EXHIBIT 99.1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS
EARNINGS FOR FISCAL 2005
For Further Information Contact: James M. O'Connell
Vice President, Treasurer & CFO
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GLENWOOD, ILLINOIS -- NOVEMBER 28, 2005 -- LANDAUER, INC. (NYSE: LDR),
today reported financial results for its fiscal year ended September 30,
2005. The Company, a recognized leader in personal and environmental
radiation monitoring services, reported that revenues for fiscal 2005 were
$75,221,000, an increase of 7.8% compared with revenues of $69,809,000
reported for fiscal 2004. Net income for the year just ended was
$17,208,000, a decrease of 3.2% compared with net income of $17,770,000 for
fiscal 2004 with resulting diluted earnings per share for the current year
at $1.90 compared with $1.98 reported a year ago. In September 2005,
Landauer recognized expense in the amount of $2,300,000 associated with
various organizational changes, including retirement-related expenses
arising from the retirement of the Company's former chief executive
officer, recruitment expenses related to the recent election of a new chief
executive officer and severance and other costs related to additional
personnel changes. The resulting decline in operating income by $2,300,000
reduced net income by $1,386,000 (after income tax benefit of $914,000) and
lowered fiscal 2005 diluted earnings per share by $0.15.
Domestic revenue growth for fiscal 2005 was $2,500,000, or 4.5%, and was
attributable to gains in pricing, unit volume and ancillary service fees
for the Company's core radiation monitoring business. International
revenue growth was $1,700,000, or 14.6%, for the year and reflected
continued favorable currency translation, pricing gains and unit volume in
most foreign markets. The InLight product line contributed the balance of
revenue growth of $1,200,000 for 2005. Costs and expenses for fiscal 2005
grew by almost $6,600,000, or 15.6%, compared with 2004 as a result of
higher depreciation and amortization expense, increased international costs
combined with the effect of foreign currency translation, higher
professional fees and outside services costs for Sarbanes-Oxley compliance
and information services, higher postage costs and the reorganization costs
noted above. Exclusive of the reorganization charge, costs and expenses
for 2005 increased by approximately $4,300,000, or 10.2%. Net other income
was higher in 2005 primarily a result of higher Nagase-Landauer, Ltd.
earnings compared with 2004. Landauer's 2004 acquisition of the remaining
equity in LCIE-Landauer resulted in lower minority interest expense
compared with a year ago. The effective tax rate for 2005 was 38.0%
compared with 37.4% for 2004 as a result of higher state income taxes and
lower foreign tax credits this year.
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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
For the quarter ended September 30, 2005, the Company reported revenues of
$18,990,000, an increase of 8.1% compared with $17,567,000 a year ago. Net
income for the quarter just ended was $3,104,000 compared with earnings of
$4,532,000 in the same quarter a year ago. Earnings per diluted share for
the quarter were $0.34 compared with $0.50 in 2004. Costs and expenses for
the quarter just ended were $3,100,000, or 29% higher than for the same
period a year ago and primarily reflects the $2,300,000 in expense
associated with the organizational changes discussed above. Exclusive of
the reorganization charge, costs and expenses were slightly more than
$800,000, or 7.7%, higher reflecting increased costs for depreciation and
amortization expense, professional and outside services fees, and
international expenses including the effect of foreign currency
translation. Additionally, income tax expense for the quarter was higher
as the result of a change in the overall effective tax rate for 2005.
OUTLOOK FOR FISCAL 2006
Landauer's business plan for fiscal 2006 anticipates aggregate revenue
growth for the year to be in the range of 5 - 6% with revenues from the
Company's traditional domestic and international revenue expected to grow
at a slightly lower rate. Sales for the InLight product line are expected
to comprise the balance of revenue growth. Both domestic and international
revenue growth are expected to result from a mix of higher pricing,
moderate unit growth and increased sales of ancillary services. Costs and
operating expenses for fiscal 2006 are expected to grow at an aggregate
rate of 3 - 5%. Net other income in fiscal 2006 is anticipated to be
moderately higher than the year just ended and minority interest should be
comparable to fiscal 2005 levels. The effective income tax rate for fiscal
2006 is expected to be comparable to 2005 at approximately 37.5 - 38%.
