EXHIBIT 99.1
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News Release
LANDAUER
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LANDAUER, INC. REPORTS STRONG IMPROVEMENTS
IN 2007 FIRST QUARTER RESULTS
Quarter Benefits from Higher International Sales, Cost Improvement Plan
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-756-9535
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GLENWOOD, IL -- JANUARY 30, 2007 -- LANDAUER, INC. (NYSE: LDR), a
recognized leader in personal and environmental radiation monitoring, today
reported record performance in its first quarter ended December 31, 2006.
FIRST QUARTER 2007 HIGHLIGHTS
. Revenue reached a record $20.2 million on higher international sales,
driven by contributions from a new Australian venture, favorable
exchange rates and continued growth of InLight services.
. Cost improvement plan initiated in early 2006 led to an increase in
gross profit of $1.9 million, or 16.5 percent over the prior year.
. Operating cash flow expanded 7 percent to $7.6 million.
. Net income grew 21 percent to $4.9 million, or $0.53 per diluted
share.
"In fiscal 2006, we accomplished our goal of reducing Landauer's cost
structure by a net of $2.1 million," said Bill Saxelby, president and chief
executive officer. "Delivering on this goal allowed us to increase our
gross profit, operating income and net income in the first quarter. We
focused on our three management priorities during the latest quarter:
improving the profitability of our base business, expanding global InLight
sales, and sharpening our internal focus by pursuing opportunities to
enhance our market position and generate high returns on capital. One of
our primary goals for 2007 is to increase revenues through organic growth
in global markets and the further adoption of our InLight technology."
QUARTERLY EARNINGS RISE ON HIGHER INTERNATIONAL SALES, IMPROVED COST
CONTROLS
Revenues for the first three months of fiscal 2007 were $20.2 million, an 8
percent increase compared with the $18.6 million at this time last year.
Domestic revenue rose nearly 3 percent or $430,000 for the quarter,
attributable primarily to price increases and new customers. International
revenue was up 31 percent, or $1.1 million, led by the addition of an
Australian venture, strong InLight service growth and the impact of
favorable currency translation.
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LANDAUER, INC.
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Cost of sales declined 5 percent from the same quarter last year,
benefiting from the cost improvement program initiated in the second
quarter of fiscal 2006. This program resulted in an improvement in gross
profit margin from 60.1 percent to 64.8 percent. Selling, general and
administrative expenses for the first quarter grew 12 percent due to two
primary factors:
. Investments in professional services to accelerate the company's
long-term growth: engaging outside resources to assist management
with identifying higher growth market segments and the best
strategies to pursue them, and initiating a project to reengineer its
business processes to improve productivity; and
. Increases in international operating expenses due to the addition of
a new Australian venture and the impact of foreign currency
translation.
Net income for the most recent quarter grew 21 percent to $4.9 million,
compared with $4.0 million a year ago. Earnings per diluted share for the
three months were $0.53 versus $0.44 in 2006.
CONTINUED STRONG FINANCIAL POSITION
Total assets at December 31, 2006, were $94 million, up 8 percent from the
prior-year period, including $16.9 million in working capital and $18.9
million in cash. Total debt at quarter's end was $341,000, down 91 percent
from a year ago. The company's cash provided by operating activities
increased 7 percent to $7.6 million for the latest three months.
2007 OUTLOOK
"The progress we made in the first quarter reflects the benefits of a
focused approach to our business, led by an experienced and disciplined new
management team that is working well together," Saxelby said. "It is
important to recognize that we did not initiate our cost improvement
program until after the first quarter of last year. This means cost
structure comparisons will begin to be more relevant in future quarters. In
addition, positive currency exchange rates played a role in the revenue
increases in the quarter. As a result, we continue to expect revenues for
fiscal 2007 will increase 4-5 percent, leading to expected net income
growth of 6-8 percent, excluding the $994,000 after-tax impact of the 2006
restructuring charge and management transition costs. We want to point
out, however, that this performance could be affected by investments
necessary to support the acceleration of our long-term growth."
CONFERENCE CALL DETAILS
Landauer's first quarter conference call for investors is scheduled for
Tuesday, January 30, at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time).
To participate, callers should dial 877-704-5384 about 10 minutes before
the presentation. To listen to a webcast, please visit the Investors Page
on the company's Web site at www.landauerinc.com at least 15 minutes early
to register, download and install any necessary audio software. A replay of
the call will remain available on the site for 90 days.
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LANDAUER, INC.
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ABOUT LANDAUER
Landauer is the world's leading provider of technical and 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 Outlook") 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 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, 2006,
and other reports filed by the Company from time to time with the
Securities and Exchange Commission.
FINANCIAL TABLES FOLLOW
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LANDAUER, INC.
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FIRST QUARTER FISCAL 2007 FINANCIAL HIGHLIGHTS
(unaudited; amounts in thousands, except per share data)
Three months ended
December 31,
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2006 2005
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Net revenues . . . . . . . . . . . . . $ 20,160 $ 18,647
Cost and Expenses:
Cost of sales. . . . . . . . . . . . 7,091 7,433
Selling, general and administrative. 5,769 5,154
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12,860 12,587
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Operating income . . . . . . . . . . . 7,300 6,060
Other income - net . . . . . . . . . . 545 416
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Income before income taxes and
minority interest. . . . . . . . . . 7,845 6,476
Income taxes . . . . . . . . . . . . . 2,930 2,430
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Income before minority interest. . . . 4,915 4,046
Minority interest. . . . . . . . . . . 56 39
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Net income . . . . . . . . . . . . . . $ 4,859 $ 4,007
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Net Income per Common Share:
Basic. . . . . . . . . . . . . . . . $ 0.53 $ 0.44
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Average shares outstanding . . . . . 9,113 9,025
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Diluted. . . . . . . . . . . . . . . $ 0.53 $ 0.44
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Average shares outstanding . . . . . 9,195 9,104
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LANDAUER, INC.
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SUMMARY CONSOLIDATED BALANCE SHEET
(unaudited; amounts in thousands)
December 31, September 30,
2006 2006
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ASSETS
Current Assets:
Cash and cash equivalents. . . . . $ 18,859 $ 15,420
Receivables, net of reserves . . . 21,066 20,284
Other current assets . . . . . . . 6,445 6,273
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Total current assets . . . . . . . . . 46,370 41,977
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Net property, plant and equipment. . . 16,001 16,416
Equity in joint venture. . . . . . . . 3,763 3,980
Goodwill, net of amortization. . . . . 13,282 13,273
Other intangible assets,
net of amortization. . . . . . . . . 6,241 6,377
Other operating assets,
net of amortization. . . . . . . . . 6,231 6,502
Other assets . . . . . . . . . . . . . 953 927
Deferred income taxes. . . . . . . . . 1,198 1,222
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TOTAL ASSETS . . . . . . . . . . . . . $ 94,039 $ 90,674
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LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current Liabilities:
Accounts payable . . . . . . . . . $ 2,143 $ 1,439
Notes payable. . . . . . . . . . . 341 1,649
Dividends payable. . . . . . . . . 4,342 4,092
Deferred revenue . . . . . . . . . 14,501 13,761
Other current liabilities. . . . . 8,128 7,488
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Total current liabilities. . . . . . . 29,455 28,429
Non-current Liabilities:
Pension and postretirement
liabilities. . . . . . . . . . . 8,405 8,348
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Total non-current liabilities. . . . . 8,405 8,348
Minority interest in subsidiary. . . . 141 198
Stockholders' investment . . . . . . . 56,038 53,699
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT . . . . . . $ 94,039 $ 90,674
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