Fourth quarter and full year 2005 financial results provides 2006 financial outlook; company announces additional five million share repurchase authorisation
Flir Systems has announced that net earnings for the fourth quarter ended 31 December 2005 increased 42% to $34.1 million, or $0.43 per diluted share, compared to net earnings for the fourth quarter of 2004 of $24.1 million, or $0.31 per diluted share.
Revenue for the 2005 fourth quarter increased 9% to $156.2 million, up from $143.7 million for the fourth quarter of 2004.
The company's operating margin in the fourth quarter was 29.5%, compared with 23.9% in the fourth quarter of 2004.
Revenue at the company's imaging division increased 8%, while revenue at the company's thermography division increased 10% as compared to the fourth quarter last year.
For the twelve months ended 31 December 2005, net earnings rose 27% to a record $90.8 million, or $1.16 per diluted share, compared to net earnings for the full year 2004 of $71.5 million, or $0.94 per diluted share.
Revenue for 2005 was $508.6 million, an increase of 5% from the $482.7 million generated in 2004.
The company's operating margin for the full year was a record 24.8%, as compared with 22.6% in 2004.
Revenue from the company's imaging division increased by 2%, while revenue from the company's thermography division increased by 13% compared to the prior year.
Cash generated from operations totaled $15.9 million for the fourth quarter and $73.1 million for 2005.
At 31 December 2005 the company had cash on hand of $107 million.
During the fourth quarter, the company repurchased one million shares of its common stock for $23 million.
The backlog of firm orders for delivery within the next twelve months was approximately $193 million at 31 December 2005 an increase of 21% as compared to backlog of $159 million at 31 December 2004.
The company also announced it currently expects net revenue in fiscal 2006 to be in the range of $590 million to $600 million, and net earnings to be in the range of $1.20 to $1.30 per fully diluted share, which includes share based compensation expense of approximately $0.10 per fully diluted share.
FLIR also announced that its board of directors has authorised the repurchase of up to an additional five million shares of its common stock.
The timing and the amount of any repurchases will be determined by the company's management based on its evaluation of prevailing market conditions and other factors.
The repurchase programme may be suspended or discontinued at any time whether or not the authorisation has been utilised.
"Overall, we are pleased with our fourth quarter and full year 2005 performance.
"While revenue growth in our Imaging division was lower than anticipated, we again achieved record revenue and net earnings.
"We saw a significant expansion in our operating margins, reflecting the benefits of the Indigo acquisition and improved manufacturing efficiency" commented Earl R Lewis, president and CEO of Flir.
"We expect better revenue growth in both divisions in 2006, as a result of recent investment in R+D, which has yielded numerous exciting new products, and remain optimistic about the future." he concluded.
