UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 10, 2015
|
|
|
|
LANDAUER, INC.
|
|
|
(Exact Name of Registrant as Specified in its Charter)
|
|
|
|
|
Delaware
|
1-9788
|
06-1218089
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
|
2 Science Road, Glenwood, Illinois
|
60425
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
(708) 755-7000
|
(Registrant's Telephone Number, Including Area Code)
|
|
Not Applicable
|
(Former Name or Former Address, if Changed Since Last Report)
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ]Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Item 2.02
|
Results of Operations and Financial Condition
|
On August 10, 2015, Landauer, Inc. (the “Company”) issued a Press Release announcing its earnings for its fiscal 2015 third quarter ended June 30, 2015. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
7
|
|
Item 7.01
|
Regulation FD Disclosure
|
Beginning August 10, 2015, the Company will make available and distribute to analysts and prospective investors a slide presentation. The presentation materials include information regarding the Company’s operating and growth strategies and financial performance. Pursuant to Regulation FD, the presentation materials are attached as Exhibit 99.2 to this Current Report on Form 8-K.
|
|
Item 9.01
|
Financial Statements and Exhibits
|
(d) Exhibits.
6
|
|
|
EXHIBIT NUMBER
|
|
DESCRIPTION
|
|
|
|
99.1
|
|
Press Release dated August 10, 2015
|
99.2
|
|
Investor Slide Presentation
|
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
LANDAUER, INC.
|
|
|
|
|
August 10, 2015
|
By:
|
/s/ Daniel J. Fujii
|
|
|
Daniel J. Fujii
|
|
|
Chief Financial Officer
|
News Release
LANDAUER
LANDAUER, INC. Reports
Fiscal 2015 THIRD QUARTER RESULTS
For Further Information Contact:
Michael DeGraff
Sard Verbinnen & Co
Phone: 312.895.4734
Email: mdegraff@sardverb.com
GLENWOOD, Ill. — August 10, 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 third quarter ended June 30, 2015.
Fiscal 2015 Third Quarter Highlights
|
·
| |
Revenue of $35.5 million, a 1.1% decrease compared to the year-ago period |
|
o
| |
Domestic Radiation Measurement revenues grew 1.5% year-over-year |
|
o
| |
Medical Physics revenues grew 8.5% year-over-year |
|
o
| |
Unfavorable impact due to foreign currency rates reduced revenues by $1.5 million. Excluding the impact of foreign currency exchange rates, revenues increased 3.1%. |
|
·
| |
Operating income of $5.1 million, compared to an operating loss of $59.6 million in the prior year period |
|
o
| |
Adjusted operating income increased $1.0 million compared to the third quarter of fiscal 2014 |
|
o
| |
Professional fees reduced operating income by $0.5 million year-over-year |
|
·
| |
Net income of $4.1 million, compared to a net loss of $36.3 million in the prior year period |
|
o
| |
Adjusted net income of $4.5 million was up $2.4 million compared to the third quarter of fiscal 2014 |
|
·
| |
Adjusted EBITDA of $9.2 million, an increase of 8.7% year-over-year |
Mike Leatherman, President and Chief Executive Officer of Landauer stated, “While we continue to experience the negative impact of unfavorable foreign currency rates, our underlying results demonstrate the strength of our position as the leading provider of enterprise-wide solutions for our customers. At the same time, we are particularly encouraged by the 8.5% growth in revenues in our Medical Physics segment.”
Leatherman continued, “We continue to make progress on our growth initiatives, including our next generation digital dosimeter platform, Verifii™ and are well positioned to meet the emerging needs for a broader radiation management solution. We are seeing strong demand for our solutions following the Joint Commission’s new Diagnostic Imaging requirements that became effective for hospitals and ambulatory care centers on July 1 and believe this trend will continue to drive further growth opportunities and long-term value for shareholders.”
