EXHIBIT 99.1
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NEWS RELEASE
LANDAUER
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LANDAUER, INC. REPORTS
FISCAL 2009 SECOND QUARTER RESULTS
2009 REVENUE AND EARNINGS PROGRESS DRIVEN BY
CONTINUED EXECUTION OF STRATEGIC PRIORITIES
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-441-8311
jsinger@landauerinc.com
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GLENWOOD, ILL.--MAY 5, 2009--LANDAUER, INC. (NYSE: LDR), a recognized
leader in personal and environmental radiation monitoring services, today
reported financial results for the three and six months ended March 31,
2009.
FISCAL 2009 SECOND QUARTER HIGHLIGHTS
. Revenue grew 5 percent to $25.0 million on continued demand for
InLight products and increased domestic badge revenues.
. Gross profit grew 2 percent to $16.6 million on increased sales.
. Recorded one-time charges of $2.7 million ($1.8 million after-tax,
$0.19 per diluted share) for pension curtailment and transition and
management reorganization.
. Effective tax rate declined to 31 percent due primarily to changes in
Illinois state tax law and favorable settlement of certain state tax
liabilities.
. Net income declined 16 percent to $5.4 million, or $0.58 per diluted
share due to impact of one-time charges. Excluding one-time charges,
net income would have increased 12% and earnings per diluted share
would have been $0.77.
. Established multi-year agreement with Health Canada to support
continued implementation of InLight solution for radiation
monitoring.
"This quarter's record financial results were solid, but were partially
offset by the cost of actions we have taken to support continued execution
on our strategic priorities of optimizing the core business, driving
competitive growth, and pursuing strategic expansion," stated Bill Saxelby,
President and CEO of Landauer. "Investments toward right sizing our long-
term cost structure through an alternative retirement program and the
reorganization costs required to strengthen key management positions are
short-term investments that we believe will strengthen our core business
for long-term success."
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 Fax: 708.755.7011 landauerinc.com
LANDAUER, INC.
ADD 1
"Completion of our current systems initiative is another required
investment in the infrastructure necessary to support the continued growth
of Landauer, Inc. We have completed a thorough assessment of the scope,
timing and cost required to successfully implement our information
technology systems initiative, with a goal to limit the risk to our
continued strong financial execution. We estimate currently that the total
project will cost $25 - $27 million and is targeted to be completed during
calendar 2010."
Saxelby added, "The continued acceptance of our InLight suite of products,
success of our international expansion initiative and adoption of our
offerings in the medical and nuclear markets affirm the strong long-term
growth prospects for our business and the success of our focus on driving
competitive growth. For example, during the quarter we placed InLight
products in our 19th country and continued to foster our relationship with
Health Canada, which is demonstrated by a multi-year agreement for
approximately $8 million of additional InLight products to support their
commitment to our OSL (Optically Stimulated Luminescence) technology for a
breadth of monitoring solutions. We recognized approximately $1.6 million
of revenue in the quarter from this relationship."
RECORD PERFORMANCE OFFSET BY ONE-TIME CHARGES
Revenues for the second fiscal quarter of 2009 were $25.0 million, a 5
percent increase compared with the $23.7 million reported for the second
fiscal quarter of 2008. Domestic revenue increased 6 percent, or $1.1
million, on InLight product demand and growth in domestic badge revenue.
Organic international revenue growth of approximately 20 percent was offset
by the impact of the strengthening of the dollar against most foreign
currencies, which reduced revenue by approximately $1.0 million in the
quarter, resulting in a reported increase of 2 percent, or $101,000.
Cost of sales increased 12 percent for the quarter due to increased cost of
materials to support increased InLight products sales. Gross margin
declined to 66 percent from 68 percent in the year ago period due to the
revenue mix. Selling, general and administrative expenses for the second
fiscal quarter of 2009 increased 4 percent, or $241,000. The primary
factors contributing to the increase were $371,000 in additional non-
recurring pension expense due to the acceleration of certain costs to
support the defined benefit plan curtailment and transition, and $185,000
in additional professional fees to support due diligence of an acquisition
opportunity the Company chose not to pursue. These costs were partially
offset by the timing of expense 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.
