Attached files
EXHIBIT 99.1
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News Release
LANDAUER
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LANDAUER, INC. REPORTS
FISCAL 2011 FIRST QUARTER RESULTS
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-441-8311
jsinger@landauerinc.com
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GLENWOOD, ILL.-FEBRUARY 1, 2011-LANDAUER, INC. (NYSE: LDR), a recognized
global leader in personal and environmental radiation monitoring and the
leading domestic provider of outsourced medical physics services, today
reported financial results for its fiscal 2011 first quarter ended
December 31, 2010.
FISCAL 2011 FIRST QUARTER HIGHLIGHTS
. Revenue grew 4 percent to $28.4 million on contribution from Medical
Physics segment and international growth.
. Gross profit grew 2 percent to $17.4 million on increased revenue and
mix.
. Operating income increased 5 percent to $8.1 million.
. Net income rose 14 percent to $5.8 million, or $0.62 per diluted
share.
"Our performance this quarter confirms the progress we are making with the
strategic expansion into services that support the safe utilization of
radiation in the healthcare setting and our continued focus on
international growth," stated Bill Saxelby, President and CEO of Landauer.
"We are seeing strong interest from the market in services that integrate
our traditional occupational monitoring services with patient monitoring
and consulting from our Medical Physics segment."
Saxelby added, "In addition, during the quarter we successfully implemented
the first phase of our new systems initiative that supports the order to
cash cycle. Thus far, the system has driven improvements in productivity
and has strengthened our infrastructure with no disruption to our
operations. We will continue our staged roll out in the coming quarters
with the introduction of new web-based services during the second fiscal
quarter."
FIRST FISCAL QUARTER FINANCIAL OVERVIEW AND BUSINESS SEGMENT RESULTS
Revenues for the first fiscal quarter of 2011 were $28.4 million, a 4
percent increase compared with the $27.2 million reported for the first
fiscal quarter of 2010. Cost of sales for the first fiscal quarter of 2011
were $11.1 million, a 9 percent increase compared with the $10.2 million
reported for the first fiscal quarter of 2010. The gross margin declined
to 61 percent from 63 percent in the year ago period, primarily due to the
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 landauerinc.com
LANDAUER, INC.
ADD 1
lower margin contribution of the Medical Physics segment. Selling, general
and administrative costs for the first fiscal quarter of 2011 were $9.1
million, a 17 percent increase, compared with the $7.8 million reported for
the first fiscal quarter of 2010.
In conjunction with the Company's acquisition activity, the Company
incurred $0.1 million and $1.5 million ($1.1 million, after-tax) of
acquisition related transaction and reorganization costs for the first
fiscal quarter of 2011 and 2010, respectively.
Operating income for first fiscal quarter of 2011 was $8.1 million, a 5
percent increase, compared with operating income of $7.8 million for fiscal
2010. Other income for the first fiscal quarter increased 20 percent, to
$0.6 million.
The effective tax rate was 31.4% and 36.5% for the first fiscal quarter of
2011 and 2010, respectively. The decline in effective tax rate is due
primarily to the realization of R&D tax credits in the 2011 quarter
recognized with the passage of recent tax legislation and the
non-deductibility of certain acquisition related costs in fiscal 2010. Net
income for the first fiscal quarter ended December 31, 2010 was $5.8
million, an increase of 14 percent compared with $5.1 million for the first
fiscal quarter of 2010. The resulting diluted earnings per share for the
first fiscal quarter of 2011 were $0.62 compared with $0.55 for the first
fiscal quarter of 2010. Earnings before interest, taxes, depreciation and
amortization ("EBITDA") were $10.3 million, a 6 percent increase compared
with $9.7 million a year ago. The increase is due primarily to the $1.4
million reduction in acquisition related transaction and reorganization
costs for the first fiscal quarter of 2011. A reconciliation of net income
to EBITDA is included in the attached financial exhibits.
RADIATION MONITORING SEGMENT
Radiation Monitoring revenue for the first fiscal quarter of 2011 declined
5 percent, or $1.2 million to $23.9 million. Of the decline, $1.4 million
is due to the previously reported change in the supply relationship between
Landauer and Nagase Landauer, our unconsolidated joint venture in Japan.
