GLENWOOD, Ill., May 11, 2015 /PRNewswire/ -- Landauer,
Inc. (NYSE: LDR), a recognized leader in personal and
environmental radiation measurement and monitoring, outsourced
medical physics services and high quality medical consumable
accessories, today reported financial results for its fiscal 2015
second quarter ended March 31,
2015.
Fiscal 2015 Second Quarter Highlights
- Revenue of $38.1 million, a 2.6%
decrease compared to the year ago period
- Second quarter domestic Radiation Measurement revenues grew
4.3% year-over-year
- Second quarter Medical Physics revenues grew 7.5%
year-over-year
- Unfavorable foreign currency rates reduced revenues by
$1.6 million, or 4.1%
year-over-year
- Operating income of $5.6
million, a decrease of 18.8% over the prior year period
- Professional fees, primarily associated with the fiscal 2014
Form 10-K restatement and accounting control issues, reduced
operating income by $1.1 million
year-over-year
- Net Income of $3.5 million,
compared to $4.5 million in the prior
year period
- Adjusted EBITDA of $9.0 million,
a decrease of $2.4 million from the
prior year period
Mike Leatherman, President and
Chief Executive Officer of Landauer stated, "While our reported
results for the second quarter reflected the impact of foreign
currency and our audit, legal and professional fees incurred to
complete our latest Form 10-K filing, our core business remains
strong. During the quarter, revenues in our domestic radiation
measurement segment grew 4.3%, and revenues in our Medical Physics
segment grew 7.5%. The growth in these services demonstrates
the strength of our unique position as an integrated solution for
our customers."
Leatherman continued, "During the second quarter, we have
continued to focus on our strategic priorities that will drive
long-term, profitable growth, including the continued progress of
our next generation digital dosimeter platform, Verifii, and the
remediation of the accounting control issues identified in our
latest Form 10-K filing. We remain confident that we have put the
right team and structure in place to drive growth for our
shareholders."
Second Fiscal Quarter Financial Overview
Revenues for the second fiscal quarter of 2015 were $38.1 million, a decrease of $1.0 million, or 2.6%, compared to revenues of
$39.1 million for the second fiscal
quarter of 2014. Radiation Measurement revenues for the second
fiscal quarter of 2015 were $27.2
million, a 5.2% decrease compared to $28.7 million for the second fiscal quarter of
2014. The decrease in revenues was due primarily to the unfavorable
impact of changes in foreign currency exchange rates of
$1.6 million and a decrease in
product sales in Europe of
$1.0 million, partially offset by an
increase in military product sales of $1.1
million. Medical Physics revenues increased $0.6 million, due to increased imaging services.
Medical Products revenues were flat.
Operating income for the second fiscal quarter of 2015 was
$5.6 million, a decrease of
$1.3 million, or 18.8%, compared with
operating income of $6.9 million for
the second fiscal quarter of 2014. The decrease in operating income
was driven by lower gross profit of $1.2
million, resulting from unfavorable foreign currency rates,
and higher audit, legal, and professional fees associated with the
fiscal 2014 Form 10-K restatement and accounting control
issues.
Fiscal Six Months Financial Overview
Revenues for the first six months of fiscal 2015 were
$75.7 million, a 1.9% decrease
compared to $77.2 million for the
first six months of fiscal 2014. The Radiation Measurement segment
decreased $3.2 million due to an
unfavorable foreign currency impact of $2.4
million and a decrease in product sales in Europe of $1.0
million, partially offset by an increase in military product
sales of $0.4 million. The Medical
Physics segment increased $1.3
million, driven by new customer contracts for outsourced
enterprise radiation safety solutions. Revenues in the
Medical Products segment increased $0.3
million due to the full-period impact of a modest
acquisition in December 2013.
Operating income for the first six months of fiscal 2015 was
$11.8 million, a 4.1% decrease
compared to operating income of $12.3
million for the first six months of fiscal 2014. The
decrease in operating income was driven by unfavorable foreign
currency rates, and higher audit, legal, and professional fees
associated with the fiscal 2014 Form 10-K restatement and
accounting control issues.
Fiscal 2015 Outlook
Landauer's business plan for fiscal 2015 currently anticipates
aggregate revenues for the year to be in the range of $153 to $163 million. This range reflects the
uncertainty of the impact of foreign currencies, and to a lesser
extent, government funding during fiscal 2015 for military
equipment sales opportunities. The business plan also
anticipates:
- The effective tax rate for the full fiscal year is anticipated
to be within a range of 21 percent to 25 percent.
