2009 Revenue and Earnings progress driven by continued execution of
strategic priorities GLENWOOD, Ill., May 5 /PRNewswire-FirstCall/
-- Landauer, Inc. (NYSE: LDR), a recognized leader in personal and
environmental radiation monitoring services, today reported
financial results for the three and six months ended March 31,
2009. Fiscal 2009 Second Quarter Highlights -- Revenue grew 5
percent to $25.0 million on continued demand for InLight products
and increased domestic badge revenues. -- Gross profit grew 2
percent to $16.6 million on increased sales. -- Recorded one-time
charges of $2.7 million ($1.8 million after-tax, $0.19 per diluted
share) for pension curtailment and transition and management
reorganization. -- Effective tax rate declined to 31 percent due
primarily to changes in Illinois state tax law and favorable
settlement of certain state tax liabilities. -- Net income declined
16 percent to $5.4 million, or $0.58 per diluted share due to
impact of one-time charges. Excluding one-time charges, net income
would have increased 12% and earnings per diluted share would have
been $0.77. -- Established multi-year agreement with Health Canada
to support continued implementation of InLight solution for
radiation monitoring. "This quarter's record financial results were
solid, but were partially offset by the cost of actions we have
taken to support continued execution on our strategic priorities of
optimizing the core business, driving competitive growth, and
pursuing strategic expansion," stated Bill Saxelby, President and
CEO of Landauer. "Investments toward right sizing our long-term
cost structure through an alternative retirement program and the
reorganization costs required to strengthen key management
positions are short-term investments that we believe will
strengthen our core business for long-term success." "Completion of
our current systems initiative is another required investment in
the infrastructure necessary to support the continued growth of
Landauer, Inc. We have completed a thorough assessment of the
scope, timing and cost required to successfully implement our
information technology systems initiative, with a goal to limit the
risk to our continued strong financial execution. We estimate
currently that the total project will cost $25 - $27 million and is
targeted to be completed during calendar 2010." Saxelby added, "The
continued acceptance of our InLight suite of products, success of
our international expansion initiative and adoption of our
offerings in the medical and nuclear markets affirm the strong
long-term growth prospects for our business and the success of our
focus on driving competitive growth. For example, during the
quarter we placed InLight products in our 19th country and
continued to foster our relationship with Health Canada, which is
demonstrated by a multi-year agreement for approximately $8 million
of additional InLight products to support their commitment to our
OSL (Optically Stimulated Luminescence) technology for a breadth of
monitoring solutions. We recognized approximately $1.6 million of
revenue in the quarter from this relationship." Record Performance
Offset by One-Time Charges Revenues for the second fiscal quarter
of 2009 were $25.0 million, a 5 percent increase compared with the
$23.7 million reported for the second fiscal quarter of 2008.
Domestic revenue increased 6 percent, or $1.1 million, on InLight
product demand and growth in domestic badge revenue. Organic
international revenue growth of approximately 20 percent was offset
by the impact of the strengthening of the dollar against most
foreign currencies, which reduced revenue by approximately $1.0
million in the quarter, resulting in a reported increase of 2
percent, or $101,000. Cost of sales increased 12 percent for the
quarter due to increased cost of materials to support increased
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 second fiscal quarter
of 2009 increased 4 percent, or $241,000. The primary factors
contributing to the increase were $371,000 in additional
non-recurring pension expense due to the acceleration of certain
costs to support the defined benefit plan curtailment and
transition, and $185,000 in additional professional fees to support
due diligence of an acquisition opportunity the Company chose not
to pursue. These costs were partially offset by the timing of
expense spending to re-engineer business processes and to replace
the Company's information technology systems that support customer
relationship management and the order-to-cash cycle. On February 5,
2009, the Board of Directors approved changes to the Company's
retirement benefit plans to transition from a defined benefit
philosophy for retirement benefits to a defined contribution
approach. The Company anticipates that the redesign of its
retirement plans will result in future cost savings while offering
market based retirement benefits to its employees. 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.
