Revenue and Earnings Driven by Strong InLight Demand Globally
GLENWOOD, Ill., Aug. 4 /PRNewswire-FirstCall/ -- Landauer, Inc.
(NYSE: LDR), a recognized leader in personal and environmental
radiation monitoring services, today reported financial results for
the three and nine months ended June 30, 2009. Fiscal 2009 Third
Quarter Highlights -- Revenue grew 7 percent to $23.5 million on
continued global demand for InLight products and increased domestic
badge revenues. -- Gross profit grew 4 percent to $15.6 million on
increased revenue. -- Effective tax rate declined to 30 percent due
primarily to changes in Illinois state tax law and tax benefit of
funding frozen pension plan. -- Net income grew 13 percent to $6.5
million, or $0.70 per diluted share. "We are pleased with this
quarter's financial results, which were driven substantially by
InLight sales both domestically and abroad," stated Bill Saxelby,
President and CEO of Landauer. "During the quarter we made
significant InLight product placements across several markets we
have targeted for growth including the U.S. military, the first
responder market, and patient monitoring. In addition, we continued
to drive global expansion through the continuation of our
relationship with Health Canada and placement of InLight products
into Southeast Asia through our joint venture with
Nagase-Landauer." "The continued acceptance of our InLight suite of
products, success of our international expansion initiative and
adoption of our offerings in the medical, nuclear and military
markets affirm the long-term growth prospects for our business. We
have also made significant progress in our current systems
initiative, delivering successfully on several important milestones
during the quarter." Saxelby noted, "We are pleased with the
progress we've made in fiscal 2009. Landauer's performance
demonstrates the success of our continued focus on executing our
strategic priorities: optimizing our core business, driving
competitive growth, and pursuing strategic expansion. Our strong
cash flow generation has provided us with the sufficient capital to
execute on all three of our strategic priorities." Revenue Growth
Continues Revenues for the third fiscal quarter of 2009 were $23.5
million, a 7 percent increase compared with the $21.9 million
reported for the third fiscal quarter of 2008. Domestic revenue
increased 5 percent, or $0.7 million, on InLight product demand and
growth in domestic badge revenue. Organic international revenue
growth of approximately 27 percent was offset by the impact of the
strengthening of the dollar against most foreign currencies, which
reduced revenue by approximately $0.7 million in the quarter,
resulting in a reported increase of 14 percent, or $0.8 million.
Cost of sales increased 14 percent for the quarter due to increased
cost of materials to support growth in InLight products sales.
Gross margin declined to 66 percent from 68 percent in the year ago
period due to the revenue mix. Selling, general and administrative
expenses for the third fiscal quarter of 2009 increased 2 percent,
or $141,000, driven primarily by increased expense spending to
replace the Company's information technology systems that support
customer relationship management and the order-to-cash cycle. The
effective tax rate for the third fiscal quarter of 2009 decreased
to 30 percent compared with 35 percent for the third fiscal quarter
of 2008. The reduction is due primarily to a change in the state
tax rate driven by changes in the Illinois state tax law and the
tax benefit of funding the frozen pension plan. Net income for the
fiscal quarter ended June 30, 2009 was $6.5 million, an increase of
13 percent compared with $5.8 million for the third fiscal quarter
of 2008. The resulting diluted earnings per share for the third
fiscal quarter of 2009 were $0.70 compared with $0.62 for the third
fiscal quarter of 2008. For the nine months ended on June 30, 2009,
revenues increased 5 percent to $70.9 million versus $67.5 million
at this time last year. The gross profit margin was 67 percent
versus 68 percent from last year's nine-month period ended June 30,
2008. Selling, general and administrative expenses for the first
nine months of fiscal 2009 increased $87,000 compared to the first
nine months of fiscal 2008. On February 5, 2009, the Board of
Directors approved changes to the Company's retirement benefit
plans to transition from a defined benefit plan to a defined
contribution approach to retirement benefits. 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 during the second fiscal quarter of 2009. In addition, the
Company initiated a management reorganization plan to strengthen
selected roles in the organization. As a result, the Company
recognized $489,000 ($322,000 after-tax) of non-recurring
reorganization charges during the second fiscal quarter of 2009.
Year-to-date net income was $18.1 million, an increase of 3.5
percent from $17.5 million in the prior year period. Earnings per
diluted share were $1.94 compared with $1.89 for the same period
last year. 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. Solid Financial Position Landauer ended the third
fiscal quarter of 2009 with total assets of $121.3 million and
working capital of $32.2 million. At June 30, 2009, Landauer
continued to be debt free. During the quarter, the Company
negotiated an amendment to its credit agreement to increase
permitted borrowings from $15 million to $30 million and to extend
the expiration to June 2011. Cash provided by operating activities
was $18.1 million, a decline of $6.2 million from the first nine
months of fiscal 2008. The decline is due primarily to $6.5 million
in incremental payments to the Company's defined benefit pension
plan to bring the plan to a fully funded status in conjunction with
the actions to freeze the plan. Fiscal 2009 Outlook Saxelby
concluded, "We believe Landauer is positioned to generate strong
performance as a result of our diverse market and product
opportunities, financial discipline, and strong industry
positioning. We have made solid progress in executing against our
fiscal year goals for the InLight family of products and have
closed the majority of our targeted opportunities. Accordingly, we
will experience lower growth comparisons in the fourth quarter;
however, we anticipate we will reach our annual guidance ranges."
