GLENWOOD, Ill., Feb. 9, 2016 /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 2016
first quarter ended December 31,
2015.
Fiscal 2016 First Quarter Highlights
- Revenue of $36.5 million compared
to $37.5 million in the first quarter
of 2015
- Domestic Radiation Measurement services revenues increased 2.8%
year-over-year
- Medical Physics revenues grew 10.6% year-over-year
- $1.6 million reduction in revenue
related to divestiture of Radon business
- $1.2 million unfavorable impact
from foreign currency
- Revenues grew 5.2%, excluding the unfavorable impact of foreign
currency and the divested Radon business
- Operating income of $6.2 million,
a 1.6% increase compared to the first quarter of 2015
- Consolidated operating income margin improved to 17.1% from
16.4% in the first quarter of 2015 driven by a decrease in selling,
general and administrative expenses
- Net income of $3.6 million
compared to $4.4 million in the first
quarter of 2015
- Adjusted net income of $4.1
million on track with full-year guidance
- On a GAAP basis, earnings per diluted share of $0.38
Mike Kaminski, President and
Chief Executive Officer of Landauer stated, "Our fiscal 2016 first
quarter financial results were in line with our expectations and
reflect the consistent demand for our products and solutions,
especially within our Medical Physics business. Our core
services that contribute to our recurring revenue base demonstrated
strong growth, and I am pleased with the progress we have made
driving improvement in our operating margins across all our
segments. Looking ahead, we are well positioned to continue
making significant progress on our strategic initiatives, including
growth of our informatics solutions and continued development of
our next generation dosimetry platform."
First Fiscal Quarter Financial Overview and Business Segment
Results
Revenues for the first fiscal quarter of 2016 were $36.5 million, a 2.7% decrease compared to
revenues of $37.5 million for the
first fiscal quarter of 2015. Radiation Measurement revenues for
the quarter were $24.7 million
compared to $26.5 million for the
first fiscal quarter of 2015. The decrease in revenues was
primarily due to the elimination of the Company's Radon business
through its divestiture in September
2015, resulting in a $1.6
million reduction in revenues. In addition,
unfavorable foreign currency translation rates reduced revenues by
$1.2 million. Domestic Radiation
Measurement services revenues increased 2.8%, partially offsetting
the impact of the Radon business divestiture and the foreign
currency rates. Medical Physics revenues increased
$0.9 million, or 10.6%, to
$9.4 million, due to increased
imaging services.
Operating income for the first fiscal quarter of 2016 was
$6.2 million, compared to operating
income of $6.1 million for the first
fiscal quarter of 2015. Operating income results reflect a decrease
in selling, general and administrative expenses, driven by
restructuring within the executive management team as well as lower
professional fees. Consolidated operating income margin improved to
17.1% from 16.4% in the first fiscal quarter of 2015, driven by the
decrease in selling, general and administrative expenses, with
improvement across all business segments.
Use of Non-GAAP Financial Measures
Adjusted EBITDA is presented here not as an alternative to net
income, but rather as a measure of the Company's operating
performance and is not intended to be a presentation in accordance
with GAAP. Since EBITDA (generally, net income plus interest
expenses, taxes, depreciation and amortization) is not calculated
identically by all companies, this presentation may not be
comparable to EBITDA or Adjusted EBITDA presentations disclosed by
other companies. Adjusted EBITDA represents net income with
adjustments for net financing costs, depreciation and amortization,
provision for income taxes, stock compensation expense, goodwill
and other intangible assets impairments, and acquisition,
reorganization and nonrecurring costs. Management believes that
Adjusted EBITDA is useful in evaluating the Company's operating
performance compared to that of other companies in its industry
because the calculation of Adjusted EBITDA generally eliminates the
effects of certain non-cash and other items that may vary for
different companies for reasons unrelated to overall operating
performance.
In addition, the Company's management used Adjusted Net Income
as a measure of earnings to eliminate the effects of certain
non-cash and nonrecurring items of the Company. Adjusted Net Income
represents net income with tax-effected adjustments for stock
compensation expense, goodwill and other intangible assets
impairments and acquisition, reorganization and nonrecurring costs.
However, Adjusted EBITDA and Adjusted Net Income are not recognized
measurements under GAAP and should not be considered as an
alternative to the most directly comparable measures presented in
accordance with GAAP. A reconciliation of these non-GAAP measures
to the most directly comparable GAAP measures is included within
this news release.
