at www.FLIR.com.
Forward-Looking Statements
Statements in this release by Andy Teich and the statements in the section captioned "Revenue and Earnings Outlook for 2015" above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates," or similar expressions) should be considered to be forward looking statements. Such statements are based on current expectations, estimates, and projections about FLIR'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 FLIR's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, the impact of FLIR's continuing compliance with U.S. export control laws and regulations and similar laws and regulations, the timely receipt of any necessary 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 FLIR to act as a federal contractor, the amount and availability of appropriated government procurement funds and other risks discussed from time to time in filings and reports filed with the Securities and Exchange Commission. 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 FLIR 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, | |||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||
| Revenue | $ | 434,366 | $ | 400,319 | $ | 1,530,654 | $ | 1,496,372 | ||||||||||
| Cost of goods sold | 219,629 | 210,228 | 780,281 | 759,362 | ||||||||||||||
| Gross profit | 214,737 | 190,091 | 750,373 | 737,010 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 36,096 | 38,425 | 142,751 | 147,696 | ||||||||||||||
| Selling, general and administrative | 90,258 | 88,033 | 331,995 | 322,739 | ||||||||||||||
| Restructuring expenses | 963 | 25,832 | 16,383 | 25,832 | ||||||||||||||
| Total operating expenses | 127,317 | 152,290 | 491,129 | 496,267 | ||||||||||||||
| Earnings from operations | 87,420 | 37,801 | 259,244 | 240,743 | ||||||||||||||
| Interest expense | 3,593 | 3,731 | 14,593 | 14,091 | ||||||||||||||
| Interest income | (471 | ) | (337 | ) | (1,405 | ) | (1,058 | ) | ||||||||||
| Other expense (income), net | 1,514 | (741 | ) | (3,473 | ) | (1,276 | ) | |||||||||||
| Earnings from continuing operations before income taxes | 82,784 | 35,148 | 249,529 | 228,986 | ||||||||||||||
| Income tax provision | 10,032 | 6,413 | 49,268 | 51,971 | ||||||||||||||
| Net earnings | $ | 72,752 | $ | 28,735 | $ | 200,261 | $ | 177,015 | ||||||||||
| Earnings per share: | ||||||||||||||||||
| Basic | $ | 0.52 | $ | 0.20 | $ | 1.42 | $ | 1.24 | ||||||||||
| Diluted | $ | 0.51 | $ | 0.20 | $ | 1.39 | $ | 1.22 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 140,634 | 141,250 | 141,143 | 142,446 | ||||||||||||||
| Diluted | 142,520 | 143,441 | 143,569 | 144,595 | ||||||||||||||
| FLIR SYSTEMS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands)(Unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 531,374 | $ | 542,476 | ||||
| Accounts receivable, net | 359,397 | 286,573 | ||||||
| Inventories | 320,605 | 344,719 | ||||||
| Prepaid expenses and other current assets | 93,691 | 97,574 | ||||||
| Deferred income taxes, net | 33,232 | 38,389 | ||||||
| Total current assets | 1,338,299 | 1,309,731 | ||||||
| Property and equipment, net | 247,094 | 234,041 | ||||||
| Deferred income taxes, net | 25,745 | 17,883 | ||||||
| Goodwill | 553,335 | 575,701 | ||||||
| Intangible assets, net | 133,212 | 154,195 | ||||||
| Other assets | 61,239 | 51,808 | ||||||
| $ | 2,358,924 | $ | 2,343,359 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 98,173 | $ | 85,730 | ||||
| Deferred revenue | 27,878 | 28,844 | ||||||
| Accrued payroll and related liabilities | 62,065 | 62,069 | ||||||
| Accrued expenses | 51,810 | 39,316 | ||||||
| Accrued income taxes | 4,586 | 663 | ||||||
| Other current liabilities | 54,784 | 44,893 | ||||||
| Current portion long-term debt | 15,000 | 15,000 | ||||||
| Total current liabilities | 314,296 | 276,515 | ||||||
| Long-term debt | 357,986 | 372,528 | ||||||
| Deferred income taxes | 14,067 | 12,255 | ||||||
| Accrued income taxes | 11,096 | 19,996 | ||||||
| Other long-term liabilities | 51,706 | 48,685 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity | 1,609,773 | 1,613,380 | ||||||
