EXHIBIT 99.1
- ------------
News Release
LANDAUER
- ------------------------------------------------------------------------
LANDAUER, INC. REPORTS
FISCAL 2010 THIRD QUARTER RESULTS
Company Reduces Full Year Guidance
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-441-8311
jsinger@landauerinc.com
- ------------------------------------------------------------------------
GLENWOOD, ILL. -- AUGUST 3, 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 nine months ended
June 30, 2010.
FISCAL 2010 THIRD QUARTER HIGHLIGHTS
. Revenue grew 12 percent to $26.3 million on contribution from
acquired companies.
. Gross profit grew 3 percent to $16.1 million on increased sales
and revenue mix.
. Operating earnings declined 11 percent to $8.0 million due to impact
of prior year non-recurring revenue.
. Effective tax rate declined to 22 percent due primarily to
recognition of the benefit of prior year deductions for domestic
production activities.
. Net income declined 6 percent to $6.2 million, or $0.66 per diluted
share.
. Fiscal 2010 guidance adjusted to reflect delay in funding on key
initiatives.
"We continue to make solid progress against our key strategic priorities,
as evidenced by our revenue growth. However, this quarter's financial
results were negatively impacted by unforeseen delays in the funding
process for initiatives with the U.S. military and first responder markets,
and to a lesser extent the current economic environment," explained Bill
Saxelby, President and CEO of Landauer.
"In addition, the market acceptance of the Global Physics Solutions
acquisition has been excellent and we see strong interest in an expanded
service offering that incorporates elements of medical physics and our
occupational monitoring competencies. However, the sales cycle for certain
medical physics services is proving to be longer than we anticipated
originally."
- ------------------------------------------------------------------------
Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 Fax: 708.755.7011 landauerinc.com
LANDAUER, INC. - ADD 1
REVENUE GROWTH DRIVEN BY ACQUISITIONS
Revenues for the third fiscal quarter of 2010 were $26.3 million, a 12
percent increase compared with the $23.5 million reported for the third
fiscal quarter of 2009. Domestic revenue increased 21 percent, or $3.4
million, on contribution from Global Physics Solutions of $4.0 million,
offset by declines in InLight equipment sales. International revenue
declined 10 percent, or $0.7 million. $1.7 million of the change is due to
a planned change in the supply relationship between Landauer and Nagase
Landauer, our unconsolidated joint venture in Japan. With the conversion
of Nagase Landauer's customer base from Luxel to the InLight technology,
the venture will no longer be purchasing service badges. The historical
Luxel badge revenue will be partially offset by a royalty arrangement,
resulting in no corresponding impact on net income. This reduction in
revenue was partially offset by contributions from acquired companies of
$0.7 million and organic growth.
Cost of sales for the third fiscal quarter of 2010 was $10.2 million, a 29
percent increase compared with the $7.9 million reported for the third
fiscal quarter of 2009. The primary factor contributing to the increase
was $3.5 million of increased cost from acquired companies. The gross
margin declined to 61 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 third fiscal
quarter of 2010 were $8.1 million, a 22 percent increase compared with the
$6.6 million reported for the third fiscal quarter of 2009. The primary
factor contributing to the increase was approximately $1.2 million of
increased spending from acquired companies.
The effective tax rate for the third fiscal quarter of 2010 decreased to 22
percent compared with 30 percent for the third fiscal quarter of 2009. The
reduction is due primarily to recognition of the benefit of prior year
deductions for domestic production activities not previously included on
the Company's Federal income tax returns. Net income for the fiscal
quarter ended June 30, 2010 was $6.2 million, a decline of 6 percent
compared with $6.5 million for the third fiscal quarter of 2009. The
resulting diluted earnings per share for the third fiscal quarter of 2010
were $0.66 compared with $0.70 for the third fiscal quarter of 2009.
For the nine months ended June 30, 2010, revenues increased 20 percent to
$85.3 million compared to $70.9 million at this time last year. The gross
profit margin was 62 percent versus 67 percent from last year's nine-month
period ended June 30, 2009. Selling, general and administrative expenses
for the first nine months of fiscal 2010 increased 23 percent to $24.3
million compared with $19.8 million in fiscal 2009. In conjunction with
the acquisition activity during fiscal 2010, the Company incurred $1.7
million ($1.3 million, after-tax) of acquisition and reorganization costs.
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.
-more-
LANDAUER, INC. - ADD 2
Year-to-date net income was $19.1 million, an increase of 6 percent from
$18.1 million in the prior year period. Earnings per diluted share were
$2.04 compared with $1.94 for the same period last year. Excluding the
effect of acquisition and reorganization costs, net income for the first
nine months ended June 30, 2010 was $20.4 million, or $2.18 per diluted
share. 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.
FINANCIAL POSITION
Landauer ended the third fiscal quarter of 2010 with total assets of $144.2
million and negative working capital of $4.1 million, due to the current
liability classification of $13.4 million in outstanding borrowings. $18
million in debt was incurred to support the acquisitions completed during
the fiscal first quarter of 2010. This initial amount has been reduced
with cash flow from operations. Cash provided by operating activities was
$17.5 million, a decline of 3 percent from the first nine months of fiscal
2009.
