EXHIBIT 99.1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS RECORD
EARNINGS FOR FISCAL 2004
For Further Information Contact: James M. O'Connell
Vice President, Treasurer and CFO
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GLENWOOD, Illinois--NOVEMBER 12, 2004--LANDAUER, INC. (NYSE: LDR), today
reported financial results for its fiscal year ended September 30, 2004.
The Company, a recognized leader in personal and environmental radiation
monitoring services, reported that net income for the year just ended was
$17,770,000, an increase of 18.3% compared with net income of $15,019,000
for fiscal 2003. Diluted earnings per share for fiscal 2004 were $1.98
compared with $1.69 reported a year ago. Revenues reported for fiscal 2004
were $69,809,000, an increase of 7.7% compared with revenues of $64,818,000
reported for fiscal 2003. The comparison of 2004 results with a year ago
reflects the recognition of a non-cash asset impairment charge in the
amount of $2,750,000 in 2003, offset by lower incentive compensation
expense in the amount of $500,000. The resulting decline in fiscal 2003
operating income of $2,250,000 lowered diluted earnings per share by $0.15
(after income tax benefit of $894,000).
Domestic revenue growth during fiscal 2004, at 6.4%, was attributable to
gains in pricing, unit volume and ancillary service fees for the Company's
core radiation monitoring business. International revenue growth was more
than 14% for the year and reflected favorable currency translation, pricing
gains and unit volume in most foreign markets. Exclusive of the non-cash
charge, costs and expenses for fiscal 2004 grew by almost $3,900,000 due to
incentive compensation and employee benefits expenses, foreign currency
translation, higher depreciation and amortization expense and increased
costs related to development of the InLight<trademark> product line and the
introduction of Luxel+<registered trademark>. Net other income was higher
in 2004 as Nagase-Landauer, Ltd. earnings improved from 2003, offset by
lower net interest income due to financing costs associated with
acquisition of the remaining interest in LCIE-Landauer earlier this year.
The acquisition also resulted in reduced minority interest in 2004 compared
with a year ago. The effective tax rate for 2004 was 37.4% compared with
36.9% for 2003.
For the quarter ended September 30, 2004, the Company reported earnings of
$4,532,000 compared with earnings of $4,352,000 in the same quarter a year
ago. Earnings per diluted share for the quarter were $0.50 compared with
$0.49 in 2003. Revenues for the fourth fiscal quarter of 2004 were
$17,566,000, an increase of 5.5% compared with $16,656,000 a year ago.
Costs and expenses for the quarter just ended were 8% higher than for the
same period a year ago reflecting higher costs in the U.S. and Europe
related to the conversion of domestic customers to Luxel+ during the
quarter and the introduction of InLight in France. Moderately higher
operating expenses related primarily to incentive compensation expense.
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Landauer, Inc. 2 Science Road Glenwood, IL 60425-1586
Phone 708.755.7000 Fax 708.755.7011 www.landauerinc.com
LANDAUER, INC. ADD 1
FISCAL 2004 ACCOMPLISHMENTS
Landauer celebrated its 50th anniversary during fiscal 2004 and the Company
further consolidated international ownership, as well as improved financial
performance in all markets. Global market penetration for the Company's
proprietary optically stimulated luminescence ("OSL") technology continued
to expand with the introduction of InLight in France. Landauer's long-term
strategy is to increase those monitored using the OSL technology through
the expanded introduction of InLight in all markets. 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
in 2005, Landauer will also offer InLight as a measurement platform used by
hospitals and other laboratories that require smaller systems to perform
specialized radiation measurements. As management looks to the future, it
envisions an increase in the demand for products and services that the
Company's OSL technology is able to support.
OUTLOOK FOR FISCAL 2005
Landauer's business plan for fiscal 2005 anticipates aggregate revenue
growth for the year to be in the range of 7 - 8%. The Company's
traditional domestic and international revenue sources are expected to grow
at a rate of 5.5 - 6.5% with sales for the InLight product line
contributing to the balance of revenue growth. Domestic revenue growth is
expected to occur as a result of pricing, moderate unit growth and
increased sales of ancillary services. International revenue growth for
2005 is expected to result from pricing and increased units, although
currency exchange rates may impact results reported in U.S. dollars. Costs
and operating expenses for fiscal 2005 are expected to grow at a rate
slightly higher than revenues. Net other income in fiscal 2005 is
anticipated to be comparable to the year just ended and minority interest
should further decline, as a full year of ownership of the entire European
business is realized. The effective income tax rate for fiscal 2005 is
expected to be comparable to 2004 at 37.4%. Resulting net income for 2005
is anticipated to be higher by 6 - 8% compared with fiscal 2004.
