) second-quarter 2013 earnings per share (EPS) came in at 35
cents, up 30% from 27 cents in the year-ago-quarter. However, it
missed the Zacks Consensus Estimate by 2 cents. Moreover, net
income rose 22% to $50.2 million year over year.
The solid growth in earnings was aided by robust performances
from Traficon and Lorex, the two businesses which the company
recently acquired. The Integrated Systems division also
contributed to FLIR System's results. Moreover, margin
improvement in the Commercial Systems division aided bottom-line
Total revenue was $389.3 million in the reported quarter, up
15% year over year, beating the Zacks Consensus Estimate of $367
million. The increase was driven by higher sales in both its
divisions, with Commercial Systems delivering the best
performance in five quarters.
Total backlog at the end of the quarter was approximately $528
million, the highest quarterly bookings in five years, which
marked a year-over-year increase of $30 million and a
quarter-over-quarter increase of $23 million.
division's revenues were $221.8 million, up 17% year over year.
Within the Commercial Systems division, the Thermal Vision and
Measurementsegment (TVM) revenues increased 23% to $175 million.
In Commercial Systems, the Raymarine segment's revenues were
$46.9 million, down 1% year over year.
Backlog in the Commercial Systems division was $190 million,
up $18 million and $25 million from the prior quarter the prior
year, respectively. The Commercial Systems division bookings in
the reported quarter increased 19% year over year. The TVM
segment's bookings increased 24% year over year, while Raymarine
bookings dropped nearly 1%. TVM's thermography line of business
reported a 10% decline in bookings from the previous year,
primarily due to weak European economy. However, TVM's Original
Equipment Manufacture (OEM) line of business reported a
year-over-year 10% increase in bookings, driven by strong orders
from military OEMs.
division's revenues came in at $167.5 million, rising 13% year
over year. The increase was mainly aided by Integrated Systems, a
segment within Government Systems, which recorded a
160%year-over-year revenue rise to $34.5 million. The increase
was mainly due to impressive deliveries to the U.S. Customs and
Border Protection, under the MSC program.
However, the strong performance in Integrated Systems was
partially offset by the Surveillance and Detection segments, the
revenues of which fell 1% to $118.6 million and 9% to $14.4
Backlog for the Government Systems division at the end of the
quarter was $339 million, rising $5 million from the prior year.
The backlog from the Surveillance segment increased 8% year over
year to $269 million, while Integrated System's backlog declined
by $18 million.
Income and Expenses
Operating income in the reported quarter was $70.3 million
compared with $60.7 million in second-quarter 2012. Selling and
general expenses increased 11.7% to $80.2 million. Research and
development expense was $39.6 million compared with $37.5 million
in the comparable year-ago quarter.
Balance Sheet & Cash Flow
Cash and cash equivalents improved significantly to $492.4
million compared with $321.7 at year-end 2012. Long-term debt was
$379.8 million, compared with $248.3 million at the end of
Cash flow from operations was at a quarterly high of $134.3
million, compared with $77.3 million in the comparable year-ago
Share Repurchase & Dividend
For the first half of 2013, the company repurchased 4.5
million shares at an average price of $26.05 per share. However,
during the quarter the company repurchased 636,000 shares. The
company declared a quarterly cash dividend of 9 cents per share,
payable on Sep 6, 2013, to shareholders of record as of Aug 19,
Along with the earnings release, management reaffirmed its
2013 guidance. FLIR Systems expects earnings per share for 2013
to be in the range of $1.56-$1.66, reflecting an increase of
8%-14% from 2012. Total revenue is expected to be in the range of
$1.5 billion-$1.6 billion, up by 7%-14% from 2012.
FLIR Systems currently carries a Zacks Rank #3 (Hold). Some
other companies in the industry that are worth a look include
Orbital Sciences Corp.
). While Astronics carries a Zacks Rank #1 (Strong Buy), Orbital
Sciences and AAR both have a Zacks Rank #2 (Buy).
AAR CORP (AIR): Free Stock Analysis Report
ASTRONICS CORP (ATRO): Free Stock Analysis
FLIR SYSTEMS (FLIR): Free Stock Analysis
ORBITAL SCIENCE (ORB): Free Stock Analysis
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