- Based upon the above assumptions, the Company anticipates
Adjusted Net Income for fiscal 2015 in the range of $16 to $19 million and Adjusted EBITDA expected
for fiscal 2015 in the range of $41 to $46
million.
- Due to the impact of unfavorable foreign currency rates on
reported revenues, Adjusted Net Income and Adjusted EBITDA, the
Company expects to report fiscal 2015 results near the lower end of
the range for these metrics.
Conference Call Details
Landauer has scheduled its second quarter conference call for
investors over the Internet on Monday, May
11, 2015, at 4:00 p.m. Central
Time (5 p.m. Eastern
Time). To participate, callers should dial
888-417-8533 (within the United
States and Canada), or
719-325-2455 (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.landauer.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 888-203-1112 (within the United
States and Canada), or
719-457-0820 (international callers), passcode 6165805#, which will
be available through Wednesday, June
10, 2015. The replay will also be available on
Landauer's website for 30 days following the call.
About Landauer
Landauer is a leading global provider of technical and
analytical services to determine occupational and environmental
radiation exposure, the leading domestic provider of outsourced
medical physics services, as well as a provider of high quality
medical accessories used in radiology, radiation therapy, and image
guided surgery procedures. 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 1.8 million individuals globally. In addition,
through its Medical Physics segment, the Company provides
therapeutic and imaging physics services to the medical physics
community. Through its Medical Products segment, the Company
provides medical consumable accessories used in radiology,
radiation therapy, and image guided surgery procedures. For
information about Landauer, please visit their website at
http://www.landauer.com.
Safe Harbor Statement
Some of the information shared here (including, in particular,
the section titled "Fiscal 2015 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 future performance, 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; changes in spending or reimbursement for
medical products or services; 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 services and
products ; 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, including instability in capital markets which could
impact availability of short and long-term financing; the timing
and extent of changes in interest rates; the level of borrowings;
foreign exchange rates; government regulations; accreditation
requirements; changes in the trading market that affect the costs
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 Item 1A "Risk Factors" and Item 7A
"Quantitative and Qualitative Disclosures about Market Risk" and
information contained in the Company's Annual Report on
Form 10-K for the year ended September 30, 2014 and other
reports filed by the Company, from time to time, with the
Securities and Exchange Commission. The Company does not
undertake, and expressly disclaims, any duty to update any
forward-looking statement whether as a result of new information,
future events or changes in the Company's expectations, except as
required by law.
Financial Tables Follow
Landauer, Inc. and
Subsidiaries
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Thousands)
|
|
March 31,
2015
|
|
September 30, 2014
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,424
|
|
$
|
6,761
|
Receivables, net of
allowances of $1,703 at March 31, 2015 and $1,872 at September 30,
2014
|
|
|
30,756
|
|
|
34,707
|
Inventories
|
|
|
6,689
|
|
|
6,687
|
Prepaid expenses and
other current assets
|
|
|
7,041
|
|
|
6,178
|
Current
assets
|
|
|
52,910
|
|
|
54,333
|
Net property, plant
and equipment
|
|
|
46,973
|
|
|
46,757
|
Equity in joint
ventures
|
|
|
23,137
|
|
|
23,835
|
Goodwill
|
|
|
40,432
|
|
|
43,218
|
Intangible assets,
net of accumulated amortization of $37,624 at March 31, 2015 and
$37,579 at September 30, 2014
|
|
|
13,369
|
|
|
14,077
|
Other
assets
|
|
|
32,136
|
|
|
34,366
|
Assets
|
|
$
|
208,957
|
|
$
|
216,586
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
39,595
|
|
$
|
44,728
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
|
134,585
|
|
|
133,585
|
Other non-current
liabilities
|
|
|
24,183
|
|
|
24,539
|
Non-current
liabilities
|
|
|
158,768
|
|
|
158,124
|
Stockholders'
equity:
|
|
|
|
|
|
|
Landauer, Inc.
