EXHIBIT 99.1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS FIRST QUARTER
FISCAL 2006 EARNINGS AND ANNOUNCES
PROFIT IMPROVEMENT PLAN
For Further Information Contact: James M. O'Connell
Vice President, Treasurer & CFO
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GLENWOOD, ILLINOIS, JANUARY 30, 2006 ... LANDAUER, INC. (NYSE: LDR), a
recognized leader in personal and environmental radiation monitoring
services, reported revenues of $18.6 million for the first quarter of
fiscal 2006 compared with revenues of $18.3 million reported for the first
quarter of fiscal 2005. Net income for the first fiscal quarter ended
December 31, 2005 was $4.0 million, compared with net income of $4.4
million for the same quarter in fiscal 2005. Net income per diluted share
for the quarter just ended was $0.44 compared with $0.49 a year ago.
Although revenues for the quarter were in line with expectations, aggregate
revenue growth was impacted by the absence of a significant sale of InLight
equipment in France that occurred in the first quarter of last fiscal year.
The sales cycle for such equipment is generally protracted, resulting in
variability in comparing quarterly revenues. Revenue growth was also
impacted by the relative strength of the dollar in the first quarter of
fiscal 2006 as compared with the same period a year ago, particularly in
Europe. Domestic radiation measurement revenues and ancillary service fees
were approximately $400,000 higher than in the first quarter of fiscal 2005
and resulted from increased pricing and moderately higher unit volume.
International revenues were approximately $200,000 lower than for the first
quarter of fiscal 2005 reflecting the InLight and foreign currency
translation factors noted above. Domestic sales of InLight products and
services for the first quarter of fiscal 2006 were approximately $100,000
higher than a year ago.
Cost of revenues and operating expenses for the first quarter were
approximately $975,000 higher than for the same period in fiscal 2005.
Higher costs and expenses were attributable to increased spending for
professional fees, primarily related to Sarbanes-Oxley compliance
activities; higher depreciation and amortization expense; increased
employee benefits costs for pension and health care; and higher expenses
for postage, research costs and foreign travel. Resulting operating income
for the quarter ended December 31, 2005 was $6.0 million, a decrease from
$6.7 million in the same quarter a year ago. The effective income tax rate
for the first quarter of fiscal 2006 was 37.5 percent compared with 36.8
percent in the same period a year ago.
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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
"Landauer is a great company with a solid business franchise, strong
margins and excellent cash flow," said Bill Saxelby, recently elected
president and chief executive officer. "My assessment over the first 120
days is that Landauer can operate its core business with a lower cost
structure. This new cost structure will lead to improved productivity of
our base business platform, positioning us for future growth."
"Our efforts will focus on three key areas:
1) Improve profitability of the core business;
2) Drive higher performance through measurement and accountability
across the organization;
3) Pursue additional growth opportunities."
Saxelby added, "Senior management has conducted a thorough assessment of
all costs and expenses. This included an evaluation of the organizational
structure, a uniform performance evaluation of each employee, and a review
of all employee benefit programs. Management decided to reorganize several
departments and functions to eliminate redundant positions, require
employees to meet established performance criteria, and significantly alter
or eliminate some benefit programs. Additionally, cost reduction
opportunities unrelated to staffing and benefits have been identified and
specific programs to meet these lower expense targets are being executed.
The implementation of these programs is expected to result in a pre-tax
charge in the amount of approximately $600,000 to be recognized in the
second fiscal quarter of 2006, primarily related to severance payments,
extended employee benefits and related separation costs. We are targeting
an overall cost and expense reduction in fiscal 2006 of approximately $1.3
million, net of the reorganization charge."
"This management team can operate our core businesses with a significantly
lower cost structure. At the same time, we have the talent, drive and
creativity to expand the business opportunities available to Landauer and
can do so in a more efficient and productive manner."
OUTLOOK FOR BALANCE OF FISCAL 2006
A review of Landauer's business plan for fiscal 2006 suggests that
aggregate revenue growth for the year is anticipated to be in the range of
5 - 5.5 percent with revenues from the Company's traditional domestic and
international radiation monitoring business 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 5 - 6
percent, excluding the effect of reorganization. Net other income in
fiscal 2006 is anticipated to be moderately higher than the year just ended
and minority interest should be somewhat higher than fiscal 2005 levels.
The effective income tax rate for fiscal 2006 is expected to be comparable
to 2005 at approximately 37.5 - 38 percent. Resulting net income for 2006
is anticipated to be higher by 12 - 14 percent compared with last fiscal
year and reflects that 2005 results were negatively impacted by a pre-tax
charge in the amount of $2.3 million and that 2006 results are expected to
be reduced by a pre-tax charge of approximately $600,000. Exclusive of the
reorganization charges in both years, fiscal 2006 net income is expected to
be higher by 6 - 8 percent compared with fiscal 2005.
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LANDAUER, INC.
