EXHIBIT 99.1
- ------------
News Release
LANDAUER
- --------------------------------------------------------------------------
LANDAUER INC.'S BOARD APPROVES INVESTMENTS TO
SUPPORT LONG-TERM GROWTH
Company Revises 2007 Guidance
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-756-9535
- --------------------------------------------------------------------------
GLENWOOD, ILLINOIS - FEBRUARY 22, 2007 - LANDAUER, INC. (NYSE: LDR), a
recognized leader in personal and environmental radiation monitoring,
announced its board of directors today approved a plan to support continued
profitability and growth by investing in two areas:
. Accelerating a program to re-engineer business processes and
replace the company's information technology systems that
support customer relationship management and the order-to-cash
cycle, and
. Expanding its investment in sales and marketing resources to
reach targeted markets for growth.
INVESTMENTS SUPPORT MANAGEMENT PRIORITIES
"We are continuing to pursue our three long-term management priorities,"
explained Bill Saxelby, president and chief executive officer. "These are
to improve the profitability of our base business, expand global InLight
sales, and sharpen our internal focus by pursuing opportunities to enhance
our market position and generate even higher returns on capital. Improving
our internal systems and strengthening our marketing outreach are key
factors in achieving all of these goals.
"We expect to fund these two actions under our original capital spending
budget of $8-9 million this year," Saxelby added. "After evaluating the
system implementation plan, we determined that some of the program's key
elements will need to be expensed under the applicable accounting
guidelines. However, neither the direct investments approved by the board
of directors nor the anticipated acceleration of depreciation and
impairment charge for our current information technology systems and
related business processes will have a significant affect on free cash flow
this year."
-more-
LANDAUER, INC.
ADD 1
The company is investigating different information technology platforms to
meet its needs. The system selected will include accelerated quote-to-cash
functionality, a Web-enabled order management capability with tools that
make it easier for customers to work with the company, and the ability to
accommodate new products and markets. Landauer is committed to simplifying
the way it serves customers, reducing the number of operational steps
involved in meeting their requirements, and increasing the speed with which
it develops and introduces new products.
REVISED OUTLOOK
As a result of the planned investments discussed above, while management
expects the company will reach its previously announced level of 4-5
percent top-line growth for the year ending September 30, 2007, it believes
earnings for the year will be near the same level seen in 2006. (In fiscal
2006, Landauer reported revenues of $79.0 million, net income of $19.0
million, and diluted earnings per share of $2.09. These results include
$1.0 million in after-tax reorganization and management transition
charges.)
In addition, as part of the information technology initiative, management
is evaluating the usefulness of investments made in legacy information
systems' hardware and software, which have a net book value of
approximately $4.6 million. Management anticipates that a significant
portion of these assets will be subject to accelerated depreciation or
impairment once the full implementation plan has been finalized. The
company expects to complete this evaluation in the second half of the year.
As a result, the impact has not been considered in the revised earning
guidance.
CONFERENCE CALL DETAILS
Landauer will hold a conference call to discuss these developments with
investors on Thursday, February 22, 2007, at 12:00 p.m. Eastern Time, 9:00
a.m. Pacific Time. To participate, callers should dial 800-936-9754 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.
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.
-more-
LANDAUER, INC.
ADD 2
SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, references
to sales and earnings in fiscal 2007) constitutes forward-looking
statements that are based on certain assumptions and involve certain risks
and uncertainties. These include the following, without limitation: the
ability to select and implement a new information technology system without
significant business interruption; 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, 2005,
and other reports filed by the company from time to time with the
Securities and Exchange Commission.
# # #