Third Fiscal Quarter Financial Overview
Revenues for the third fiscal quarter of 2015 were $35.5 million, a 1.1% decrease compared to revenues of $35.9 million for the third fiscal quarter of 2014. Radiation Measurement revenues for the third fiscal quarter of 2015 were $24.1 million, a 4.7% decrease compared to $25.3 million for the third fiscal quarter of 2014. The decrease in revenues was primarily due to the unfavorable impact of changes in foreign currency exchange rates of $1.5 million, partially offset by an increase in domestic revenues of $0.3 million. Medical Physics revenues increased $0.7 million, due to increased imaging services. Medical Products revenues were flat.
Operating income for the third fiscal quarter of 2015 was $5.1 million, compared with an operating loss of $59.6 million for the third fiscal quarter of 2014. The increase in operating income was driven by the $62.2 million goodwill and other intangible assets impairment charge, and $1.6 million in reorganization expenses recorded during the third fiscal quarter of 2014 that were not present in the third fiscal quarter of 2015. Adjusted operating income increased $1.0 million due to our lean initiatives and continued focus on higher margin, recurring revenues.
Fiscal Nine Months Financial Overview
Revenues for the first nine months of fiscal 2015 were $111.2 million, a 1.7% decrease compared to revenues of $113.1 million for the first nine months of fiscal 2014. Revenues in the Radiation Measurement segment decreased $4.3 million due to an unfavorable foreign currency impact of $3.7 million and a decrease in product sales in Europe of $1.0 million. Revenues in the Medical Physics segment increased $2.1 million, primarily driven by increased imaging services of $1.6 million. Revenues in the Medical Products segment increased $0.4 million primarily due to the full-period impact of a modest acquisition in December 2013.
Operating income for the first nine months of fiscal 2015 was $16.9 million, compared to an operating loss of $47.3 million for the first nine months of 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 the first nine months of fiscal 2015. Adjusted operating income margins increased to 15.2% in the first nine months of fiscal 2015 from 14.7% in the first nine months of fiscal 2014.
Fiscal 2015 Outlook
As communicated in Landauer’s second quarter earnings announcement, the Company continues to expect unfavorable foreign currency rates will negatively impact full-year results for fiscal year 2015. Specifically, the adverse impact of foreign currency year-over-year is expected to result in a reduction in revenue of approximately $6.0 million, a reduction of Adjusted Net Income of approximately $0.8 million and a reduction of Adjusted EBITDA of approximately $2.8 million. Accordingly, Landauer is revising its full-year 2015 guidance as follows:
|
|
|
|
|
|
|
Prior Guidance
|
|
Revised Guidance
|
Revenue
|
|
$153 - $163 Million
|
|
$150 - $153 Million
|
Adjusted Net Income
|
|
$16 - $19 Million
|
|
$17 - $19 Million
|
Adjusted EBITDA
|
|
$41 - $46 Million
|
|
$38 - $41 Million
|
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 and Adjusted Free Cash Flow as a measure of liquidity to eliminate the effects of certain acquisition and reorganization costs. 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. Adjusted Free Cash Flow represents net cash provided by operating activities with adjustments for capital expenditures and acquisition, reorganization and nonrecurring costs.
However, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income and Adjusted Free Cash Flow 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 third quarter conference call for investors over the Internet on Tuesday, August 11, 2015, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To participate, callers should dial 866-866-1542 (within the United States and Canada), or 707-294-1539 (international callers), passcode 1110120, 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 1110120, which will be available through Friday, September 11, 2015. The replay will also be available on Landauer’s website for 30 days following the call.
