- First Quarter Adjusted Diluted EPS of $0.49; Growth of 16.7% over Prior Year Quarter
|
•
|
risks related to the pending acquisition of FLIR by Teledyne, including parties' ability to satisfy the conditions required to complete the transaction and, during the pendency of the transaction, diversion of management and employees' attention, retention and recruiting challenges, uncertainty in business relationships and restrictions on operations set forth in the definitive acquisition agreement;
|
•
|
risks related to United States government spending decisions and applicable procurement rules and regulations;
|
•
|
negative impacts to operating margins due to reductions in sales or changes in product mix;
|
•
|
impairments in the value of tangible and intangible assets;
|
•
|
unfavorable results of legal proceedings;
|
•
|
risks associated with international sales and business activities, including the regulation of the export and sale of our products worldwide and our ability to obtain and maintain necessary export licenses, as well as the imposition of significant tariffs or other trade barriers;
|
•
|
risks to our supply chain, production facilities or other operations, and changes to general, domestic, and foreign economic conditions, due to the COVID-19 pandemic;
|
•
|
risks related to subcontractor and supplier performance and financial viability as well as raw material and component availability and pricing;
|
•
|
risks related to currency fluctuations;
|
•
|
adverse general economic conditions or volatility in our primary markets;
|
•
|
our ability to compete effectively and to respond to technological change;
|
•
|
risks related to product defects or errors;
|
•
|
our ability to protect our intellectual property and proprietary rights;
|
•
|
cybersecurity and other security threats and technology disruptions;
|
•
|
our ability to successfully manage acquisitions, investments and divestiture activities and integrate acquired companies;
|
•
|
our ability to achieve the intended benefits of our strategic restructuring;
|
•
|
risks related to our senior unsecured notes and other indebtedness;
|
•
|
our ability to attract and retain key senior management and qualified technical, sales and other personnel;
|
•
|
changes in our effective tax rate and the results of pending tax matters; and
|
•
|
other risks discussed from time to time in filings and reports filed with the Securities and Exchange Commission ('SEC').
|
•
|
the comparability of our ongoing operating results over the periods presented;
|
•
|
the ability to identify trends in our underlying business; and
|
•
|
the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures.
|
•
|
Separation, transaction, and integration costs - Represents separation, transaction and integration costs related to divestiture and acquisition initiatives including costs associated with the pending acquisition by Teledyne.
|
•
|
Amortization of acquired intangibles - Represents amortization expense associated with acquired intangible assets.
|
•
|
Restructuring expenses and asset impairment charges - Represents employee separation expenses, facility consolidation costs, and certain third party expenses as well as goodwill, intangible asset, and inventory impairment charges associated with Company restructuring activities.
|
•
|
Discrete legal and compliance matters - Represents costs incurred associated with certain legal and compliance matters that are not representative of ongoing operational costs. These expenses are primarily attributable to an administrative agreement with the U.S. Department of State (the 'Consent Agreement') to address and remediate certain historical practices associated with U.S. and international trade control laws and regulations. Such costs include a Directorate of Defense Trade Controls penalty, expenses associated with retention of a Special Compliance Officer, and remedial actions required by the terms of the Consent Agreement or otherwise necessary to remedy and achieve full compliance with U.S. and international trade control laws and regulations.
|
•
|
Discrete tax items - Represents tax expenses and benefits related to discrete events or transactions that are not representative of the Company's estimated tax rate related to ongoing operations. These items include charges and reversals of provisions associated with certain unrecognized tax benefits, benefits or charges associated with the windfalls or shortfalls resulting from vesting and exercise activity of share-based compensation, changes in valuation allowances against certain deferred tax assets, and other discrete items not included in the annual effective tax rate associated with our ongoing operations.
|
FLIR SYSTEMS, INC.
