EXHIBIT 99.1 ADD 1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS
THIRD QUARTER 2005 RESULTS
For Further Information Contact: James M. O'Connell
Vice President, Treasurer and CFO
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GLENWOOD, ILLINOIS, JULY 25, 2005 . . . LANDAUER, INC. (NYSE: LDR) reported
today that net income for its third fiscal quarter ended June 30, 2005 was
$4,531,000, or $0.50 per diluted share, compared with $4,393,000, or $0.49
per diluted share, for the same quarter in fiscal 2004. Revenues for the
quarter just ended were $18,200,000, or almost 6% higher than revenues of
$17,202,000 in the same period last year. Domestic radiation monitoring
activities increased by approximately $500,000 for the quarter, due to
higher pricing, increased ancillary service revenues and modest unit gains.
International radiation monitoring revenue growth of more than $425,000
resulted from a mix of increased business activity in Europe, Brazil and
Asia, as well as a weaker U.S. dollar. The balance of revenue growth was
attributable to sales of InLight products and services in the U.S. and
abroad.
Operating income of $6,642,000 for the third quarter was $75,000 lower than
a year ago. International costs for the quarter were almost $600,000
higher than a year ago and resulted primarily from costs associated with
the conversion of French customers to InLight. The InLight conversion in
France is expected to be completed by October 2005. Additional expense was
incurred from the closing of the former Philips laboratory and merging
those operations into the Paris facility. Domestic cost and expense
increases of approximately $500,000 compared with a year ago resulted from
higher professional fees and outside services including Sarbanes-Oxley
documentation, testing and remediation work, as well as depreciation and
amortization expense.
RESULTS FOR NINE MONTHS ENDED JUNE 30, 2005
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For the first nine months of fiscal 2005, Landauer reported net income of
$14,104,000, or $1.56 per diluted share, compared with $13,238,000, or
$1.48 per diluted share, for the same period in fiscal 2004. Revenues for
the first nine months of the fiscal year were $56,231,000, or 7.6% higher
than $52,242,000 reported for the same period a year ago. Domestic revenue
growth, representing more than $1,800,000 of the increase, resulted from
improved pricing and modestly higher volume for radiation measurement and
ancillary services. International radiation monitoring revenues were
approximately $1,200,000 higher as a result of higher pricing, increased
international business activity and a continued weak U.S. dollar. The
balance of revenue growth for the first nine months of 2005, or
approximately $1,000,000, was attributable to sales of InLight products and
services in the U.S. and abroad.
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LANDAUER, INC. ADD 2
Aggregate costs and expenses for the first nine months of fiscal 2005 were
$3,466,000 higher than a year ago, in part the result of increased business
activity and general expense levels. International costs were higher by
almost $1,900,000 and reflect the costs of InLight products sold, planned
costs for conversion of French customers to InLight, the consolidation of
two laboratories in France and currency translation. Domestic costs and
expenses increased by almost $1,600,000 for the first nine months and
include higher depreciation and amortization expense, professional and
outside service fees related to Sarbanes-Oxley compliance and market
research, and higher postage costs. Resulting operating income for the
first nine months of fiscal 2005 was $21,266,000 compared with $20,743,000
for the same period in 2004.
Year-to-date net other income was $145,000 higher than a year ago.
Earnings from Nagase-Landauer, Ltd., the Company's joint venture in Japan,
were higher by $219,000 and net interest and other expenses increased by
$74,000. For the first nine months of fiscal 2005, minority interest in
net income of subsidiaries was $215,000 lower than for the same period a
year ago, as a result of the acquisition of the remaining interest in LCIE-
Landauer. Income taxes for the first nine months of fiscal 2005 were
slightly higher than year-ago levels. The effective tax rate for the
current year of 36.5% reflects higher Nagase-Landauer income, as well as
certain non-taxable items, and compares with 37.5% for the first nine
months of fiscal 2004.
OUTLOOK FOR BALANCE OF FISCAL 2005
Management's review of the first nine months of fiscal 2005 and expected
business activity for the fourth quarter indicate that aggregate revenue
growth for the year is anticipated to be 7 - 8%. Fiscal 2005 revenues from
traditional domestic and international radiation monitoring services are
expected to grow by approximately 5.5% compared with 2004. Revenues from
sales for the InLight product line will contribute to the balance of
revenue growth. Domestic revenue growth drivers include pricing, moderate
unit growth and increased sales of ancillary services. Pricing and
increased unit volume are expected to contribute to international revenue
growth in 2005, although currency exchange rates may impact results
reported in U.S. dollars. Based on the Company's current operating plan,
costs and operating expenses for fiscal 2005 are expected to grow at an
aggregate rate of 10 - 10.5% compared with 2004. Net other income in
fiscal 2005 is anticipated to be approximately $200,000 higher than in
fiscal 2004 and minority interest should be $200,000 lower, as a result of
the elimination of the minority interest in LCIE-Landauer. The effective
income tax rate for fiscal 2005 is expected to be 36.5 - 37%, compared with
37.4% in fiscal 2004. Based on these estimates, resulting net income for
fiscal 2005 is currently anticipated to be higher by 5 - 6% compared with
fiscal 2004.