The effective tax rate for the second fiscal quarter of 2009
decreased to 31 percent compared with 37 percent for the second
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, as well as the favorable resolution of uncertain tax positions
during the quarter. Net income for the fiscal quarter ended March
31, 2009 was $5.4 million, a decline of 16 percent compared with
$6.4 million for the second fiscal quarter of 2008. The resulting
diluted earnings per share for the second fiscal quarter of 2009
were $0.58 compared with $0.69 for the second fiscal quarter of
2008. Excluding the effect of the pension curtailment and
transition costs and the reorganization charges, net income for the
quarter was $7.2 million, or $0.77 per diluted share. For the six
months ended on March 31, 2009, revenues increased 4 percent to
$47.4 million versus $45.6 million at this time last year. The
gross profit margin was 67 percent versus 68 percent from last
year's six-month period ended March 31, 2008. Selling, general and
administrative expenses for the first half of fiscal 2009 declined
$54,000 compared to the first half of fiscal 2008. Year-to-date net
income was $11.6 million, down 1 percent from $11.7 million in the
prior year period. Earnings per diluted share were $1.24 compared
with $1.27 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 six months of fiscal 2009 was
$13.4 million, or $ 1.43 per diluted share. Solid Financial
Position Landauer ended the second fiscal quarter of 2009 with
total assets of $118.2 million and working capital of $36.0
million. At March 31, 2009, Landauer continued to be debt free.
Cash provided by operating activities was $15.2 million,
strengthening cash on hand to $36.6 million as of March 31, 2009.
Fiscal 2009 Outlook Saxelby concluded, "I am very pleased with the
progress we've made in the first half of fiscal 2009. Landauer's
performance demonstrates the success of our balanced approach to
pursue new growth opportunities and continually invest in our core
business. We are constantly evaluating potential prospects to
expand our business offerings, and will act when the right
opportunity, timing and costs are aligned. Overall, we believe the
strength of our product and service offerings and the commitment to
meet our customers' needs coupled with the scalability of our
business model and strong cash flows will continue to drive value
for our shareholders." 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
considering the $1.8 million after-tax impact of the non-recurring
pension curtailment and transition costs and management
reorganization charges. Conference Call Details Landauer has
scheduled its second quarter conference call for investors over the
Internet on Tuesday, May 5, 2009 at 2:00 p.m. Eastern Time (11:00
a.m. Pacific Time). To participate, callers should dial
877-941-1469 (within the United States and Canada) or 480-629-9675
(international calls), and reference the conference ID #4064265,
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 4064265#, which will be available until June 4, 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 Second Quarter Financial Highlights
(unaudited, amounts in thousands, except per share data) Three
months ended Six months ended March 31, March 31, 2009 2008 2009
2008 Net revenues $24,954 $23,743 $47,392 $45,552 Costs and
expenses: Cost of sales 8,379 7,515 15,519 14,716 Selling, general
and administrative 6,688 6,447 13,181 13,235 Net defined benefit
plan curtailment loss and transition costs 2,236 - 2,236 -
Reorganization charges 489 - 489 - 17,792 13,962 31,425 27,951
Operating income 7,162 9,781 15,967 17,601 Other income, net 700
581 1,269 1,285 Income before taxes 7,862 10,362 17,236 18,886
Income taxes 2,406 3,866 5,553 7,045 Income before minority
interest 5,456 6,496 11,683 11,841 Minority interest 28 66 113 135
Net income $5,428 $6,430 $11,570 $11,706 Net income per common
share: Basic $0.58 $0.70 $1.25 $1.27 Weighted average basic shares
outstanding 9,281 9,209 9,273 9,184 Diluted $0.58 $0.69 $1.24 $1.27
Weighted average diluted shares outstanding 9,328 9,268 9,320 9,247
Summary Consolidated Balance Sheets (unaudited, amounts in
thousands) March 31, September 30, 2009 2008 ASSETS Current Assets:
Cash and cash equivalents $36,625 $33,938 Receivables, net of
allowances 22,413 19,738 Other current assets 8,724 15,053 Total
current assets 67,762 68,729 Net property, plant and equipment
20,845 20,185 Equity in joint venture 6,078 5,796 Goodwill and
other intangible assets, net of amortization 17,785 18,102
Dosimetry devices, net of amortization 4,625 4,454 Other assets
1,140 1,424 TOTAL ASSETS $118,235 $118,690 LIABILITIES AND
STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $2,614
$981 Dividends payable 4,955 4,686 Deferred contract revenue 14,420
15,626 Other current liabilities 9,799 12,931 Total current
liabilities 31,788 34,224 Non-current Liabilities: Pension and
postretirement obligations 10,314 8,609 Deferred income taxes 4,745
4,622 Other non-current liabilities 1,088 935 Total non-current
liabilities 16,147 14,166 Minority interest in subsidiary 441 545
Stockholders' equity 69,859 69,755 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $118,235 $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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