| ||||||||
CONSOLIDATED STATEMENTS OF INCOME
| ||||||||
(In thousands, except per share amounts) (Unaudited)
| ||||||||
Three Months Ended
| ||||||||
March 31,
| ||||||||
2021
|
2020
| |||||||
Revenue
|
$
|
467,313
|
$
|
450,923
| ||||
Cost of goods sold
|
258,115
|
231,555
| ||||||
Gross profit
|
209,198
|
219,368
| ||||||
Operating expenses:
| ||||||||
Research and development
|
52,246
|
53,847
| ||||||
Selling, general and administrative
|
103,868
|
116,242
| ||||||
Restructuring expenses
|
622
|
20,784
| ||||||
Total operating expenses
|
156,736
|
190,873
| ||||||
Earnings from operations
|
52,462
|
28,495
| ||||||
Interest expense
|
6,115
|
6,961
| ||||||
Interest income
|
(41
|
)
|
(349
|
)
| ||||
Other income (loss), net
|
(3,622
|
)
|
(1,315
|
)
| ||||
Earnings before income taxes
|
50,010
|
23,198
| ||||||
Income tax provision
|
11,203
|
7,774
| ||||||
Net earnings
|
$
|
38,807
|
$
|
15,424
| ||||
Net earnings per share:
| ||||||||
Basic earnings per share
|
$
|
0.30
|
$
|
0.12
| ||||
Diluted earnings per share
|
$
|
0.29
|
$
|
0.11
| ||||
Weighted average shares outstanding:
| ||||||||
Basic
|
131,183
|
133,596
| ||||||
Diluted
|
132,596
|
134,927
|
FLIR SYSTEMS, INC.
| ||||||||
CONSOLIDATED BALANCE SHEETS
| ||||||||
(In thousands) (Unaudited)
| ||||||||
March 31,
|
December 31,
| |||||||
2021
|
2020
| |||||||
ASSETS | ||||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
277,303
|
$
|
297,795
| ||||
Accounts receivable, net
|
391,331
|
353,561
| ||||||
Inventories
|
457,007
|
472,237
| ||||||
Prepaid expenses and other current assets
|
97,568
|
104,646
| ||||||
Total current assets
|
1,223,209
|
1,228,239
| ||||||
Property and equipment, net
|
269,269
|
267,682
| ||||||
Deferred income taxes, net
|
35,610
|
36,210
| ||||||
Goodwill
|
1,386,847
|
1,394,364
| ||||||
Intangible assets, net
|
197,632
|
209,636
| ||||||
Other assets
|
116,235
|
116,217
| ||||||
Total assets
|
$
|
3,228,802
|
$
|
3,252,348
| ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
| ||||||||
Current liabilities:
| ||||||||
Accounts payable
|
$
|
150,541
|
$
|
157,592
| ||||
Deferred revenue
|
28,568
|
25,862
| ||||||
Accrued payroll and related liabilities
|
77,330
|
98,911
| ||||||
Accrued product warranties
|
18,397
|
17,019
| ||||||
Accrued payments from customers
|
13,730
|
10,940
| ||||||
Accrued expenses
|
34,617
|
41,347
| ||||||
Accrued income taxes
|
27,852
|
28,941
| ||||||
Other current liabilities
|
44,708
|
44,053
| ||||||
Long-term debt, current portion
|
12,945
|
13,473
| ||||||
Total current liabilities
|
408,688
|
438,138
| ||||||
Long-term debt, net of current portion
|
712,866
|
724,919
| ||||||
Deferred income taxes
|
43,159
|
43,708
| ||||||
Accrued income taxes
|
60,699
|
60,248
| ||||||
Other long-term liabilities
|
93,516
|
101,961
| ||||||
Shareholders' equity:
| ||||||||
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at March 31, 2021, and December 31, 2020
|
-
|
-
| ||||||
Common stock, $0.01 par value, 500,000 shares authorized; 131,575 and 131,360 shares issued, 131,368 and 131,153 shares outstanding at March 31, 2021, and December 31, 2020, respectively, and additional paid-in capital
|
42,101
|
31,767
| ||||||
Retained earnings
|
2,033,585
|
2,017,097
| ||||||
Treasury stock - at cost - 207 shares of common stock at March 31, 2021, and December 31, 2020, respectively
|
(7,504
|
)
|
(7,504
|
)
| ||||
Accumulated other comprehensive loss
|
(158,308
|
)
|
(157,986
|
)
| ||||
Total shareholders' equity
|
1,909,874
|
1,883,374
| ||||||
Total liabilities and shareholders' equity
|
$
|
3,228,802
|
$
|
3,252,348
|
FLIR SYSTEMS, INC.
| ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
| ||||||||
(In thousands) (Unaudited)
| ||||||||
Three Months Ended
| ||||||||
March 31,
| ||||||||
2021
|
2020
| |||||||
Cash flows from operating activities:
| ||||||||
Net earnings
|
$
|
38,807
|
$
|
15,424
| ||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
| ||||||||
Depreciation and amortization
|
23,861
|
24,225
| ||||||
Stock-based compensation
|
9,760
|
7,646
| ||||||
(Gain) loss on disposal of assets
|
(30
|
)
|
2,991
| |||||
Deferred income taxes
|
23
|
(165
|
)
| |||||
Other, net
|
(6,987
|
)
|
(3,152
|
)
| ||||
(Decrease) increase in cash, net of acquisitions, resulting from changes in:
| ||||||||
Accounts receivable
|
(40,407
|
)
|
12,118
| |||||
Inventories
|
8,542
|
(14,453
|
)
| |||||
Prepaid expenses and other current assets
|
3,273
|
382
| ||||||
Other assets
|
3,443
|
(391
|
)
| |||||
Accounts payable
|
(5,783
|
)
|
1,592
| |||||
Deferred revenue
|
2,927
|
2,140
| ||||||
Accrued payroll and other liabilities
|
(16,777
|
)
|
11,084
| |||||
Accrued income taxes
|
5,410
|
(6,259
|
)
| |||||
Other long term liabilities
|
(1,758
|
)
|
(2,316
|
)
| ||||
Net cash provided by operating activities
|
24,304
|
50,866
| ||||||
Cash flows from investing activities:
| ||||||||
Additions to property and equipment, net
|
(14,183
|
)
|
(12,717
|
)
| ||||
Net cash used in investing activities
|
(14,183
|
)
|
(12,717
|
)
| ||||
Cash flows from financing activities:
| ||||||||
Net proceeds from credit facility and long-term debt, including current portion
|
-
|
175,000
| ||||||
Repayment of credit facility and long-term debt
|
(3,285
|
)
|
(3,021
|
)
| ||||
Repurchase of common stock
|
-
|
(150,000
|
)
| |||||
Dividends paid
|
(22,319
|
)
|
(22,728
|
)
| ||||
Proceeds from shares issued pursuant to stock-based compensation plans
|
1,082
|
1,459
| ||||||
Tax paid for net share exercises and issuance of vested restricted stock units
|
(833
|
)
|
(879
|
)
| ||||
Net cash used in financing activities:
|
(25,355
|
)
|
(169
|
)
| ||||
Effect of exchange rate changes on cash and cash equivalents
|
(5,258
|
)
|
(13,957
|
)
| ||||
Net (decrease) increase in cash and cash equivalents
|
(20,492
|
)
|
24,023
| |||||
Cash and cash equivalents, beginning of period
|
297,795
|
284,592
| ||||||
Cash and cash equivalents, end of period
|
$
|
277,303
|
$
|
308,615
|
FLIR SYSTEMS, INC.
| ||||||||
SEGMENT PERFORMANCE
| ||||||||
(In thousands) (Unaudited)
| ||||||||
Three Months Ended
| ||||||||
March 31,
| ||||||||
2021
|
2020
| |||||||
SEGMENT REVENUE | ||||||||
Industrial Technologies Segment
|
$
|
274,864
|
$
|
276,415
| ||||
Defense Technologies Segment
|
192,449
|
174,508
| ||||||
SEGMENT EARNINGS FROM OPERATIONS | ||||||||
Industrial Technologies Segment
|
$
|
76,906
|
$
|
64,265
| ||||
Defense Technologies Segment
|
25,376
|
33,154
| ||||||
SEGMENT OPERATING MARGIN | ||||||||
Industrial Technologies Segment
|
28.0
|
%
|
23.2
|
%
| ||||
Defense Technologies Segment
|
13.2
|
%
|
19.0
|
%
|
FLIR SYSTEMS, INC.
