EX-99.1 3 dex991.htm PRESS RELEASE ISSUED ON OCTOBER 17, 2002 Press Release Issued on October 17, 2002
 
Exhibit 99.1
 
LOGO
 
NEWS RELEASE
 
Company contact:
Steve Bailey
FLIR Systems, Inc.
(503) 684-3731
www.flir.com
              
Investor Contact:
Neil Berkman Associates
(310) 277-5162
info@BerkmanAssociates.com
 
Company Authorized To Repurchase Up To 1.5 Million Shares
 
FLIR Systems Announces Record Third Quarter Financial
Results; Increases Earnings Guidance For 2002
 
Net Earnings Increase 73% On 36% Increase In Revenue
Cash From Operations Reaches $23 Million
 
PORTLAND, Ore.—October 17, 2002—FLIR Systems, Inc. (NASDAQ:FLIR) announced today that net earnings for the third quarter ended September 30, 2002 increased 73% to a third quarter record $10.7 million, or $0.60 per diluted share. This compares to net earnings for the third quarter of 2001 of $6.2 million, or $0.38 per diluted share. Revenue increased 36% to a third quarter record $64.5 million from $47.5 million for the same period last year.
 
For the nine months, 2002 net earnings increased 84% to $28.9 million, or $1.62 per diluted share, from $15.7 million, or $1.01 per diluted share, for the nine months of 2001. Revenue for the nine month period increased 25% to $186.2 million from $149.4 million for the same period last year.
 
The increase in revenue for the third quarter of 2002 reflected higher sales of FLIR’s imaging products, particularly its airborne and ground-based imaging systems, which increased 48% over the same period last year, and an increase in sales of the Company’s thermography products, which increased 19% over the same period last year. Gross margins were 53% compared to 55% for the same period last year. Earnings from operations increased 44% to $12.8 million, or 20% of revenue, for the 2002 third quarter compared to $8.9 million, or 19% of revenue, for the third quarter of 2001.
 
“In addition to excellent revenue and earnings growth from both our Imaging and Thermography Divisions for the third quarter, we also achieved a 20 percent operating margin and generated a record $23 million in cash from operations, underscoring the strength of our balance sheet. This puts us in an excellent position as we enter the fourth quarter and 2003,” said FLIR President and CEO Earl R. Lewis.
 
Announces Authorization To Repurchase Shares
 
The Company also announced that the Board of Directors has approved the repurchase of up to 1.5 million shares of FLIR common stock from time to time in open market or private transactions at the sole discretion of management. “In the interests of building value for our shareholders, we believe that it makes sense for the Company to have the flexibility to repurchase shares whenever we see an opportunity to do so on favorable terms,” Lewis said.
 
(more)
 
The Forward Looking Infrared Company
FLIR Systems, Inc. – 16505 SW 72nd Avenue – Portland, OR 9722 – USA
Telephone:  +1(800) 322 3731 – www.flir.com

 
FLIR Systems Announces Record Third Quarter Financial Results; Authorizes
Stock Repurchase Program
October 17, 2002
 
Increases Earnings Guidance for 2002
 
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
 
Lewis concluded, “Based on FLIR’s performance during the first nine months of the year and our strong backlog, we are increasing our earnings guidance for 2002 to approximately $2.30 per diluted share. We expect revenue for the year to be approximately $260 million.” In its first quarter earnings press release dated April 24, 2002, the Company provided earnings guidance for 2002 in the range of $2.20 to $2.25 per diluted share and revenue guidance in the range of $250 to $260 million.
 
Forward-Looking Statements
 
The statements in this release by Earl R. Lewis are forward-looking statements that 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 applicable export regulations, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, actual purchases under agreements, the availability and amount of government contracts and other risks discussed from time to time in the Company’s Securities and Exchange Commission filings and reports, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2001. 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 (8:00 AM PDT) today. A simultaneous Web Cast of the conference call may be accessed online at http://www.companyboardroom.com/company.asp?client=cb&ticker=flir or from the Investor Relations page at http://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 # 20679609 beginning after 1:00 PM EDT (10:00 AM PDT).
 