Resulting net income for 2006 is anticipated to be higher by 7 - 9%
compared with fiscal 2005.
CONFERENCE CALL INFORMATION
Landauer, Inc. has scheduled its fourth quarter and year-end conference
call for investors over the Internet at http://phx.corporate-
ir.net/phoenix.zhtml?p=irol-eventDetails&c=94416&eventID=1167917 on
Tuesday, November 29th at 3:30 p.m. Eastern Time (12:30 p.m. Pacific Time).
To listen to the live call, please go to the website at least 15 minutes
early to register, download and install any necessary audio software. A
replay of the call will remain available at the site for 90 days.
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 (including, in particular, under the
caption "Outlook for Fiscal 2006"), 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 3
FOURTH QUARTER FISCAL 2005 FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
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September 30, September 30,
2005 2004 2005 2004
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Net Revenues . . . . . . . . $ 18,990 $ 17,567 $ 75,221 $ 69,809
Cost and expenses:
Cost of sales. . . . . . . . 6,881 6,514 28,308 25,452
Selling, general and
administrative . . . . . . 6,824 4,076 20,362 16,637
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13,705 10,590 48,670 42,089
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Operating income . . . . . . 5,285 6,977 26,551 27,720
Other income - net . . . . . 354 241 1,381 1,123
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Income before income taxes
and minority interest. . . 5,639 7,218 27,932 28,843
Income taxes . . . . . . . . 2,490 2,670 10,623 10,786
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Income before minority
interest . . . . . . . . . 3,149 4,548 17,309 18,057
Minority interest therein. . 45 16 101 287
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Net income . . . . . . . . . $ 3,104 $ 4,532 $ 17,208 $ 17,770
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Net income per common share:
Basic. . . . . . . . . . . $ 0.35 $ 0.51 $ 1.92 $ 2.00
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Average shares
outstanding. . . . . . . 8,993 8,923 8,966 8,894
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Diluted. . . . . . . . . . $ 0.34 $ 0.50 $ 1.90 $ 1.98
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Average shares
outstanding. . . . . . . 9,071 8,999 9,038 8,971
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LANDAUER, INC.
ADD 4
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
September 30, September 30,
2005 2004
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ASSETS
Current Assets:
Cash and cash equivalents. . . . . . . $ 9,598 $ 8,595
Receivables, net of reserves . . . . . 19,743 15,060
Other current assets . . . . . . . . . 7,899 6,635
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Total current assets . . . . . . . . . . . 37,240 30,290
Net property, plant and equipment. . . . . 17,907 18,540
Equity in joint venture. . . . . . . . . . 4,467 3,916
Goodwill, net of amortization. . . . . . . 13,261 13,156
Other intangible assets,
net of amortization. . . . . . . . . . . 5,817 6,337
Other operating assets,
net of amortization. . . . . . . . . . . 6,537 4,791
Other assets . . . . . . . . . . . . . . . 1,172 488
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TOTAL ASSETS . . . . . . . . . . . . . . . $ 86,401 $ 77,518
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LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current Liabilities:
Accounts payable . . . . . . . . . . . $ 1,595 $ 1,306
Notes payable. . . . . . . . . . . . . 4,048 5,262
Dividend payable . . . . . . . . . . . 3,815 3,577
Deferred revenue . . . . . . . . . . . 12,702 12,554
Other current liabilities. . . . . . . 7,673 5,577
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Total current liabilities. . . . . . . . . 29,833 28,276
Non-current Liabilities:
Pension and postretirement
liabilities. . . . . . . . . . . . . 5,563 3,845
Deferred income taxes. . . . . . . . . 1,971 1,317
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Total non-current liabilities. . . . . . . 7,534 5,162
Minority interest in subsidiary. . . . . . 128 83
Stockholders' investment . . . . . . . . . 48,906 43,997
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT . . . . . . . . $ 86,401 $ 77,518
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