EXHIBIT 99.1
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News Release
LANDAUER
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LANDAUER, INC. REPORTS
FISCAL 2011 SECOND QUARTER RESULTS
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-441-8311
jsinger@landauerinc.com
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GLENWOOD, ILL. -- MAY 3, 2011 -- 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 2011 second quarter ended
March 31, 2011.
FISCAL 2011 SECOND QUARTER HIGHLIGHTS
.. Revenue grew 2 percent to $32.3 million on contribution from
Medical Physics segment and international growth.
.. Gross profit grew 4 percent to $20.7 million on increased revenue
and mix.
.. Operating income increased 4 percent to $11.9 million.
.. Net income rose 2 percent to $8.0 million, or $0.85 per diluted
share.
"The natural disasters in Japan and resulting nuclear emergency have
heightened global awareness of the importance of radiation monitoring.
This awareness supports the strategic investments Landauer has made to
position our technology with military personnel and first responders and
reinforces our value proposition with targeted customers," stated Bill
Saxelby, President and CEO of Landauer. "Our technology is being deployed
through our joint venture in Japan - Nagase Landauer, our partners in the
Canadian government, and the U.S. Army to assist with the monitoring of
emergency responders. We are pleased that Landauer technology and
equipment is helping to support the response in this difficult situation."
Saxelby added, "We continued to gain traction with our Medical Physics
business. In the quarter we signed a new contract for comprehensive medical
physics services with a large multi-site system. We continue to focus on
organic growth and strategic expansion opportunities that support the safe
utilization of radiation in the healthcare setting."
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 Fax: 708.755.7011 landauerinc.com
LANDAUER, INC. - ADD 1
SECOND FISCAL QUARTER FINANCIAL OVERVIEW AND BUSINESS SEGMENT RESULTS
Revenues for the second fiscal quarter of 2011 were $32.3 million, a 2
percent increase compared with the $31.8 million reported for the second
fiscal quarter of 2010. Cost of sales for the second fiscal quarter of
2011 were $11.6 million, a 2 percent decrease compared with the $11.8
million reported for the second fiscal quarter of 2010. The gross margin
increased to 64 percent from 63 percent in the year ago period. Selling,
general and administrative costs for the second fiscal quarter of 2011 were
$8.7 million, a 4 percent increase compared with the $8.4 million reported
for the second fiscal quarter of 2010.
Operating income for the second fiscal quarter of 2011 was $11.9 million, a
4 percent increase compared with operating income of $11.4 million for
fiscal 2010. Other income for the second fiscal quarter increased 18
percent to $0.5 million.
The effective tax rate was 34.6% and 33.6% for the second fiscal quarter of
2011 and 2010, respectively. Net income for the second fiscal quarter
ended March 31, 2011 was $8.0 million, an increase of 2 percent compared
with $7.8 million for the second fiscal quarter of 2010. The resulting
diluted earnings per share for the second fiscal quarter of 2011 were $0.85
compared with $0.83 for the second fiscal quarter of 2010. Earnings before
interest, taxes, depreciation and amortization ("EBITDA") were $14.2
million, a 7 percent increase compared with $13.3 million a year ago. The
increase was due primarily to revenue growth, lower product costs based on
revenue mix and favorable equity earnings of joint ventures for the second
fiscal quarter of 2011. A reconciliation of net income to EBITDA is
included in the attached financial exhibits.
RADIATION MONITORING SEGMENT
Radiation Monitoring revenues for the second fiscal quarter of 2011
declined 3 percent, or $0.8 million, to $27.5 million. Of the decline,
$0.7 million is due to the previously reported change in the supply
relationship between Landauer and Nagase Landauer, which converted its
customer base from Luxel to the InLight technology during fiscal 2010.
Nagase Landauer no longer purchases service badges from the Company. The
historical Luxel badge revenues were partially replaced by a royalty
arrangement, resulting in no corresponding impact on net income. Without
the Nagase Landauer impact, domestic Radiation Monitoring revenues declined
6 percent, or $1.2 million, driven by lower non-recurring InLight equipment
sales, primarily to the Canadian government agency responsible for
occupational monitoring and radiation emergency preparedness for the
citizens of Canada. International Radiation Monitoring revenues increased
14 percent, or $1.0 million, on organic growth in most regions and the
strengthening of most foreign currencies against the dollar.
