Revenue Fueled by Acquisitions Continued Execution on Strategic
Priorities GLENWOOD, Ill., Feb. 2 /PRNewswire-FirstCall/ --
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 2010 first quarter ended December
31, 2009. Fiscal 2010 First Quarter Highlights -- Revenue grew 21
percent to $27.2 million on contribution from acquired companies
and international growth. -- Gross profit grew 12 percent to $17.1
million on increased sales and revenue mix. -- Completed the
acquisition of Global Physics Solutions, Inc. as a platform to
expand into the medical physics services market on November 9,
2009. -- Incurred acquisition related transaction and
reorganization costs of $1.5 million ($1.1 million, after-tax, or
$0.12 per diluted share). -- Reported net income declined 17
percent to $5.1 million, or $0.55 per diluted share, including the
after-tax effect of acquisition related transaction and
reorganization costs. "We are pleased with our results for the
first quarter of fiscal 2010, which reflect the continued focus on
executing our strategic priorities: optimizing our core business,
driving competitive growth, and pursuing strategic expansion,"
stated Bill Saxelby, President and CEO of Landauer. "Our revenue
performance confirms the success of our strategic expansion
strategy and our continued focus on international growth. The
acquisitions of Global Physics Solutions, Inc. and Gammadata
Matteknik AB in November are solid examples of our strategy to
pursue new growth opportunities. These high quality companies
complement Landauer's competencies while providing entrance into
new market segments and international geographies." Acquisitions
and International Performance Fuel Revenue Growth Revenues for the
first fiscal quarter of 2010 were $27.2 million, a 21 percent
increase compared with the $22.4 million reported for the first
fiscal quarter of 2009. Domestic revenue increased 9 percent, or
$1.5 million, on contribution from Global Physics Solutions of $2.1
million, offset by declines in domestic service revenue.
International revenue increased 62 percent, or $3.3 million, due to
contributions from acquired companies of $1.3 million, organic
growth and the strengthening of most foreign currencies against the
dollar. Cost of sales for the first fiscal quarter of 2010 were
$10.2 million, a 42 percent increase compared with the $7.1 million
reported for the first fiscal quarter of 2009. The primary factor
contributing to the increase was $2.0 million of increased cost
from acquired companies. The gross margin declined to 63 percent
from 68 percent in the year ago period, primarily due to the lower
margin contribution of Global Physics Solutions. Selling, general
and administrative costs for the first fiscal quarter of 2010
increased 20 percent, or $1.3 million. The primary factors
contributing to the increase were approximately $1.1 million of
increased spending from acquired companies and increased expense
spending to re-engineer business processes and to replace the
Company's IT systems that support customer relationship management
and the order-to-cash cycle. In conjunction with the acquisitions
completed during the quarter, the Company incurred $1.5 million
($1.1 million, after-tax) of acquisition related transaction and
reorganization costs. Other income, net, for the first fiscal
quarter declined 12 percent, or $68,000, due to increased interest
expense on outstanding borrowings to support the acquisitions
completed during the quarter. Net income, including the $1.1
million after-tax impact of acquisition related transaction and
reorganization costs, for the first fiscal quarter ended December
31, 2009 was $5.1 million, a decline of 17 percent compared with
$6.1 million for the first fiscal quarter of 2009. Also
contributing to the decline in earnings was an increase in the
effective tax rate for the first fiscal quarter of 2010 to 36.5
percent compared with 33.6 percent for the first fiscal quarter of
2009. The increase is due primarily to the non-deductibility of
certain acquisition related costs and the elimination of certain
tax credits realized in the 2009 quarter. The resulting diluted
earnings per share for the first fiscal quarter of 2010 were $0.55
compared with $0.66 for the first fiscal quarter of 2009. Excluding
the effect of acquisition related transaction and reorganization
costs, net income for the first fiscal quarter of 2010 was $6.2
million, or $0.67 per diluted share. Solid Financial Position
Landauer ended the first fiscal quarter of 2010 with total assets
of $141.8 million and working capital of $13.4 million. At December
31, 2009, Landauer had $18 million in outstanding borrowings
incurred to support the acquisitions completed during the quarter.
Cash provided by operating activities was $8.5 million, an increase
of $7.4 million from the first fiscal quarter of 2009. The increase
is due primarily to the non-recurring prior year payment to the
Company's defined benefit pension plan to increase funding, and
other timing related changes in the components of working capital.
