GLENWOOD, Ill., Aug. 3 /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 the three and nine months ended June 30, 2010.
Fiscal 2010 Third Quarter Highlights
- Revenue grew 12 percent to $26.3
million on contribution from acquired companies.
- Gross profit grew 3 percent to $16.1
million on increased sales and revenue mix.
- Operating earnings declined 11 percent to $8.0 million due to impact of prior year
non-recurring revenue.
- Effective tax rate declined to 22 percent due primarily to
recognition of the benefit of prior year deductions for domestic
production activities.
- Net income declined 6 percent to $6.2
million, or $0.66 per diluted
share.
- Fiscal 2010 guidance adjusted to reflect delay in funding on
key initiatives.
"We continue to make solid progress against our key strategic
priorities, as evidenced by our revenue growth. However, this
quarter's financial results were negatively impacted by unforeseen
delays in the funding process for initiatives with the U.S.
military and first responder markets, and to a lesser extent the
current economic environment," explained Bill Saxelby, President and CEO of Landauer.
"In addition, the market acceptance of the Global Physics
Solutions acquisition has been excellent and we see strong interest
in an expanded service offering that incorporates elements of
medical physics and our occupational monitoring competencies.
However, the sales cycle for certain medical physics services
is proving to be longer than we anticipated originally."
Revenue Growth Driven by Acquisitions
Revenues for the third fiscal quarter of 2010 were $26.3 million, a 12 percent increase compared
with the $23.5 million reported for
the third fiscal quarter of 2009. Domestic revenue increased
21 percent, or $3.4 million, on
contribution from Global Physics Solutions of $4.0 million, offset by declines in InLight
equipment sales. International revenue declined 10 percent,
or $0.7 million. $1.7 million
of the change is due to a planned 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, the venture will no longer be purchasing
service badges. The historical Luxel badge revenue will be
partially offset by a royalty arrangement, resulting in no
corresponding impact on net income. This reduction in revenue
was partially offset by contributions from acquired companies of
$0.7 million and organic growth.
Cost of sales for the third fiscal quarter of 2010 was
$10.2 million, a 29 percent increase
compared with the $7.9 million
reported for the third fiscal quarter of 2009. The primary
factor contributing to the increase was $3.5
million of increased cost from acquired companies. The gross
margin declined to 61 percent from 66 percent in the year ago
period, primarily due to the lower margin contribution of the
Medical Physics segment. Selling, general and administrative
costs for the third fiscal quarter of 2010 were $8.1 million, a 22 percent increase compared with
the $6.6 million reported for the
third fiscal quarter of 2009. The primary factor contributing to
the increase was approximately $1.2
million of increased spending from acquired companies.
The effective tax rate for the third fiscal quarter of 2010
decreased to 22 percent compared with 30 percent for the third
fiscal quarter of 2009. The reduction is due primarily to
recognition of the benefit of prior year deductions for domestic
production activities not previously included on the Company's
Federal income tax returns. Net income for the fiscal quarter
ended June 30, 2010 was $6.2 million, a decline of 6 percent compared
with $6.5 million for the third
fiscal quarter of 2009. The resulting diluted earnings per share
for the third fiscal quarter of 2010 were $0.66 compared with $0.70 for the third fiscal quarter of 2009.
For the nine months ended June 30,
2010, revenues increased 20 percent to $85.3 million compared to $70.9 million at this time last year. The
gross profit margin was 62 percent versus 67 percent from last
year's nine-month period ended June 30,
2009. Selling, general and administrative expenses for
the first nine months of fiscal 2010 increased 23 percent to
$24.3 million compared with
$19.8 million in fiscal 2009.
In conjunction with the acquisition activity during fiscal
2010, the Company incurred $1.7
million ($1.3 million,
after-tax) of acquisition and reorganization costs.
During the second quarter of fiscal 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. 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. In addition, the Company initiated a management
reorganization plan to strengthen selected roles in the
organization resulting in $0.5
million ($0.3 million
after-tax) of reorganization charges during the second fiscal
quarter of 2009.
Year-to-date net income was $19.1
million, an increase of 6 percent from $18.1 million in the prior year period.
Earnings per diluted share were $2.04 compared with $1.94 for the same period last year.
Excluding the effect of acquisition and reorganization costs,
net income for the first nine months ended June 30, 2010 was $20.4
million, or $2.18 per diluted
share. 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.
Financial Position
Landauer ended the third fiscal quarter of 2010 with total
assets of $144.2 million and negative
working capital of $4.1 million, due
to the current liability classification of $13.4 million in outstanding borrowings.
$18 million in debt was incurred to support the acquisitions
completed during the fiscal first quarter of 2010. This
initial amount has been reduced with cash flow from operations.
Cash provided by operating activities was $17.5 million, a decline of 3 percent from the
first nine months of fiscal 2009.
Fiscal 2010 Outlook
"We remain confident in the Company's long-term strategic
initiatives and growth plan. We believe our near-term results
will continue to be adversely affected by the factors noted above.
In particular, although we continue to build strong
relationships with the U.S. Military, there has been an unforeseen
delay in the decision making process to fund multimillion dollar
initiatives using Landauer technology. When we initially issued our
annual guidance in December 2009, we
anticipated purchase commitments in the second half of the 2010
fiscal year, which to date have not occurred. As we move
through our fiscal fourth quarter, we are still pursuing these
initiatives, but our visibility on funding is limited at this point
in time. If funding does not occur in the fourth quarter, our
full-year results will be below the bottom end of our original
guidance range. We remain optimistic regarding the long-term
opportunity with our Military partners," stated Saxelby.
