EXHIBIT 99.1
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News Release
LANDAUER
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LANDAUER, INC. REPORTS
FISCAL 2009 THIRD QUARTER RESULTS
Revenue and Earnings Driven by Strong InLight Demand Globally
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-441-8311
jsinger@landauerinc.com
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GLENWOOD, ILL.--AUGUST 4, 2009--LANDAUER, INC. (NYSE: LDR), a recognized
leader in personal and environmental radiation monitoring services, today
reported financial results for the three and nine months ended June 30,
2009.
FISCAL 2009 THIRD QUARTER HIGHLIGHTS
. Revenue grew 7 percent to $23.5 million on continued global demand
for InLight products and increased domestic badge revenues.
. Gross profit grew 4 percent to $15.6 million on increased revenue.
. Effective tax rate declined to 30 percent due primarily to changes
in Illinois state tax law and tax benefit of funding frozen
pension plan.
. Net income grew 13 percent to $6.5 million, or $0.70 per diluted
share.
"We are pleased with this quarter's financial results, which were driven
substantially by InLight sales both domestically and abroad," stated Bill
Saxelby, President and CEO of Landauer. "During the quarter we made
significant InLight product placements across several markets we have
targeted for growth including the U.S. military, the first responder
market, and patient monitoring. In addition, we continued to drive global
expansion through the continuation of our relationship with Health Canada
and placement of InLight products into Southeast Asia through our joint
venture with Nagase-Landauer."
"The continued acceptance of our InLight suite of products, success of our
international expansion initiative and adoption of our offerings in the
medical, nuclear and military markets affirm the long-term growth prospects
for our business. We have also made significant progress in our current
systems initiative, delivering successfully on several important milestones
during the quarter."
Saxelby noted, "We are pleased with the progress we've made in fiscal 2009.
Landauer's performance demonstrates the success of our continued focus on
executing our strategic priorities: optimizing our core business, driving
competitive growth, and pursuing strategic expansion. Our strong cash flow
generation has provided us with the sufficient capital to execute on all
three of our strategic priorities."
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 landauerinc.com
LANDAUER, INC.
ADD 1
REVENUE GROWTH CONTINUES
Revenues for the third fiscal quarter of 2009 were $23.5 million, a 7
percent increase compared with the $21.9 million reported for the third
fiscal quarter of 2008. Domestic revenue increased 5 percent, or $0.7
million, on InLight product demand and growth in domestic badge revenue.
Organic international revenue growth of approximately 27 percent was offset
by the impact of the strengthening of the dollar against most foreign
currencies, which reduced revenue by approximately $0.7 million in the
quarter, resulting in a reported increase of 14 percent, or $0.8 million.
Cost of sales increased 14 percent for the quarter due to increased cost of
materials to support growth in 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 third
fiscal quarter of 2009 increased 2 percent, or $141,000, driven primarily
by increased expense spending to replace the Company's information
technology systems that support customer relationship management and the
order-to-cash cycle.
The effective tax rate for the third fiscal quarter of 2009 decreased to 30
percent compared with 35 percent for the third 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 and the tax benefit of funding the
frozen pension plan. Net income for the fiscal quarter ended June 30, 2009
was $6.5 million, an increase of 13 percent compared with $5.8 million for
the third fiscal quarter of 2008. The resulting diluted earnings per share
for the third fiscal quarter of 2009 were $0.70 compared with $0.62 for the
third fiscal quarter of 2008.
For the nine months ended on June 30, 2009, revenues increased 5 percent to
$70.9 million versus $67.5 million at this time last year. The gross
profit margin was 67 percent versus 68 percent from last year's nine-month
period ended June 30, 2008. Selling, general and administrative expenses
for the first nine months of fiscal 2009 increased $87,000 compared to the
first nine months of fiscal 2008.
On February 5, 2009, the Board of Directors approved changes to the
Company's retirement benefit plans to transition from a defined benefit
plan to a defined contribution approach to retirement benefits. 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.
Year-to-date net income was $18.1 million, an increase of 3.5 percent from
$17.5 million in the prior year period. Earnings per diluted share were
$1.94 compared with $1.89 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 nine months of fiscal 2009
was $19.9 million, or $ 2.14 per diluted share.