Radiation Monitoring gross margin for the second fiscal quarter of 2011
increased to 71 percent from 68 percent in the year ago period, primarily
due to the decline in lower margin sales to Nagase Landauer. Selling,
general and administrative costs for the second fiscal quarter of 2011
increased 3 percent, or $0.2 million, to $7.4 million. The increase is due
primarily to the strengthening of most foreign currencies against the
dollar. Operating income, inclusive of the impact of acquisition related
transaction and reorganization costs, for the second fiscal quarter of 2011
increased 2 percent, or $0.2 million, to $12.1 million compared with
operating income of $11.9 million for fiscal 2010.
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LANDAUER, INC. - ADD 2
MEDICAL PHYSICS SEGMENT
Medical Physics revenues for the second fiscal quarter of 2011 increased 40
percent, or $1.4 million, to $4.8 million on $0.7 million of organic growth
and $0.7 million due to the impact of acquired companies. The gross margin
increased to 23 percent from 22 percent in the year ago period. Selling,
general and administrative costs for the second fiscal quarter of 2011
increased 11 percent, or $0.1 million, to $1.3 million due to the
annualized impact of acquired companies. Operating loss for the second
fiscal quarter of 2011 was $0.2 million, compared with an operating loss of
$0.4 million for fiscal 2010.
FISCAL SIX MONTHS FINANCIAL OVERVIEW AND BUSINESS SEGMENT RESULTS
Revenues for the first six months of fiscal 2011 were $60.8 million, a 3
percent increase compared with the $59.0 million reported for the same
period in fiscal 2010. Cost of sales for the first six months of fiscal
2011 were $22.7 million, a 3 percent increase compared with the $22.0
million reported for the same period in fiscal 2010. Gross margins were 63
percent each for the first half of fiscal 2011 and 2010, respectively.
Selling, general and administrative costs for the first six months of
fiscal 2011 were $17.9 million, a 10 percent increase compared with the
$16.2 million reported for the same period in fiscal 2010.
In conjunction with Landauer's acquisition activity, the Company incurred
$0.2 million and $1.7 million ($1.2 million, after-tax) of acquisition
related transaction and reorganization costs for the first six months of
fiscal 2011 and 2010, respectively. Operating income for the six months
ended March 31, 2011 was $20.0 million, a 4 percent increase compared with
operating income of $19.2 million for the same period in fiscal 2010.
Other income for the first six months of fiscal 2011 increased 19 percent
to $1.1 million.
The effective tax rate was 33.2% and 34.8% for the first half of fiscal
2011 and 2010, respectively. The decline in effective tax rate was due
primarily to the realization of R&D tax credits in fiscal 2011 recognized
with the passage of tax legislation in December 2010 and the
non-deductibility of certain acquisition related costs in fiscal 2010. Net
income for the six months ended March 31, 2011 was $13.8 million, an
increase of 7 percent compared with $12.9 million for the six months ended
March 31, 2010. The resulting diluted earnings per share for the first
half of fiscal 2011 were $1.47 compared with $1.38 for the same period in
fiscal 2010. Earnings before interest, taxes, depreciation and
amortization ("EBITDA") were $24.4 million, a 6 percent increase compared
with $23.0 million a year ago. The increase is due primarily to the $1.4
million reduction in acquisition related transaction and reorganization
costs for the first half of fiscal 2011. A reconciliation of net income to
EBITDA is included in the attached financial exhibits.
RADIATION MONITORING SEGMENT
Radiation Monitoring revenues for the first six months of fiscal 2011
declined 4 percent, or $2.0 million, to $51.4 million. Of the decline,
$2.1 million is due to the previously reported change in the supply
relationship between Landauer and Nagase Landauer, the Company's
unconsolidated joint venture in Japan. Without the Nagase Landauer impact,
domestic Radiation Monitoring revenues declined 4 percent, or $1.4 million,
and international Radiation Monitoring revenues increased 11 percent, or
$1.5 million, on organic growth in most regions and the strengthening of
most foreign currencies against the dollar.