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
 
(tables attached)
 

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FLIR SYSTEMS, INC.
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
 
 
    
Three Months Ended
September 30,
     
Nine Months Ended
June 30,
  
    
2002
     
2001
     
2002
     
2001
  
Revenue
   
$
64,455
 
   
$
47,499
 
   
$
186,147
 
   
$
149,366
 
Cost of goods sold
   
 
30,632
 
   
 
21,537
 
   
 
88,208
 
   
 
67,418
 
    
  
  
  
Gross profit
   
 
33,823
 
   
 
25,962
 
   
 
97,939
 
   
 
81,948
 
Operating expenses:
                                    
Research and development
   
 
6,211
 
   
 
6,053
 
   
 
19,759
 
   
 
18,793
 
Selling, general and administrative
   
 
14,794
 
   
 
11,005
 
   
 
43,374
 
   
 
37,857
 
    
  
  
  
Total operating expenses
   
 
21,005
 
   
 
17,058
 
   
 
63,133
 
   
 
56,650
 
Earnings from operations
   
 
12,818
 
   
 
8,904
 
   
 
34,806
 
   
 
25,298
 
Interest expense
   
 
390
 
   
 
2,846
 
   
 
1,533
 
   
 
8,304
 
Other income, net
   
 
(101
)
   
 
(180
)
   
 
(697
)
   
 
(418
)
    
  
  
  
Earnings before income taxes
   
 
12,529
 
   
 
6,238
 
   
 
33,970
 
   
 
17,412
 
Income tax provision
   
 
1,879
 
   
 
65
 
   
 
5,096
 
   
 
1,741
 
    
  
  
  
Net earnings
   
$
10,650
 
   
$
6,173
 
   
$
28,874
 
   
$
15,671
 
    
  
  
  
Net earnings per share:
                                    
Basic
   
$
0.63
 
   
$
0.41
 
   
$
1.72
 
   
$
1.06
 
    
  
  
  
Diluted
   
$
0.60
 
   
$
0.38
 
   
$
1.62
 
   
$
1.01
 
    
  
  
  
Weighted Average shares outstanding:
                                    
Basic
   
 
16,875
 
   
 
15,130
 
   
 
16,774
 
   
 
14,802
 
    
  
  
  
Diluted
   
 
17,757
 
   
 
16,223
 
   
 
17,794
 
   
 
15,587
 
    
  
  
  

3

 
FLIR SYSTEMS, INC.
 
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
    
September 30,
2002
     
December 31,
2001
  
    
(Unaudited)
         
ASSETS
                  
Current assets:
                  
Cash and cash equivalents
   
$
27,720
 
   
$
15,514
 
Accounts receivable, net
   
 
52,613
 
   
 
57,965
 
Inventories
   
 
49,533
 
   
 
46,560
 
Prepaid expenses and other current assets
   
 
15,083
 
   
 
11,548
 
Deferred income taxes
   
 
8,834
 
   
 
8,834
 
    
  
Total current assets
   
 
153,783
 
   
 
140,421
 
Property and equipment, net
   
 
12,879
 
   
 
10,806
 
Deferred income taxes, net
   
 
15,087
 
   
 
15,087
 
Intangible assets, net
   
 
16,676
 
   
 
16,811
 
Other assets
   
 
2,962
 
   
 
1,913
 
    
  
    
$
201,387
 
   
$
185,038
 
    
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                  
Current liabilities:
                  
Notes payable
   
$
—  
 
   
$
23,370
 
Accounts payable
   
 
18,929
 
   
 
18,428
 
Deferred revenue
   
 
5,314
 
   
 
5,314
 
Accrued payroll and other liabilities
   
 
27,091
 
   
 
22,538
 
Accrued income taxes
   
 
3,165
 
   
 
747
 
Current portion of capital lease obligations
   
 
3
 
   
 
584
 
    
  
Total current liabilities
   
 
54,502
 
   
 
70,981
 
Pension and other long-term liabilities
   
 
6,432
 
   
 
9,209
 
Commitments and contingencies
                  
 
Shareholders’ equity:
                  
Preferred stock, $0.01 par value, 10,000
shares authorized; no shares issued at
September 30, 2002, and December 31, 2001
   
 
—  
 
   
 
—  
 
Common stock, $0.01 par value, 30,000 shares
authorized, 16,887 and 16,555 shares issued at
September 30, 2002, and December 31, 2001, respectively
   
 
169
 
   
 
165
 
Additional paid-in capital
   
 
200,709
 
   
 
194,338
 
Accumulated deficit
   
 
(55,990
)
   
 
(84,864
)
Accumulated other comprehensive loss
   
 
(4,435
)
   
 
(4,791
)
    
  
Total shareholders’ equity
   
 
140,453
 
   
 
104,848
 
    
  
    
$
201,387
 
   
$
185,038
 
    
  

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