EXHIBIT 99.1
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News Release
LANDAUER
For Immediate Release
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LANDAUER, INC. REPORTS RECORD RESULTS
FOR SECOND QUARTER, FIRST HALF
GROWTH DRIVEN BY INTERNATIONAL SALES, COST IMPROVEMENT PLAN
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-756-9535
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GLENWOOD, ILL.--MAY 1, 2007--LANDAUER, INC. (NYSE: LDR), a recognized
leader in personal and environmental radiation monitoring, today reported
its performance set new records for revenue and net income for the three
and six months ended March 31, 2007.
SECOND QUARTER 2007 HIGHLIGHTS
. Revenue reached a record $21.6 million on increased international
sales, driven by higher volume in most regions, favorable exchange rates
and continued growth of InLight services.
. Cost improvement plan initiated in early 2006 contributed to an
increase in gross profit of $1.4 million, or 10 percent over the prior
year.
. Net income grew 13 percent to $5.9 million, or $0.65 per diluted
share.
. Board approved plan to 1) invest in customer-facing systems, and 2)
expand sales and marketing resources, which led to the hiring of a new vice
president of sales and marketing.
"By focusing on our three management priorities, Landauer hit new highs
while investing in its long-term growth," said Bill Saxelby, president and
chief executive officer. "Our priorities are to improve the profitability
of the base business, expand global InLight sales, and sharpen our internal
focus by pursuing opportunities to enhance our market position and generate
even higher return on capital. Increases in international revenue and
expanding gross profit margins indicate the progress we are making. During
the quarter we also made important operational advances with our new sales
and marketing strategies, and are on schedule with our systems initiative."
INTERNATIONAL EXPANSION FUELS REVENUES, EARNINGS FOR QUARTER, SIX MONTHS
Revenues for the second quarter of fiscal 2007 were $21.6 million, a 5
percent increase compared with $20.6 million at this time last year.
Domestic revenue rose 1 percent or $220,000 for the quarter, due primarily
to higher volume. International revenue increased 22 percent, or $792,000,
led by strong InLight service growth, the addition of an Australian venture
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 profit improvement program initiated in the second
quarter of fiscal 2006. As a result, the gross profit margin expanded to 67
percent from 64 percent in the year-ago period. Selling, general and
administrative expenses for the second quarter grew 9 percent from the same
quarter last year. The increase was primarily driven by spending to re-
engineer business processes and to replace the company's information
technology systems that support customer relationship management and the
order-to-cash cycle. Other factors contributing to the increase included
international spending to support growth and higher expenses for salary and
benefits. The prior year's quarter included a $600,000 charge relating to
the profit improvement plan completed last year.
Net income for the most recent quarter grew 13 percent to $5.9 million,
compared with $5.2 million a year ago. Earnings per diluted share for the
three months were $0.65 versus $0.58 in 2006.
For the six months ended on March 31, 2007, revenues increased 6 percent to
$41.8 million versus $39.3 million at this time last year, also reflecting
higher international sales and domestic volume. The gross profit margin
improved to 66 percent versus 62 percent for last year's six months. Costs
and expenses for the first half of fiscal 2007 increased $366,000 or 1
percent primarily due to the factors discussed above. Year-to-date net
income was $10.8 million, up 17 percent from $9.3 million. Earnings per
diluted share were $1.18 compared with $1.02 for the same period last year.
FINANCIAL POSITION REMAINS STRONG
Total assets at March 31, 2007, were $94 million, up 8 percent from the
prior year, including $19.3 million in working capital and $16.5 million in
cash. Landauer was debt free at quarter end. Cash provided by operating
activities compared to the prior year increased 10 percent to $10.4 million
for the first half of the year.
INVESTING IN LONG-TERM GROWTH
"With the success of last year's cost reduction program, our focus has
turned to revenue growth, including the pursuit of new areas with
attractive potential," Saxelby explained. "A key decision in the quarter
was the board's approval of our investment in sales and marketing
resources. This allowed us to begin laying the foundation for our sales
and marketing strategies. Our efforts will accelerate with the hiring of
Amy Cosler, who is joining us as vice president of sales and marketing.