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LANDAUER, INC. - ADD 3
Radiation Monitoring gross margin for the six months ended March 31, 2011
increased to 70 percent from 67 percent in the year ago period, primarily
due to the decline in lower margin sales to Nagase Landauer. Selling,
general and administrative costs for the first six months of fiscal 2011
increased 5 percent, or $0.8 million, to $15.1 million. The increase is
due primarily to costs to replace the Company's IT systems and increased
spending to support international revenue growth. Operating income,
inclusive of the impact of acquisition related transaction and
reorganization costs, for the six months ended March 31, 2011 increased 4
percent, or $0.9 million, to $20.7 million compared with operating income
of $19.8 million for the same period in fiscal 2010.
MEDICAL PHYSICS SEGMENT
Medical Physics revenues for the first six months of fiscal 2011 increased
67 percent, or $3.8 million, to $9.3 million on $1.4 million of organic
growth and $2.4 million due primarily to the annualized impact of acquired
companies. The gross margin was 23 percent each for the first six months
of fiscal 2011 and in the year ago period. Selling, general and
administrative costs for the first six months of fiscal 2011 increased 46
percent, or $0.9 million, to $2.8 million. The increase is due to the
impact of acquired companies. Operating loss for the six months ended
March 31, 2011 was $0.7 million, compared with an operating loss of $0.6
million for the same period in fiscal 2010.
SOLID FINANCIAL POSITION
Landauer ended the second fiscal quarter of 2011 with total assets of
$157.1 million. Due to the current liability classification of $18.3
million in outstanding borrowings incurred to support the acquisitions
completed during the first fiscal quarter of 2010, the Company had negative
working capital of $5.0 million. The Company believes projected operating
cash flow and available borrowing under its current credit arrangements
provide adequate liquidity to meet its current and anticipated obligations.
Cash provided by operating activities for the six months ended March 31,
2011 was $16.9 million, an increase of $7.1 million from the first half of
fiscal 2010 due primarily to the changes in the components of working
capital.
FISCAL 2011 OUTLOOK
Landauer's current business plan for fiscal 2011 anticipates consolidated
revenue for the year to be in the range of $120 to $126 million, including
$4 to $8 million in sales to the U.S. military and first responder markets.
Military and first responder market sales are dependent on military and
other governmental appropriations and approvals which have yet to be
obtained. There can be no assurance that such appropriations and approvals
can be obtained in fiscal 2011 or that orders will result immediately
following any such appropriation or approval. The business plan
anticipates spending of $10 to $12 million to support the completion of the
Company's systems initiative, with $2 to $3 million being expensed in the
current fiscal year. Based upon the above assumptions, the Company
anticipates reported net income for fiscal 2011 in the range of $24 to $26
million.
CONFERENCE CALL DETAILS
Landauer has scheduled its second quarter conference call for investors
over the Internet on Tuesday, May 3, 2011 at 2:00 p.m. Eastern Time
(11:00 a.m. Pacific Time). To participate, callers should dial
888-561-1721 (within the United States and Canada), or 480-629-9774
(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
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LANDAUER, INC. - ADD 4
the call by dialing 800-406-7325 (within the United States and Canada), or
303-590-3030 (international callers), passcode 4435818#, which will be
available until June 2, 2011. The replay of the call will remain available
on Landauer's website for 90 days.
ABOUT LANDAUER
Landauer is a leading global 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 customers, and the
analysis and reporting of exposure findings. The Company provides its
dosimetry services to approximately 1.6 million individuals globally. In
addition, through its Global Physics Solutions subsidiary, the Company
provides therapeutic and imaging physics services to the medical physics
community.
SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, the section
titled "Fiscal 2011 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; the ability to protect and utilize the
Company's intellectual property; continued customer acceptance of the
InLight technology; the adaptability of optically stimulated luminescence
(OSL) technology to new platforms and formats; military and other
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 and
related licenses and intellectual property; 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.
