GLENWOOD, Ill., May 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
second quarter ended March 31,
2016.
Fiscal 2016 Second Quarter Highlights
- Revenue of $38.1 million,
including impact of $1.6 million
reduction in revenue related to divestiture of Radon business and
$0.6 million unfavorable impact from
foreign currency translation rates
- Revenues grew 5.8% year-over-year, excluding the divested Radon
business and unfavorable impact of foreign currency
translation
- Domestic Radiation Measurement services revenues increased 5.0%
year-over-year
- Medical Physics revenues grew 16.3% year-over-year
- Operating income of $7.2 million,
a 28.6% increase compared to the second quarter of 2015
- Consolidated operating income margin improved to 18.9% from
14.7% in the second quarter of 2015 driven by a decrease in
selling, general and administrative expenses
- Net income of $4.3 million
compared to $3.5 million in the
second quarter of 2015
- Adjusted net income of $5.0
million on track with full-year guidance
- On a GAAP basis, earnings per diluted share of $0.45
- Announces divestiture of Medical Products business
Mike Kaminski, President and
Chief Executive Officer of Landauer stated, "Our second quarter
results reflect strong momentum on our key initiatives. Our
efforts to grow high-margin, recurring revenue opportunities are
yielding positive results, as demonstrated by the continued
double-digit growth in our Medical Physics segment. In
addition, our lean initiatives have contributed to the improvement
in our operating margins across all our segments. The
development of our next generation dosimetry platform continues to
progress on track with our expectations of beginning field testing
in the second half of the year, and we are confident that our
innovative design will be well positioned to meet the evolving
needs of our customers."
Second Fiscal Quarter Financial Overview and Business Segment
Results
Revenues were $38.1 million for
both the second fiscal quarter of 2016 and the second fiscal
quarter of 2015. Radiation Measurement revenues for the quarter
were $25.5 million compared to
$27.2 million for the second fiscal
quarter of 2015. The decrease in revenues was primarily due to the
divestiture of the Company's Radon business in September 2015, resulting in a $1.6 million reduction in revenues. In
addition, unfavorable foreign currency translation rates reduced
revenues by $0.6 million. Domestic
Radiation Measurement services revenues increased 5.0%, partially
offsetting the impact of the Radon business divestiture and the
foreign currency rates. Medical Physics revenues increased
$1.4 million, or 16.3%, to
$10.0 million, due to increased
demand for imaging services. Excluding the divested Radon
business and unfavorable impact of foreign currency translation,
total revenues increased 5.8% compared to the prior year
period.
Operating income for the second fiscal quarter of 2016 was
$7.2 million, compared to operating
income of $5.6 million for the second
fiscal quarter of 2015. Consolidated operating income margin
improved to 18.9% from 14.7% in the second fiscal quarter of
2015. These increased operating income results reflect
improvement across all business segments and were driven by a
decrease in selling, general and administrative expenses, as well
as higher gross margins.
Fiscal Six Months Financial Overview
Revenues for the first six months of fiscal 2016 were
$74.6 million, a 1.5% decrease
compared to $75.7 million for the
first six months of fiscal 2015. The Radiation Measurement segment
decreased $3.5 million due to the
divestiture of the Company's Radon business, resulting in a
$3.2 million reduction in revenues,
and an unfavorable foreign currency impact of $1.8 million. The Medical Physics segment
increased $2.4 million, due to
continued increased demand for imaging services.
Operating income for the first six months of fiscal 2016 was
$13.5 million, a 14.4% increase
compared to operating income of $11.8
million for the first six months of fiscal 2015. The
increase in operating income was driven by the decrease in
Corporate and Radiation Measurement selling, general and
administrative expenses, offset by the impact of the lower revenues
in the Radiation Measurement segment.
Medical Products Divestiture
On May 3, 2016, the Company
divested its Medical Products business for a total consideration of
$12 million. Additionally,
through the transaction, the Company anticipates realizing
approximately $20 million in tax
benefits over the next several years. The Company expects to
utilize the proceeds from this divestiture to pay down debt and
reinvest into continuing growth initiatives. The Medical
Products business represented $9.9
million in revenue for 2015, less than 7% of the Company's
total 2015 revenue.
