EXHIBIT 99.1
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News Release
LANDAUER
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LANDAUER, INC. REPORTS
FISCAL 2010 FIRST QUARTER RESULTS
Revenue Fueled by Acquisitions
Continued Execution on 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.--FEBRUARY 2, 2010--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 fiscal 2010 first quarter ended
December 31, 2009.
FISCAL 2010 FIRST QUARTER HIGHLIGHTS
.. Revenue grew 21 percent to $27.2 million on contribution from
acquired companies and international growth.
.. Gross profit grew 12 percent to $17.1 million on increased sales
and revenue mix.
.. Completed the acquisition of Global Physics Solutions, Inc. as a
platform to expand into the medical physics services market on
November 9, 2009.
.. Incurred acquisition related transaction and reorganization costs
of $1.5 million ($1.1 million, after-tax, or $0.12 per diluted
share).
.. Reported net income declined 17 percent to $5.1 million, or $0.55
per diluted share, including the after-tax effect of acquisition
related transaction and reorganization costs.
"We are pleased with our results for the first quarter of fiscal 2010,
which reflect the continued focus on executing our strategic priorities:
optimizing our core business, driving competitive growth, and pursuing
strategic expansion," stated Bill Saxelby, President and CEO of Landauer.
"Our revenue performance confirms the success of our strategic expansion
strategy and our continued focus on international growth. The acquisitions
of Global Physics Solutions, Inc. and Gammadata Matteknik AB in November
are solid examples of our strategy to pursue new growth opportunities.
These high quality companies complement Landauer's competencies while
providing entrance into new market segments and international geographies."
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 landauerinc.com
LANDAUER, INC.
ADD 1
ACQUISITIONS AND INTERNATIONAL PERFORMANCE FUEL REVENUE GROWTH
Revenues for the first fiscal quarter of 2010 were $27.2 million, a 21
percent increase compared with the $22.4 million reported for the first
fiscal quarter of 2009. Domestic revenue increased 9 percent, or $1.5
million, on contribution from Global Physics Solutions of $2.1 million,
offset by declines in domestic service revenue. International revenue
increased 62 percent, or $3.3 million, due to contributions from acquired
companies of $1.3 million, organic growth and the strengthening of most
foreign currencies against the dollar.
Cost of sales for the first fiscal quarter of 2010 were $10.2 million, a 42
percent increase compared with the $7.1 million reported for the first
fiscal quarter of 2009. The primary factor contributing to the increase
was $2.0 million of increased cost from acquired companies. The gross
margin declined to 63 percent from 68 percent in the year ago period,
primarily due to the lower margin contribution of Global Physics Solutions.
Selling, general and administrative costs for the first fiscal quarter of
2010 increased 20 percent, or $1.3 million. The primary factors contribu-
ting to the increase were approximately $1.1 million of increased spending
from acquired companies and increased 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.
In conjunction with the acquisitions completed during the quarter, the
Company incurred $1.5 million ($1.1 million, after-tax) of acquisition
related transaction and reorganization costs. Other income, net, for the
first fiscal quarter declined 12 percent, or $68,000, due to increased
interest expense on outstanding borrowings to support the acquisitions
completed during the quarter.
Net income, including the $1.1 million after-tax impact of acquisition
related transaction and reorganization costs, for the first fiscal quarter
ended December 31, 2009 was $5.1 million, a decline of 17 percent compared
with $6.1 million for the first fiscal quarter of 2009. Also contributing
to the decline in earnings was an increase in the effective tax rate for
the first fiscal quarter of 2010 to 36.5 percent compared with 33.6 percent
for the first fiscal quarter of 2009. The increase is due primarily to the
non-deductibility of certain acquisition related costs and the elimination
of certain tax credits realized in the 2009 quarter. The resulting diluted
earnings per share for the first fiscal quarter of 2010 were $0.55 compared
with $0.66 for the first fiscal quarter of 2009. Excluding the effect of
acquisition related transaction and reorganization costs, net income for
the first fiscal quarter of 2010 was $6.2 million, or $0.67 per diluted
share.
SOLID FINANCIAL POSITION
Landauer ended the first fiscal quarter of 2010 with total assets of $141.8
million and working capital of $13.4 million. At December 31, 2009,
Landauer had $18 million in outstanding borrowings incurred to support the
acquisitions completed during the quarter. Cash provided by operating
activities was $8.5 million, an increase of $7.4 million from the first
fiscal quarter of 2009. The increase is due primarily to the non-recurring
prior year payment to the Company's defined benefit pension plan to
increase funding, and other timing related changes in the components of
working capital.