Fiscal 2010 Outlook Landauer's business plan for fiscal 2010
includes projections currently for aggregate revenue growth for the
year to be in the range of 25 to 30 percent. The recently completed
acquisitions are expected to contribute 20 to 23 percent of the
growth. The business plan includes expense spending of $2.5 to $3.5
million to support the completion of the Company's systems
initiative. The Company projects a net income increase in the range
of 4 to 8 percent, excluding the impact of acquisition related
transaction and reorganization costs in fiscal 2010 and the fiscal
2009 after tax impact of pension curtailment and transition costs
and reorganization costs of $1.8 million. Conference Call Details
Landauer has scheduled its first quarter conference call for
investors over the Internet on Tuesday, February 2, 2010 at 2:00
p.m. Eastern Time (11:00 a.m. Pacific Time). To participate,
callers should dial 877-941-8631 (within the United States and
Canada), or 480-629-9820 (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 4205610#, which will
be available until March 2, 2010. 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 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 clients, and the analysis and reporting of exposure
findings. The Company provides its dosimetry services to
approximately 1.6 million people in the United States, Japan,
France, the United Kingdom, Brazil, Canada, China, Australia,
Mexico, Sweden and other countries. In addition, through its Global
Physics Solutions subsidiary, the Company provides therapeutic and
diagnostic physics services and educational services to the medical
physics community. Safe Harbor Statement Some of the information
shared here (including, in particular, the section titled "Fiscal
2010 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 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, 2009, and other
reports filed by the company from time to time with the Securities
and Exchange Commission. Financial Tables Follow First Fiscal
Quarter 2010 Financial Highlights (unaudited, amounts in thousands,
except per share data) Three months ended ------------------
December 31, ------------ 2009 2008 ---- ---- Net revenues $27,234
$22,438 Costs and expenses: Cost of sales 10,156 7,140 Selling,
general and administrative 7,804 6,493 Acquisition and
reorganization costs 1,517 - ------ ------ 19,477 13,633 Operating
income 7,757 8,805 Other income, net 501 569 --- --- Income before
taxes 8,258 9,374 Income taxes 3,017 3,147 ----- ----- Net income
5,241 6,227 Less: net income attributed to noncontrolling interest
114 85 --- -- Net income attributed to Landauer, Inc. $5,127 $6,142
====== ====== Net income attributed to Landauer, Inc. per common
share: Basic $0.55 $0.66 ===== ===== Weighted average basic shares
outstanding 9,274 9,280 ===== ===== Diluted $0.55 $0.66 ===== =====
Weighted average diluted shares outstanding 9,311 9,310 ===== =====
Summary Consolidated Balance Sheets (unaudited, amounts in
thousands) December 31, September 30, 2009 2009 ---- ---- ASSETS
Current Assets: Cash and cash equivalents $18,513 $36,493
Receivables, net of allowances 22,001 20,663 Other current assets
10,581 11,381 ------ ------ Total current assets 51,095 68,537 Net
property, plant and equipment 31,082 26,151 Equity in joint venture
6,611 7,421 Goodwill and other intangible assets, net of
amortization 47,213 17,380 Dosimetry devices, net of amortization
4,593 4,583 Other assets 1,211 1,133 ----- ----- TOTAL ASSETS
$141,805 $125,205 ======== ======== LIABILITIES AND STOCKHOLDERS'
EQUITY Current Liabilities: Accounts payable $8,039 $5,193
Dividends payable 37 4,996 Deferred contract revenue 15,862 15,632
Short-term debt 4,500 - Other current liabilities 9,241 11,054
----- ------ Total current liabilities 37,679 36,875 Non-current
Liabilities: Pension and postretirement obligations 8,368 8,238
Deferred income taxes 6,810 4,608 Long-term debt 13,500 - Other
non-current liabilities 1,206 1,030 ----- ----- Total non-current
liabilities 29,884 13,876 Landauer, Inc. stockholders' equity
73,657 73,761 Noncontrolling interest 585 693 --- --- Total equity
74,242 74,454 ------ ------ TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $141,805 $125,205 ======== ======== DATASOURCE: Landauer,
Inc. CONTACT: Jonathon M. Singer, Senior Vice President, CFO, of
Landauer, Inc., +1-708-441-8311, Web Site:
http://www.landauerinc.com/
Copyright