CONFERENCE CALL INFORMATION
Landauer, Inc. has scheduled a conference call on Tuesday, July 26, 2005,
at 10:00 a.m. central time that will be broadcast simultaneously via the
Internet at:
http://phx.corporate-ir.net/playerlink.zhtml?c=94416&s=wm&e=1097789
Please allow 15 minutes to register and download the required software. A
replay will be available for 90 days at the above address.
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LANDAUER, INC. ADD 3
ABOUT LANDAUER, INC.
Landauer is the leading provider of analytical services to determine
personal exposure to occupational and environmental radiation. 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.
SAFE HARBOR STATEMENT
Certain of the statements made herein (including, in particular, under the
caption "Outlook for Balance of Fiscal 2005"), 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 development and introduction of
new technologies, generally; introduction and customer acceptance of the
InLight technology; the adaptability of optically stimulated luminescence
("OSL") technology to new platforms and formats, such as Luxel<registered
trademark>+; the costs 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; changes in pricing of products and services; 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, 2004 and other reports filed by the Company
from time to time with the Securities and Exchange Commission.
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LANDAUER, INC. ADD 4
THIRD QUARTER FISCAL 2005 FINANCIAL HIGHLIGHTS
(Unaudited; amounts in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
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2005 2004 2005 2004
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Net revenues. . . . . . . $ 18,200 $ 17,202 $ 56,231 $ 52,242
Costs and expenses:
Cost of revenues. . . . 7,071 6,435 21,427 18,938
Selling, general and
administrative. . . . 4,487 4,050 13,538 12,561
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11,558 10,485 34,965 31,499
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Operating income. . . . . 6,642 6,717 21,266 20,743
Other income - net. . . . 383 297 1,027 882
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Income before income
taxes and minority
interest. . . . . . . . 7,025 7,014 22,293 21,625
Income taxes. . . . . . . 2,475 2,615 8,133 8,116
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Income before minority
interest. . . . . . . . 4,550 4,399 14,160 13,509
Minority interest . . . . 19 6 56 271
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Net income. . . . . . . . $ 4,531 $ 4,393 $ 14,104 $ 13,238
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Net income per
common share:
Basic . . . . . . . . . $ 0.50 $ 0.49 $ 1.57 $ 1.49
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Based on average
shares outstanding. . 8,964 8,903 8,956 8,884
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Diluted . . . . . . . . $ 0.50 $ 0.49 $ 1.56 $ 1.48
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Based on average
shares outstanding. . 9,039 8,976 9,028 8,961
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LANDAUER, INC. ADD 5
SUMMARY CONSOLIDATED BALANCE SHEET
(unaudited, amounts in thousands)
June 30, September 30,
2005 2004
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ASSETS
Current Assets
Cash and cash equivalents . . . . . . $ 8,202 $ 8,595
Receivables, net of reserves. . . . . 18,135 15,060
Other current assets. . . . . . . . . 7,080 6,635
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Total current assets. . . . . . . . . . . 33,417 30,290
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Net property, plant and equipment . . . . 18,170 18,540
Equity in joint venture . . . . . . . . . 4,254 3,916
Goodwill, net of amortization . . . . . . 13,240 13,156
Other intangible assets,
net of amortization . . . . . . . . . . 5,970 6,337
Other operating assets,
net of amortization . . . . . . . . . . 6,193 4,791
Other assets. . . . . . . . . . . . . . . 1,219 488
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TOTAL ASSETS. . . . . . . . . . . . . . . $ 82,463 $ 77,518
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LIABILITIES AND
STOCKHOLDERS' INVESTMENT
Current Liabilities:
Accounts payable. . . . . . . . . . . . $ 1,011 $ 1,306
Notes payable . . . . . . . . . . . . . 4,311 5,262
Dividend payable. . . . . . . . . . . . 3,811 3,577
Deferred revenue. . . . . . . . . . . . 13,596 12,554
Other current liabilities . . . . . . . 5,991 5,577
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Total current liabilities . . . . . . . . 28,720 28,276
Non-current Liabilities:
Pension and postretirement
liabilities . . . . . . . . . . . . . 5,033 3,845
Deferred income taxes . . . . . . . . . 1,199 1,317
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Total non-current liabilities . . . . . . 6,232 5,162
Minority interest in subsidiary . . . . . 77 83
Stockholder's investment. . . . . . . . . 47,434 43,997
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT. . . . . . . . $ 82,463 $ 77,518
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