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 2015 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 ventures; valuation of the Company’s long-lived assets or business 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 year ended September 30, 2014 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
Landauer, Inc. and Subsidiaries
Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands)
|
|
June 30, 2015
|
|
September 30, 2014
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
8,441
|
|
$
|
6,761
|
Receivables, net of allowances of $1,456 at June 30, 2015 and $1,872 at September 30, 2014
|
|
|
29,392
|
|
|
34,707
|
Inventories
|
|
|
7,456
|
|
|
6,687
|
Prepaid expenses and other current assets
|
|
|
7,440
|
|
|
6,178
|
Total current assets
|
|
|
52,729
|
|
|
54,333
|
|
|
|
|
|
|
|
Net property, plant and equipment
|
|
|
46,700
|
|
|
46,757
|
Equity in joint ventures
|
|
|
23,315
|
|
|
23,835
|
Goodwill
|
|
|
40,850
|
|
|
43,218
|
Intangible assets, net of accumulated amortization of $38,177 at June 30, 2015 and $37,579 at September 30, 2014
|
|
|
13,181
|
|
|
14,077
|
Other assets
|
|
|
31,299
|
|
|
34,366
|
Total assets
|
|
$
|
208,074
|
|
$
|
216,586
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Total current liabilities
|
|
$
|
37,970
|
|
$
|
44,728
|
Long-term debt
|
|
|
134,385
|
|
|
133,585
|
Other non-current liabilities
|
|
|
22,984
|
|
|
24,539
|
Total liabilities
|
|
|
195,339
|
|
|
202,852
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
Landauer, Inc. stockholders' equity
|
|
|
11,558
|
|
|
12,254
|
Noncontrolling interest
|
|
|
1,177
|
|
|
1,480
|
Total stockholders' equity
|
|
|
12,735
|
|
|
13,734
|
Total Liabilities and Stockholders' Equity
|
|
$
|
208,074
|
|
$
|
216,586
|
Landauer, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Nine Months Ended June 30,
|
(Dollars in Thousands, Except per Share)
|
|
2015
|
|
2014 (As Restated)
|
|
2015
|
|
2014 (As Restated)
|
Total revenues
|
|
$
|
35,467
|
|
$
|
35,868
|
|
$
|
111,153
|
|
$
|
113,069
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
16,821
|
|
|
17,930
|
|
|
53,183
|
|
|
54,647
|
Selling, general and administrative
|
|
|
13,535
|
|
|
13,819
|
|
|
41,088
|
|
|
41,795
|
Goodwill and other intangible assets impairment charge
|
|
|
-
|
|
|
62,188
|
|
|
-
|
|
|
62,188
|
Acquisition, reorganization and nonrecurring costs
|
|
|
-
|
|
|
1,558
|
|
|
-
|
|
|
1,778
|
Total costs and expenses
|
|
|
30,356
|
|
|
95,495
|
|
|
94,271
|
|
|
160,408
|
Operating income (loss)
|
|
|
5,111
|
|
|
(59,627)
|
|
|
16,882
|
|
|
(47,339)
|
Equity in income of joint ventures
|
|
|
428
|
|
|
256
|
|
|
1,804
|
|
|
2,072
|
Other expense, net
|
|
|
(922)
|
|
|
(888)
|
|
|
(3,073)
|
|
|
(2,675)
|
Income (loss) before taxes
|
|
|
4,617
|
|
|
(60,259)
|
|
|
15,613
|
|
|
(47,942)
|
Income tax expense (benefit)
|
|
|
481
|
|
|
(24,225)
|
|
|
3,271
|
|
|
(20,413)
|
Net income (loss)
|
|
|
4,136
|
|
|
(36,034)
|
|
|
12,342
|
|
|
(27,529)
|
Less: Net income attributed to noncontrolling interest
|
|
|
81
|
|
|
301
|
|
|
363
|
|
|
471
|
Net income (loss) attributed to Landauer, Inc.