CONFERENCE CALL INFORMATION
Landauer, Inc. has scheduled a conference call to be broadcast
simultaneously over the Internet at www.viavid.net on Monday, November 15,
2004, at 10:00 a.m. CST. Please allow 15 minutes to register and download
the required software. Replays will be available through Viavid's website.
ABOUT LANDAUER
Landauer is the world's leading provider of analytical services to
determine occupational and environmental radiation exposure. For more than
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. The Company provides its services to 1.4 million people in the
United States, Japan, France, the United Kingdom, Brazil, Canada, China,
Australia and other countries.
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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, without limitation, assumptions, risks and
uncertainties associated with the Company's introduction of the InLight
technology, the adaptability of optically stimulated luminescence ("OSL")
technology to new platforms and formats, such as Luxel<registered
trademark>+, the cost associated with the Company's research and business
development efforts, the usefulness of older technologies, 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, changes in postal and
delivery practices, the Company's business plans, anticipated revenue and
cost growth, the risks associated with conducting business internationally,
other anticipated financial events, the effects of changing economic and
competitive conditions, foreign exchange rates, government regulations,
accreditation requirements, and pending accounting pronouncements. 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 information set forth under the caption "Significant Risk
Factors" in the Company's Annual Report on Form 10-K for the year ended
September 30, 2003 and other reports filed by the Company from time to time
with the Securities and Exchange Commission.
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LANDAUER, INC. ADD 3
FOURTH QUARTER FISCAL 2004 FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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2004 2003 2004 2003
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Net revenues. . . . . . . $ 17,566 $ 16,656 $ 69,809 $ 64,818
Cost and expenses:
Cost of sales . . . . . 6,513 5,861 25,452 23,403
Selling, general and
administrative. . . . 4,076 3,933 16,637 14,808
Impairment in value
of assets . . . . . . -- -- -- 2,750
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10,589 9,794 42,089 40,961
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Operating income. . . . . 6,977 6,862 27,720 23,857
Other income - net. . . . 241 333 1,123 1,043
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Income before income
taxes and minority
interest . . . . . . . . 7,218 7,195 28,843 24,900
Income taxes. . . . . . . 2,670 2,642 10,786 9,193
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Income before minority
interest. . . . . . . . 4,548 4,553 18,057 15,707
Minority interest
therein . . . . . . . . 16 201 287 688
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Net income. . . . . . . . $ 4,532 $ 4,352 $ 17,770 $ 15,019
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Net income per common
share:
Basic . . . . . . . . . $ 0.51 $ 0.49 $ 2.00 $ 1.71
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Average shares
outstanding . . . . . 8,923 8,842 8,894 8,808
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Diluted . . . . . . . . $ 0.50 $ 0.49 $ 1.98 $ 1.69
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Average shares
outstanding . . . . . 8,999 8,918 8,971 8,891
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LANDAUER, INC. ADD 4
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
September 30, September 30,
2004 2003
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ASSETS
Current Assets
Cash and cash equivalents . . . . . . . $ 7,979 $ 10,572
Short-term investments. . . . . . . . . 616 440
Receivables, net of reserves. . . . . . 15,060 13,770
Other current assets. . . . . . . . . . 6,635 6,456
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Total current assets. . . . . . . . . . . 30,290 31,238
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Net property, plant and equipment . . . . 18,540 17,226
Equity in joint venture . . . . . . . . . 3,916 3,402
Goodwill and other intangible assets,
net of amortization . . . . . . . . . 19,493 8,056
Dosimetry devices, net of amortization. . 4,791 4,121
Other assets. . . . . . . . . . . . . . . 488 195
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TOTAL ASSETS. . . . . . . . . . . . . . . $ 77,518 $ 64,238
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LIABILITIES AND
STOCKHOLDERS' INVESTMENT
Current liabilities:
Accounts payable. . . . . . . . . . . . $ 1,306 $ 1,548
Dividend payable. . . . . . . . . . . . 3,577 3,316
Deferred revenue. . . . . . . . . . . . 12,554 12,464
Notes payable . . . . . . . . . . . . . 5,262 --
Other current liabilities . . . . . . . 10,739 7,501
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Total current liabilities . . . . . . . . 33,438 24,829
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Minority interest in subsidiaries . . . . 83 984
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Stockholders' investment. . . . . . . . . 43,997 38,425
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT . . . . . . . $ 77,518 $ 64,238
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