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LANDAUER, INC.
ADD 2
Fiscal 2010 Outlook
Landauer's business plan for fiscal 2010 includes projections currently for
aggregate revenue growth for the year to be in the range of 25 to 30
percent. The recently completed acquisitions are expected to contribute 20
to 23 percent of the growth. The business plan includes expense spending
of $2.5 to $3.5 million to support the completion of the Company's systems
initiative. The Company projects a net income increase in the range of 4
to 8 percent, excluding the impact of acquisition related transaction and
reorganization costs in fiscal 2010 and the fiscal 2009 after tax impact of
pension curtailment and transition costs and reorganization costs of $1.8
million.
CONFERENCE CALL DETAILS
Landauer has scheduled its first quarter conference call for investors over
the Internet on Tuesday, February 2, 2010 at 2:00 p.m. Eastern Time (11:00
a.m. Pacific Time). To participate, callers should dial 877-941-8631
(within the United States and Canada), or 480-629-9820 (international
callers) 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 callers), passcode 4205610#, which will be
available until March 2, 2010. 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 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, Sweden 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.
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LANDAUER, INC.
ADD 3
SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, the section
titled "Fiscal 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; 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 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, 2009, 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
FIRST FISCAL QUARTER 2010 FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three months ended
December 31,
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2009 2008
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Net revenues . . . . . . . . . . . . . . . . . . . $ 27,234 $ 22,438
Costs and expenses:
Cost of sales. . . . . . . . . . . . . . . . . 10,156 7,140
Selling, general and administrative. . . . . . 7,804 6,493
Acquisition and reorganization costs . . . . . 1,517 --
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19,477 13,633
Operating income . . . . . . . . . . . . . . . . . 7,757 8,805
Other income, net. . . . . . . . . . . . . . . . . 501 569
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Income before taxes. . . . . . . . . . . . . . . . 8,258 9,374
Income taxes . . . . . . . . . . . . . . . . . . . 3,017 3,147
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Net income . . . . . . . . . . . . . . . . . . . . 5,241 6,227
Less: net income attributed to
noncontrolling interest. . . . . . . . . . . . . 114 85
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Net income attributed to Landauer, Inc.. . . . . . $ 5,127 $ 6,142
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Net income attributed to Landauer, Inc. per
common share:
Basic. . . . . . . . . . . . . . . . . . . . . $ 0.55 $ 0.66
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Weighted average basic shares outstanding. . . 9,274 9,280
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Diluted. . . . . . . . . . . . . . . . . . . . $ 0.55 $ 0.66
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Weighted average diluted shares outstanding. . 9,311 9,310
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LANDAUER, INC.
ADD 5
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
December 31, September 30,
2009 2009
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ASSETS
Current Assets:
Cash and cash equivalents. . . . . . . . $ 18,513 $ 36,493
Receivables, net of allowances . . . . . 22,001 20,663
Other current assets . . . . . . . . . . 10,581 11,381
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Total current assets . . . . . . . . . . . . 51,095 68,537
Net property, plant and equipment. . . . . . 31,082 26,151
Equity in joint venture. . . . . . . . . . . 6,611 7,421
Goodwill and other intangible assets,
net of amortization. . . . . . . . . . . . 47,213 17,380
Dosimetry devices, net of amortization . . . 4,593 4,583
Other assets . . . . . . . . . . . . . . . . 1,211 1,133
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TOTAL ASSETS . . . . . . . . . . . . . . . . $141,805 $125,205
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable . . . . . . . . . . . . $ 8,039 $ 5,193
Dividends payable. . . . . . . . . . . . 37 4,996
Deferred contract revenue. . . . . . . . 15,862 15,632
Short-term debt. . . . . . . . . . . . . 4,500 --
Other current liabilities. . . . . . . . 9,241 11,054
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Total current liabilities. . . . . . . . . . 37,679 36,875
Non-current Liabilities:
Pension and postretirement
obligations. . . . . . . . . . . . . . 8,368 8,238
Deferred income taxes. . . . . . . . . . 6,810 4,608
Long-term debt . . . . . . . . . . . . . 13,500 --
Other non-current liabilities. . . . . . 1,206 1,030
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Total non-current liabilities. . . . . . . . 29,884 13,876
Landauer, Inc. stockholders' equity. . . . . 73,657 73,761
Noncontrolling interest. . . . . . . . . . . 585 693
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Total equity . . . . . . . . . . . . . . . . 74,242 74,454
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY . . . . . . . . . . . $141,805 $125,205
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