| $ | 2,358,924 | $ | 2,343,359 | |||||
| FLIR SYSTEMS, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
| (In thousands)(Unaudited) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||
| Net earnings | $ | 72,752 | $ | 28,735 | $ | 200,261 | $ | 177,015 | ||||||||||
| Income items not affecting cash: | ||||||||||||||||||
| Depreciation and amortization | 12,967 | 17,818 | 57,245 | 62,796 | ||||||||||||||
| Deferred income taxes | (2,214 | ) | (2,670 | ) | (1,242 | ) | (2,709 | ) | ||||||||||
| Stock-based compensation arrangements | 6,782 | 7,150 | 30,788 | 27,823 | ||||||||||||||
| Gain on sale of certain optics assets | - | - | (4,129 | ) | - | |||||||||||||
| Other non-cash items | (4,032 | ) | 3,080 | (791 | ) | 4,564 | ||||||||||||
| Changes in operating assets and liabilities | (23,411 | ) | 51,061 | (55,888 | ) | 85,476 | ||||||||||||
| Cash provided by operating activities | 62,844 | 105,174 | 226,244 | 354,965 | ||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Additions to property and equipment, net | (20,333 | ) | (15,065 | ) | (61,262 | ) | (52,061 | ) | ||||||||||
| Business acquisitions, net of cash acquired | - | - | - | (20,073 | ) | |||||||||||||
| Proceeds from sale of certain optics assets | - | - | 12,000 | - | ||||||||||||||
| Cash used by investing activities | (20,333 | ) | (15,065 | ) | (49,262 | ) | (72,134 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||
| Proceeds from long term debt | - | - | - | 150,000 | ||||||||||||||
| Repayments of long term debt | (3,750 | ) | (3,750 | ) | (15,000 | ) | (11,250 | ) | ||||||||||
| Repurchase of common stock | (62,614 | ) | (29,028 | ) | (139,238 | ) | (162,078 | ) | ||||||||||
| Dividends paid | (14,102 | ) | (12,709 | ) | (56,513 | ) | (51,404 | ) | ||||||||||
| Proceeds from shares issued pursuant to stock-based compensation plans | 13,413 | 2,698 | 47,581 | 8,650 | ||||||||||||||
| Excess tax benefit of stock options exercised | 3,456 | 141 | 11,161 | 1,069 | ||||||||||||||
| Other financing activities | 15 | 172 | (18 | ) | (1,100 | ) | ||||||||||||
| Cash used by financing activities | (63,582 | ) | (42,476 | ) | (152,027 | ) | (66,113 | ) | ||||||||||
| Effect of exchange rate changes on cash | (12,928 |
) | 2,644 |
(36,057 |
) | 4,019 |
||||||||||||
| Net increase (decrease) in cash and cash equivalents | (33,999 | ) | 50,277 | (11,102 | ) | 220,737 | ||||||||||||
| Cash and cash equivalents: | ||||||||||||||||||
| Beginning of period | 565,373 | 492,199 | 542,476 | 321,739 | ||||||||||||||
| End of period | $ | 531,374 | $ | 542,476 | $ | 531,374 | $ | 542,476 | ||||||||||
| FLIR SYSTEMS, INC. | |||||||||||||||||
| REVENUE AND EARNINGS FROM OPERATIONS BY SEGMENT | |||||||||||||||||
| (In thousands)(Unaudited) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||
| REVENUE | |||||||||||||||||
| Surveillance | $ | 150,109 | $ | 138,902 | $ | 492,213 | $ | 531,338 | |||||||||
| Instruments | 103,540 | 101,519 | 354,124 | 337,531 | |||||||||||||
| OEM and Emerging Markets | 57,970 | 53,504 | 226,865 | 207,204 | |||||||||||||
| Security | 56,398 | 41,673 | 179,090 | 141,005 | |||||||||||||
| Maritime | 40,103 | 42,638 | 192,636 | 189,076 | |||||||||||||
| Detection | 26,246 | 22,083 | 85,726 | 90,218 | |||||||||||||
| $ | 434,366 | $ | 400,319 | $ | 1,530,654 | $ | 1,496,372 | ||||||||||
| EARNINGS (LOSS) FROM OPERATIONS | |||||||||||||||||
| Surveillance | $ | 43,683 | $ | 24,284 | $ | 113,048 | $ | 122,094 | |||||||||
| Instruments | 34,277 | 17,692 | 98,954 | 81,070 | |||||||||||||
| OEM and Emerging Markets | 18,978 | 9,271 | 64,423 | 52,724 | |||||||||||||
| Security | 10,310 | 5,244 | 24,871 | 17,340 | |||||||||||||
| Maritime | 1,335 | 1,840 | 24,494 | 22,287 | |||||||||||||
| Detection | 5,438 | (1,658 | ) | 10,958 | 8,888 | ||||||||||||
| Other | (26,601 | ) | (18,872 | ) | (77,504 | ) | (63,660 | ) | |||||||||
| $ | 87,420 | $ | 37,801 | $ | 259,244 | $ | 240,743 | ||||||||||
Contact Information:
Investor Relations
Shane Harrison
503-498-3547