Additional information may be obtained by reviewing the information set
forth in the "Risk Factors" section of the Company's Annual Report on
Form 10-K for the year ended September 30, 2010, 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 5
SECOND FISCAL QUARTER 2011 FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three Months Ended Six Months Ended
March 31, March 31,
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2011 2010 2011 2010
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Net revenues $ 32,327 $ 31,806 $ 60,765 $ 59,040
Costs and expenses:
Cost of sales 11,604 11,819 22,687 21,975
Selling, general and
administrative 8,728 8,408 17,859 16,212
Acquisition and
reorganization costs 115 143 212 1,660
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Costs and expenses 20,447 20,370 40,758 39,847
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Operating income 11,880 11,436 20,007 19,193
Other income, net 540 459 1,143 960
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Income before taxes 12,420 11,895 21,150 20,153
Income taxes 4,294 3,998 7,031 7,015
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Net income 8,126 7,897 14,119 13,138
Less: Net income attri-
buted to noncontrolling
interest 129 86 303 200
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Net income attributed to
Landauer, Inc. $ 7,997 $ 7,811 $ 13,816 $ 12,938
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Net income per share
attributable to
Landauer, Inc.
shareholders:
Basic $ 0.85 $ 0.84 $ 1.48 $ 1.39
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Weighted average
basic shares
outstanding 9,332 9,314 9,322 9,291
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Diluted $ 0.85 $ 0.83 $ 1.47 $ 1.38
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Weighted average
diluted shares
outstanding 9,377 9,353 9,367 9,328
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LANDAUER, INC. - ADD 6
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
March 31, September 30,
2011 2010
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ASSETS
Current Assets:
Cash and cash equivalents $ 6,259 $ 7,659
Receivables, net of allowances 28,142 23,702
Other current assets 10,555 14,796
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Total current assets 44,956 46,157
Net property, plant and equipment 43,328 39,815
Equity in joint ventures 8,934 8,446
Goodwill and other intangible assets,
net of amortization 50,775 49,270
Dosimetry devices, net of amortization 5,645 5,569
Other assets 3,437 1,439
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TOTAL ASSETS $157,075 $150,696
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 6,228 $ 7,180
Dividends payable 103 5,143
Deferred contract revenue 15,082 14,305
Short-term debt 18,335 12,504
Other current liabilities 10,179 10,420
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Total current liabilities 49,927 49,552
Non-Current Liabilities:
Pension and postretirement
obligations 10,383 10,089
Deferred income taxes 9,876 9,934
Other non-current liabilities 1,542 1,418
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Total non-current liabilities 21,801 21,441
Stockholders' Equity:
Landauer, Inc. stockholders' equity 84,354 78,790
Noncontrolling interest 993 913
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Total stockholders' equity 85,347 79,703
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $157,075 $150,696
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LANDAUER, INC. - ADD 7
RECONCILIATION OF NET INCOME TO
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(unaudited, amounts in thousands)
Three Months Ended Six Months Ended
March 31, March 31,
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2011 2010 2011 2010
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Net income attributed to
Landauer, Inc. $ 7,997 $ 7,811 $ 13,816 $ 12,938
Add back:
Interest and other
(income) expense 75 (48) (17) (53)
Income taxes 4,294 3,998 7,031 7,015
Depreciation and
amortization 1,807 1,517 3,604 3,063
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Earnings before interest,
taxes, depreciation
and amortization $ 14,173 $ 13,278 $ 24,434 $ 22,963
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USE OF NON-GAAP FINANCIAL MEASURES
In evaluating the Company's financial performance and outlook, management
uses EBITDA. EBITDA is a non-GAAP measure. Management believes that such
measure supplements evaluations using operating income, net income, and
diluted earnings per share and other GAAP measures, and is a useful
indicator for investors. This indicator can help readers gain a meaningful
understanding of our core operating results and future prospects without
the effect of non-cash items and the Company's ability to generate cash
flows from operations that are available for taxes, capital expenditures,
and debt repayment. Investors should recognize that these non-GAAP
measures might not be comparable to similarly titled measures of other
companies. These measures should be considered in addition to, and not as
a substitute for or superior to, any measure of performance, cash flows or
liquidity prepared in accordance with accounting principles generally
accepted in the United States.
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