EXHIBIT 99.1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS
SECOND QUARTER 2003 RESULTS
. Second quarter revenues increase 14.6% over 2002 second quarter
. Second quarter net income decreases from 2002 second quarter
levels due to $2.75 million non-cash charge related to
impairment in value of Landauer's Aurion assets
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For Further Information Contact: James M. O'Connell
Vice President, Treasurer & CFO
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GLENWOOD, ILLINOIS, APRIL 28, 2003 . . . LANDAUER, INC. (NYSE SYMBOL LDR)
reported today that net income for its second fiscal quarter ended
March 31, 2003 was $3,030,000 compared with $4,037,000 in the same quarter
in fiscal 2002. Operating income for the quarter just ended was reduced by
a non-cash charge in the amount of $2,750,000, or $0.19 per diluted share
(after income tax benefit computed at a marginal rate of 39.7%), for costs
associated with the impairment in value of assets related to Landauer's
Aurion service. Diluted earnings per share for the current quarter were
$0.34 compared with $0.46 per share for the same period a year ago.
Revenues for the second fiscal quarter of 2003 were $16,846,000, or 14.6%
higher than reported revenues of $14,704,000 in the same period a year ago.
Revenue growth for the quarter resulted from incremental revenues
associated with Landauer's 51% owned subsidiary, LCIE-Landauer, Ltd.,
acquired in the third quarter of fiscal 2002, higher pricing for Landauer's
products and services and a modest increase in unit demand.
Cost of revenues for the current quarter was 15.8% higher than for the same
period a year ago, primarily resulting from French operations, as well as
higher domestic costs. Operating expenses for the quarter just ended were
moderately higher than a year ago. While expenses related to LCIE-Landauer
increased, and selling and research and development expenses were higher,
these were largely offset by lower incentive compensation expenses.
RESULTS FOR SIX MONTHS ENDED MARCH 31, 2003
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For the first half of fiscal 2003, Landauer reported net income of
$6,839,000 compared with $7,773,000 for the same period in fiscal 2002.
Diluted earnings per share thus far in fiscal 2003 were $0.77 compared with
$0.88 for the first half of fiscal 2002.
Revenues for the first six months of fiscal 2003 were $32,238,000, or 13.3%
higher than $28,445,000 reported for the same period in fiscal 2002.
Revenue growth resulted from the consolidation of European operations and
from core radiation dosimetry services where Landauer realized higher
pricing and slightly increased unit volume.
LANDAUER, INC.
ADD 1
Cost of revenues for the first half of fiscal 2003 was 17.5% higher than a
year ago, primarily the result of higher costs associated with French
operations, as well as higher domestic costs for employee benefits and
depreciation. Year-to-date gross margins at 64.5% were slightly lower than
a year ago as a result of lower margins for the French business. Selling,
general and administrative expenses in the first six months of fiscal 2003
were 7.8% higher than a year ago, due to higher European operating
expenses, domestic selling and research and development costs, and lower
incentive compensation expenses.
Year-to-date other income was moderately higher than a year ago and income
taxes for the first half of fiscal 2003 were lower than a year ago as a
result of lower income. The effective tax rate at 37% was slightly lower
compared to the first six months of last fiscal year.
NON-CASH CHARGE ASSOCIATED WITH AURION SERVICE
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Following the completion of an assessment of second quarter sales results
of the Aurion service, management has revised its revenue forecast for the
service and has determined that the revised projected cash flows are
insufficient to support the carrying value of the related assets. While
the market generally considers Aurion an improvement in operational
dosimetry, sales have been impacted by discretionary spending constraints
due to state and local budget deficits and continued health care cost
pressures. The impairment in the carrying value of the Aurion service
resulting from this decision is $2,750,000, representing the Company's
entire investment in Aurion-related assets, and has been recorded as a non-
cash charge in Landauer's fiscal quarter ended March 31, 2003. The Company
will continue limited Aurion service to customers and will review
alternative uses and other business models for the direct ion storage
technology.
OUTLOOK FOR BALANCE OF FISCAL 2003
The quarter ended March 31, 2003 represents the first full year of
operations that included consolidation of the results of LCIE-Landauer, the
Company's 51% owned subsidiary in France and the U.K. Now that a full year
of results for this business unit are part of historical comparisons,
revenue and cost growth will return to more traditional levels. Revenue
growth for the second half of fiscal 2003 will approximate 6-7%, compared
with the same period in fiscal 2002. Aggregate costs and expenses for the
second half of fiscal 2003 will grow at a moderately lower rate than
revenues. Research and development costs will be higher by almost
$500,000, reflecting the Company's increased focus on OSL-related
initiatives. Additionally, incentive compensation expenses will be lower
compared with a year ago.
Resulting operating income for the remainder of fiscal 2003 is likely to
grow at almost 10% compared with the second half of fiscal 2002. Non
operating income for the balance of 2003 will be significantly lower than
year ago levels as a result of the one-time gain in the amount of $511,000,
net of income taxes, recognized in 2002 on the formation of the French/U.K.
subsidiary. Income tax expense for fiscal 2003 is expected to be
comparable with a year ago in terms of effective rate. Resulting net
income for the second half of fiscal 2003 will likely grow slightly
compared with the second half of 2002.
