EXHIBIT 99.1
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News Release
LANDAUER
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LANDAUER, INC. REPORTS
FISCAL 2010 SECOND QUARTER RESULTS
Record quarterly 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. -- APRIL 27, 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 the three and six months ended
March 31, 2010.
FISCAL 2010 SECOND QUARTER HIGHLIGHTS
. Revenue grew 28 percent to $31.8 million on contribution from
acquired companies and InLight product revenue.
. Gross profit grew 21 percent to $20.0 million on increased sales
and revenue mix.
. Net income increased 44 percent to $7.8 million, or $0.83 per
diluted share due to non-recurring impact of fiscal 2009 charges.
Excluding fiscal 2009 charges of $2.7 million ($1.8 million
after-tax, $0.19 per diluted share) for pension curtailment
and transition and management reorganization, net income increased
8 percent.
. Acquisition agreement signed to invest $2.4 million to expand
diagnostics offering for Medical Physics segment, on April 22,
2010. The transaction is expected to close in the third quarter.
"This quarter's financial results demonstrate our team's ability to
complete several key initiatives and execute our strategic priorities of
optimizing the core business, driving competitive growth, and pursuing
strategic expansion," stated Bill Saxelby, President and CEO of Landauer.
"Our revenue performance reflects the positive contribution of the
acquisitions we completed during the first quarter of the fiscal year and
the continued benefit of our long-term relationship with strategic
accounts. In addition, we signed an agreement to acquire a leading
provider of diagnostic physics services, expanding the breadth of medical
physics services and complementing our acquisition of Global Physics
Solutions completed during the first fiscal quarter of the year."
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 landauerinc.com
LANDAUER, INC.
ADD 1
RECORD RESULTS DRIVEN BY BALANCED PERFORMANCE
Revenues for the second fiscal quarter of 2010 were $31.8 million, a 28
percent increase compared with the $25.0 million reported for the second
fiscal quarter of 2009. Domestic revenue increased 23 percent, or $4.3
million, on contribution from Global Physics Solutions of $3.4 million and
InLight product revenues. International revenue increased 44 percent, or
$2.5 million, due to contributions from acquired companies of $1.8 million,
organic growth and the strengthening of most foreign currencies against the
dollar.
Cost of sales for the second fiscal quarter of 2010 was $11.8 million, a 41
percent increase compared with the $8.4 million reported for the second
fiscal quarter of 2009. The primary factor contributing to the increase
was $3.2 million of increased cost from acquired companies. The gross
margin declined to 63 percent from 66 percent in the year ago period,
primarily due to the lower margin contribution of the Medical Physics
segment. Selling, general and administrative costs for the second fiscal
quarter of 2010 were $8.4 million, a 26 percent increase compared with the
$6.7 million reported for the second fiscal quarter of 2009. The primary
factor contributing to the increase was approximately $1.5 million of
increased spending from acquired companies.
During the second quarter of fiscal 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. 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. In addition, the Company initiated a management
reorganization plan to strengthen selected roles in the organization
resulting in $0.5 million ($0.3 million after-tax) of reorganization
charges during the second fiscal quarter of 2009.
The effective tax rate for the second fiscal quarter of 2010 increased to
34 percent compared with 31 percent for the second fiscal quarter of 2009.
The increase is due primarily to the non-recurrence of the favorable
resolution of uncertain tax positions during the 2009 quarter. Net income
for the fiscal quarter ended March 31, 2010 was $7.8 million, an increase
of 44 percent compared with $5.4 million for the second fiscal quarter of
2009. The resulting diluted earnings per share for the second fiscal
quarter of 2010 were $0.83 compared with $0.58 for the second fiscal
quarter of 2009. Excluding the effect of acquisition costs, net income for
the second fiscal quarter of 2010 was $7.9 million, or $0.84 per diluted
share. Excluding the effect of the pension curtailment and transition
costs and the reorganization charges, net income for the second fiscal
quarter of 2009 was $7.2 million, or $0.77 per diluted share.
For the six months ended March 31, 2010, revenues increased 25 percent to
$59.0 million compared to $47.4 million at this time last year. The gross
profit margin was 63 percent versus 67 percent from last year's six-month
period ended March 31, 2009. Selling, general and administrative expenses
for the first half of fiscal 2010 increased 23 percent to $16.2 million
compared with $13.2 million in fiscal 2009. In conjunction with the
acquisition activity during fiscal 2010, the Company incurred $1.7 million
($1.2 million, after-tax) of acquisition and reorganization costs.