With the conversion of Nagase Landauer's customer base from Luxel to the
InLight technology during fiscal 2010, Nagase Landauer no longer purchases
service badges from the Company. The historical Luxel badge revenue is
partially replaced by a royalty arrangement, resulting in no corresponding
impact on net income. Without the Nagase Landauer impact, domestic
Radiation Monitoring revenue declined 1 percent, or $0.2 million and
international Radiation Monitoring revenue increased 7 percent, or $0.5
million on organic growth in most regions.
Radiation Monitoring gross margin for the first fiscal quarter of 2011
increased to 69 percent from 66 percent in the year ago period, primarily
due to the decline in lower margin sales to Nagase Landauer. Selling,
general and administrative costs for the first fiscal quarter of 2011
increased 8 percent, or $0.6 million to $7.7 million. The increase is due
primarily to costs to replace the Company's IT systems and increased
spending to support international revenue growth. Operating income,
inclusive of the impact of acquisition related transaction and
reorganization costs, for the first fiscal quarter of 2011 increased 8
percent, or $0.7 million to $8.6 million compared with operating income of
$7.9 million for fiscal 2010.
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LANDAUER, INC.
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MEDICAL PHYSICS SEGMENT
Medical Physics revenue for the first fiscal quarter of 2011 increased 111
percent, or $2.4 million to $4.5 million on $0.7 million of organic growth
and $1.7 million due to the annualized impact of acquired companies. The
gross margin declined to 22 percent from 25 percent in the year ago period,
primarily due to the investment in additional headcount to support future
growth opportunities. Selling, general and administrative costs for the
first fiscal quarter of 2011 increased 105 percent, or $0.7 million, to
$1.4 million. The increase is due to the annualized impact of acquired
companies and investments to support organic growth. Operating loss for
the first fiscal quarter of 2011 was $0.5 million, compared with an
operating loss of $0.2 million for fiscal 2010.
SOLID FINANCIAL POSITION
Landauer ended the first fiscal quarter of 2011 with total assets of $151.1
million. Due to the current liability classification of $15.0 million in
outstanding borrowings incurred to support the acquisitions completed
during the first fiscal quarter of 2010, the Company had negative working
capital of $5.3 million. The Company believes projected operating cash
flow and available borrowing under its current credit arrangements provide
adequate liquidity to meet its current and anticipated obligations Cash
provided by operating activities was $8.9 million, an increase of $0.5
million from the first fiscal quarter of 2010.
FISCAL 2011 OUTLOOK
Landauer's current business plan for fiscal 2011 anticipates consolidated
revenue for the year to be in the range of $120 to $126 million, including
$4 to $8 million in sales to the U.S military and first responder markets.
Military and first responder market sales are dependent on military and
other governmental appropriations and approvals which have yet to be
obtained. The business plan anticipates spending of $10 to $12 million to
support the completion of the Company's systems initiative and the related
post implementation support, with $2 to $3 million being expensed in the
current fiscal year. Based upon the above assumptions, the Company
anticipates reported net income for fiscal 2011 in the range of $24 to $26
million.
CONFERENCE CALL DETAILS
Landauer has scheduled its first quarter conference call for investors over
the Internet on Tuesday, February 1, 2011 at 2:00 p.m. Eastern Time (11:00
a.m. Pacific Time). To participate, callers should dial 877-941-2928
(within the United States and Canada), or 480-629-9726 (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.
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 callers), passcode 4404862#, which will be available until
March 1, 2011. The replay of the call will remain available on Landauer's
website for 90 days.
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LANDAUER, INC.
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ABOUT LANDAUER
Landauer is a leading global provider of technical and analytical services
to determine occupational and environmental radiation exposure and is the
leading domestic provider of outsourced medical physics services. 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 1.6 million individuals globally. In
addition, through its Global Physics Solutions subsidiary, the Company
provides therapeutic and imaging physics services to the medical physics
community.
SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, the section
titled "Fiscal 2011 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; 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; 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 products and services; 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; 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 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. 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, 2010,
and other reports filed by the Company from time to time with the
Securities and Exchange Commission.
FINANCIAL TABLES FOLLOW
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LANDAUER, INC.