Conference Call Details
Landauer has scheduled its first quarter conference call for
investors over the Internet on Tuesday, February 9, 2016, at
4:00 p.m. Central Time (5:00 p.m. Eastern Time). To participate, callers
should dial 866-866-1542 (within the
United States and Canada),
or 707-294-1539 (international callers), passcode 35752166, 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 855-859-2056 (within
the United States and Canada), or 800-585-8367 (international
callers), passcode 35752166, which will be available through
Thursday, March 10, 2016. 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 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 joint ventures; valuation of the Company's
long-lived assets or reporting 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 fiscal year ended September 30, 2015
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 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Thousands)
|
|
December 31,
2015
|
|
September 30,
2015
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
9,540
|
|
$
|
15,314
|
Receivables, net of
allowances of $1,608 at December 31, 2015 and $1,556 at September
30, 2015
|
|
|
32,058
|
|
|
32,412
|
Inventories
|
|
|
7,195
|
|
|
7,035
|
Prepaid expenses and
other current assets
|
|
|
7,590
|
|
|
6,992
|
Total current
assets
|
|
|
56,383
|
|
|
61,753
|
|
|
|
|
|
|
|
Net property, plant
and equipment
|
|
|
46,067
|
|
|
46,367
|
Equity in joint
ventures
|
|
|
23,026
|
|
|
24,010
|
Goodwill
|
|
|
34,868
|
|
|
35,072
|
Intangible assets, net
of accumulated amortization of $38,964 at December 31, 2015 and
$38,662 at September 30, 2015
|
|
|
12,839
|
|
|
13,052
|
Other
assets
|
|
|
28,502
|
|
|
28,490
|
Total
assets
|
|
$
|
201,685
|
|
$
|
208,744
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Total current
liabilities
|
|
$
|
36,434
|
|
$
|
38,493
|
Long-term
debt
|
|
|
127,685
|
|
|
133,385
|
Other non-current
liabilities
|
|
|
24,251
|
|
|
24,539
|
Total
liabilities
|
|
|
188,370
|
|
|
196,417
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Landauer, Inc.
stockholders' equity
|
|
|
12,210
|
|
|
11,195
|
Noncontrolling
interest
|
|
|
1,105
|
|
|
1,132
|
Total stockholders'
equity
|
|
|
13,315
|
|
|
12,327
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
201,685
|
|
$
|
208,744
|
Landauer, Inc. and
Subsidiaries
|
Consolidated
Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
(Dollars in
Thousands, Except per Share)
|
|
2015
|
|
2014
|
Total
revenues
|
|
$
|
36,530
|
|
$
|
37,547
|
|
|
|
|
|
|
|
Cost and
expenses:
|
|
|
|
|
|
|
Cost of
sales
|
|
|
18,015
|
|
|
17,751
|
Selling, general and
administrative
|
|
|
12,263
|
|
|
13,655
|
Total costs and
expenses
|
|
|
30,278
|
|
|
31,406
|
|
|
|
|
|
|
|
Operating
income
|
|
|
6,252
|
|
|
6,141
|
Equity in income of
joint ventures
|
|
|
301
|
|
|
696
|
Other expense,
net
|
|
|
(1,093)
|
|
|
(702)
|
Income before
taxes
|
|
|
5,460
|
|
|
6,135
|
Income tax
expense
|
|
|
1,687
|
|
|
1,610
|
Net income
|
|
|
3,773
|
|
|
4,525
|
Less: Net income
attributed to noncontrolling interest
|
|
|
130
|
|
|
148
|
Net income attributed
to Landauer, Inc.
