EXHIBIT 99.1
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NEWS RELEASE
LANDAUER
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LANDAUER, INC. REPORTS
FISCAL 2009 FOURTH QUARTER AND FULL YEAR RESULTS
Revenue and Earnings 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.--DECEMBER 1, 2009--LANDAUER, INC. (NYSE: LDR), a recognized
global leader in personal and environmental radiation monitoring and the
leading domestic provider of outsourced medical physics services, today
reported financial results for its fourth quarter and fiscal year ended
September 30, 2009.
FISCAL 2009 HIGHLIGHTS
.. Revenue grew 4 percent to a record of $93.8 million on continued
strong demand for InLight products, increased international sales and
strong domestic badge revenues.
.. Gross profit grew 3 percent to $63.1 million on increased sales and
revenue mix.
.. Effective tax rate declined to 32 percent due primarily to changes in
Illinois state tax law and tax benefit of funding frozen pension
plan.
.. Net income rose 2 percent to $23.4 million, or $2.49 per diluted
share, including the after-tax effect of charges of $1.8 million, or
$0.19 per diluted share.
.. Cash flow provided by operating activities declined $4.4 million to
$30.2 million due to $6.4 million in excess contributions to fund the
Company's frozen pension plan.
.. Increased dividend to $2.15 per share for fiscal 2010.
.. On November 9, 2009, announced the completion of the acquisition of
Global Physics Solutions, Inc. as a platform to expand into the
medical physics services market.
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 landauerinc.com
LANDAUER, INC.
ADD 1
"We are pleased with our financial results for 2009. Despite a difficult
global economic environment, our performance was driven by the successful
execution on our strategic plan and the stability and strength of our
business model," stated Bill Saxelby, President and CEO of Landauer. "We
attribute our results to our continued execution on our long-term strategic
priorities to optimize the core business, drive competitive growth and
pursue strategic expansion. 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 core personal and environmental
radiation monitoring business. We have also made significant progress in
our systems initiative to replace the Company's information technology
systems that support customer relationship management and the order-to-cash
cycle, delivering successfully on several important milestones during the
past year."
Saxelby continued, "The results for this year demonstrate the balanced
approach we are taking in the pursuit of new growth opportunities and
managing resources to ensure progress against all of our strategic
priorities. Our recent acquisitions of Global Physics Solutions, Inc. and
Gammadata Matteknik AB are examples of our dedication to pursue new growth
opportunities. These high quality companies complement Landauer's
competencies and the financial characteristics of our core business, while
providing entrance into new market segments or geographies."
BALANCED PERFORMANCE FUELS REVENUE GROWTH
Revenues for fiscal 2009 were $93.8 million, a 4 percent increase compared
with the $90.0 million reported for fiscal 2008. Domestic revenue
increased 5 percent, or $3.0 million, on InLight product demand and growth
in domestic badge revenue. Organic international revenue growth of
approximately 16 percent was offset by the impact of the strengthening of
the dollar against most foreign currencies, which reduced revenue by
approximately $2.7 million in the fiscal year, resulting in a reported
increase of 4 percent or, $0.8 million.
Cost of sales increased 6 percent for the fiscal year due to increased cost
of materials to support growth in InLight product sales. Gross margin
declined to 67.2 percent from 67.9 percent in the year ago period due to
revenue mix. Selling, general and administrative expenses for fiscal 2009
increased 5 percent, or $1.3 million. Factors contributing to the increase
included increased incentive compensation costs and higher salary and
benefits related to staff additions, increased professional fees related
primarily to international patent and trademark activities, and increased
expense spending for the Company's information systems initiative.
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 fiscal 2009. In addition, the Company initiated a
management reorganization plan to strengthen selected roles in the
organization. As a result, the Company recognized $0.4 million ($0.3
million after-tax) of reorganization charges during fiscal 2009.
The effective tax rate for fiscal 2009 decreased to 32% compared with 36%
for fiscal 2008. The reduction is due primarily to a change in the state
tax rate driven by changes in the Illinois state tax law, favorable
resolution of open tax positions, and the tax benefit of funding the frozen
pension plan.
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LANDAUER, INC.
ADD 2
Net income for the fiscal year ended September 30, 2009 was $23.4 million,
an increase of 2 percent compared with $23.0 million for fiscal 2008. This
resulted in diluted earnings per share for the current year of $2.49
compared with $2.47 reported a year ago. Excluding the effect of the
pension curtailment and transition costs and the reorganization charges,
net income for fiscal 2009 was $25.1 million, or $2.68 per diluted share.
FOURTH QUARTER PERFORMANCE
For the quarter ended September 30, 2009, revenues increased 2 percent to
$23.0 million compared with $22.5 million a year ago. The gross margin was
68 percent, unchanged from the fourth fiscal quarter of 2008. Selling,
general and administrative expenses for the quarter increased 12 percent to
$8.1 million. The increase was driven by $0.3 million of incremental
professional fees related primarily to international patent and trademark
activities, and $0.3 million increased expense spending for the Company's
information systems initiative. Net income for the latest quarter was $5.3
million compared with $5.5 million in fiscal 2008. Earnings per diluted
share for the quarter were $0.56 and $0.59 in fiscal 2009 and 2008,
respectively.
