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Exhibit 99.1
Company contact:
FLIR Systems, Inc.
Scott Hibbs
(503) 372-6127
www.flir.com
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FLIR Systems Announces Second Quarter Financial Results
PORTLAND, Ore. - August 14, 2000 -- FLIR Systems, Inc. (Nasdaq: FLIRE)
today reported revenue for the second quarter ended June 30, 2000 of $52.9
million, an increase of 14 percent as compared to revenue of $46.3 million for
the second quarter of 1999. The Company reported a net loss of $7.3 million, or
$0.50 per share, in the second quarter of 2000, compared to net income of $0.9
million, or $0.07 per share, in the second quarter of last year.
The loss in the second quarter of 2000 included charges totaling $6.9
million, or $0.48 per share, to adjust accounting entries from prior years.
These charges, identified during the course of the review of second quarter
results, relate to cost accumulation entries for inventory, research and
development costs and other costs.
The results for the second quarter of 2000 also included a charge of
approximately $0.5 million, or $0.03 per share, associated with a workforce
reduction program announced by the Company at the end of June. The Company has
implemented cost reduction initiatives, including a workforce reduction, that
are expected to yield annualized cost savings of approximately $10 million
beginning in the third quarter of 2000.
"We are pleased with our revenue growth in the second quarter over the same
period last year," said John Hart, acting President and Chief Executive Officer
of FLIR Systems, Inc. "With a current sales order backlog of approximately $62
million, we expect to continue to report increasing quarterly revenues during
the second half of the year. However, our operational cost structure is wholly
unacceptable. In addition to identifying and correcting the accounting problems
of the past, FLIR's new management team is continuing a comprehensive financial
and operational review of every aspect of our business, and we are committed to
substantially reducing our costs and restructuring the Company to ensure
profitable growth going forward," Hart said.
(more)
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FLIR Systems Announces First Quarter Results
June 30, 2000
Page Two
Forward-Looking Statements
This release contains statements, including statements regarding the Company's
expectations as to cost savings beginning in the third quarter of 2000 and
revenue growth in the second half of 2000 that are forward-looking statements
within the meaning of the Securities Litigation Reform Act of 1995. These
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,
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 the
following: the effectiveness of 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
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(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 Six Months Ended
June 30, June 30,
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
2000 1999 2000 1999
-------------- ------------------------------- --------------
Revenue:
Commercial............................ $25,744 $27,245 $ 51,222 $ 55,231
Government............................ 27,147 19,071 37,497 29,906
-------------- ------------------------------- --------------
52,891 46,316 88,719 85,137
Cost of goods sold.................... 28,914 21,571 45,092 60,398
Research and development.............. 9,514 6,836 16,435 13,813
Selling and other operating costs..... 18,906 14,861 35,751 29,918
Combination costs..................... -- 974 1,217 4,628
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57,334 44,242 98,495 108,757
Earnings (loss) from operations .... (4,443) 2,074 (9,776) (23,620)
Interest expense...................... 2,753 981 4,846 2,207
Other expense (income) - net.......... 67 (204) (15) (222)
-------------- ------------------------------- --------------
Earnings (loss) before income taxes. (7,263) 1,297 (14,607) (25,605)
Income tax provision (benefit)........ -- 367 (1,836) 367
-------------- ------------------------------- --------------
Net earnings (loss)................... $(7,263) $ 930 $(12,771) $(25,972)
============== =============================== ==============
Net earnings (loss) per share:
Basic................................. $(0.50) $0.07 $(0.88) $(1.83)
============== =============================== ==============
Diluted............................... $(0.50) $0.06 $(0.88) $(1.83)
============== =============================== ==============
Weighted average shares outstanding:
Basic................................. 14,461 14,197 14,437 14,163
============== =============================== ==============
Diluted............................... 14,461 14,471 14,437 14,163
============== =============================== ==============
</TABLE>
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FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands, except share amounts)
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
June 30, December 31,
2000 1999
------------------- -------------------
(Unaudited)
Current assets:
Cash and cash equivalents............................... $ 6,627 $ 4,255
Accounts receivable, net................................ 43,481 57,777
Inventories............................................. 67,559 64,374
Prepaid expenses........................................ 3,617 6,040
Deferred income taxes................................... 9,887 7,216
------------------- -------------------
Total current assets................................ 131,171 139,662
Property and equipment, net................................. 19,160 20,796
Deferred income taxes, net.................................. 16,499 16,499
Intangible assets, net...................................... 17,316 17,932
Other assets................................................ 610 1,829
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$184,756 $196,718
=================== ===================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable........................................... $ 96,305 $ 81,247
Accounts payable........................................ 12,307 22,128
Accrued payroll and other liabilities................... 19,175 21,474
Accrued income taxes.................................... 1,464 3,207
Current portion of long-term debt....................... 947 1,084
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Total current liabilities........................... 130,198 129,140
Long-term debt.............................................. 1,067 1,497
Pension liability........................................... 3,759 3,879
Shareholders' equity........................................ 49,732 62,202
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$184,756 $196,718
=================== ===================
</TABLE>
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