Year-to-date net income was $12.9 million, an increase of 12 percent from
$11.6 million in the prior year period. Earnings per diluted share were
$1.38 compared with $1.24 for the same period last year. Excluding the
effect of acquisition and reorganization costs, net income for the first
six months ended March 31, 2010 was $14.2 million, or $1.52 per diluted
share. 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.
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LANDAUER, INC.
ADD 2
SOLID FINANCIAL POSITION
Landauer ended the second fiscal quarter of 2010 with total assets of
$139.9 million and negative working capital of $0.1 million, due to the
current liability classification of $16.8 million in outstanding
borrowings. The debt is classified as current, based upon management's
projection to retire the debt from operating cash flow within the next
twelve months. The debt was incurred to support the acquisitions completed
during the fiscal first quarter of 2010. Cash provided by operating
activities was $9.7 million, a decline of $5.4 million from the first half
of fiscal 2009. The decline is due primarily to the reduction in the
benefit from prepaid taxes, and other timing related changes in the
components of working capital.
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. Fiscal 2010 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 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 second quarter conference call for investors
over the Internet on Tuesday, April 27, 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 480-629-9821 (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 4283149, which will be
available until May 27, 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
FISCAL 2010 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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2010 2009 2010 2009
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Net revenues . . . . . . . . $ 31,806 $ 24,954 $ 59,040 $ 47,392
Costs and expenses:
Cost of sales. . . . . . 11,819 8,379 21,975 15,519
Selling, general and
administrative . . . . 8,408 6,688 16,212 13,181
Net defined benefit
plan curtailment
loss and transition
costs. . . . . . . . . - 2,236 - 2,236
Acquisition and
reorganization
costs. . . . . . . . . 143 489 1,660 489
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20,370 17,792 39,847 31,425
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Operating income . . . . . . 11,436 7,162 19,193 15,967
Other income, net. . . . . . 459 700 960 1,269
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Income before taxes. . . . . 11,895 7,862 20,153 17,236
Income taxes . . . . . . . . 3,998 2,406 7,015 5,553
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Net income . . . . . . . . . 7,897 5,456 13,138 11,683
Less: Net income
attributed to non-
controlling interest . . . 86 28 200 113
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Net income attributed to
Landauer, Inc. . . . . . . $ 7,811 $ 5,428 $ 12,938 $ 11,570
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Net income per share attri-
butable to Landauer, Inc.
shareholders:
Basic . . . . . . . . . $ 0.84 $ 0.58 $ 1.39 $ 1.24
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Weighted average
basic shares
outstanding . . . . . 9,314 9,281 9,291 9,273
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Diluted . . . . . . . . $ 0.83 $ 0.58 $ 1.38 $ 1.24
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Weighted average
diluted shares
outstanding . . . . . 9,353 9,328 9,328 9,320
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LANDAUER, INC.
ADD 5
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
March 31, September 30,
2010 2009
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ASSETS
Current Assets:
Cash and cash equivalents. . . . . . . . . $ 8,800 $ 36,493
Receivables, net of allowances . . . . . . 26,026 20,663
Other current assets . . . . . . . . . . . 10,309 11,381
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Total current assets . . . . . . . . . . . . . 45,135 68,537
Net property, plant and equipment. . . . . . . 34,588 26,151
Equity in joint venture. . . . . . . . . . . . 6,982 7,421
Goodwill and other intangible assets,
net of amortization. . . . . . . . . . . . . 47,002 17,380
Dosimetry devices, net of amortization . . . . 4,765 4,583
Other assets . . . . . . . . . . . . . . . . . 1,397 1,133
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TOTAL ASSETS . . . . . . . . . . . . . . . . . $139,869 $125,205
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable . . . . . . . . . . . . . $ 5,406 $ 5,193
Dividends payable. . . . . . . . . . . . . 54 4,996
Deferred contract revenue. . . . . . . . . 14,734 15,632
Short-term debt. . . . . . . . . . . . . . 16,750 -
Other current liabilities. . . . . . . . . 9,181 11,054
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Total current liabilities. . . . . . . . . . . 46,125 36,875
Non-current Liabilities:
Pension and postretirement obligations . . 8,516 8,238
Deferred income taxes. . . . . . . . . . . 6,916 4,608
Other non-current liabilities. . . . . . . 1,347 1,030
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Total non-current liabilities. . . . . . . . . 16,779 13,876
Landauer, Inc. stockholders' equity. . . . . . 76,299 73,761
Noncontrolling interest. . . . . . . . . . . . 666 693
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Total equity . . . . . . . . . . . . . . . . . 76,965 74,454
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY . . . . . . . . . . . . $139,869 $125,205
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