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LANDAUER, INC.
ADD 2
SOLID FINANCIAL POSITION
Landauer ended the third fiscal quarter of 2009 with total assets of $121.3
million and working capital of $32.2 million. At June 30, 2009, Landauer
continued to be debt free. During the quarter, the Company negotiated an
amendment to its credit agreement to increase permitted borrowings from $15
million to $30 million and to extend the expiration to June 2011. Cash
provided by operating activities was $18.1 million, a decline of $6.2
million from the first nine months of fiscal 2008. The decline is due
primarily to $6.5 million in incremental payments to the Company's defined
benefit pension plan to bring the plan to a fully funded status in
conjunction with the actions to freeze the plan.
FISCAL 2009 OUTLOOK
Saxelby concluded, "We believe Landauer is positioned to generate strong
performance as a result of our diverse market and product opportunities,
financial discipline, and strong industry positioning. We have made solid
progress in executing against our fiscal year goals for the InLight family
of products and have closed the majority of our targeted opportunities.
Accordingly, we will experience lower growth comparisons in the fourth
quarter; however, we anticipate we will reach our annual guidance ranges."
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 the $1.8 million after-tax impact of the pension
curtailment and transition costs and management reorganization charges.
CONFERENCE CALL DETAILS
Landauer has scheduled its third quarter conference call for investors over
the Internet on Tuesday, August 4, 2009 at 2:00 p.m. Eastern Time (11:00
a.m. Pacific Time). To participate, callers should dial 877-941-7133
(within the United States and Canada) or 480-629-9786 (international
calls), and reference the conference ID #4123060, 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 4123060#,
which will be available until September 1, 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.
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LANDAUER, INC.
ADD 3
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;
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 4
FISCAL 2009 THIRD QUARTER FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three months ended Nine months ended
June 30, June 30,
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2009 2008 2009 2008
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Net revenues $ 23,468 $ 21,902 $ 70,860 $ 67,454
Costs and expenses:
Cost of sales 7,874 6,929 23,393 21,645
Selling, general and
administrative 6,612 6,471 19,793 19,706
Net defined benefit plan
curtailment loss and
transition costs -- -- 2,236 --
Reorganization charges -- -- 489 --
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14,486 13,400 45,911 41,351
Operating income 8,982 8,502 24,949 26,103
Other income, net 459 633 1,728 1,918
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Income before taxes 9,441 9,135 26,677 28,021
Income taxes 2,800 3,214 8,353 10,259
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Income before minority
interest 6,641 5,921 18,324 17,762
Minority interest 95 128 208 263
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Net income $ 6,546 $ 5,793 $ 18,116 $ 17,499
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Net income per common share:
Basic $ 0.70 $ 0.63 $ 1.95 $ 1.90
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Weighted average basic
shares outstanding 9,304 9,244 9,279 9,209
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Diluted $ 0.70 $ 0.62 $ 1.94 $ 1.89
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Weighted average diluted
shares outstanding 9,347 9,307 9,326 9,273
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LANDAUER, INC.
ADD 5
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
June 30, September 30,
2009 2008
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ASSETS
Current Assets:
Cash and cash equivalents $ 32,256 $ 33,938
Receivables, net of allowances 24,220 19,738
Other current assets 11,029 15,053
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Total current assets 67,505 68,729
Net property, plant and equipment 23,678 20,185
Equity in joint venture 6,629 5,796
Goodwill and other intangible assets,
net of amortization 17,730 18,102
Dosimetry devices, net of amortization 4,599 4,454
Other assets 1,148 1,424
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TOTAL ASSETS $121,289 $118,690
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 3,096 $ 981
Dividends payable 4,980 4,686
Deferred contract revenue 16,844 15,626
Other current liabilities 10,365 12,931
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Total current liabilities 35,285 34,224
Non-current Liabilities:
Pension and postretirement obligations 6,160 8,609
Deferred income taxes 4,943 4,622
Other non-current liabilities 1,033 935
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Total non-current liabilities 12,136 14,166
Minority interest in subsidiary 582 545
Stockholders' equity 73,286 69,755
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $121,289 $118,690
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