EXHIBIT 99.1
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News Release
LANDAUER
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LANDAUER, INC. REPORTS
THIRD QUARTER RESULTS
Higher Revenues Driven by International and
InLight Equipment Revenues Growth
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-441-8311
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GLENWOOD, ILL.--JULY 29, 2008--LANDAUER, INC. (NYSE: LDR), a recognized
leader in personal and environmental radiation monitoring, today reported
its revenue and net income for the three and nine months ended June 30,
2008.
THIRD QUARTER 2008 HIGHLIGHTS
. Revenue grew 6 percent over the prior year's quarter to $21.9 million
on continued strong demand for InLight products and increased
international sales.
. Increased volume and continued operating leverage contributed to a
$1.0 million, or 7 percent, increase in gross profit over the prior
year.
. Operating cash flow increased 27 percent to $24.3 million.
. Net income grew to $5.8 million, or $0.62 per diluted share,
representing 9 percent growth over the 2007 third quarter earnings,
adjusted for a charge in the prior year.
"We are pleased to report solid revenue and earnings growth during the
quarter," stated Bill Saxelby, President and CEO of Landauer. "Our strong
financial performance during the quarter is a direct reflection of our
continued execution across our strategic priorities of optimizing the core
business, driving competitive growth, and pursuing strategic expansion.
Going forward, we will continue to focus on effectively managing our
resources to foster the appropriate level of progress and growth across
each of these key initiatives."
Saxelby continued, "As a leading driver behind Landauer's competitive
growth initiative, we continue to see strong demand for our InLight suite
of products. While the InLight platform has traditionally driven
international expansion, we have made progress during the quarter with
sales of our InLight products into the domestic medical market for patient
monitoring applications by hospitals and other segments of the medical
community. We expect to see continued acceptance of the InLight portfolio,
both domestically and abroad, as we leverage the superiority of our OSL
technology against the need for effective radiation monitoring worldwide."
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LANDAUER, INC.
ADD 1
INTERNATIONAL EXPANSION AND INLIGHT FUEL REVENUES FOR THE THREE AND
NINE MONTH PERIODS
Revenues for the third quarter of fiscal 2008 were $21.9 million, a 6
percent increase compared with $20.6 million at this time last year.
Domestic revenue rose 1 percent while international revenue increased 24
percent, or $1.1 million, led by growth in most regions, strong InLight
service and equipment growth, the impact of favorable currency translation
and the addition of a new subsidiary in Mexico.
Cost of sales increased 5 percent from the same quarter last year, while
the gross margin expanded to 68.4 percent from 68 percent in the year ago
period. Selling, general and administrative expenses for the third quarter
increased 5 percent, or $307,000 versus the same quarter last year.
Factors contributing to the increase included international spending to
support growth, the impact of foreign exchange and higher salary and
benefits related to staff additions. These increases were partially offset
by the reduction of expense spending to re-engineer business processes and
to replace the company's IT systems that support customer relationship
management and the order-to-cash cycle.
As part of the IT initiative begun in fiscal 2007, management completed an
evaluation of the usefulness of investments made in legacy information
systems' hardware and software with a net book value of approximately $4.6
million. Of these assets, $3.5 million were determined to be either
impaired or subject to accelerated depreciation. This resulted in a fiscal
2007 third quarter charge of $2.4 million ($1.4 million, after-tax), of
which $2.2 million was for impaired assets.
Net income for the most recent quarter was $5.8 million, compared with $3.9
million a year ago. Earnings per diluted share for the three months were
$0.62 versus $0.42 in 2007. Excluding the effect of the asset impairment
and accelerated depreciation charges, net income for the quarter in fiscal
2007 was $5.3 million, or $0.57 per diluted share.
For the nine months ended on June 30, 2008, revenues increased 8 percent to
$67.5 million versus $62.4 million at this time last year, reflecting
higher international sales and increases in InLight equipment placements.
The gross profit margin improved to 68 percent versus 67 percent for last
year's nine months. Selling, general and administrative expenses for the
first nine months of fiscal 2008 increased $1.8 million, or 11 percent,
primarily due to the factors discussed above. Year-to-date net income was
$17.5 million, a 19 percent increase over prior year. Earnings per diluted
share were $1.89 compared with $1.60 for the same period a year ago.
Excluding the effect of the asset impairment and accelerated depreciation
charges, year-to-date net income for fiscal 2007 was $16.1 million, or
$1.75 per diluted share.