|
|
$
|
4,055
|
|
$
|
(36,335)
|
|
$
|
11,979
|
|
$
|
(28,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to Landauer, Inc. shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.42
|
|
$
|
(3.83)
|
|
$
|
1.26
|
|
$
|
(2.96)
|
Weighted average basic shares outstanding
|
|
|
9,509
|
|
|
9,482
|
|
|
9,476
|
|
|
9,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.42
|
|
$
|
(3.83)
|
|
$
|
1.25
|
|
$
|
(2.96)
|
Weighted average diluted shares outstanding
|
|
|
9,534
|
|
|
9,482
|
|
|
9,503
|
|
|
9,466
|
Landauer, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30,
|
(Dollars in Thousands)
|
|
2015
|
|
2014 (As Restated)
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
12,342
|
|
$
|
(27,529)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
9,274
|
|
|
11,419
|
Goodwill and other intangible assets impairment charge
|
|
|
-
|
|
|
62,188
|
Equity in income of joint ventures
|
|
|
(1,804)
|
|
|
(2,072)
|
Dividends from joint ventures
|
|
|
1,144
|
|
|
1,340
|
Stock-based compensation and related net tax benefits
|
|
|
1,422
|
|
|
1,066
|
Current and long-term deferred taxes, net
|
|
|
769
|
|
|
(21,829)
|
Loss (gain) on sale, disposal and abandonment of fixed assets
|
|
|
142
|
|
|
(35)
|
Gain on investments
|
|
|
(159)
|
|
|
(505)
|
Changes in operating assets and liabilities
|
|
|
(1,419)
|
|
|
2,508
|
Net cash provided by operating activities
|
|
|
21,711
|
|
|
26,551
|
|
|
|
|
|
|
|
Net cash used by investing activities
|
|
|
(6,691)
|
|
|
(5,711)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Long-term borrowings, net
|
|
|
800
|
|
|
(4,500)
|
Dividends paid to stockholders
|
|
|
(13,237)
|
|
|
(15,771)
|
Other financing activities, net
|
|
|
(462)
|
|
|
(551)
|
Net cash used by financing activities
|
|
|
(12,899)
|
|
|
(20,822)
|
|
|
|
|
|
|
|
Effects of foreign currency translation
|
|
|
(441)
|
|
|
(52)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
1,680
|
|
|
(34)
|
Opening balance - cash and cash equivalents
|
|
|
6,761
|
|
|
8,672
|
Ending balance - cash and cash equivalents
|
|
$
|
8,441
|
|
$
|
8,638
|
Non-GAAP Financial Measures
A reconciliation of Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income and Adjusted Free Cash Flow (i.e., non-GAAP financial measures) to the most directly comparable GAAP measures is provided below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
(Unaudited, Dollars in Thousands)
|
2015
|
|
2014 (As Restated)
|
|
2015
|
|
2014 (As Restated)
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributed to Landauer, Inc.
|
$
|
4,055
|
|
$
|
(36,335)
|
|
$
|
11,979
|
|
$
|
(28,000)
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Net financing costs
|
|
965
|
|
|
760
|
|
|
2,652
|
|
|
2,506
|
Depreciation and amortization
|
|
3,182
|
|
|
3,932
|
|
|
9,274
|
|
|
11,419
|
Provision for income taxes
|
|
481
|
|
|
(24,225)
|
|
|
3,271
|
|
|
(20,413)
|
Earnings before interest, taxes, depreciation and amortization (EBITDA)
|
$
|
8,683
|
|
$
|
(55,868)
|
|
$
|
27,176
|
|
$
|
(34,488)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock based compensation
|
|
550
|
|
|
616
|
|
|
1,423
|
|
|
1,079
|
Goodwill and other intangible assets impairment charge
|
|
-
|
|
|
62,188
|
|
|
-
|
|
|
62,188
|
Acquisition, reorganization and nonrecurring costs
|
|
-
|
|
|
1,558
|
|
|
-
|
|
|
1,778
|
Sub-total adjustments
|
|
550
|
|
|
64,362
|
|
|
1,423
|
|
|
65,045
|
Adjusted EBITDA
|
$
|
9,233
|
|
$
|
8,494
|
|
$
|
28,599
|
|
$
|
30,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
(Unaudited, Dollars in Thousands)
|
2015
|
|
2014 (As Restated)
|
|
2015
|
|
2014 (As Restated)
|
Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
$
|
5,111
|
|
$
|
(59,627)
|
|
$
|
16,882
|
|
$
|
(47,339)
|
Goodwill and other intangible assets impairment charge
|
|
-
|
|
|
62,188
|
|
|
-
|
|
|
62,188
|
Acquisition, reorganization and nonrecurring costs
|
|
-
|
|
|
1,558
|
|
|
-
|
|
|
1,778
|
Adjusted Operating Income
|
$
|
5,111
|
|
$
|
4,119
|
|
$
|
16,882
|
|
$
|
16,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
(Unaudited, Dollars in Thousands)
|
2015
|
|
2014 (As Restated)
|
|
2015
|
|
2014 (As Restated)
|
Adjusted Net Income
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributed to Landauer, Inc.