stockholders' equity
|
|
|
9,361
|
|
|
12,254
|
Noncontrolling
interest
|
|
|
1,233
|
|
|
1,480
|
Stockholders'
equity
|
|
|
10,594
|
|
|
13,734
|
Liabilities and
Stockholders' Equity
|
|
$
|
208,957
|
|
$
|
216,586
|
Landauer, Inc. and
Subsidiaries
|
Second Fiscal
Quarter 2015 Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Six Months Ended
March 31,
|
(Dollars in
Thousands, Except per Share)
|
|
2015
|
|
2014
(As Restated)
|
|
2015
|
|
2014
(As Restated)
|
Net
revenues
|
|
$
|
38,139
|
|
$
|
39,054
|
|
$
|
75,686
|
|
$
|
77,201
|
Cost and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
18,611
|
|
|
18,332
|
|
|
36,362
|
|
|
36,717
|
Selling, general and
administrative
|
|
|
13,898
|
|
|
13,750
|
|
|
27,553
|
|
|
27,976
|
Acquisition,
reorganization and nonrecurring costs
|
|
|
-
|
|
|
109
|
|
|
-
|
|
|
220
|
Costs and
expenses
|
|
|
32,509
|
|
|
32,191
|
|
|
63,915
|
|
|
64,913
|
Operating
income
|
|
|
5,630
|
|
|
6,863
|
|
|
11,771
|
|
|
12,288
|
Equity in income of
joint ventures
|
|
|
680
|
|
|
535
|
|
|
1,376
|
|
|
1,816
|
Other expense,
net
|
|
|
(1,449)
|
|
|
(1,009)
|
|
|
(2,151)
|
|
|
(1,787)
|
Income before
taxes
|
|
|
4,861
|
|
|
6,389
|
|
|
10,996
|
|
|
12,317
|
Income tax
expense
|
|
|
1,180
|
|
|
1,913
|
|
|
2,790
|
|
|
3,812
|
Net income
|
|
|
3,681
|
|
|
4,476
|
|
|
8,206
|
|
|
8,505
|
Less: Net
income (loss) attributed to noncontrolling interest
|
|
|
134
|
|
|
(38)
|
|
|
282
|
|
|
170
|
Net income attributed
to Landauer, Inc.
|
|
$
|
3,547
|
|
$
|
4,514
|
|
$
|
7,924
|
|
$
|
8,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Landauer, Inc. shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.37
|
|
$
|
0.47
|
|
$
|
0.83
|
|
$
|
0.87
|
Weighted average
basic shares outstanding
|
|
|
9,493
|
|
|
9,460
|
|
|
9,464
|
|
|
9,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.37
|
|
$
|
0.47
|
|
$
|
0.83
|
|
$
|
0.87
|
Weighted average
diluted shares outstanding
|
|
|
9,520
|
|
|
9,501
|
|
|
9,492
|
|
|
9,485
|
Landauer, Inc. and
Subsidiaries
|
Consolidated
Statements of Cash Flows
|
|
|
|
Six Months Ended
March 31,
|
(Dollars in
Thousands)
|
|
2015
|
|
2014
(As Restated)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
8,206
|
|
$
|
8,505
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
6,092
|
|
|
7,487
|
Equity in income
of joint ventures
|
|
|
(1,376)
|
|
|
(1,816)
|
Dividends from joint
ventures
|
|
|
1,144
|
|
|
1,340
|
Stock-based
compensation and related net tax benefits
|
|
|
873
|
|
|
453
|
Current and long-term
deferred taxes, net
|
|
|
(1,792)
|
|
|
847
|
Loss on sale, disposal
and abandonment of fixed assets
|
|
|
124
|
|
|
-
|
Gain on
investments
|
|
|
(189)
|
|
|
(338)
|
Changes in operating
assets and liabilities
|
|
|
1,775
|
|
|
3,402
|
Net cash provided by
operating activities
|
|
|
14,857
|
|
|
19,880
|
Net cash used by
investing activities
|
|
|
(2,916)
|
|
|
(4,329)
|
Cash flows used
by financing activities:
|
|
|
|
|
|
|
Long-term borrowings,
net
|
|
|
1,000
|
|
|
(4,500)
|
Dividends paid to
stockholders
|
|
|
(10,599)
|
|
|
(10,520)
|
Other financing
activities, net
|
|
|
(321)
|
|
|
(390)
|
Net cash used by
financing activities
|
|
|
(9,920)
|
|
|
(15,410)
|
Effects of foreign
currency translation
|
|
|
(358)
|
|
|
109
|
Net increase in cash
and cash equivalents
|
|
|
1,663
|
|
|
250
|
Opening balance - cash
and cash equivalents
|
|
|
6,761
|
|
|
8,672
|
Ending balance - cash
and cash equivalents
|
|
$
|
8,424
|
|
$
|
8,922
|
A reconciliation of these non-GAAP measures to the most directly
comparable GAAP measures is provided below:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
Six Months Ended
March 31,
|
(Dollars in
Thousands)
|
2015
|
|
2014
(As Restated)
|
2015
|
|
2014
(As Restated)
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
Net income attributed
to Landauer, Inc.