The Company's business plan for fiscal 2009 currently anticipates
aggregate revenue growth for the year to be in the range of 3 - 5
percent. The Company currently anticipates a net income increase in
the range of 6 - 8 percent, prior to the $1.8 million after-tax
impact of the pension curtailment and transition costs and
management reorganization charges. Conference Call Details Landauer
has scheduled its third quarter conference call for investors over
the Internet on Tuesday, August 4, 2009 at 2:00 p.m. Eastern Time
(11:00 a.m. Pacific Time). To participate, callers should dial
877-941-7133 (within the United States and Canada) or 480-629-9786
(international calls), and reference the conference ID #4123060,
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 4123060#, which will be available until September 1, 2009.
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. 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 services to approximately 1.6
million people in the United States, Japan, France, the United
Kingdom, Brazil, Canada, China, Australia, Mexico and other
countries. Safe Harbor Statement Some of the information shared
here (including, in particular, the section titled "Fiscal 2009
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; the costs associated with the Company's research and
business development efforts; the usefulness of older technologies;
the effectiveness of changes and upgrades to and costs associated
with the Company's information systems; 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 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
anticipated results. 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, 2008, and other reports filed by the Company from
time to time with the Securities and Exchange Commission. Financial
Tables Follow Fiscal 2009 Third Quarter Financial Highlights
(unaudited, amounts in thousands, except per share data) Three
months ended Nine months ended June 30, June 30, -------- --------
2009 2008 2009 2008 ---- ---- ---- ---- Net revenues $23,468
$21,902 $70,860 $67,454 Costs and expenses: Cost of sales 7,874
6,929 23,393 21,645 Selling, general and administrative 6,612 6,471
19,793 19,706 Net defined benefit plan curtailment loss and
transition costs - - 2,236 - Reorganization charges - - 489 - ---
--- --- --- 14,486 13,400 45,911 41,351 Operating income 8,982
8,502 24,949 26,103 Other income, net 459 633 1,728 1,918 --- ---
----- ----- Income before taxes 9,441 9,135 26,677 28,021 Income
taxes 2,800 3,214 8,353 10,259 ----- ----- ----- ------ Income
before minority interest 6,641 5,921 18,324 17,762 Minority
interest 95 128 208 263 -- --- --- --- Net income $6,546 $5,793
$18,116 $17,499 ====== ====== ======= ======= Net income per common
share: Basic $0.70 $0.63 $1.95 $1.90 ===== ===== ===== =====
Weighted average basic shares outstanding 9,304 9,244 9,279 9,209
===== ===== ===== ===== Diluted $0.70 $0.62 $1.94 $1.89 ===== =====
===== ===== Weighted average diluted 9,347 9,307 9,326 9,273 shares
outstanding ===== ===== ===== ===== Summary Consolidated Balance
Sheets (unaudited, amounts in thousands) June 30, September 30,
2009 2008 ---- ---- ASSETS Current Assets: Cash and cash
equivalents $32,256 $33,938 Receivables, net of allowances 24,220
19,738 Other current assets 11,029 15,053 ------ ------ Total
current assets 67,505 68,729 Net property, plant and equipment
23,678 20,185 Equity in joint venture 6,629 5,796 Goodwill and
other intangible assets, net of amortization 17,730 18,102
Dosimetry devices, net of amortization 4,599 4,454 Other assets
1,148 1,424 ----- ----- TOTAL ASSETS $121,289 $118,690 ========
======== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities:
Accounts payable $3,096 $981 Dividends payable 4,980 4,686 Deferred
contract revenue 16,844 15,626 Other current liabilities 10,365
12,931 ------ ------ Total current liabilities 35,285 34,224
Non-current Liabilities: Pension and postretirement obligations
6,160 8,609 Deferred income taxes 4,943 4,622 Other non-current
liabilities 1,033 935 ----- --- Total non-current liabilities
12,136 14,166 Minority interest in subsidiary 582 545 Stockholders'
equity 73,286 69,755 ------ ------ TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $121,289 $118,690 ======== ========
DATASOURCE: Landauer, Inc. CONTACT: Jonathon M. Singer, Senior Vice
President, CFO of Landauer, Inc., +1-708-441-8311, Web Site:
http://www.landauerinc.com/
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