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 second quarter conference call for
investors over the Internet on Monday, May 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 4199981, 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 404-537-3406 (international
callers), passcode 4199981, which will be available through
Wednesday, June 8, 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 (including, in particular,
the section titled "Fiscal 2016 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 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
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
(Dollars in
Thousands)
|
|
March 31,
2016
|
|
September 30,
2015
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
9,213
|
|
$
|
15,314
|
Receivables, net of
allowances of $1,625 at March 31, 2016 and $1,556 at September 30,
2015
|
|
|
32,770
|
|
|
32,412
|
Inventories
|
|
|
7,059
|
|
|
7,035
|
Prepaid expenses and
other current assets
|
|
|
7,954
|
|
|
6,992
|
Total current
assets
|
|
|
56,996
|
|
|
61,753
|
|
|
|
|
|
|
|
Net property, plant
and equipment
|
|
|
46,680
|
|
|
46,367
|
Equity in joint
ventures
|
|
|
23,994
|
|
|
24,010
|
Goodwill
|
|
|
35,240
|
|
|
35,072
|
Intangible assets, net
of accumulated amortization of $39,605 at March 31, 2016 and
$38,662 at September 30, 2015
|
|
|
12,649
|
|
|
13,052
|
Other
assets
|
|
|
27,043
|
|
|
28,490
|
Total
assets
|
|
$
|
202,602
|
|
$
|
208,744
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Total current
liabilities
|
|
$
|
36,012
|
|
$
|
38,493
|
Long-term
debt
|
|
|
125,985
|
|
|
133,385
|
Other non-current
liabilities
|
|
|
23,867
|
|
|
24,539
|
Total
liabilities
|
|
|
185,864
|
|
|
196,417
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Landauer, Inc.
stockholders' equity
|
|
|
15,583
|
|
|
11,195
|
Noncontrolling
interest
|
|
|
1,155
|
|
|
1,132
|
Total stockholders'
equity
|
|
|
16,738
|
|
|
12,327
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
202,602
|
|
$
|
208,744
|
Landauer, Inc. and
Subsidiaries
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Six Months
Ended
March 31,
|
(Dollars in
Thousands, Except per Share)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Total
revenues
|
|
$
|
38,082
|
|
$
|
38,139
|
|
$
|
74,612
|
|
$
|
75,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
18,327
|
|
|
18,611
|
|
|
36,342
|
|
|
36,362
|
Selling, general and
administrative
|
|
|
12,538
|
|
|
13,898
|
|
|
24,801
|
|
|
27,553
|
Total costs and
expenses
|
|
|
30,865
|
|
|
32,509
|
|
|
61,143
|
|
|
63,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
7,217
|
|
|
5,630
|
|
|
13,469
|
|
|
11,771
|
Equity in income of
joint ventures
|
|
|
252
|
|
|
680
|
|
|
553
|
|
|
1,376
|
Other expense,
net
|
|
|
(1,026)
|
|
|
(1,449)
|
|
|
(2,119)
|
|
|
(2,151)
|
Income before
taxes
|
|
|
6,443
|
|
|
4,861
|
|
|
11,903
|
|
|
10,996
|
Income tax
expense
|
|
|
2,005
|
|
|
1,180
|
|
|
3,692
|
|
|
2,790
|
Net income
|
|
|
4,438
|
|
|
3,681
|
|
|
8,211
|
|
|
8,206
|
Less: Net income
attributed to noncontrolling interest
|
|
|
159
|
|
|
134
|
|
|
289
|
|
|
282
|
Net income attributed
to Landauer, Inc.