|
$
|
4,055
|
|
$
|
(36,335)
|
|
$
|
11,979
|
|
$
|
(28,000)
|
Sub-total adjustments
|
|
550
|
|
|
64,362
|
|
|
1,423
|
|
|
65,045
|
Income taxes on adjustments
|
|
(57)
|
|
|
(25,875)
|
|
|
(277)
|
|
|
(26,086)
|
Adjustments, net
|
|
493
|
|
|
38,487
|
|
|
1,146
|
|
|
38,959
|
Adjusted Net Income
|
$
|
4,548
|
|
$
|
2,152
|
|
$
|
13,125
|
|
$
|
10,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30,
|
(Unaudited, Dollars in Thousands)
|
2015
|
|
2014 (As Restated)
|
Adjusted Free Cash Flow
|
|
|
|
|
|
Net cash provided by operating activities
|
$
|
21,711
|
|
$
|
26,551
|
Capital expenditures
|
|
(6,224)
|
|
|
(3,056)
|
Free Cash Flow
|
|
15,487
|
|
|
23,495
|
Acquisition, reorganization and nonrecurring costs
|
|
-
|
|
|
1,778
|
Adjusted Free Cash Flow
|
$
|
15,487
|
|
$
|
25,273
|
Segment Information
The following tables summarize financial information for each reportable segment for the three and nine months ended June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
(Unaudited, Dollars in Thousands)
|
|
2015
|
|
2014 (As Restated)
|
|
2015
|
|
2014 (As Restated)
|
Revenues by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Radiation Measurement
|
|
$
|
24,143
|
|
$
|
25,320
|
|
$
|
77,880
|
|
$
|
82,187
|
Medical Physics
|
|
|
8,926
|
|
|
8,175
|
|
|
25,971
|
|
|
23,943
|
Medical Products
|
|
|
2,398
|
|
|
2,373
|
|
|
7,302
|
|
|
6,939
|
Consolidated revenues
|
|
$
|
35,467
|
|
$
|
35,868
|
|
$
|
111,153
|
|
$
|
113,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
(Unaudited, Dollars in Thousands)
|
|
2015
|
|
2014 (As Restated)
|
|
2015
|
|
2014 (As Restated)
|
Operating income (loss) by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Radiation Measurement
|
|
$
|
7,604
|
|
$
|
7,466
|
|
$
|
26,402
|
|
$
|
26,095
|
Medical Physics
|
|
|
1,143
|
|
|
435
|
|
|
2,082
|
|
|
1,467
|
Medical Products
|
|
|
375
|
|
|
(62,429)
|
|
|
953
|
|
|
(62,891)
|
Corporate
|
|
|
(4,011)
|
|
|
(5,099)
|
|
|
(12,555)
|
|
|
(12,010)
|
Consolidated operating income (loss)
|
|
$
|
5,111
|
|
$
|
(59,627)
|
|
$
|
16,882
|
|
$
|
(47,339)
|
I
nvestor Presentation August 2015 Safe Harbor Statement Some of the information shared here (including, in particular, the section titled “Fiscal 2015 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 InLighttechnology; 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 ventures; valuation of the Company’s long-lived assets or business 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 conductingbusiness 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 businessplans and prospects, and could create the need from time to time to write down the value of assets or otherwise cause the Company to incurunanticipated 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 Form10-K for the year ended September 30, 2014 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 ofnew information, future events or changes in the Company’s expectations, except as required by law.
