EXHIBIT 99.1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS HIGHER
THIRD QUARTER 2006 RESULTS
For Further Information Contact: James M. O'Connell
Vice President, Treasurer and CFO
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GLENWOOD, ILLINOIS, JULY 26, 2006 ... LANDAUER, INC. (NYSE SYMBOL LDR)
reported today that net income for its third fiscal quarter ended June 30,
2006 was $5,121,000, or $0.56 per diluted share, compared with $4,531,000,
or $0.50 per diluted share, for the same quarter in fiscal 2005, an
increase in net income of 13%. Revenues for the quarter just ended were
$19,591,000, or almost 8% higher than revenues of $18,200,000 in the same
period last year. Domestic radiation monitoring activities increased by
approximately $650,000 in the current quarter, as a result of higher
pricing and increased ancillary service revenues. International radiation
monitoring revenue growth of almost $500,000 resulted from a mix of
increased business activity in Europe, Brazil, Canada and Asia. The
balance of revenue growth was attributable to sales of InLight products and
services in the U.S. and abroad.
Operating income of $7,762,000 for the third quarter was more than
$1,100,000, or 17%, higher than for the same period a year ago. Aggregate
cost and expense increases amounted to less than $275,000, or 2% higher
compared with a year ago. "Landauer's profit improvement plan which was
implemented early in the second fiscal quarter has resulted in lower costs
and expenses, improving gross profit and operating margins", said Bill
Saxelby, President and C.E.O.
RESULTS FOR NINE MONTHS ENDED JUNE 30, 2006
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For the first nine months of fiscal 2006, Landauer reported net income of
$14,376,000, or $1.58 per diluted share, compared with $14,104,000, or
$1.56 per diluted share, for the same period in fiscal 2005. Revenues for
the first nine months of the fiscal year were $58,859,000, or almost 5%,
higher than $56,231,000 reported for the same period a year ago. Domestic
revenue growth, representing more than $1,650,000 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 more than $1,150,000 higher, as a result
of higher pricing and increased international business activity. Sales of
InLight products thus far in fiscal 2006 have been strong but were $175,000
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, Illinois 60625
Phone: 708-755-7000 Fax: 708-755-7011 E-mail: landauerinc.com
LANDAUER, INC. ADD 1
Operating income for the first nine months of fiscal 2006 was $21,856,000
compared with $21,266,000 a year ago. Aggregate costs and expenses for the
first nine months of fiscal 2006 were almost $2,050,000 higher than a year
ago. In addition to the profit improvement charge of $600,000 recognized
in the second fiscal quarter, higher expenses included incentive
compensation expense, depreciation, employee benefits costs, professional
fees, and research expenses. Excluding the profit improvement plan charge
of $600,000, operating income for the first nine months of fiscal 2006
would have been almost $1,200,000, or 6%, higher than for the same period
in fiscal 2005.
Year-to-date net other income was $277,000 higher than a year ago.
Earnings from Nagase-Landauer, Ltd., the Company's joint venture in Japan,
were higher by $62,000 and net investment income increased by $215,000.
For the first nine months of fiscal 2006, minority interest in net income
of subsidiaries was $76,000 higher than for the same period a year ago.
Income taxes for the first nine months of fiscal 2006 were higher than
year-ago levels reflecting an effective tax rate for the current year of
37.4% compared with 36.5% for the first nine months of fiscal 2005.
OUTLOOK FOR BALANCE OF FISCAL 2006
We anticipate 2006 aggregate revenue growth to be in the range of 4.5 - 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 reflecting the
positive impact of the profit improvement plan. 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.
These comparisons reflect 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 5 - 7 percent
compared with fiscal 2005.
CONFERENCE CALL INFORMATION
Landauer, Inc. has scheduled a conference call on Thursday, July 27, 2006,
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=1356547
Please allow 15 minutes to register and download the required software. A
replay will be available for 90 days at the above address.
ABOUT LANDAUER, INC.
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.
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LANDAUER, INC. ADD 2
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
THIRD QUARTER FISCAL 2006 FINANCIAL HIGHLIGHTS
(Unaudited; amounts in thousands, except per share data)
Three months ended Nine months ended
June 30, June 30,
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2006 2005 2006 2005
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Net revenues . . . . . . . . . . $ 19,591 $ 18,200 $ 58,859 $ 56,231
Costs and expenses:
Cost of revenues . . . . . . . 7,142 7,071 22,061 21,427
Selling, general and
administrative . . . . . . . 4,687 4,487 14,942 13,538
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11,829 11,558 37,003 34,965
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Operating income . . . . . . . . 7,762 6,642 21,856 21,266
Other income - net . . . . . . . 428 383 1,304 1,027
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Income before income taxes
and minority interest. . . . . 8,190 7,025 23,160 22,293
Income taxes . . . . . . . . . . 3,019 2,475 8,652 8,133
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Income before minority
interest . . . . . . . . . . . 5,171 4,550 14,508 14,160
Minority interest. . . . . . . . 50 19 132 56
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Net income . . . . . . . . . . . $ 5,121 $ 4,531 $ 14,376 $ 14,104
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Net income per common share:
Basic. . . . . . . . . . . . . $ 0.57 $ 0.50 $ 1.59 $ 1.57
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Based on average shares
outstanding. . . . . . . . . 9,048 8,964 9,025 8,956
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Diluted. . . . . . . . . . . . $ 0.56 $ 0.50 $ 1.58 $ 1.56
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Based on average shares
outstanding. . . . . . . . . 9,104 9,039 9,098 9,028
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LANDAUER, INC. ADD 4
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
June 30, September 30,
2006 2005
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ASSETS
Current Assets
Cash and cash equivalents. . . . . . . . $ 15,288 $ 9,598
Receivables, net of reserves . . . . . . 20,081 17,987
Other current assets . . . . . . . . . . 6,519 8,004
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Total current assets . . . . . . . . . . . 41,888 35,589
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Net property, plant and equipment. . . . . 17,087 17,907
Equity in joint venture. . . . . . . . . . 4,057 4,467
Goodwill, net of amortization. . . . . . . 13,275 13,261
Other intangible assets,
net of amortization. . . . . . . . . . . 6,506 6,926
Other operating assets,
net of amortization. . . . . . . . . . . 6,729 6,537
Other assets . . . . . . . . . . . . . . . 922 1,172
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TOTAL ASSETS . . . . . . . . . . . . . . . $ 90,464 $ 85,859
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LIABILITIES AND
STOCKHOLDERS' INVESTMENT
Current Liabilities:
Accounts payable . . . . . . . . . . . . $ 1,030 $ 1,595
Notes payable. . . . . . . . . . . . . . 3,749 4,048
Dividend payable . . . . . . . . . . . . 4,085 3,815
Deferred revenue . . . . . . . . . . . . 14,456 12,702
Other current liabilities. . . . . . . . 6,771 7,673
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Total current liabilities. . . . . . . . . 30,091 29,833
Non-current Liabilities:
Pension and postretirement
liabilities. . . . . . . . . . . . . . 7,793 7,062
Deferred income taxes. . . . . . . . . . 166 238
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Total non-current liabilities. . . . . . . 7,959 7,300
Minority interest in subsidiary. . . . . . 162 128
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Stockholders' investment . . . . . . . . . 52,252 48,598
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT . . . . . . . . . $ 90,464 $ 85,859
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