EXHIBIT 99.1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS
THIRD QUARTER 2003 EARNINGS
For Further Information Contact: James M. O'Connell
Vice President, Treasurer and CFO
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GLENWOOD, ILLINOIS, JULY 24, 2003 . . . LANDAUER, INC. (NYSE: LDR) reported
that net income for the quarter ended June 30, 2003 was $3,828,000 compared
with $4,234,000 in the same quarter in fiscal 2002. Diluted earnings per
share for the current quarter were $0.43 compared with $0.48 per share a
year ago. Earnings for the third quarter of fiscal 2002 included
recognition of one-time gain in the amount of $786,000, or $0.06 per
diluted share (after income tax expense of $275,000, calculated at a
marginal rate of 35%) arising from the exchange of a portion of its U.K.
business for controlling interest in LCIE-Landauer, the Company's operating
unit in France and the United Kingdom.
The Company, a recognized leader in personal and environmental radiation
monitoring services, reported revenues of $15,925,000 for the third quarter
of fiscal 2003, or 7% higher than revenues of $14,844,000 a year ago.
Revenue growth for the current quarter occurred as a result of currency
gains and higher volume from LCIE-Landauer's operations in France and the
U.K., higher domestic pricing for the Company's products and services and
slightly higher unit demand.
Cost of revenues for the current quarter was 11% higher than for the same
period a year ago. Higher costs resulted from a weaker U.S. dollar
compared with currencies in most countries where the Company operates,
increased costs associated with LCIE-Landauer, higher insurance costs for
property/casualty coverage and medical claims. Selling, general and
administrative expenses in the third quarter of fiscal 2003 were higher by
4% versus a year ago due to comparable factors, partially offset by lower
incentive compensation expense compared with last year.
For the first nine months of fiscal 2003, the Company reported net income
of $10,667,000 compared with $12,007,000 reported for the nine months ended
June 30, 2002. Diluted earnings per share thus far in fiscal 2003 were
$1.20 compared with $1.36 for the first nine months of fiscal 2002. When
comparing the results for the first nine months of fiscal 2003 with the
same period a year ago, net income thus far in 2003 reflects a non-cash
charge in the amount of $2,750,000, or $0.19 per diluted share (after
income tax benefit of $1,092,000 calculated at a marginal rate of 39.7%)
for costs associated with the impairment in value of assets related to
Landauer's Aurion service. Additionally, net income reported for the first
nine months of fiscal 2002 included recognition of gain in the amount of
$786,000, or $0.06 per diluted share (after income tax expense of $275,000,
calculated at a marginal rate of 35%) arising from the exchange of a
portion of its U.K. business for controlling interest in LCIE-Landauer, the
Company's operating unit in France and the United Kingdom.
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LANDAUER, INC. ADD 1
Revenues for the first nine months of fiscal 2003 were $48,162,000, or 11%
higher than $43,288,000 reported for the same period in fiscal 2002.
Revenue growth in 2003 resulted from the consolidation of LCIE-Landauer's
operations in France (formed as of April 1, 2002), increased domestic
radiation dosimetry service and product revenues attributable to higher
pricing and modest increased unit volume and favorable currency exchange in
most countries where the Company operates.
Cost of revenues thus far in fiscal 2003 was 15% higher than a year ago
reflecting costs associated with expanded European operations, a weaker
U.S. dollar and higher benefit costs. Aggregate selling, general and
administrative expenses in the first nine months of fiscal 2003 were
$3,414,000 higher than a year ago, primarily due to the Aurion asset
impairment charge in the amount of $2,750,000 described above. Increased
operating expense compared with a year ago was also related to expanded
European operations, related currency translation, and higher costs for
insurance and employee benefits, offset by lower incentive compensation
expense.
Year-to-date other income was higher than in fiscal 2002 primarily
reflecting higher income from Nagase-Landauer, the Company's 50%-owned
joint venture in Japan. Income taxes for the first nine months of fiscal
2003 at 37.0% were comparable in terms of effective rate to the first nine
months of fiscal 2002.
OUTLOOK FOR BALANCE OF FISCAL 2003
With LCIE-Landauer's operations now included for a full year, the outlook
for the remainder of the fiscal year suggests that fourth quarter revenue
growth will approximate the growth rate experienced in the quarter just
ended. Aggregate costs and expenses for the quarter will grow at a
comparable rate and include the costs of expanded European operations.