Compelling Investment Opportunity Industry leading position, compelling market trends and strong financial profile drives long-term shareholder value •The Joint Commission standards effective in July 2015 in the United States -Impacts 7,100 of the 20,500 U.S. healthcare organizations and programs, including hospitals, imaging clinics and certain ambulatory care centers -Estimated incremental cost of ~$30,000 annually for a hospital to comply with new standards •International standards becoming more restrictive •Next generation Verifii™ platform on target for 2016 launch •Well positioned to meet emerging need for broader solution •Differentiated position creates higher barrier to entry for competition •Strong margins and limited capital requirements deliver compelling free cash flow •Defined capital allocation plan supports investment in growth initiatives and dividend •Industry-leading technology; proprietary Optically Stimulated Luminescence (OSL) crystal manufacturing process •Installed based of over 73,000 customers; 1.8 million individuals served worldwide •90% recurring revenue; 94% annual customer retention •Ability to provide enterprise radiation management or product only model Global Leader in Occupational Radiation Products and Services Increased Regulation Drives Demand Compelling Growth and Expansion Opportunities Strong Financial Profile
Dosimetry Reports with results are made available to the customer Leading OSL Technology Supported by Proven Process .“Gold standard” in accuracy .Proprietary OSL crystal technology manufactured internally .Delivers wide-range of radiation monitoring: .Headquartered in Glenwood, IL .650 global employees .Only national network of imaging physicists .8 global markets .Service labs in Chicago, Tokyo, Paris, Brazil, Mexico City, Istanbul, Sydney, Beijing .1.8M annual individuals served worldwide; 1.2M domestically Dosimeter is received and analyzed Dosimeter is physically shipped back to Landauer Dosimeter is worn for designated wear period Order is manufactured and physically shipped to customer Order placed; unique serial numbers are assigned for each participant’s dosimeter ~45 days from date dosimeter was received by client Neutron (Nuclear) X-Ray (Healthcare) Current Monthly Process (~15 million badges annually) Technology Key Facts Energy Spectrum
$40 $24 $91 Industrial ProfessionalOffices Acute CareHospitals $0 $20 $40 $60 $80 $100 $MM Revenue Serving Diverse End Markets Across Three Verticals Acute Care Hospitals Professional Offices Industrial Energy Emergency Response Military/ National Security/DOE W:LandauerInvestorsInvestor deckImages73470968_5.jpg W:LandauerInvestorsInvestor deckImagesL41513.2429.jpg Physician Offices IDN Hospitals Veterinarian Dental Regional Hospitals Imaging Centers 62% 6% 74% 0% 20% 40% 60% 80% Estimated U.S. Market Share -Dosimetry $155 Million in FY 2014 Revenue Acute Care Hospitals Professional Offices Industrial
Strong Global Footprint Well-positioned to serve an expanding global customer base of ~75,000 clients Service Labs Chicago Mexico Brazil Paris Istanbul Beijing Tokyo Australia
Significant International Growth Opportunity $25 $30 $35 $40 2011 2012 2013 2014 $MM International Revenue Constant $ GAAP International Revenue 76% 24% FY GAAP 2014 Revenue Domestic U.S. International Additional $2.9 million in Equity Income from International Joint Ventures Joint Venture Location Nagase-Landauer Japan Epsilon Landauer Turkey Aquila New Mexico 10% CAGR (Constant $ basis) Estimated 25% international market share provides ample room for continued growth
U.S. Healthcare Trends are Fueling Opportunity Increasingly complex and multi-dimensional radiation management landscape creates need for integrated, enterprise-wide solutions Risk to Health Systems Tougher State Regulations Emerging •Pennsylvania •California •Massachusetts •Rhode Island •Texas Healthcare Consolidation •Larger buying groups create the need for more integrated and cost-effective solutions Evolving Treatments •Advanced radiation treatment choices are becoming more prevalent New Compliance Standards •Heightened Diagnostic Imaging Requirements from The Joint Commission went into effect in July 2015 Escalating penalties for non-compliance including fines, reduced reimbursements and loss of license
Reports: Necessary for compliance Analytics: Context to information Benchmarking: Relevance to peers Training: Assures compliance and patient outcomes Continuous Improvement: Integrated data across the enterprise Uniquely Positioned to Capitalize on Demand for Solutions Combining products, services, data and analytics to deliver improved and more compliant processes Mgmt. Reports Space Radiation Compliance Solutions Informatics Radiation Measurement Equipment Patient Worker Imaging Physics New Regulatory Requirements Create Customer Demand (Effective July 2015) Solutions Platform