LANDAUER, INC.
ADD 2
Landauer plans to focus its ongoing sales and marketing efforts toward its
traditional service offerings and the InLight product line. Management's
assessment of the factors leading to the impairment of Aurion assets is not
expected to have an adverse impact on growth in the Company's core
dosimetry service or other products.
CONFERENCE CALL INFORMATION
Landauer, Inc. has scheduled a conference call that will be broadcast
simultaneously over the Internet at www.vcall.com on Monday, April 28,
2003, at 2:00 p.m. central time. Please allow 15 minutes to register and
download the required software. Replays will be available through Vcall's
website.
ABOUT LANDAUER, INC.
Landauer is the leading provider of analytical services to determine
personal exposure to occupational and environmental radiation. For more
than 45 years, the Company has provided complete radiation dosimetry
services to hospitals, medical and dental offices, universities, national
laboratories, and other industries in which radiation poses a potential
threat to employees. Landauer's services include the manufacture of various
types of radiation detection monitors, the distribution and collection of
the monitors to and from clients, and the analysis and reporting of
exposure findings.
SAFE HARBOR STATEMENT
Certain of the statements made herein constitute forward looking statements
that are based on certain assumptions and involve certain risks and
uncertainties, including assumptions, risks and uncertainties associated
with the Company's introduction of the InLight technology, the cost
associated with the Company's research and business development efforts,
the anticipated results of operations of the Company and its subsidiaries
or ventures, the valuation of the Company's long lived assets or business
units relative to future cash flows, the Company's market position, the
Company's business plans, anticipated revenue and cost growth, the risks
associated with conducting business internationally, the effects of
changing economic and competitive conditions, foreign exchange rates, and
government regulations. Such assumptions may not materialize to the extent
assumed and such risks and uncertainties may cause actual results to differ
from anticipated results. Such risks and uncertainties may also result in
changes to the Company's business plans and prospects and could create the
need from time to time to write down the value of assets or otherwise cause
the Company to incur unanticipated expenses. Additional information may be
obtained by reviewing the Company's reports filed from time to time with
the SEC.
LANDAUER, INC.
ADD 3
SECOND QUARTER FISCAL 2003 FINANCIAL HIGHLIGHTS
(Unaudited; amounts in thousands, except per share data)
Three months ended Six months ended
March 31, March 31,
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2003 2002 2003 2002
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Net revenues. . . . . . . $ 16,846 $ 14,704 $ 32,238 $ 28,445
Costs and expenses:
Cost of sales . . . . . 5,732 4,951 11,445 9,738
Selling, general and
administrative. . . . 3,572 3,490 7,185 6,668
Impairment in value of
assets. . . . . . . . 2,750 -- 2,750 --
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12,054 8,441 21,380 16,406
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Operating income. . . . . 4,792 6,263 10,858 12,039
Other income - net. . . . 230 208 455 415
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Income before income taxes
and minority interest. . 5,022 6,471 11,313 12,454
Income taxes. . . . . . . 1,835 2,418 4,184 4,664
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Income before minority
interest. . . . . . . . 3,187 4,053 7,129 7,790
Minority interest . . . . 157 16 290 17
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Net income. . . . . . . . $ 3,030 $ 4,037 $ 6,839 $ 7,773
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Net income per common share:
Basic . . . . . . . . . $ 0.34 $ 0.46 $ 0.78 $ 0.89
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Based on average shares
outstanding . . . . . 8,792 8,745 8,783 8,738
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Diluted . . . . . . . . $ 0.34 $ 0.46 $ 0.77 $ 0.88
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Based on average shares
outstanding . . . . . 8,871 8,857 8,863 8,829
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LANDAUER, INC.
ADD 4
SUMMARY CONSOLIDATED BALANCE SHEET
(unaudited, amounts in thousands)
March 31, September 30,
2003 2002
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ASSETS
Current Assets
Cash and cash equivalents . . . . . . $ 7,225 $ 7,627
Short-term investments. . . . . . . . 251 317
Receivables, net of reserves. . . . . 14,396 13,620
Other current assets. . . . . . . . . 8,123 5,266
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Total current assets. . . . . . . . . . 29,995 26,830
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Net property, plant and equipment . . . 15,899 18,179
Equity in joint venture . . . . . . . . 2,725 2,806
Goodwill and other intangible assets,
net of amortization . . . . . . . . . 8,556 8,601
Dosimetry devices, net of amortization. 3,834 3,546
Other assets. . . . . . . . . . . . . . 237 295
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TOTAL ASSETS. . . . . . . . . . . . . . $ 61,246 $ 60,257
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LIABILITIES AND
STOCKHOLDERS' INVESTMENT
Current liabilities:
Accounts payable. . . . . . . . . . . $ 1,505 $ 1,789
Dividend payable. . . . . . . . . . . 3,299 3,071
Deferred revenue. . . . . . . . . . . 11,895 11,885
Other current liabilities . . . . . . 8,447 8,444
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Total current liabilities . . . . . . . 25,146 25,189
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Minority interest in subsidiary . . . . 542 462
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Stockholders' investment. . . . . . . . 35,558 34,606
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT . . . . . . $ 61,246 $ 60,257
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