EXHIBIT 99.1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS HIGHER
SECOND QUARTER 2006 EARNINGS
For Further Information Contact:
James M. O'Connell Vice President, Treasurer & CFO
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GLENWOOD, ILLINOIS, APRIL 25, 2006 ... LANDAUER, INC. (NYSE symbol LDR)
reported today that net income for its second fiscal quarter ended
March 31, 2006 was $5,248,000, or $0.58 per diluted share, compared with
$5,143,000, or $0.57 per diluted share, for the same quarter in fiscal
2005. Revenues for the quarter just ended were $20,621,000, or almost 5%
higher than revenues of $19,706,000 in the same period last year. Domestic
radiation monitoring activities represented approximately $500,000 of
revenue growth for the quarter and was largely due to higher pricing and
modest unit gains, primarily to medical and nuclear power customers.
International radiation monitoring revenue growth of more than $450,000
resulted from increased business activity in Europe, Asia and Brazil,
offset by a stronger U.S. dollar. Sales of InLight products were
moderately lower than a year ago.
Aggregate costs and expenses for the quarter ended March 31, 2006, were
higher than a year ago, primarily due to a charge of approximately $600,000
for costs associated with the implementation of a profit improvement plan
announced three months ago. Resulting operating income for the second
quarter of fiscal 2006 was $8,034,000 compared with $7,904,000 for the same
period a year ago. Excluding the $600,000 charge, operating income for the
current quarter increased by $730,000, or more than 9%, compared with a
year ago. "We announced and began implementation of a profit improvement
plan ninety days ago", said Bill Saxelby, President and C.E.O. "We are
pleased that our profit improvement initiatives are already having a
favorable impact on operating results."
RESULTS FOR SIX MONTHS ENDED MARCH 31, 2006
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For the first half of fiscal 2006, Landauer reported net income of
$9,255,000, or $1.02 per diluted share, compared with $9,573,000, or $1.06
per diluted share, for the same period in fiscal 2005. Revenues for the
first six months of the fiscal year were $39,268,000, or 3.3% higher than
$38,031,000 reported for the same period in fiscal 2005. Domestic revenue
growth, representing more than $900,000 of the increase, resulted from
improved pricing and modestly higher volume for radiation measurement and
ancillary services, primarily from traditional customers, as well as from
nuclear power and emergency response customers. International radiation
monitoring revenues were approximately $650,000 higher, as a result of
higher pricing and increased international business activity, offset by a
stronger U.S. dollar. Sales of InLight products thus far in fiscal 2006
were $300,000 lower than a year ago due to a large institutional sale in
France during the first half of 2005.
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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
The InLight product line was introduced for sale in all global markets in
fiscal 2003. That same year the company began providing radiation
monitoring services to customers in France using InLight instruments and
radiation detectors that incorporate Landauer's proprietary optically
stimulated luminescence (OSL) technology. The InLight product line is also
sold to small and mid-sized radiation monitoring laboratories around the
globe. Today more than 125,000 people on three continents are monitored
for radiation exposure in the work place and the environment using the
InLight product line.
Aggregate costs and expenses for the first half of fiscal 2006 were more
than $1,750,000 higher than a year ago. In addition to the profit
improvement charge of $600,000, higher expenses included depreciation and
amortization, employee benefits costs, professional fees, research and
postage. Resulting operating income for the first half of fiscal 2006 was
$14,094,000 compared with $14,624,000 a year ago. Excluding the profit
improvement plan charge of $600,000, operating income for the first half of
fiscal 2006 would have been slightly higher than for the same period in
fiscal 2005.
Year-to-date net other income was moderately higher than a year ago
primarily as a result of higher net investment income. Income tax expense
for the first half of fiscal 2006 was comparable to a year ago. The
effective tax rate for the current year of 37.6% compares with 37.1% for
the first half of fiscal 2005.
OUTLOOK FOR BALANCE OF FISCAL 2006
We anticipate 2006 aggregate revenue growth to be in the range of 5 - 5.5
percent. 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 1-2 percent on an as reported
basis, or 5 - 6 percent excluding the effect of the charges in fiscal 2005
and 2006. 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 on an as reported basis
reflecting the 2005 pre-tax reorganization charge of $2.3 million and the
2006 pre-tax profit improvement charge of $600,000. Exclusive of the
reorganization and profit improvement charges in both years, fiscal 2006
net income is expected to be higher by 6 - 8 percent compared with fiscal
2005.
CONFERENCE CALL INFORMATION
Landauer, Inc. has scheduled a conference call that will be broadcast
simultaneously over the Internet at CCBN's web conferencing service on
Wednesday, April 26, 2006, at 10:00 a.m. central time. The website address
for CCBN is http://phx.corporate-ir.net/playerlink.zhtml?c=94416&s=
wm&e=1303812. Please allow 15 minutes to register and download the
required software. A replay will be available until May 3, 2006, by
dialing 877-519-4471, passcode 7305011. You may also access the replay at
the CCBN website address for 90 days following the event.
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LANDAUER, INC. Add 2
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
SUMMARY CONSOLIDATED INCOME STATEMENTS
(Unaudited; amounts in thousands, except per share data)
Three months Six months
ended ended
March 31, March 31,
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2006 2005 2006 2005
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Net revenues $ 20,621 $ 19,706 $ 39,268 $ 38,031
Costs and expenses:
Cost of sales 7,486 7,262 14,919 14,356
Selling, general and
administrative (1) 5,101 4,540 10,255 9,051
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12,587 11,802 25,174 23,407
Operating income 8,034 7,904 14,094 14,624
Other income - net 460 332 876 644
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Income before income taxes
and minority interest 8,494 8,236 14,970 15,268
Income taxes 3,203 3,072 5,633 5,658
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Income before minority
interest 5,291 5,164 9,337 9,610
Minority interest 43 21 82 37
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Net income $ 5,248 $ 5,143 $ 9,255 $ 9,573
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Net income per common share:
Basic $ 0.58 $ 0.57 $ 1.03 $ 1.07
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Based on average shares
outstanding 9,021 8,956 9,016 8,952
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Diluted $ 0.58 $ 0.57 $ 1.02 $ 1.06
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Based on average shares
outstanding 9,098 9,025 9,094 9,022
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(1) Includes costs associated with profit improvement plan
implemented during second quarter of fiscal 2006.
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LANDAUER, INC. Add 4
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
March 31, September 30,
2006 2005
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ASSETS
Current Assets
Cash and cash equivalents $ 10,381 $ 9,598
Receivables, net of reserves 18,921 17,987
Other current assets 8,934 8,004
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Total current assets 38,236 35,589
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Net property, plant and equipment 17,383 17,907
Equity in joint venture 3,583 4,467
Goodwill net of amortization 13,275 13,261
Other intangible assets,
net of amortization 6,660 6,926
Other operating assets,
net of amortization 6,875 6,537
Other assets 818 1,172
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TOTAL ASSETS $ 86,830 $ 85,859
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LIABILITIES AND
STOCKHOLDERS' INVESTMENT
Current liabilities:
Accounts payable $ 1,941 $ 1,595
Notes payable 3,552 4,048
Dividend payable 4,067 3,815
Deferred revenue 13,073 12,702
Other current liabilities 6,863 7,673
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Total current liabilities 29,496 29,833
Non-current liabilities:
Pension and postretirement
liabilities 7,353 7,062
Deferred income taxes 190 238
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Total non-current liabilities: 7,543 7,300
Minority interest in subsidiary 113 128
Stockholders' investment 49,678 48,598
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT $ 86,830 $ 85,859
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