FLIR Systems Inc.
) released its fourth-quarter and full year 2012 results. The
company reported earnings from continuing operations of 52 cents,
6.1% above the Zacks Consensus Estimate of 49 cents and 8.3%
above the prior-year earnings of 48 cents a share.
Total revenue was $332.2 million, a decrease of 5% year over
year. Total backlog at the end of Dec. 31 2012, was approximately
$520 million, down $45 million during the quarter.
Commercial Systems division's revenue was $212.8 million in
the quarter, down 5% year over year. Within the Commercial
Systems division, the Thermal Vision and Measurement segment
revenue decreased by 5% to $180.1 million. Commercial Systems'
Raymarine segment revenue was $32.7 million, down 7% year over
Government Systems division's revenue came in at $173.5
million in the quarter, down 4% year over year. The division was
affected by a difficult market environment. Within the division,
the Surveillance segment revenue declined 7% to $136.4 million.
Detection segment revenue was $12.8 million, down 46% while
Integrated Systems segment revenue was $24.4 million, up
Income and Expenses
Operating income for the quarter was $100 million compared
with $109 million in the prior-year period. Selling and general
expense was $71.1 million compared with $80.1 million whereas
research and development expense was $34.1 million compared with
Cash and cash equivalents were $321.7 million at the end of
the quarter with long-term debt of $248.3 million and
shareholders' equity of $1.6 billion.
Cash flow from operations amounted to $112.8 million during
the quarter. The company repurchased 4.5 million shares for
$18.84 per share during the quarter. In addition, the Board of
Directors approved a new share repurchase program authorizing up
to 25 million shares to be repurchased over the next two years,
replacing the previous program that expires on February 9,
Concurrent with its earnings results, the company also
declared a 29% increase in the quarterly cash dividend to 9 cents
per share from 7 cents. The dividend is payable on March 8, 2013,
to shareholders of record as of February 19, 2013.
FLIR Systems expects earnings per share for 2013 to be in the
range of $1.56 to $1.66 per share, reflecting an increase of 8%
to 14% from 2012. Total revenue is expected to be in the range of
$1.5 billion to $1.6 billion, an increase of 7% to 14% from
The year 2012 proved to be a demanding year for FLIR Systems,
for many of its businesses. However, the company used this
difficult environment to improve its business.
FLIR Systems has focused on building a strong backlog of
orders from a global base of customers, shifted selling efforts
from Europe to the Far East. FLIR has rationalized its operating
centers, improved gross margins and introduced strategic pricing
and many efficiency improvements in its businesses.
In addition, FLIR made two strategic acquisitions, which are
expected to be accretive the earnings by 2013.
FLIR and its peers such as
) all carry a Zacks Rank #2 (Buy).
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