News Release

 

LANDAUER

 

 

 

LANDAUER, INC. Reports

Fiscal 2015 FOURTH QUARTER AND FULL YEAR RESULTS

 

 

For Further Information Contact:

Michael DeGraff 

Sard Verbinnen & Co 

Phone: 312.895.4734 

Email: mdegraff@sardverb.com 

 

 

GLENWOOD, Ill. —  December 14, 2015 — 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 2015 fourth quarter and full year ended September 30, 2015.

 

Fiscal 2015 Highlights

 

Mike Kaminski, President and Chief Executive Officer of Landauer stated, “We are pleased with our fiscal 2015 financial results, which were in line with our expectations and reflect the strong demand for our solutions. As we enter 2016, we believe we have the right plan in place to leverage Landauer’s unique market position and execute on significant growth opportunities in our core product platform. We expect

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the growth in imaging physics to continue in fiscal 2016, and we are anticipating strong demand for our new informatics solutions.”

 

Fourth Quarter Financial Overview

 

Revenues for the fourth fiscal quarter of 2015 were $40.2 million, a 4.3% decrease compared to revenues of $42.0 million for the fourth quarter of fiscal 2014. Radiation Measurement revenues for the quarter were $28.1 million, a 10.5% decrease compared to $31.4 million for the fourth fiscal quarter of 2014. The decrease in revenues was driven by a $2.3 million decrease in military sales and a $1.7 million sale of custom equipment to an international customer in the fourth fiscal quarter of 2014. In addition, the unfavorable impact of changes in foreign currency exchange rates was $1.6 million. Partially offsetting the decrease in revenues were higher domestic service revenues of $0.6 million and an increase in product sales in France. Medical Physics revenues increased $1.2 million, due to greater demand for commissioning and imaging services. Medical Products revenues increased $0.2 million.

 

Operating income for the quarter was $6.8 million, an 8.1% decrease compared to operating income of $7.4 million for the fourth quarter of fiscal 2014. The decrease in operating income was driven by lower Radiation Measurement product sales and the negative impact of foreign currency. On a sequential quarter basis, adjusted operating income margin increased to 20.9% in the fourth fiscal quarter of 2015 from 14.4% in the third fiscal quarter of 2015.

 

Fiscal Year Ended September 30, 2015 Financial Overview

 

Revenues for fiscal 2015 were $151.3 million, a 2.4% decrease compared to revenues of $155.1 million for fiscal 2014. Revenues in the Radiation Measurement segment decreased $7.6 million due to the unfavorable foreign currency impact of $5.3 million and a decrease in product sales to the military of $2.2 million. Revenues in the Medical Physics segment increased $3.2 million, primarily driven by increased imaging services revenues of $2.2 million. Revenues in the Medical Products segment increased $0.6 million primarily due to the full-period impact of a modest acquisition in December 2013.

 

Operating income for fiscal 2015 was $23.7 million, compared to an operating loss of $40.0 million for fiscal 2014. The increase in operating income was due to the goodwill and other intangible assets impairment charge recorded in the prior year that was not present in fiscal 2015. Adjusted operating income margins were 16.7% in fiscal 2015 compared to 16.8% in fiscal 2014.

 

Fiscal 2016 Outlook

 

The Company anticipates aggregate revenues for fiscal 2016 to be in the range of $150 to $157 million.

 

Fiscal 2016 guidance reflects an expected year-over-year reduction in sales due to unfavorable foreign currency rates of $2.9 million and excludes revenues from our Radon business, which was divested on September 30, 2015. Fiscal 2015 revenues, excluding approximately $4.7 million of revenues from our Radon business, were $146.6 million.

 

The Company anticipates adjusted net income for fiscal 2016 in the range of $15 to $18 million. Fiscal 2015 adjusted net income, excluding approximately $0.8 million from our Radon business, was $16.2 million.

 

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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 Operating Income and Adjusted Net Income as measures of earnings to eliminate the effects of certain non-cash and nonrecurring items of the Company. Adjusted Operating Income represents operating income with adjustments for goodwill and other intangible assets impairments and acquisition, reorganization and nonrecurring costs. 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, Adjusted Operating Income 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 fourth quarter conference call for investors over the Internet on Monday, December 14, 2015, at 5:00 p.m. Central Time (6:00 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 1537908, 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 1537908, which will be available through Wednesday, January 13, 2016. The replay will also be available on Landauer’s website for 30 days following the call.

 

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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 

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Landauer, Inc. and Subsidiaries

Consolidated Balance Sheets

 

 

 

 

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Landauer, Inc. and Subsidiaries

Consolidated Statements of Operations

 

 

 

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Landauer, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

 

 

 

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Non-GAAP Financial Measures

 

A reconciliation of Adjusted EBITDA, Adjusted Operating Income and Adjusted Net Income (i.e., non-GAAP financial measures) to the most directly comparable GAAP measures is provided below:

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Segment Information

 

The following tables summarize financial information for each reportable segment for the three and twelve months ended September 30:

 

 

 

 

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