|
|
$
|
3,643
|
|
$
|
4,377
|
|
|
|
|
|
|
|
Net income per share
attributable to Landauer, Inc. shareholders:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.38
|
|
$
|
0.46
|
Weighted average
basic shares outstanding
|
|
|
9,460
|
|
|
9,446
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.38
|
|
$
|
0.46
|
Weighted average
diluted shares outstanding
|
|
|
9,492
|
|
|
9,474
|
Landauer, Inc. and
Subsidiaries
|
Consolidated
Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
(Dollars in
Thousands)
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
3,773
|
|
$
|
4,525
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
2,797
|
|
|
3,078
|
Equity in income of
joint ventures
|
|
|
(301)
|
|
|
(696)
|
Dividends from joint
ventures
|
|
|
1,195
|
|
|
1,139
|
Stock-based
compensation and related net tax benefits
|
|
|
457
|
|
|
437
|
Current and long-term
deferred taxes, net
|
|
|
632
|
|
|
(1,195)
|
Gain on sale, disposal
and abandonment of fixed assets
|
|
|
(9)
|
|
|
(3)
|
Gain on
investments
|
|
|
(190)
|
|
|
(111)
|
Changes in operating
assets and liabilities
|
|
|
(2,413)
|
|
|
2,310
|
Net cash provided
by operating activities
|
|
|
5,941
|
|
|
9,484
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(2,929)
|
|
|
(1,699)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Long-term borrowings,
net
|
|
|
(5,700)
|
|
|
-
|
Dividends paid to
stockholders
|
|
|
(2,651)
|
|
|
(5,347)
|
Other financing
activities, net
|
|
|
(156)
|
|
|
(331)
|
Net cash used in
financing activities
|
|
|
(8,507)
|
|
|
(5,678)
|
|
|
|
|
|
|
|
Effects of foreign
currency translation
|
|
|
(279)
|
|
|
(471)
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
(5,774)
|
|
|
1,636
|
Opening balance -
cash and cash equivalents
|
|
|
15,314
|
|
|
6,761
|
Ending balance - cash
and cash equivalents
|
|
$
|
9,540
|
|
$
|
8,397
|
Non-GAAP Financial
Measures
|
|
A reconciliation of
Adjusted EBITDA and Adjusted Net Income (i.e., non-GAAP financial
measures) to the most directly comparable GAAP measures is provided
below:
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
(Unaudited,
Dollars in Thousands)
|
2015
|
|
2014
|
Adjusted
EBITDA
|
|
|
|
|
|
Net income attributed
to Landauer, Inc.
|
$
|
3,643
|
|
$
|
4,377
|
Add back:
|
|
|
|
|
|
Net financing
costs
|
|
818
|
|
|
838
|
Depreciation and
amortization
|
|
2,797
|
|
|
3,078
|
Provision for income
taxes
|
|
1,687
|
|
|
1,610
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
$
|
8,945
|
|
$
|
9,903
|
Adjustments:
|
|
|
|
|
|
Non-cash stock based
compensation
|
|
457
|
|
|
437
|
Transaction
expenses
|
|
190
|
|
|
-
|
Sub-total
adjustments
|
|
647
|
|
|
437
|
Adjusted
EBITDA
|
$
|
9,592
|
|
$
|
10,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
(Unaudited,
Dollars in Thousands)
|
2015
|
|
2014
|
Adjusted Net
Income
|
|
|
|
|
|
Net income attributed
to Landauer, Inc.
|
$
|
3,643
|
|
$
|
4,377
|
Sub-total
adjustments
|
|
647
|
|
|
437
|
Income taxes on
adjustments
|
|
(200)
|
|
|
(114)
|
Adjustments,
net
|
|
447
|
|
|
323
|
Adjusted Net
Income
|
$
|
4,090
|
|
$
|
4,700
|
|
|
|
|
|
|
Segment
Information
|
|
The following tables
summarize financial information for each reportable segment for the
three months ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
(Unaudited,
Dollars in Thousands)
|
|
2015
|
|
2014
|
Revenues by
segment:
|
|
|
|
|
|
|
Radiation
Measurement
|
|
$
|
24,704
|
|
$
|
26,491
|
Medical
Physics
|
|
|
9,353
|
|
|
8,484
|
Medical
Products
|
|
|
2,473
|
|
|
2,572
|
Consolidated
revenues
|
|
$
|
36,530
|
|
$
|
37,547
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
(Unaudited,
Dollars in Thousands)
|
|
2015
|
|
2014
|
Operating income
(loss) by segment:
|
|
|
|
|
|
|
Radiation
Measurement
|
|
$
|
8,898
|
|
$
|
9,384
|
Medical
Physics
|
|
|
778
|
|
|
618
|
Medical
Products
|
|
|
490
|
|
|
334
|
Corporate
|
|
|
(3,914)
|
|
|
(4,195)
|
Consolidated
operating income
|
|
$
|
6,252
|
|
$
|
6,141
|
For Further Information Contact:
Michael
DeGraff
Sard Verbinnen & Co
Phone: 312.895.4734
Email:
mdegraff@sardverb.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/landauer-inc-reports-fiscal-2016-first-quarter-results-300217639.html
SOURCE Landauer, Inc.