|
|
$
|
4,279
|
|
$
|
3,547
|
|
$
|
7,922
|
|
$
|
7,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Landauer, Inc. shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.45
|
|
$
|
0.37
|
|
$
|
0.83
|
|
$
|
0.83
|
Weighted average
basic shares outstanding
|
|
|
9,518
|
|
|
9,493
|
|
|
9,483
|
|
|
9,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.45
|
|
$
|
0.37
|
|
$
|
0.83
|
|
$
|
0.83
|
Weighted average
diluted shares outstanding
|
|
|
9,550
|
|
|
9,520
|
|
|
9,516
|
|
|
9,492
|
Landauer, Inc. and
Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31,
|
(Dollars in
Thousands)
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
8,211
|
|
$
|
8,206
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
5,661
|
|
|
6,092
|
Equity in income of
joint ventures
|
|
|
(553)
|
|
|
(1,376)
|
Dividends from joint
ventures
|
|
|
1,195
|
|
|
1,144
|
Stock-based
compensation and related net tax benefits
|
|
|
1,144
|
|
|
873
|
Current and long-term
deferred taxes, net
|
|
|
1,076
|
|
|
(1,792)
|
Gain on sale, disposal
and abandonment of fixed assets
|
|
|
12
|
|
|
124
|
Gain on
investments
|
|
|
(221)
|
|
|
(189)
|
Changes in operating
assets and liabilities
|
|
|
(3,715)
|
|
|
1,775
|
Net cash provided
by operating activities
|
|
|
12,810
|
|
|
14,857
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(5,982)
|
|
|
(2,916)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Long-term borrowings,
net
|
|
|
(7,400)
|
|
|
1,000
|
Dividends paid to
stockholders
|
|
|
(5,286)
|
|
|
(10,599)
|
Other financing
activities, net
|
|
|
(155)
|
|
|
(321)
|
Net cash used in
financing activities
|
|
|
(12,841)
|
|
|
(9,920)
|
|
|
|
|
|
|
|
Effects of foreign
currency translation
|
|
|
(88)
|
|
|
(358)
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
(6,101)
|
|
|
1,663
|
Opening balance -
cash and cash equivalents
|
|
|
15,314
|
|
|
6,761
|
Ending balance - cash
and cash equivalents
|
|
$
|
9,213
|
|
$
|
8,424
|
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
March 31,
|
|
Six Months Ended
March 31,
|
(Unaudited,
Dollars in Thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributed
to Landauer, Inc.
|
$
|
4,279
|
|
$
|
3,547
|
|
$
|
7,922
|
|
$
|
7,924
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Net financing
costs
|
|
1,013
|
|
|
849
|
|
|
1,831
|
|
|
1,687
|
Depreciation and
amortization
|
|
2,864
|
|
|
3,014
|
|
|
5,661
|
|
|
6,092
|
Provision for income
taxes
|
|
2,005
|
|
|
1,180
|
|
|
3,692
|
|
|
2,790
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
$
|
10,161
|
|
$
|
8,590
|
|
$
|
19,106
|
|
$
|
18,493
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock based
compensation
|
|
687
|
|
|
436
|
|
|
1,144
|
|
|
-
|
Transaction
expenses
|
|
398
|
|
|
-
|
|
|
876
|
|
|
873
|
Sub-total
adjustments
|
|
1,085
|
|
|
436
|
|
|
2,020
|
|
|
873
|
Adjusted
EBITDA
|
$
|
11,246
|
|
$
|
9,026
|
|
$
|
21,126
|
|
$
|
19,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
(Unaudited,
Dollars in Thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Adjusted Net
Income
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributed
to Landauer, Inc.
|
$
|
4,279
|
|
$
|
3,547
|
|
$
|
7,922
|
|
$
|
7,924
|
Sub-total
adjustments
|
|
1,085
|
|
|
436
|
|
|
2,020
|
|
|
873
|
Income taxes on
adjustments
|
|
(337)
|
|
|
(106)
|
|
|
(626)
|
|
|
(220)
|
Adjustments,
net
|
|
748
|
|
|
330
|
|
|
1,394
|
|
|
653
|
Adjusted Net
Income
|
$
|
5,027
|
|
$
|
3,877
|
|
$
|
9,316
|
|
$
|
8,577
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
(Unaudited,
Dollars in Thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues by
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Radiation
Measurement
|
|
$
|
25,520
|
|
$
|
27,246
|
|
$
|
50,224
|
|
$
|
53,737
|
Medical
Physics
|
|
|
10,033
|
|
|
8,561
|
|
|
19,386
|
|
|
17,045
|
Medical
Products
|
|
|
2,529
|
|
|
2,332
|
|
|
5,002
|
|
|
4,904
|
Consolidated
revenues
|
|
$
|
38,082
|
|
$
|
38,139
|
|
$
|
74,612
|
|
$
|
75,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Six Months
Ended
March 31,
|
(Unaudited,
Dollars in Thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating income
(loss) by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Radiation
Measurement
|
|
$
|
9,969
|
|
$
|
9,414
|
|
$
|
18,867
|
|
$
|
18,798
|
Medical
Physics
|
|
|
918
|
|
|
321
|
|
|
1,696
|
|
|
939
|
Medical
Products
|
|
|
432
|
|
|
244
|
|
|
922
|
|
|
578
|
Corporate
|
|
|
(4,102)
|
|
|
(4,349)
|
|
|
(8,016)
|
|
|
(8,544)
|
Consolidated
operating income
|
|
$
|
7,217
|
|
$
|
5,630
|
|
$
|
13,469
|
|
$
|
11,771
|
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-second-quarter-results-300265210.html
SOURCE Landauer, Inc.