SOLID FINANCIAL POSITION
Landauer ended the year with total assets of $125.2 million, cash of $36.5
million and working capital of $31.7 million. At September 30, 2009,
Landauer continued to be debt free. Cash provided by operating activities
was $30.2 million, including approximately $6.4 million of incremental
contributions to fund the Company's frozen pension plan. On November 9,
2009, the Company announced the acquisitions of Global Physics Solutions,
Inc. for $22 million in cash and Gammadata Matteknik AB for $6.7 million in
cash. The Company borrowed $18 million in connection with the
acquisitions.
2010 OUTLOOK
Landauer's business plan for fiscal 2010 anticipates currently aggregate
revenue growth for the year to be in the range of 25 to 30 percent, with
the recently completed acquisitions contributing 20 to 23 percent of the
growth. The business plan anticipates expense spending of $2.5 to $3.5
million to support the successful completion of the Company's systems
initiative and the related post implementation support. The Company
anticipates a net income increase in the range of 4 to 8 percent,
excluding the impact of transaction related fees in fiscal 2010 and the
fiscal 2009 after tax impact of pension curtailment and management
reorganization charges of $1.8 million.
CONFERENCE CALL DETAILS
Landauer has scheduled its fourth quarter and year-end conference call for
investors over the Internet on Tuesday, December 1, 2009 at 2:00 p.m.
Eastern Time (11:00 a.m. Pacific Time). To participate, callers should dial
877-941-9205 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, passcode 4186707#, which will be
available until January 3, 2010. The replay of the call will remain
available on Landauer's website for 90 days.
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LANDAUER, INC.
ADD 3
ABOUT LANDAUER
Landauer is the world's leading provider of technical and analytical
services to determine occupational and environmental radiation exposure and
is the leading domestic provider of outsourced medical physics services.
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
dosimetry services to approximately 1.6 million people in the United
States, Japan, France, the United Kingdom, Brazil, Canada, China,
Australia, Mexico and other countries. In addition, through its Global
Physics Solutions subsidiary, the Company provides therapeutic and
diagnostic physics services and educational services to the medical physics
community.
SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, the section
titled "2010 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 and costs associated with 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 ability to integrate the operations of acquired businesses and
to realize the expected benefits of acquisitions; 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; 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, 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
FOURTH QUARTER FISCAL 2009 FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three months ended Twelve months ended
September 30, September 30,
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2009 2008 2009 2008
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Net revenues . . . . . . . . $ 22,967 $ 22,500 $ 93,827 $ 89,954
Costs and expenses:
Cost of sales. . . . . . 7,373 7,269 30,766 28,914
Selling, general
and administrative . . 8,098 7,259 27,891 26,589
Net defined benefit
plan curtailment
loss and transition
costs. . . . . . . . . -- -- 2,236 --
Impairment and
accelerated depre-
ciation charges. . . . -- -- -- 376
Reorganization
charges. . . . . . . . (73) -- 416 --
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15,398 14,528 61,309 55,879
Operating income . . . . . . 7,569 7,972 32,518 34,075
Other income, net. . . . . . 471 438 2,199 2,356
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Income before income taxes
and minority interest. . . 8,040 8,410 34,717 36,431
Income taxes . . . . . . . . 2,718 2,859 11,071 13,118
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Income before minority
interest . . . . . . . . . 5,322 5,551 23,646 23,313
Minority interest. . . . . . 72 67 280 330
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Net income . . . . . . . . . $ 5,250 $ 5,484 $ 23,366 $ 22,983
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Net income per common share:
Basic. . . . . . . . . . $ 0.56 $ 0.59 $ 2.51 $ 2.49
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Weighted average
shares outstanding . . 9,318 9,281 9,293 9,237
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Diluted. . . . . . . . . $ 0.56 $ 0.59 $ 2.49 $ 2.47
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Weighted average
shares outstanding . . 9,393 9,342 9,366 9,302
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LANDAUER, INC.
ADD 5
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
September 30, September 30,
2009 2008
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ASSETS
Current Assets:
Cash and cash equivalents. . . . . . . . $ 36,493 $ 33,938
Receivables, net of reserves . . . . . . 20,663 19,738
Other current assets . . . . . . . . . . 11,381 15,053
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Total current assets . . . . . . . . . . . . 68,537 68,729
Net property, plant and equipment. . . . . . 26,151 20,185
Equity in joint venture. . . . . . . . . . . 7,421 5,796
Goodwill and other intangible assets,
net of amortization. . . . . . . . . . . . 17,380 18,102
Other operating assets, net of
amortization . . . . . . . . . . . . . . . 4,583 4,454
Other assets . . . . . . . . . . . . . . . . 1,133 1,424
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TOTAL ASSETS . . . . . . . . . . . . . . . . $125,205 $118,690
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable . . . . . . . . . . . . $ 5,193 $ 981
Dividends payable. . . . . . . . . . . . 4,996 4,686
Deferred contract revenue. . . . . . . . 15,632 15,626
Other current liabilities. . . . . . . . 11,054 12,931
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Total current liabilities. . . . . . . . . . 36,875 34,224
Non-current Liabilities:
Pension and postretirement obligations . 8,238 8,609
Deferred income taxes. . . . . . . . . . 4,608 4,622
Other non-current liabilities. . . . . . 1,030 935
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Total non-current liabilities. . . . . . . . 13,876 14,166
Minority interest in subsidiary. . . . . . . 693 545
Stockholders' equity . . . . . . . . . . . . 73,761 69,755
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY . . . . . . . . . . . $125,205 $118,690
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