|
$
|
3,547
|
|
$
|
4,514
|
$
|
7,924
|
|
$
|
8,335
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Net financing
costs
|
|
849
|
|
|
957
|
|
1,687
|
|
|
1,746
|
Depreciation and
amortization
|
|
3,014
|
|
|
3,755
|
|
6,092
|
|
|
7,487
|
Provision for income
taxes
|
|
1,180
|
|
|
1,913
|
|
2,790
|
|
|
3,812
|
Earnings before
interest, taxes, depreciation
and amortization
(EBITDA)
|
$
|
8,590
|
|
$
|
11,139
|
$
|
18,493
|
|
$
|
21,380
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock based
compensation
|
|
436
|
|
|
171
|
|
873
|
|
|
463
|
Acquisition,
reorganization and nonrecurring costs
|
|
-
|
|
|
109
|
|
-
|
|
|
220
|
Sub-total
adjustments
|
|
436
|
|
|
280
|
|
873
|
|
|
683
|
Adjusted
EBITDA
|
$
|
9,026
|
|
$
|
11,419
|
$
|
19,366
|
|
$
|
22,063
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
(Dollars in
Thousands, Except per Share)
|
2015
|
|
2014
(As Restated)
|
2015
|
|
2014
(As Restated)
|
Adjusted Net
Income
|
|
|
|
|
|
|
|
|
|
|
Net income attributed
to Landauer, Inc.
|
$
|
3,547
|
|
$
|
4,514
|
$
|
7,924
|
|
$
|
8,335
|
Sub-total
adjustments
|
|
436
|
|
|
280
|
|
873
|
|
|
683
|
Income taxes on
adjustments
|
|
(106)
|
|
|
(84)
|
|
(220)
|
|
|
(211)
|
Adjustments,
net
|
|
330
|
|
|
196
|
|
653
|
|
|
472
|
Adjusted Net
Income
|
$
|
3,877
|
|
$
|
4,710
|
$
|
8,577
|
|
$
|
8,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31,
|
(Dollars in
Thousands)
|
2015
|
|
2014
(As Restated)
|
Adjusted Free Cash
Flow
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
14,857
|
|
$
|
19,880
|
Capital
expenditures
|
|
(3,063)
|
|
|
(2,415)
|
Free Cash
Flow
|
|
11,794
|
|
|
17,465
|
Acquisition,
reorganization and nonrecurring costs
|
|
-
|
|
|
220
|
Adjusted Free Cash
Flow
|
$
|
11,794
|
|
$
|
17,685
|
Segment Information
The following tables summarize financial information for each
reportable segment for the three and six months ended March 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
(Dollars in
Thousands)
|
|
2015
|
|
2014
(As Restated)
|
|
2015
|
|
2014
(As Restated)
|
Revenues by
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Radiation
Measurement
|
|
$
|
27,246
|
|
$
|
28,684
|
|
$
|
53,737
|
|
$
|
56,867
|
Medical
Physics
|
|
|
8,561
|
|
|
8,029
|
|
|
17,045
|
|
|
15,768
|
Medical
Products
|
|
|
2,332
|
|
|
2,341
|
|
|
4,904
|
|
|
4,566
|
Consolidated
revenues
|
|
$
|
38,139
|
|
$
|
39,054
|
|
$
|
75,686
|
|
$
|
77,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
(Dollars in
Thousands)
|
|
2015
|
|
2014
(As Restated)
|
|
2015
|
|
2014
(As Restated)
|
Operating income
(loss) by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Radiation
Measurement
|
|
$
|
9,414
|
|
$
|
9,800
|
|
$
|
18,798
|
|
$
|
18,629
|
Medical
Physics
|
|
|
321
|
|
|
599
|
|
|
939
|
|
|
1,032
|
Medical
Products
|
|
|
244
|
|
|
(174)
|
|
|
578
|
|
|
(462)
|
Corporate
|
|
|
(4,349)
|
|
|
(3,362)
|
|
|
(8,544)
|
|
|
(6,911)
|
Consolidated
operating income
|
|
$
|
5,630
|
|
$
|
6,863
|
|
$
|
11,771
|
|
$
|
12,288
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/landauer-inc-reports-fiscal-2015-second-quarter-results-300081174.html
SOURCE Landauer, Inc.