Previously, Landauer anticipated fiscal 2010 aggregate revenue
growth for the year to be in the range of 25 to 30 percent and a
net income increase in the range of 4 to 8 percent, excluding the
impact of acquisition 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.
If the military sales outlined above do not materialize this
fiscal year, Landauer's aggregate revenue growth for fiscal 2010 is
anticipated to be in the range of 18 to 22 percent. Fiscal
2010 acquisitions are expected to contribute the majority of the
growth. The current forecast includes expense spending of
$1.5 to $2.5 million to support the
Company's systems initiative. The Company projects a net
income change in the range of a decline of 2 percent to an increase
of 2 percent, excluding the after tax impact of acquisition and
reorganization costs, of $1.3
million, 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 third quarter conference call for
investors over the Internet on Tuesday,
August 3, 2010 at 2:00 p.m. Eastern
Time (11:00 a.m. Pacific
Time). To participate, callers should dial
877-941-0844 (within the United
States and Canada) or
480-629-9645 (international calls), and reference the conference ID
#4334774, 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 4334774#, which will be available until September 3, 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;
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; 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
Fiscal 2010 Third Quarter
Financial Highlights
(unaudited, amounts in
thousands, except per share data)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
$ 26,255
|
|
$
23,468
|
|
$ 85,295
|
|
$ 70,860
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
10,188
|
|
7,874
|
|
32,163
|
|
23,393
|
|
Selling, general
and administrative
|
8,085
|
|
6,612
|
|
24,297
|
|
19,793
|
|
Net defined
benefit plan curtailment loss and
transition costs
|
-
|
|
-
|
|
-
|
|
2,236
|
|
Acquisition and
reorganization costs
|
23
|
|
-
|
|
1,683
|
|
489
|
|
|
18,296
|
|
14,486
|
|
58,143
|
|
45,911
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
7,959
|
|
8,982
|
|
27,152
|
|
24,949
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
138
|
|
459
|
|
1,098
|
|
1,728
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
8,097
|
|
9,441
|
|
28,250
|
|
26,677
|
|
Income taxes
|
1,791
|
|
2,800
|
|
8,806
|
|
8,353
|
|
|
|
|
|
|
|
|
|
|
Net income
|
6,306
|
|
6,641
|
|
19,444
|
|
18,324
|
|
Less: Net income
attributed to noncontrolling interest
|
126
|
|
95
|
|
326
|
|
208
|
|
|
|
|
|
|
|
|
|
|
Net income attributed to
Landauer, Inc.
|
$
6,180
|
|
$
6,546
|
|
$ 19,118
|
|
$ 18,116
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to
Landauer, Inc.
shareholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.66
|
|
$
0.70
|
|
$
2.05
|
|
$
1.95
|
|
Weighted average
basic shares outstanding
|
9,325
|
|
9,304
|
|
9,302
|
|
9,279
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
0.66
|
|
$
0.70
|
|
$
2.04
|
|
$
1.94
|
|
Weighted average
diluted shares outstanding
|
9,365
|
|
9,347
|
|
9,341
|
|
9,326
|
|
|
|
|
|
|
|
|
|
|
|
Summary Consolidated Balance
Sheets
(unaudited, amounts in
thousands)
|
|
|
June 30,
|
|
September 30,
|
|
|
2010
|
|
2009
|
|
ASSETS
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
8,023
|
|
$ 36,493
|
|
Receivables, net
of allowances
|
23,334
|
|
20,663
|
|
Other current
assets
|
13,102
|
|
11,381
|
|
Total current assets
|
44,459
|
|
68,537
|
|
|
|
|
|
|
Net property, plant and
equipment
|
36,970
|
|
26,151
|
|
Equity in joint
venture
|
7,711
|
|
7,421
|
|
Goodwill and other intangible
assets, net of amortization
|
48,501
|
|
17,380
|
|
Dosimetry devices, net of
amortization
|
5,187
|
|
4,583
|
|
Other assets
|
1,375
|
|
1,133
|
|
TOTAL ASSETS
|
$ 144,203
|
|
$ 125,205
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Accounts
payable
|
$
4,239
|
|
$
5,193
|
|
Dividends
payable
|
5,135
|
|
4,996
|
|
Deferred contract
revenue
|
15,599
|
|
15,632
|
|
Short-term
debt
|
13,418
|
|
-
|
|
Other current
liabilities
|
10,137
|
|
11,054
|
|
Total current
liabilities
|
48,528
|
|
36,875
|
|
Non-current
Liabilities:
|
|
|
|
|
Pension and
postretirement obligations
|
8,656
|
|
8,238
|
|
Deferred income
taxes
|
7,056
|
|
4,608
|
|
Other non-current
liabilities
|
1,689
|
|
1,030
|
|
Total non-current
liabilities
|
17,401
|
|
13,876
|
|
|
|
|
|
|
Landauer, Inc. stockholders'
equity
|
77,530
|
|
73,761
|
|
Noncontrolling
interest
|
744
|
|
693
|
|
Total equity
|
78,274
|
|
74,454
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS'
EQUITY
|
$ 144,203
|
|
$ 125,205
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Landauer, Inc.
Copyright g. 3 PR Newswire