Flir Systems, announced financial results for the fourth quarter ended December 31, 2012. Revenue was $386.4 million, down 5 percent compared to fourth quarter 2011 revenue of $405.2 million. Operating income in the fourth quarter was $100.1 million, compared to $109.7 million in the fourth quarter of 2011.
Flir Systems, announced financial results for the fourth quarter ended December 31, 2012. Revenue was $386.4 million, down 5 percent compared to fourth quarter 2011 revenue of $405.2 million. Operating income in the fourth quarter was $100.1 million, compared to $109.7 million in the fourth quarter of 2011. Fourth quarter 2012 net income was $77.3 million, or $0.52 per diluted share, compared with net income of $76.1 million, or $0.48 per diluted share in the fourth quarter a year ago. Cash provided by operations in the fourth quarter was $112.9 million. During the quarter, the Company repurchased 4.5 million shares of its common stock at an average price of $18.84 per share.
Revenue from the Company's Commercial Systems division decreased 5 percent from the fourth quarter of 2011, to $212.8 million. Within the Commercial Systems division, revenue from the Thermal Vision and Measurement segment was $180.1 million, a decrease of 5 percent from the fourth quarter results last year. The Raymarine segment contributed $32.7 million of revenue during the fourth quarter, down 7 percent from the prior year.
Revenue from the Company's Government Systems division decreased 4 percent from the fourth quarter of 2011, to $173.5 million. Within the Government Systems division, revenue from the Surveillance segment was $136.4 million, a decrease of 7 percent from the fourth quarter of 2011. Revenue from the Detection segment was $12.8 million, a decrease of 46 percent compared to the fourth quarter of 2011, and the Integrated Systems segment contributed $24.4 million of revenue during the fourth quarter, an increase of 134 percent from the prior year. For the full year, revenue was $1,405.4 million, down 9 percent compared to $1,544.1 million for the year ended December 31, 2011. Operating income for 2012 was $303.3 million, down 3 percent from $313.2 million in 2011. Net income for 2012 was $222.4 million, or $1.45 per diluted share, compared with 2011 net income of $221.5 million, or $1.38 per diluted share. Cash provided by operations during the year was $285.5 million.
The Company's backlog of firm orders for delivery within the next twelve months was approximately $520 million as of December 31, 2012, a decrease of $45 million during the quarter. Backlog in the Government Systems division was $356 million, decreasing $36 million during the quarter. Backlog in the Commercial Systems division was $164 million, down $9 million during the quarter.
"The fourth quarter was an encouraging end to a 2012 that was focused on rationalizing our businesses to enhance operating leverage and prepare us well for 2013," said Earl Lewis, President and CEO of Flir. "We saw higher bookings in the fourth quarter versus the prior year, helping us end 2012 with over $60 million more in order backlog than 2011. We also reached record operating cash flow for the year, which allowed us to acquire two very strategically significant businesses and return a significant amount of capital to our shareholders through repurchasing 10.5 million of our shares and distributing $42 million in dividends."
Revenue and Earnings Outlook for 2013
Flir also announced that it expects revenue in 2013 to be in the range of $1.5 billion to $1.6 billion, an increase of approximately 7 percent to 14 percent compared to 2012, and net earnings to be in the range of $1.56 to $1.66 per diluted share, an increase of approximately 8 percent to 14 percent compared to 2012.
Dividend Increase and Declaration
Flir's Board of Directors has approved a quarterly cash dividend of $0.09 per share on Flir common stock, an increase of 29 percent over the previous paid quarterly dividend of $0.07 per share. The Board of Directors has declared the dividend payable March 8, 2013, to shareholders of record as of close of business on February 19, 2013.
Share Repurchase Program
Also, Flir announced that its Board of Directors approved a new share repurchase program that authorizes up to 25 million shares to be repurchased over the next two years, replacing the previous program that expires on February 9, 2013. This authorization represents approximately 17 percent of Flir's outstanding common stock as of December 31, 2012.
Any purchases made under the repurchase program may be made from time to time in the open market or through privately negotiated transactions. All purchases are subject to stock price, market conditions, corporate and legal requirements, and other factors. The timing of repurchases and the exact number of shares of common stock to be purchased will be determined by the Company's management, in its discretion, and will depend upon market conditions and other factors. The Company expects to fund the repurchases using the Company's cash on hand and cash generated from operations. The program may be extended, suspended, or discontinued at any time.