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Exhibit 99.1
Company contact:
Steve Bailey
FLIR Systems, Inc.
(503) 684-3731
www.flir.com
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FLIR SYSTEMS ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
PORTLAND, Ore. - November 15, 2000 -- FLIR Systems, Inc. (NASDAQ:FLIR)
today announced financial results for the third quarter ended September 30, 2000
and restated results for the third quarter ended September 30, 1999. The
financial statements attached hereto and the financial statements and notes set
forth in the Company's Quarterly Report on Form 10-Q for the period ended
September 30, 2000 reflect the restatement. Financial results for the 1999
fiscal year were not affected by such restatement.
For the third quarter ended September 30, 2000, the Company reported a net
loss of $18.6 million, or $1.28 per share, compared to a net loss of $39,000, or
$0.00 per share, in the third quarter of 1999. The loss in the third quarter of
2000 included charges totaling $12.7 million and year to date tax adjustments of
$2.4 million, or $1.04 per share. Excluding these items, the Company had an
operating loss of $3.5 million for the quarter, including interest costs of $2.8
million, on revenues of $38.5 million. The $12.7 million charges were to adjust
inventory carrying values and record other expenses associated with streamlining
the Company's manufacturing and corporate operations. These charges are part of
the Company's recently completed realignment of its operations to focus on
higher margin products, eliminate aged or lower margin products, improve
manufacturing efficiencies and cash flow and reduce production and distribution
costs.
The cost reduction initiatives implemented to date are expected to yield
annualized cost savings of approximately $14 million beginning in the quarter
just reported. The Company generated $2.7 million in cash from operating
activities in the third quarter of 2000, which compares to negative cash flow
from operating activities of $1.0 million in the second quarter of 2000 and the
third quarter of 1999.
Revenue for the third quarter ended September 30, 2000 totaled $38.5
million, compared to revenue of $47.0 million for the third quarter of 1999.
The decline in revenue was the result of a combination of factors including
delays in orders in anticipation of the introduction of new handheld commercial
thermography products, delays in international shipments of the Company's
handheld commercial thermography products due to delays in obtaining U.S. export
licenses, the impact of currency translations on sales in Europe and the timing
of deliveries of certain government programs.
(more)
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FLIR SYSTEMS ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
November 15, 2000
Page Two
"We are obviously not at all pleased with our financial results for the
third quarter, which reflect additional actions the Company has taken to realign
its operations, eliminate lower margin products, improve manufacturing
efficiencies and to reduce production and distribution costs," said Earl Lewis,
the Company's newly appointed President and Chief Executive Officer.
"The steps the Company has taken over the past nine months have been
neither pleasant nor easy. But they have been a necessary start to turning this
Company around in order to first achieve profitability and then consistent
growth. We have made demonstrable progress in reducing our costs, generating
positive cash flow, building new business relationships and in organizing our
Company around our two businesses, Government and Thermography. With order
backlog exceeding $56 million and excellent prospects for many of our new
products, we expect improved financial results in Q4 and beyond," Lewis
concluded.
Forward-Looking Statements
This release contains statements that are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, which 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, uncertainties and
assumptions 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 those described
above and the following: the effectiveness of the cost reduction initiatives
undertaken by the Company, changes in demand for the company's products, product
mix, the timing of customer orders and deliveries, the impact of competitive
products and pricing, constraints on supplies of critical components, excess or
shortage of production capacity, actual purchases under agreements, the amount
and availability of government procurement funds, difficulties encountered in
the integration of acquired businesses 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.
About FLIR Systems
FLIR Systems, Inc. is a world leader in the design, manufacture and
marketing of thermal imaging and broadcast camera systems for a wide variety of
commercial and government 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 STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
-------- -------- -------- --------
(Restated) (Restated)
<S> <C> <C> <C> <C>
Revenue:
Commercial................................... $ 21,113 $ 27,093 $ 72,335 $ 78,832
Government................................... 17,426 19,914 54,923 53,312
-------- -------- -------- --------
38,539 47,007 127,258 132,144
Cost of goods sold............................. 27,427 21,576 72,519 81,974
Research and development....................... 6,816 6,354 23,251 20,167
Selling and other operating costs.............. 17,792 16,466 53,543 46,384
Combination costs.............................. -- 524 1,217 5,152
-------- -------- -------- --------
52,035 44,920 150,530 153,677
Earnings (loss) from operations........... (13,496) 2,087 (23,272) (21,533)
Interest expense............................... 2,772 1,576 7,619 3,579
Other income - net............................. (242) -- (258) (18)
-------- -------- -------- --------
Earnings (loss) before income taxes....... (16,026) 511 (30,633) (25,094)
Income tax provision........................... 2,569 550 733 917
-------- -------- -------- --------
Net loss....................................... $(18,595) $ (39) $(31,366) $(26,011)
======== ======== ======== ========
Net loss per share:
Basic........................................ $ (1.28) $ (0.00) $ (2.17) $ (1.83)
======== ======== ======== ========
Diluted...................................... $ (1.28) $ (0.00) $ (2.17) $ (1.83)
======== ======== ======== ========
Weighted average shares outstanding:
Basic........................................ 14,484 14,311 14,452 14,213
======== ======== ======== ========
Diluted...................................... 14,484 14,311 14,452 14,213
======== ======== ======== ========
</TABLE>
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FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands, except share amounts)
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
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<S> <C> <C>
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents................. $ 5,648 $ 4,255
Accounts receivable, net.................. 36,627 57,777
Inventories............................... 59,256 64,374
Prepaid expenses.......................... 3,076 6,040
Deferred income taxes..................... 9,887 7,216
-------- --------
Total current assets................... 114,494 139,662
Property and equipment, net................. 17,099 20,796
Deferred income taxes, net.................. 16,710 16,499
Intangible assets, net...................... 16,976 17,932
Other assets................................ 654 1,829
-------- --------
$165,933 $196,718
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable............................. $ 96,945 $ 81,247
Accounts payable.......................... 11,647 22,128
Accrued payroll and other liabilities..... 21,991 21,474
Accrued income taxes...................... 1,356 3,207
Current portion of long-term debt......... 978 1,084
-------- --------
Total current liabilities.............. 132,917 129,140
Long-term debt.............................. 780 1,497
Pension liability........................... 3,471 3,879
Shareholders' equity........................ 28,765 62,202
-------- --------
$165,933 $196,718
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</TABLE>