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FIRST FISCAL QUARTER 2011 FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three months ended
December 31,
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2010 2009
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Net revenues. . . . . . . . . . . . . . . . . . . . $ 28,438 $ 27,234
Costs and expenses:
Cost of sales . . . . . . . . . . . . . . . . . 11,083 10,156
Selling, general and administrative . . . . . . 9,131 7,804
Acquisition and reorganization costs. . . . . . 97 1,517
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20,311 19,477
Operating income. . . . . . . . . . . . . . . . . . 8,127 7,757
Other income, net . . . . . . . . . . . . . . . . . 603 501
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8,730 8,258
Income taxes. . . . . . . . . . . . . . . . . . . . 2,737 3,017
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Net income. . . . . . . . . . . . . . . . . . . . . 5,993 5,241
Less: Net income attributed to
noncontrolling interest . . . . . . . . . . . . . 174 114
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Net income attributed to Landauer, Inc. . . . . . . $ 5,819 $ 5,127
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Net income per share attributed to Landauer, Inc.
Basic . . . . . . . . . . . . . . . . . . . . . $ 0.62 $ 0.55
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Weighted average basic shares outstanding . . . 9,319 9,274
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Diluted . . . . . . . . . . . . . . . . . . . . $ 0.62 $ 0.55
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Weighted average diluted shares outstanding . . 9,365 9,311
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LANDAUER, INC.
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SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
December 31, September 30,
2010 2010
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ASSETS
Current Assets:
Cash and cash equivalents . . . . . . $ 9,186 $ 7,659
Receivables, net of allowances. . . . 22,728 23,702
Other current assets. . . . . . . . . 11,125 14,796
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Total current assets. . . . . . . . . . . 43,039 46,157
Net property, plant and equipment . . . . 41,418 39,815
Equity in joint ventures. . . . . . . . . 8,544 8,446
Goodwill and other intangible assets,
net of amortization . . . . . . . . . . 49,101 49,270
Dosimetry devices, net of amortization. . 5,635 5,569
Other assets. . . . . . . . . . . . . . . 3,372 1,439
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TOTAL ASSETS. . . . . . . . . . . . . . . $151,109 $150,696
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable. . . . . . . . . . . $ 4,639 $ 7,180
Dividends payable . . . . . . . . . . 5,259 5,143
Deferred contract revenue . . . . . . 14,284 14,305
Short-term debt . . . . . . . . . . . 14,992 12,504
Other current liabilities . . . . . . 9,171 10,420
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Total current liabilities . . . . . . . . 48,345 49,552
Non-Current Liabilities:
Pension and postretirement
obligations . . . . . . . . . . . . 10,285 10,089
Deferred income taxes . . . . . . . . 9,830 9,934
Other non-current liabilities . . . . 1,601 1,418
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Total non-current liabilities . . . . . . 21,716 21,441
Landauer, Inc. stockholders' equity . . . 80,190 78,790
Noncontrolling interest . . . . . . . . . 858 913
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Total equity. . . . . . . . . . . . . . . 81,048 79,703
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY. . . . . . . . . . $151,109 $150,696
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LANDAUER, INC.
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RECONCILIATION OF NET INCOME TO
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(unaudited, amounts in thousands)
Three months ended
December 31,
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2010 2009
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Net income attributed to Landauer, Inc. . . . . . . $ 5,819 $ 5,127
Add back:
Interest and other (income) expense . . . . . . (92) (5)
Income taxes. . . . . . . . . . . . . . . . . . 2,737 3,017
Depreciation and amortization . . . . . . . . . 1,798 1,546
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Earnings before interest, taxes, depreciation
and amortization. . . . . . . . . . . . . . . . . $ 10,262 $ 9,685
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USE OF NON-GAAP FINANCIAL MEASURES
In evaluating the Company's financial performance and outlook, management
uses EBITDA. EBITDA is a non-GAAP measure. Management believes that such
measure supplements evaluations using operating income, net income, and
diluted earnings per share and other GAAP measures, and is a useful
indicator for investors. This indicator can help readers gain a meaningful
understanding of our core operating results and future prospects without
the effect of non-cash items and the Company's ability to generate cash
flows from operations that are available for taxes, capital expenditures,
and debt repayment. Investors should recognize that these non-GAAP measures
might not be comparable to similarly titled measures of other companies.
These measures should be considered in addition to, and not as a substitute
for or superior to, any measure of performance, cash flows or liquidity
prepared in accordance with accounting principles generally accepted in the
United States.
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