EXHIBIT 99.1
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News Release
LANDAUER
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LANDAUER, INC. REPORTS RECORD RESULTS
FOR 2006 FOURTH QUARTER AND YEAR
2006 Results Benefit from Cost Improvement Plan
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-756-9535
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GLENWOOD, ILL.--NOVEMBER 29, 2006--LANDAUER, INC. (NYSE: LDR), a
recognized leader in personal and environmental radiation monitoring
services, today reported financial results for its fourth quarter and
fiscal year ended September 30, 2006.
FISCAL 2006 HIGHLIGHTS
.. Record revenue of $79.0 million, with double-digit growth in global
InLight revenue
.. Operating cash flow grew 14 percent to $24.0 million
.. $2.1 million of net pre-tax savings recognized from profit
improvement plan
.. Fourth quarter charge of $1.1 million ($0.6 million after tax), or
$0.07 per diluted share, for management transition costs
.. Net income rose 11 percent to $19.0 million, or $2.09 per diluted
share
"Early in the year, we shared our goal of reducing the core business cost
structure by $1.3 million, net of a $0.6 million reorganization charge,"
said Bill Saxelby, president and chief executive officer. "We delivered on
this commitment by taking several steps including reorganizing several
departments, establishing performance requirements for employees, and
altering or eliminating some benefit programs. We accomplished these
reductions while continuing to deliver high quality radiation detection
products and services. During the year we continued the transition of our
senior management team. Now the company's skill set includes greater
expertise in business development, finance, IT transformation, plant
operations and logistics - the experience we need to take Landauer to its
next level of growth."
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60625
Phone: 708-755-7000 Fax: 708-755-7011 E-mail: landauerinc.com
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Revenues for fiscal 2006 were $79.0 million, a 5 percent increase compared
with the $75.2 million reported for fiscal 2005. Domestic revenue
increased 5 percent or $2.9 million in fiscal 2006, from gains in the core
radiation monitoring business, strong performance for the Homebuyer's
Preferred subsidiary, and a doubling of domestic InLight revenue.
International revenue rose $0.9 million, or 6 percent, supported by growth
in most markets, led by InLight sales.
Landauer recognized charges of $0.6 million for reorganization costs and
$1.1 million for management transition costs in 2006 and $2.3 million for
management transition costs in 2005. Net of these charges, costs and
expenses for fiscal 2006 grew by $1.5 million or 3 percent. This increase
resulted primarily from the higher cost of equity-based compensation
programs, due to the implementation of SFAS 123R, and higher depreciation
and amortization, partially offset by the $2.1 million impact of the
company's profit improvement plan. The effective tax rate was 38.0 percent
in both fiscal 2006 and 2005.
Net income for the year just ended was $19.0 million, an increase of 11
percent compared with $17.2 million for fiscal 2005. This resulted in
diluted earnings per share for the current year of $2.09 compared with
$1.90 reported a year ago. The impact of reorganization and management
transition charges decreased diluted earnings per share by $0.11 and $0.15
in 2006 and 2005, respectively.
STRONGER FOURTH QUARTER PERFORMANCE
For the quarter ended September 30, 2006, revenues increased 6 percent to
$20.2 million compared with $19.0 million a year ago. Costs and expenses
for the quarter were down by $1.2 million, or 9 percent, from last year's
three months, due to lower management transition cost this year. Excluding
those charges, costs and expenses were flat between the two periods,
reflecting the benefit of the profit improvement plan. For the quarter,
the effective tax rate for 2006 was 40.0 percent compared with 44.2 percent
for 2005. Net income for the latest quarter was $4.7 million compared with
$3.1 million in 2005, a 50 percent improvement. Earnings per diluted share
for the quarter were $0.51 compared with $0.34 in 2005.
SOLID FINANCIAL POSITION
Landauer ended the year with total assets of $90.7 million and working
capital of $13.5 million. Total debt was $1.6 million at September 30,
2006. Cash provided by operating activities was $24.0 million, an increase
of 14 percent from 2005.
2007: LAYING THE FOUNDATION TO ACCELERATE GROWTH
"In 2006, we focused on optimizing our cost structure, strengthening our
management team, and initiating a culture of accountability. In 2007, we
will continue to manage aggressively the profitability of our base
business, while we begin to lay the foundation for the acceleration of our
long-term growth and continued creation of shareholder value. We expect to
invest in our operations by reengineering our business processes,
optimizing our sales execution, and increasing the organizational focus on
cash flow and returns. Our goal is to create an infrastructure that can
support a larger base of business with broader products and services, which
will require further investment in our IT infrastructure. We will continue
our global growth strategy focused on increased penetration of current
client and geographic markets, logical extensions of our current products
and services, and entrance of adjacent markets when these offer the return
on investment we seek." Saxelby concluded.