| ||||||||||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATION
| ||||||||||||||||||||||||||||
(In thousands, except per share amounts) (Unaudited)
| ||||||||||||||||||||||||||||
Three Months Ended March 31, 2021
| ||||||||||||||||||||||||||||
As Reported
|
Separation, transaction, and integration costs
|
Amortization of acquired intangibles assets
|
Restructuring expenses and asset impairment charges
|
Discrete legal and compliance matters
|
Discrete tax items
|
Adjusted Non-GAAP Results
| ||||||||||||||||||||||
Gross profit
|
$
|
209,198
|
$
|
337
|
$
|
9,300
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
218,835
| ||||||||||||||
Operating expenses
|
(156,736
|
)
|
12,641
|
2,624
|
622
|
4,579
|
-
|
(136,270
|
)
| |||||||||||||||||||
Earnings from operations
|
52,462
|
12,978
|
11,924
|
622
|
4,579
|
-
|
82,565
| |||||||||||||||||||||
Non-operating expense, net
|
(2,452
|
)
|
-
|
-
|
-
|
-
|
-
|
(2,452
|
)
| |||||||||||||||||||
Earnings before income taxes
|
50,010
|
12,978
|
11,924
|
622
|
4,579
|
-
|
80,113
| |||||||||||||||||||||
Income tax provision
|
(11,203
|
)
|
(2,466
|
)
|
(2,266
|
)
|
(118
|
)
|
(870
|
)
|
1,702
|
(15,221
|
)
| |||||||||||||||
Net earnings
|
$
|
38,807
|
$
|
10,512
|
$
|
9,658
|
$
|
504
|
$
|
3,709
|
$
|
1,702
|
$
|
64,892
| ||||||||||||||
Gross margin
|
44.8
|
%
|
0.1
|
%
|
1.9
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
46.8
|
%
| ||||||||||||||
Operating margin
|
11.2
|
%
|
2.8
|
%
|
2.6
|
%
|
0.1
|
%
|
1.0
|
%
|
-
|
%
|
17.7
|
%
| ||||||||||||||
Net earnings per diluted share
|
$
|
0.29
|
$
|
0.08
|
$
|
0.07
|
$
|
0.01
|
$
|
0.03
|
$
|
0.01
|
$
|
0.49
| ||||||||||||||
Weighted average diluted shares outstanding
|
132,596
|
132,596
|
132,596
|
132,596
|
132,596
|
132,596
|
132,596
| |||||||||||||||||||||
Three Months Ended March 31, 2020
| ||||||||||||||||||||||||||||
As Reported
|
Separation, transaction, and integration costs
|
Amortization of acquired intangibles assets
|
Restructuring expenses and asset impairment charges
|
Discrete legal and compliance matters
|
Discrete tax items
|
Adjusted Non-GAAP Results
| ||||||||||||||||||||||
Gross profit
|
$
|
219,368
|
$
|
738
|
$
|
9,385
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
229,491
| ||||||||||||||
Operating expenses
|
(190,873
|
)
|
4,514
|
2,511
|
20,784
|
9,081
|
-
|
(153,983
|
)
| |||||||||||||||||||
Earnings from operations
|
28,495
|
5,252
|
11,896
|
20,784
|
9,081
|
-
|
75,508
| |||||||||||||||||||||
Non-operating expense, net
|
(5,297
|
)
|
-
|
-
|
-
|
-
|
-
|
(5,297
|
)
| |||||||||||||||||||
Earnings before income taxes
|
23,198
|
5,252
|
11,896
|
20,784
|
9,081
|
-
|
70,211
| |||||||||||||||||||||
Income tax provision
|
(7,774
|
)
|
(998
|
)
|
(2,260
|
)
|
(3,949
|
)
|
(1,725
|
)
|
3,366
|
(13,340
|
)
| |||||||||||||||
Net earnings
|
$
|
15,424
|
$
|
4,254
|
$
|
9,636
|
$
|
16,835
|
$
|
7,356
|
$
|
3,366
|
$
|
56,871
| ||||||||||||||
Gross margin
|
48.6
|
%
|
0.2
|
%
|
2.1
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
50.9
|
%
| ||||||||||||||
Operating margin
|
6.3
|
%
|
1.2
|
%
|
2.6
|
%
|
4.6
|
%
|
2.0
|
%
|
-
|
%
|
16.7
|
%
| ||||||||||||||
Net earnings per diluted share
|
$
|
0.11
|
$
|
0.03
|
$
|
0.07
|
$
|
0.12
|
$
|
0.06
|
$
|
0.03
|
$
|
0.42
| ||||||||||||||
Weighted average diluted shares outstanding
|
134,927
|
134,927
|
134,927
|
134,927
|
134,927
|
134,927
|
134,927
|
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Disclaimer
FLIR Systems Inc. published this content on 06 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2021 20:32:06 UTC.