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FLIR Systems Inc. Reports Operating Results (10-K)

March 01, 2011 | About:
10qk

10qk

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FLIR Systems Inc. (FLIR) filed Annual Report for the period ended 2010-12-31.

Flir Systems Inc. has a market cap of $5.12 billion; its shares were traded at around $32.3 with a P/E ratio of 20.7 and P/S ratio of 3.7. The dividend yield of Flir Systems Inc. stocks is 0.7%. Flir Systems Inc. had an annual average earning growth of 25.6% over the past 5 years.Hedge Fund Gurus that owns FLIR: Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC. Mutual Fund and Other Gurus that owns FLIR: Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, Columbia Wanger of Columbia Wanger Asset Management, Wallace Weitz of Weitz Wallace R & Co, Pioneer Investments, Jeremy Grantham of GMO LLC, First Pacific Advisors of First Pacific Advisors, LLC.

Highlight of Business Operations:

Thermography products are generally sold for commercial and industrial applications, typically where imaging and temperature measurement together are required. Products range from highly sensitive cameras with extensive analytic capabilities and sophisticated image processing to less expensive cameras offering excellent performance and value for less demanding applications. Our Thermography products range in price from slightly over $1,000 for a value hand-held camera to over $150,000 for our most sophisticated science cameras. Revenue from Thermography has grown at a compound annual rate of 15 percent since 2001 and was $317.9 million, or 23 percent of consolidated revenue in 2010.

Government Systems (GS) is focused on selling advanced imaging systems to government customers and markets where high performance is required. Typical applications include intelligence, surveillance and reconnaissance (ISR), force protection, drug interdiction, search and rescue, special operations, and target designation. GS products are often customized for specific applications and frequently incorporate additional sensors, including visible light cameras, radars, low light cameras, laser rangefinders, laser illuminators, and laser designators. GS products range in price from under $10,000 for certain hand-held and weapon-mounted systems to over $1 million for our most advanced stabilized targeting systems. Since 2005, GS revenue has grown at a compound annual rate of 22 percent. GS is our largest segment with 2010 revenue of $661.1 million, or 48 percent of consolidated revenue.

Our earnings, combined with our modest capital expenditure requirements, result in the generation of significant free cash flow. In the years ended December 31, 2010 and 2009, our net cash provided by operating activities was $255.4 million and $271.8 million, respectively. Over the past 5 years, our operating cash flow has exceeded our net earnings every year except in 2007. This ability to consistently convert revenues into net operating cash provides us significant flexibility in making growth and capital deployment decisions, such as executing strategic acquisitions, undertaking new product or technology development initiatives, building out our distribution and marketing presence, making capital investments, or repurchasing shares of our common stock in the open market. Since 2003, we have utilized $775 million of cash for acquisitions, $400 million for share repurchases, and $285 million for capital expenditures.

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