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Landauer's business plan for fiscal 2007 currently anticipates aggregate
revenue growth for the year to be in the range of 4 - 5 percent. The
company anticipates this will translate into a net income increase in the
range of 6 - 8 percent excluding the impact of the 2006 restructuring
charge and management transition costs. However, this performance could be
impacted by investments necessary to support the acceleration of long-term
growth.
CONFERENCE CALL DETAILS
Landauer has scheduled its fourth quarter and year-end conference call for
investors over the Internet on Wednesday, November 29, 2006, at 3:00 p.m.
Eastern Time (12:00 p.m. Pacific Time). To participate, callers should dial
877-502-9274 about 10 minutes before the presentation. To listen to a
webcast on the Internet, please go to the company's website at
http://www.landauerinc.com or http://viavid.net/dce.aspx?sid=00003780 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 1.5 million people in the
United States, Japan, France, the United Kingdom, Brazil, Canada, China,
Australia and other countries.
SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, under the
subhead "2007: Laying the Foundation to Accelerate Growth") constitutes
forward-looking statements that are based on certain assumptions and
involve certain risks and uncertainties. These include the following,
without limitation: assumptions, risks and uncertainties associated with
the company's development and introduction of new technologies in general;
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; 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. These
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assumptions may not materialize to the extent assumed, and risks and
uncertainties may cause actual results to be different from anticipated
results. These risks and uncertainties also may 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. You can find more information by reviewing
the "Significant Risk Factors" section 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 Securities and Exchange Commission.
FINANCIAL TABLE FOLLOW
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FOURTH QUARTER FISCAL 2006 FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
September 30, September 30,
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2006 2005 2006 2005
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Net Revenues . . . . . . $ 20,184 $ 18,990 $ 79,043 $ 75,221
Cost and expenses:
Cost of sales. . . . . 6,673 6,881 28,734 28,308
Selling, general and
administrative . . . 5,862 6,824 20,804 20,362
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12,535 13,705 49,538 48,670
Operating income . . . . 7,649 5,285 29,505 26,551
Other income, net. . . . 188 354 1,492 1,381
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Income before income
taxes and minority
interest . . . . . . . 7,837 5,639 30,997 27,932
Income taxes . . . . . . 3,131 2,490 11,783 10,623
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Income before
minority interest. . . 4,706 3,149 19,214 17,309
Minority interest
therein. . . . . . . . 36 45 168 101
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Net income . . . . . . . $ 4,670 $ 3,104 $ 19,046 $ 17,208
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Net income per
common share:
Basic. . . . . . . . . $ 0.51 $ 0.35 $ 2.11 $ 1.92
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Average shares
outstanding. . . . . 9,073 8,993 9,046 8,966
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Diluted. . . . . . . . $ 0.51 $ 0.34 $ 2.09 $ 1.90
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Average shares
outstanding. . . . . 9,142 9,071 9,112 9,038
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SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
September 30, September 30,
2006 2005
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ASSETS
Current Assets:
Cash and cash equivalents. . . . . . $ 15,420 $ 9,598
Receivables, net of reserves . . . . 20,284 17,987
Other current assets . . . . . . . . 6,273 8,004
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Total current assets . . . . . . . . . 41,977 35,589
Net property, plant and equipment. . . . 16,416 17,907
Equity in joint venture. . . . . . . . . 3,980 4,467
Goodwill, net of amortization. . . . . . 13,273 13,261
Other intangible assets,
net of amortization. . . . . . . . . . 6,377 6,926
Other operating assets,
net of amortization. . . . . . . . . . 6,502 6,537
Other assets . . . . . . . . . . . . . . 927 1,172
Deferred income taxes. . . . . . . . . . 1,222 --
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TOTAL ASSETS . . . . . . . . . . . . . . $ 90,674 $ 85,859
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LIABILITIES AND
STOCKHOLDERS' INVESTMENT
Current Liabilities:
Accounts payable . . . . . . . . . . $ 1,439 $ 1,595
Notes payable. . . . . . . . . . . . 1,649 4,048
Dividends payable. . . . . . . . . . 4,092 3,815
Deferred revenue . . . . . . . . . . 13,761 12,702
Other current liabilities. . . . . . 7,488 7,673
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Total current liabilities. . . . . . . 28,429 29,833
Non-current Liabilities:
Pension and postretirement
liabilities. . . . . . . . . . . . 8,348 7,062
Deferred income taxes. . . . . . . . -- 238
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Total non-current liabilities. . . . . 8,348 7,300
Minority interest in subsidiary. . . . 198 128
Stockholders' investment . . . . . . . 53,699 48,598
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT . . . . . . . $ 90,674 $ 85,859
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