FINANCIAL POSITION REMAINS STRONG
Total assets at June 30, 2008, were $112.2 million, up 15 percent from the
prior year, including $32.2 million in working capital and $32.1 million in
cash. Landauer had no outstanding debt as of June 30, 2008. Cash provided
by operating activities compared with the prior year increased 27 percent
to $24.3 million for the year-to-date. The increase is due primarily to
the increase in net income, dividends received from Nagase-Landauer, Ltd.,
and contribution from the change in the components of working capital.
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LANDAUER, INC.
ADD 2
OUTLOOK FOR THE FOURTH QUARTER AND YEAR
In conclusion, Saxelby stated, "Despite the turmoil in the broader economy,
we remain confident in our ability to manage our business model with
continued financial discipline while generating strong cash flows. Despite
increases in certain costs, such as postage and energy, our prudent control
of other expenses has allowed us to maintain an effective cost structure
that is benefiting us during these volatile times. Going forward, we
remain confident that the strength of our product offering, our market
leading position in the dosimetry service space, and our commitment to our
shareholder's best interests will drive the success of Landauer over the
long-term."
Landauer's business plan for fiscal 2008 anticipated aggregate revenue
growth for the year to be in the range of 4 - 5 percent. The company also
planned a net income increase in the range of 6 - 8 percent excluding the
impact of the 2007 asset impairment and accelerated depreciation charges.
Based upon year to date performance, the Company anticipates fiscal 2008
performance in the upper end of the planned ranges for revenue and net
income.
CONFERENCE CALL DETAILS
The company will host a conference call for investors today, Tuesday, July
29, at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time) to discuss the
third quarter results. To participate, please dial 800-366-7640 (within the
United States and Canada), or 303-262-2137 (international callers)
approximately 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, Mexico and other countries.
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LANDAUER, INC.
ADD 3
SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, the sections
titled "Third Quarter 2008 Highlights" and "Outlook for the Fourth Quarter
and Year") constitutes forward-looking statements that are based on
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; continued 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 costs and
effectiveness of the company's IT platform enhancements; 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 what is anticipated today. 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 "Risk Factors" section in the
company's Annual Report on Form 10-K for the year ended September 30, 2007,
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.
ADD 4
SUMMARY CONSOLIDATED INCOME STATEMENTS
(unaudited, amounts in thousands, except per share data)
Three months ended Nine months ended
June 30, June 30,
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2008 2007 2008 2007
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Net Revenues $ 21,902 $ 20,589 $ 67,454 $ 62,382
Costs and expenses:
Cost of sales 6,929 6,596 21,645 20,817
Selling, general and
administrative 6,471 6,164 19,330 17,483
Impairment and
accelerated depre-
ciation charges - 2,357 376 2,357
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13,400 15,117 41,351 40,657
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Operating income 8,502 5,472 26,103 21,725
Other income, net 633 649 1,918 1,701
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Income before income taxes
and minority interest 9,135 6,121 28,021 23,426
Income taxes 3,214 2,193 10,259 8,652
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Income before minority
interest 5,921 3,928 17,762 14,774
Minority interest therein 128 21 263 68
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Net income $ 5,793 $ 3,907 $ 17,499 $ 14,706
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Net income per common share:
Basic $ 0.63 $ 0.43 $ 1.90 $ 1.61
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Weighted average basic
shares outstanding 9,244 9,146 9,209 9,116
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Diluted $ 0.62 $ 0.42 $ 1.89 $ 1.60
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Weighted average diluted
shares outstanding 9,307 9,208 9,273 9,186
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LANDAUER, INC.
ADD 5
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited; amounts in thousands)
June 30, September 30,
2008 2007
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ASSETS
Current assets:
Cash and cash equivalents $ 32,134 $ 21,069
Receivables, net of allowances 22,830 19,750
Other current assets 9,836 9,686
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Total current assets 64,800 50,505
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Net property, plant and equipment 16,812 16,654
Equity in joint venture 5,602 4,978
Goodwill and other intangible assets,
net of amortization 18,359 18,327
Dosimetry devices, net of amortization 4,833 5,345
Deferred income taxes 380 333
Other assets 1,411 1,198
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TOTAL ASSETS $112,197 $ 97,340
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,727 $ 1,682
Dividends payable 4,670 4,375
Deferred contract revenue 16,920 13,832
Other current liabilities 8,302 8,078
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Total current liabilities 32,619 27,967
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Non-current liabilities:
Pension and postretirement obligations 10,120 9,575
Other non-current liabilities 603 -
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Total non-current liabilities 10,723 9,575
Minority interest in subsidiary 543 288
Stockholders' equity 68,312 59,510
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $112,197 $ 97,340
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