EX-99.1 2 0002.txt PRESS RELEASE DATED AUGUST 14, 2000 Exhibit 99.1 Company contact: FLIR Systems, Inc. Scott Hibbs (503) 372-6127 www.flir.com ------------ 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) 1 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 ------------ (Tables attached) 2 FLIR SYSTEMS, INC. CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, ------------------------------------------------------------------- 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 -------------- ------------------------------- -------------- 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 ============== =============================== ==============
3 FLIR SYSTEMS, INC. CONSOLIDATED BALANCE SHEET (In thousands, except share amounts)
ASSETS 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 ------------------- ------------------- $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 ------------------- ------------------- 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 ------------------- ------------------- $184,756 $196,718 =================== ===================
4