EXHIBIT 99.1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS
FISCAL 2003 EARNINGS
For Further Information Contact: James M. O'Connell
Vice President, Treasurer and CFO
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GLENWOOD, ILLINOIS -- NOVEMBER 10, 2003 -- Landauer, Inc. (NYSE: LDR),
today reported revenues and net income for its fiscal year ended
September 30, 2003. The Company, a recognized leader in personal and
environmental radiation monitoring services, reported fiscal 2003 revenues
of $64,818,000, an increase of 10.6% compared with revenues of $58,608,000
for fiscal 2002. Net income for the year just ended was $15,019,000
compared with $16,180,000 reported for fiscal 2002. Diluted earnings per
share for fiscal 2003 were $1.69 compared with $1.83 reported a year ago.
When comparing the results for fiscal 2003 with year ago results, net
income for 2003 reflected 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) to record
the impairment in value of assets related to Landauer's Aurion service in
the second quarter. Additionally, net income reported in 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) 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.
Revenue growth during fiscal 2003 was attributable to gains in pricing,
unit volume and ancillary service fees for the Company's core domestic
radiation monitoring business. Additionally, full-year consolidation of
the operations of LCIE-Landauer, the Company's 51%-owned operating unit in
France and the United Kingdom and a weak U.S. dollar contributed to
reported growth. LCIE-Landauer was included in consolidated operations for
only the second half of 2002. Consolidated revenues, excluding LCIE-
Landauer in 2003 and 2004, increased by $2.9 million, or 5.2%. Excluding
the impairment charge, costs and expenses for fiscal 2003 grew at a
slightly higher rate than revenues reflecting higher expenses for insurance
and employee benefits, full-year European operations, a weaker dollar and
higher research costs, offset by lower incentive compensation costs. Net
other income was slightly lower than a year ago reflecting lower net
investment income offset by improved earnings from Nagase-Landauer, Ltd.,
the Company's joint venture in Japan. The effective tax rate for 2003 was
36.9% compared with 37.3% for 2002.
For the quarter ended September 30, 2003, the Company reported earnings of
$4,352,000 compared with earnings of $4,173,000 in the same quarter a year
ago. Earnings per diluted share for the quarter were $0.49 compared with
$0.47 last year. Revenues for the quarter just ended were $16,656,000, an
increase of 8.7% compared with $15,320,000 a year ago.
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 Facsimile: 708.744.7011 landauerinc.com
LANDAUER, INC.
ADD 2
Costs and expenses for the quarter just ended were 11% higher than for the
same period a year ago, primarily related to increased research activity
and higher employee benefit costs, offset by reduced incentive compensation
expense.
As Landauer marks its 50th anniversary next year, the needs of its
customers continue to be met using the best technologies available. More
persons served by commercial laboratories in the U.S. are monitored using
optically stimulated luminescence ("OSL") than any other technology.
Landauer's long-term strategy is to increase those monitored using the OSL
technology through the expanded introduction of InLight<trademark> in the
U.S. and internationally over the next few years. The InLight product
offering is designed to be used by small and mid-sized commercial and in-
house laboratories that provide radiation monitoring services. Beginning
this year, Landauer will introduce InLight as the measurement platform to
be used by LCIE-Landauer to serve its more than 125,000 customers. As we
look to the future we are encouraged by the growth opportunities provided
by InLight for in-house laboratories here and abroad.
OUTLOOK FOR FISCAL 2004
Landauer's business plan for fiscal 2004 anticipates revenue growth for the
year to be in the range of 6 - 7% that is evenly balanced among the
Company's traditional revenue sources. Domestic revenue growth is expected
to occur as a result of pricing, moderate unit growth and increased sales
of ancillary services. International revenue growth, as well, is expected
to result from pricing and increased units, although currency exchange
rates can impact the effect. Aggregate costs and operating expenses for
fiscal 2004 are expected to be slightly lower than fiscal 2003 levels,
largely reflecting the absence of the $2.8 million impairment charge that
occurred in 2003. Net other income in fiscal 2004 is anticipated to be
comparable to the year just ended. The effective income tax rate for
fiscal 2004 is expected to be 37.2 - 37.5%. Resulting net income for 2004
is anticipated to be higher by 18 - 20% compared with fiscal 2003.
CONFERENCE CALL INFORMATION
Landauer, Inc. has scheduled a conference call to be broadcast
simultaneously over the Internet at www.vcall.com on Tuesday, November 11,
2003, at 10:00 a.m. CST. 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 almost 50 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.
-more-
LANDAUER, INC.
ADD 3
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.
-more-
LANDAUER, INC.
ADD 4
FOURTH QUARTER FISCAL 2003 FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
September 30, September 30,
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2003 2002 2003 2002
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Net Revenues. . . . . . . . $ 16,656 $ 15,320 $ 64,818 $ 58,608
Cost and expenses:
Cost of sales . . . . . . 5,861 5,254 23,403 20,462
Selling, general and
administrative. . . . . 3,933 3,536 14,808 13,747
Impairment in value
of assets . . . . . . . -- -- 2,750 --
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9,794 8,790 40,961 34,209
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Operating income. . . . . . 6,862 6,530 23,857 24,399
Gain on formation of
LCIE-Landauer . . . . . . -- -- -- 786
Other income - net. . . . . 333 417 1,043 1,086
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Income before income taxes
and minority interest . . 7,195 6,947 24,900 26,271
Income taxes. . . . . . . . 2,642 2,637 9,193 9,811
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Income before minority
interest. . . . . . . . . 4,553 4,310 15,707 16,460
Minority interest
therein . . . . . . . . . 201 137 688 280
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Net income. . . . . . . . . $ 4,352 $ 4,173 $ 15,019 $ 16,180
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Net income per
common share:
Basic . . . . . . . . . . $ 0.50 $ 0.48 $ 1.71 $ 1.85
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Average share
outstanding . . . . . . 8,842 8,774 8,808 8,756
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Diluted . . . . . . . . . $ 0.49 $ 0.47 $ 1.69 $ 1.83
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Average share
outstanding . . . . . . 8,885 8,855 8,891 8,855
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LANDAUER, INC.
ADD 4
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
September 30,
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2003 2002
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ASSETS
Current Assets:
Cash and cash equivalents . . . . . . . . . $ 10,572 $ 7,627
Short-term investments. . . . . . . . . . . 440 317
Receivables, net of reserves. . . . . . . . 13,770 13,620
Other current assets. . . . . . . . . . . . 8,681 5,266
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Total current assets. . . . . . . . . . . . . 33,463 26,830
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Net property, plant and equipment . . . . . . 17,226 18,179
Equity in joint venture . . . . . . . . . . . 3,402 2,806
Other assets. . . . . . . . . . . . . . . . . 12,372 12,442
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TOTAL ASSETS. . . . . . . . . . . . . . . . . $ 66,463 $ 60,257
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LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current Liabilities:
Account payable . . . . . . . . . . . . . . $ 1,548 $ 1,789
Dividend payable. . . . . . . . . . . . . . 3,316 3,071
Deferred revenue. . . . . . . . . . . . . . 12,464 11,885
Other current liabilities . . . . . . . . . 9,726 8,444
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Total current liabilities . . . . . . . . . . 27,054 25,189
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Minority interest in subsidiary . . . . . . . 984 462
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Stockholders' investment. . . . . . . . . . . 38,425 34,606
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT. . . . . . . . . . $ 66,463 $ 60,257
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