ADD 2
CONFERENCE CALL INFORMATION
Landauer, Inc. has scheduled a conference call that will be broadcast
simultaneously over the Internet. The company will broadcast its first
quarter conference call for investors over the Internet at
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=94416&
eventID=1201760 Monday, January 30, 2006 at 2:00 p.m. central time. Please
allow 15 minutes to register and download the required software. Replays
will be available through the above 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 more than 1.4 million
people in the United States, Japan, France, the United Kingdom, Brazil,
Canada, China, Australia and other countries.
SAFE HARBOR STATEMENT
Certain of the statements made herein are forward-looking statements,
including, without limitation, the information contained under the heading
"Outlook for Balance of Fiscal 2006" and statements concerning the
development and introduction of new technologies, the adaptability of OSL
to new platforms and new formats (such as InLight), the usefulness of older
technologies, the cost associated with the Company's business development
and research efforts, the valuation of the Company's long-lived assets or
business units relative to future cash flows, the anticipated results of
the operations of the Company and its subsidiaries or ventures, the
Company's business plans, reorganization plans and anticipated cost and
expense savings, foreign exchange risks, government regulations, changes in
pricing of products and services, changes in postal and delivery practices,
the Company's market position, anticipated revenue and cost growth, the
risks of conducting business internationally, other anticipated financial
events, the effects of changing economic and competitive conditions,
government regulations, accreditation requirements, assumptions used for
management's estimates, and pending accounting announcements. 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 plan and prospects and could create the need, from time to time,
to write down the value of the assets or otherwise cause the Company to
incur unanticipated expenses. Additional information may be obtained by
reviewing the information set forth in Item 1A. "Risk Factors" and Item 7A.
"Quantitative and Qualitative Disclosures About Market Risk" and
information contained in the Company's Annual Report on Form 10-K for the
year ended September 30, 2005 and other reports filed by the Company, from
time to time, with the SEC.
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LANDAUER, INC.
ADD 3
FIRST QUARTER FISCAL 2006 FINANCIAL HIGHLIGHTS
(Unaudited; amounts in thousands, except per share data)
Three months ended
December 31,
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2005 2004
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Net revenues . . . . . . . . . . . . . . . . . . $ 18,647 $ 18,325
Cost and expenses:
Cost of sales. . . . . . . . . . . . . . . . . 7,433 7,094
Selling, general and administrative. . . . . . 5,154 4,511
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12,587 11,605
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Operating income . . . . . . . . . . . . . . . . 6,060 6,720
Other income - net . . . . . . . . . . . . . . . 416 312
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Income before income taxes and
minority interest. . . . . . . . . . . . . . . 6,476 7,032
Income taxes . . . . . . . . . . . . . . . . . . 2,430 2,586
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Income before minority interest. . . . . . . . . 4,046 4,446
Minority interest therein. . . . . . . . . . . . 39 16
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Net Income . . . . . . . . . . . . . . . . . . . $ 4,007 $ 4,430
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Net income per common share:
Basic. . . . . . . . . . . . . . . . . . . . . $ 0.44 $ 0.50
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Average shares outstanding . . . . . . . . . . 9,025 8,949
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Diluted. . . . . . . . . . . . . . . . . . . . $ 0.44 $ 0.49
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Average shares outstanding . . . . . . . . . . 9,104 9,019
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LANDAUER, INC.
ADD 4
SUMMARY CONSOLIDATED BALANCE SHEET
(unaudited; amounts in thousands)
December 31, September 30,
2005 2005
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ASSETS
Current Assets:
Cash and cash equivalents. . . . . . . . $ 13,129 $ 9,598
Receivables, net of reserves . . . . . . 19,961 17,987
Other current assets . . . . . . . . . . 5,172 8,004
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Total current assets . . . . . . . . . . . 38,262 35,589
Net property, plant and equipment. . . . . 17,764 17,907
Equity in joint venture. . . . . . . . . . 3,219 4,467
Goodwill, net of amortization. . . . . . . 13,239 13,261
Other intangible assets,
net of amortization. . . . . . . . . . . 6,791 6,926
Other operating assets,
net of amortization. . . . . . . . . . . 6,946 6,537
Other assets . . . . . . . . . . . . . . . 711 1,172
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TOTAL ASSETS . . . . . . . . . . . . . . . . $ 86,932 $ 85,859
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LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current Liabilities:
Accounts payable . . . . . . . . . . . . $ 1,474 $ 1,595
Notes payable. . . . . . . . . . . . . . 3,807 4,048
Dividends payable. . . . . . . . . . . . 4,065 3,815
Deferred revenue . . . . . . . . . . . . 13,426 12,702
Other current liabilities. . . . . . . . 7,924 7,673
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Total current liabilities. . . . . . . . . 30,696 29,833
Non-current Liabilities:
Pension and postretirement liabilities . 7,770 7,062
Deferred income taxes. . . . . . . . . . 213 238
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Total non-current liabilities. . . . . . . 7,983 7,300
Minority interest in subsidiary. . . . . . 61 128
Stockholders' investment . . . . . . . . . 48,192 48,598
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT . . . . . . . . . $ 86,932 $ 85,859
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