On February 5, 2009, the Board of Directors approved changes to the
Company's retirement benefit plans to transition from a defined benefit
philosophy for retirement benefits to a defined contribution approach. The
Company anticipates that the redesign of its retirement plans will result
in future cost savings while offering market based retirement benefits to
its employees. As a result of the changes, the Company recognized $2.2
million ($1.5 million after-tax) of non-recurring pension curtailment and
transition costs during the second fiscal quarter of 2009. In addition,
the Company initiated a management reorganization plan to strengthen
selected roles in the organization. As a result, the Company recognized
$489,000 ($322,000 after-tax) of non-recurring reorganization charges
during the second fiscal quarter of 2009.
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LANDAUER, INC.
ADD 2
The effective tax rate for the second fiscal quarter of 2009 decreased to
31 percent compared with 37 percent for the second fiscal quarter of 2008.
The reduction is due primarily to a change in the state tax rate driven by
changes in the Illinois state tax law, as well as the favorable resolution
of uncertain tax positions during the quarter. Net income for the fiscal
quarter ended March 31, 2009 was $5.4 million, a decline of 16 percent
compared with $6.4 million for the second fiscal quarter of 2008. The
resulting diluted earnings per share for the second fiscal quarter of 2009
were $0.58 compared with $0.69 for the second fiscal quarter of 2008.
Excluding the effect of the pension curtailment and transition costs and
the reorganization charges, net income for the quarter was $7.2 million, or
$0.77 per diluted share.
For the six months ended on March 31, 2009, revenues increased 4 percent to
$47.4 million versus $45.6 million at this time last year. The gross
profit margin was 67 percent versus 68 percent from last year's six-month
period ended March 31, 2008. Selling, general and administrative expenses
for the first half of fiscal 2009 declined $54,000 compared to the first
half of fiscal 2008. Year-to-date net income was $11.6 million, down 1
percent from $11.7 million in the prior year period. Earnings per diluted
share were $1.24 compared with $1.27 for the same period last year.
Excluding the effect of the pension curtailment and transition costs and
the reorganization charges, net income for the first six months of fiscal
2009 was $13.4 million, or $ 1.43 per diluted share.
SOLID FINANCIAL POSITION
Landauer ended the second fiscal quarter of 2009 with total assets of
$118.2 million and working capital of $36.0 million. At March 31, 2009,
Landauer continued to be debt free. Cash provided by operating activities
was $15.2 million, strengthening cash on hand to $36.6 million as of
March 31, 2009.
FISCAL 2009 OUTLOOK
Saxelby concluded, "I am very pleased with the progress we've made in the
first half of fiscal 2009. Landauer's performance demonstrates the success
of our balanced approach to pursue new growth opportunities and continually
invest in our core business. We are constantly evaluating potential
prospects to expand our business offerings, and will act when the right
opportunity, timing and costs are aligned. Overall, we believe the
strength of our product and service offerings and the commitment to meet
our customers' needs coupled with the scalability of our business model and
strong cash flows will continue to drive value for our shareholders."
The Company's business plan for fiscal 2009 currently anticipates aggregate
revenue growth for the year to be in the range of 3 - 5 percent. The
Company currently anticipates a net income increase in the range of 6 - 8
percent, prior to considering the $1.8 million after-tax impact of the non-
recurring pension curtailment and transition costs and management
reorganization charges.
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LANDAUER, INC.
ADD 3
CONFERENCE CALL DETAILS
Landauer has scheduled its second quarter conference call for investors
over the Internet on Tuesday, May 5, 2009 at 2:00 p.m. Eastern Time (11:00
a.m. Pacific Time). To participate, callers should dial 877-941-1469
(within the United States and Canada) or 480-629-9675 (international
calls), and reference the conference ID #4064265, 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 at least 15 minutes early
to register, download and install any necessary audio software. Investors
may access a replay of the call by dialing 800-406-7325 (within the United
States and Canada) or 303-590-3030 (international calls) passcode 4064265#,
which will be available until June 4, 2009. The replay of the call will
remain available on Landauer's website 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, nuclear facilities 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 approximately 1.6 million people in the United States, Japan,
France, the United Kingdom, Brazil, Canada, China, Australia, Mexico and
other countries.
SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, the section
titled "Fiscal 2009 Outlook") 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; the costs associated with the
Company's research and business development efforts; the usefulness of
older technologies; the effectiveness of changes and upgrades to and costs
associated with the Company's information systems; 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;
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LANDAUER, INC.
ADD 4
costs incurred for potential acquisitions or similar transactions; other
anticipated financial events; the effects of changing economic and
competitive conditions; foreign exchange rates; government regulations;
accreditation requirements; changes in the trading market that affect the
cost of obligations under the Company's benefit plans; 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 "Risk Factors" section in the Company's
Annual Report on Form 10-K for the year ended September 30, 2008, 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 5
FISCAL 2009 SECOND QUARTER FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three Months Ended Six Months Ended
March 31, March 31,
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2009 2008 2009 2008
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Net revenues . . . . . . . . . $ 24,954 $ 23,743 $ 47,392 $ 45,552
Costs and expenses:
Cost of sales. . . . . . . 8,379 7,515 15,519 14,716
Selling, general and
administrative . . . . . 6,688 6,447 13,181 13,235
Net defined benefit plan
curtailment loss and
transition costs . . . . 2,236 - 2,236 -
Reorganization charges . . 489 - 489 -
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17,792 13,962 31,425 27,951
Operating income . . . . . . . 7,162 9,781 15,967 17,601
Other income, net. . . . . . . 700 581 1,269 1,285
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Income before taxes. . . . . . 7,862 10,362 17,236 18,886
Income taxes . . . . . . . . . 2,406 3,866 5,553 7,045
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Income before minority
interest . . . . . . . . . . 5,456 6,496 11,683 11,841
Minority interest. . . . . . . 28 66 113 135
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Net income . . . . . . . . . . $ 5,428 $ 6,430 $ 11,570 $ 11,706
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Net income per common share:
Basic. . . . . . . . . . . $ 0.58 $ 0.70 $ 1.25 $ 1.27
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Weighted average basic
shares outstanding . . . 9,281 9,209 9,273 9,184
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Diluted. . . . . . . . . . $ 0.58 $ 0.69 $ 1.24 $ 1.27
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Weighted average diluted
shares outstanding . . . 9,328 9,268 9,320 9,247
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LANDAUER, INC.
ADD 6
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
March 31, September 30,
2009 2008
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ASSETS
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Current Assets:
Cash and cash equivalents. . . . . . . . $ 36,625 $ 33,938
Receivables, net of allowances . . . . . 22,413 19,738
Other current assets . . . . . . . . . . 8,724 15,053
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Total current assets . . . . . . . . . . . . 67,762 68,729
Net property, plant and equipment. . . . . . 20,845 20,185
Equity in joint venture. . . . . . . . . . . 6,078 5,796
Goodwill and other intangible assets,
net of amortization. . . . . . . . . . . . 17,785 18,102
Dosimetry devices, net of amortization . . . 4,625 4,454
Other assets . . . . . . . . . . . . . . . . 1,140 1,424
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TOTAL ASSETS . . . . . . . . . . . . . . . . $118,235 $118,690
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities:
Accounts payable . . . . . . . . . . . . $ 2,614 $ 981
Dividends payable. . . . . . . . . . . . 4,955 4,686
Deferred contract revenue. . . . . . . . 14,420 15,626
Other current liabilities. . . . . . . . 9,799 12,931
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Total current liabilities. . . . . . . . . . 31,788 34,224
Non-current Liabilities:
Pension and postretirement
obligations. . . . . . . . . . . . . . 10,314 8,609
Deferred income taxes. . . . . . . . . . 4,745 4,622
Other non-current liabilities. . . . . . 1,088 935
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Total non-current liabilities. . . . . . . . 16,147 14,166
Minority interest in subsidiary. . . . . . . 441 545
Stockholders' equity . . . . . . . . . . . . 69,859 69,755
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY . . . . . . . . . . . $118,235 $118,690
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