Thus, resulting operating income is expected to grow at a mid-single digit
rate compared with the fourth quarter of fiscal 2002.
Net income for the balance of 2003 is expected to grow at a lower rate than
operating income, reflecting lower investment income and higher minority
interest compared with the fourth quarter of fiscal 2002.
CONFERENCE CALL INFORMATION
Landauer, Inc. has scheduled a conference call that will be broadcast
simultaneously over the Internet at www.vcall.com on Friday, July 25, 2003,
at 10:00 a.m. Central Daylight Time. Please allow 15 minutes to register
and download the required software. Replays will be available through
Vcall's website.
ABOUT LANDAUER
Landauer is the leading provider of analytical services to determine
occupational and environmental radiation exposure. For more than 45 years,
the Company has provided complete radiation dosimetry services to
hospitals, medical and dental offices, university and 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.
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LANDAUER, INC. ADD 2
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.
THIRD QUARTER FISCAL 2003 FINANCIAL HIGHLIGHTS
(Unaudited; amounts in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
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JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
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Net revenues. . . . . . .$ 15,925 $ 14,844 $ 48,162 $ 43,288
Costs and expenses:
Cost of sales . . . . . 6,097 5,471 17,542 15,208
Selling, general and
administrative. . . . 3,690 3,544 10,875 10,211
Impairment in value
of assets . . . . . . -- -- 2,750 --
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9,787 9,015 31,167 25,419
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Operating income. . . . . 6,138 5,829 16,995 17,869
Gain on formation of
LCIE-Landauer . . . . . -- 786 -- 786
Other income - net. . . . 255 255 710 669
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Income before income
taxes and minority
interest . . . . . . . . 6,393 6,870 17,705 19,324
Income taxes. . . . . . . 2,367 2,510 6,550 7,174
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Income before minority
interest. . . . . . . . 4,026 4,360 11,155 12,150
Minority interest
therein . . . . . . . . 198 126 488 143
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Net income. . . . . . . .$ 3,828 $ 4,234 $ 10,667 $ 12,007
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LANDAUER, INC. ADD 3
THIRD QUARTER FISCAL 2003 FINANCIAL HIGHLIGHTS (Continued)
THREE MONTHS ENDED NINE MONTHS ENDED
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JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
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Net income per
common share:
Basic. . . . . . . . .$ 0.43 $ 0.48 $ 1.21 $ 1.37
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Based on average
shares outstanding . 8,820 8,774 8,797 8,750
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Diluted. . . . . . . .$ 0.43$ 0.48 $ 1.20 $ 1.36
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Based on average
shares outstanding . 8,910 8,882 8,881 8,855
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SUMMARY CONSOLIDATED BALANCE SHEET
(unaudited, amounts in thousands)
June 30, September 30,
2003 2002
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ASSETS
Current Assets
Cash and cash equivalents . . . . . . $ 9,419 $ 7,627
Short-term investments. . . . . . . . 339 317
Receivables, net of reserves. . . . . 15,259 13,620
Other current assets. . . . . . . . . 8,284 5,266
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Total current assets. . . . . . . . . . 33,301 26,830
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Net property, plant and equipment . . . 16,521 18,179
Equity in joint venture . . . . . . . . 2,909 2,806
Goodwill and other intangible assets,
net of amortization . . . . . . . . . 8,154 8,601
Dosimetry devices, net of amortization. 4,088 3,546
Other assets. . . . . . . . . . . . . . 223 295
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TOTAL ASSETS. . . . . . . . . . . . . . $ 65,196 $ 60,257
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LIABILITIES AND
STOCKHOLDERS' INVESTMENT
Current liabilities:
Accounts payable. . . . . . . . . . . $ 1,742 $ 1,789
Dividend payable. . . . . . . . . . . 3,315 3,071
Deferred revenue. . . . . . . . . . . 13,326 11,885
Other current liabilities . . . . . . 8,822 8,444
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Total current liabilities . . . . . . . 27,205 25,189
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Minority interest in subsidiary . . . . 773 462
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Stockholders' investment. . . . . . . . 37,218 34,606
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT. . . . . . . $ 65,196 $ 60,257
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