FISCAL 2010 OUTLOOK
"We remain confident in the Company's long-term strategic initiatives and
growth plan. We believe our near-term results will continue to be
adversely affected by the factors noted above. In particular, although we
continue to build strong relationships with the U.S. Military, there has
been an unforeseen delay in the decision making process to fund
multimillion dollar initiatives using Landauer technology. When we
initially issued our annual guidance in December 2009, we anticipated
purchase commitments in the second half of the 2010 fiscal year, which to
date have not occurred. As we move through our fiscal fourth quarter, we
are still pursuing these initiatives, but our visibility on funding is
limited at this point in time. If funding does not occur in the fourth
quarter, our full-year results will be below the bottom end of our original
guidance range. We remain optimistic regarding the long-term opportunity
with our Military partners," stated Saxelby.
Previously, Landauer anticipated fiscal 2010 aggregate revenue growth for
the year to be in the range of 25 to 30 percent and 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.
If the military sales outlined above do not materialize this fiscal year,
Landauer's aggregate revenue growth for fiscal 2010 is anticipated to be in
the range of 18 to 22 percent. Fiscal 2010 acquisitions are expected to
contribute the majority of the growth. The current forecast includes
expense spending of $1.5 to $2.5 million to support the Company's systems
initiative. The Company projects a net income change in the range of a
decline of 2 percent to an increase of 2 percent, excluding the after tax
impact of acquisition and reorganization costs, of $1.3 million, in fiscal
2010 and the fiscal 2009 after tax impact of pension curtailment and
transition costs and reorganization costs of $1.8 million.
-more-
LANDAUER, INC. - ADD 3
CONFERENCE CALL DETAILS
Landauer has scheduled its third quarter conference call for investors over
the Internet on Tuesday, August 3, 2010 at 2:00 p.m. Eastern Time (11:00
a.m. Pacific Time). To participate, callers should dial 877-941-0844
(within the United States and Canada) or 480-629-9645 (international
calls), and reference the conference ID #4334774, 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 4334774#,
which will be available until September 3, 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.
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; government funding for the
purchase of certain of the Company's equipment and services; the impact on
sales and pricing of certain customer group purchasing arrangements; 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
-more-
LANDAUER, INC. - ADD 4
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
-more-
LANDAUER, INC. - ADD 5
FISCAL 2010 THIRD QUARTER FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
June 30, June 30,
------------------- -------------------
2010 2009 2010 2009
-------- -------- -------- --------
Net revenues $ 26,255 $ 23,468 $ 85,295 $ 70,860
Costs and expenses:
Cost of sales 10,188 7,874 32,163 23,393
Selling, general and
administrative 8,085 6,612 24,297 19,793
Net defined benefit
plan curtailment loss
and transition costs -- -- -- 2,236
Acquisition and
reorganization costs 23 -- 1,683 489
-------- -------- -------- --------
18,296 14,486 58,143 45,911
-------- -------- -------- --------
Operating income 7,959 8,982 27,152 24,949
Other income, net 138 459 1,098 1,728
-------- -------- -------- --------
Income before taxes 8,097 9,441 28,250 26,677
Income taxes 1,791 2,800 8,806 8,353
-------- -------- -------- --------
Net income 6,306 6,641 19,444 18,324
Less: Net income attributed
to noncontrolling interest 126 95 326 208
-------- -------- -------- --------
Net income attributed to
Landauer, Inc. $ 6,180 $ 6,546 $ 19,118 $ 18,116
======== ======== ======== ========
Net income per share attri-
butable to Landauer, Inc.
shareholders:
Basic $ 0.66 $ 0.70 $ 2.05 $ 1.95
======== ======== ======== ========
Weighted average
basic shares
outstanding 9,325 9,304 9,302 9,279
======== ======== ======== ========
Diluted $ 0.66 $ 0.70 $ 2.04 $ 1.94
======== ======== ======== ========
Weighted average
diluted shares
outstanding 9,365 9,347 9,341 9,326
======== ======== ======== ========
-more-
LANDAUER, INC. - ADD 6
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
June 30, September 30,
2010 2009
-------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 8,023 $ 36,493
Receivables, net of allowances 23,334 20,663
Other current assets 13,102 11,381
-------- --------
Total current assets 44,459 68,537
Net property, plant and equipment 36,970 26,151
Equity in joint venture 7,711 7,421
Goodwill and other intangible assets,
net of amortization 48,501 17,380
Dosimetry devices, net of amortization 5,187 4,583
Other assets 1,375 1,133
-------- --------
TOTAL ASSETS $144,203 $125,205
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 4,239 $ 5,193
Dividends payable 5,135 4,996
Deferred contract revenue 15,599 15,632
Short-term debt 13,418 --
Other current liabilities 10,137 11,054
-------- --------
Total current liabilities 48,528 36,875
Non-current Liabilities:
Pension and postretirement obligations 8,656 8,238
Deferred income taxes 7,056 4,608
Other non-current liabilities 1,689 1,030
-------- --------
Total non-current liabilities 17,401 13,876
Landauer, Inc. stockholders' equity 77,530 73,761
Noncontrolling interest 744 693
-------- --------
Total equity 78,274 74,454
-------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $144,203 $125,205
======== ========
# # #