She brings 15 years of strategic sales and marketing experience, with
particular expertise in the medical and radiology markets. Amy's arrival
completes the transition of Landauer's senior leadership, which will enable
us to pursue our growth strategy."
"In the quarter we selected a software vendor to support the re-engineering
of our business processes and help transform our customer-facing systems,"
Saxelby continued. "The software will make it easier for customers to work
with the company and increase our capacity to accommodate new products,
services and markets. Our original estimate of the costs involved in this
project was $9-10 million, with $2-3 million being expensed this year. Now
that the process is underway, we believe expenses will be at the lower end
of the range this fiscal year."
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OUTLOOK FOR THE SECOND HALF
"We continue to anticipate revenues for fiscal 2007 will grow by 4-5
percent. Investments in sales and marketing and our information systems
initiative will accelerate in the second half. This, combined with the
anniversary of our cost improvement program, is likely to make comparisons
with last year more difficult. However, expenses were lower in the first
half, and systems expenses are expected to be at the low end of the range.
As a result, we believe earnings for fiscal 2007 will grow by 4-5 percent -
an improvement from our recent guidance of being flat with fiscal 2006,"
Saxelby concluded. (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 included $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. Although the software vendor has been
selected, the company has not completed the evaluation of how the solution
will be integrated into its existing infrastructure. 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. Management expects to complete this evaluation in the
second half of the year. As a result, the impact has not been considered
in the earnings guidance.
CONFERENCE CALL DETAILS
Landauer's second quarter conference call for investors is scheduled for
Tuesday, May 1, at 2:00 p.m. Eastern Time (11:00 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.
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SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, under the
subheads "Investing in Long-term Growth" and "Outlook for the Second Half")
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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SUMMARY CONSOLIDATED INCOME STATEMENT
(unaudited, amounts in thousands, except per share data)
Three months ended Six months ended
March 31, March 31,
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2007 2006 2007 2006
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Net Revenues $ 21,633 $ 20,621 $ 41,793 $ 39,268
Cost and expenses:
Cost of sales 7,130 7,486 14,221 14,919
Selling, general and
administrative 5,550 5,101 11,319 10,255
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12,680 12,587 25,540 25,174
Operating income 8,953 8,034 16,253 14,094
Other income, net 507 460 1,052 876
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Income before
income taxes and
minority interest 9,460 8,494 17,305 14,970
Income taxes 3,529 3,203 6,459 5,633
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Income before
minority interest 5,931 5,291 10,846 9,337
Minority interest
therein (9) 43 47 82
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Net income $ 5,940 $ 5,248 $ 10,799 $ 9,255
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Net income per common
share:
Basic $ 0.65 $ 0.58 $ 1.19 $ 1.03
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Average shares
outstanding 9,116 9,021 9,103 9,016
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Diluted $ 0.65 $ 0.58 $ 1.18 $ 1.02
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Average shares
outstanding 9,184 9,098 9,180 9,094
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SUMMARY CONSOLIDATED BALANCE SHEET
(unaudited; amounts in thousands)
March 31, September 30,
2007 2006
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ASSETS
Current Assets:
Cash and cash equivalents $ 16,542 $ 15,420
Receivables, net of reserves 21,664 20,284
Other current assets 7,987 6,273
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Total current assets 46,193 41,977
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Net property, plant and equipment 15,995 16,416
Equity in joint venture 4,102 3,980
Goodwill and other intangible assets,
net of amortization 19,403 19,650
Other operating assets,
net of amortization 5,989 6,502
Other assets 1,082 927
Deferred income taxes 1,238 1,222
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TOTAL ASSETS $ 94,002 $ 90,674
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LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current Liabilities:
Accounts payable $ 1,620 $ 1,439
Notes payable -- 1,649
Dividends payable 4,360 4,092
Deferred revenue 13,648 13,761
Other current liabilities 7,252 7,488
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Total current liabilities 26,880 28,429
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Non-current Liabilities:
Pension and postretirement liabilities 8,483 8,348
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Total non-current liabilities 8,483 8,348
Minority interest in subsidiary 159 198
Stockholders' investment 58,480 53,699
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TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT $ 94,002 $ 90,674
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