Strategic Path Forward .Shift the market focus .Simple dose focus .Continuous management of radiation safety .Better equip customers to monitor and control employee exposure and meet increasing compliance regulations .Leverage digital-based platform to grow offering of tailored products and services designed to better connect the employee to the work environment .Launch and commercialization of Verifii™ platform .Intermittent analog measurement .Connected digital platform .Provide customers with timely, actionable compliance solutions .Generate meaningful cost benefits Connect: to Real Time Data Integrate: to a Broader Solution Expand: Beyond Dose
Verifii™: Redefining Our Core Technology .Provides customers with a scalable, digital platform that connects employees to their environment .Eliminates fragmented manual processes enabling focus on building a robust radiation management solution .Timely radiation data adds value to customers by allowing them to take targeted actions for practical and measurable process improvements .Expect launch in 2016 A truly differentiated product and platform for incremental growth
Creating a New Standard with Digital Dosimetry Real-time and historic data & analytics are available to client via web & mobile apps Data is processed and stored in the cloud Dosimeter connects via Bluetooth LE to docking base station Dosimeter is assigned to individual onsite; establishing chain of custody ~30 million incidents measured annually (~1% physically handled) Allows customers to track trends, monitor event specific dose levels and enact behavioral changes to better manage long-term exposure
Significant Opportunities Across Core Verticals .Virtual compliance solution for smaller offices that do not have an existing function in place .340,000 sites across Veterinarians, Medical, Dental and Chiropractic practices .6% estimated U.S. market share .Increasing regulations and use of advanced imaging equipment driving need for radiation safety compliance .Market need for simple, integrated solution .Significant opportunity to drive margin expansion Acute Care Hospitals Professional Office Industrial .Allows customers to outsource compliance and safety solution to Landauerat a lower cost .74% estimated U.S. market share .Consulting force in place to meet demand from Joint Commission requirements .Expand product line to include software, consulting and more dosimetry .Deliver comprehensive compliance solution .Turn-key solution allows for autonomous measurement and safety management .Segmented into Oil, Gas, Nuclear and Military .62% estimated U.S. market share .Exclusive provider of battlefield dosimeters for Army, Reserve and National Guard .37% of field units replaced .Interoperability between branches .Goal of steady recurring baseline revenue with significant upside from non- recurring orders Expand Penetrate Customize
Strong Recurring Revenue Base $114 (95%) $138 (91%) $136 (91%) $137 (88%) $6 $14 $14 $18 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2011 2012 2013 2014 Revenue ($ in millions, FYE 9/30) Recurring Revenue Non-Recurring Revenue $120 $152 $150 $155
.New IT systems implemented in FY12 negatively impacted working capital in FY13 by $11.0 million and positively impacted working capital in FY14 by $10.6 million .System implementation impacted timing of customer collections and vendor payments Driving Strong Cash Flows $18.3 $21.9 $16.2 $32.5 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2011 2012 2013 2014 Free Cash Flow ($ in millions, FYE 9/30)
Balanced Approach to Capital Allocation .Core business investments focused on top and bottom line growth .Emphasis on higher margin, annuity-style opportunities .Commercialization of next generation digital dosimetry platform while transitioning from current OSL crystal-based platform .Management compensation tied to ROIC .Long-term target of 2X –2.5X Debt/EBITDA leverage ratio .Currently over 3% dividend yield .Long history of paying competitive dividend for over 20 years Fund Competitive Dividend Invest in the Business Pay Down Debt
Compelling Investment Opportunity Industry leading position, compelling market trends and strong financial profile drives long-term shareholder value •The Joint Commission standards effective in July 2015 in the United States -Impacts 7,100 of the 20,500 U.S. healthcare organizations and programs, including hospitals, imaging clinics and certain ambulatory care centers -Estimated incremental cost of ~$30,000 annually for a hospital to comply with new standards •International standards becoming more restrictive •Next generation Verifii™ platform on target for 2016 launch •Well positioned to meet emerging need for broader solution •Differentiated position creates higher barrier to entry for competition •Strong margins and limited capital requirements deliver compelling free cash flow •Defined capital allocation plan supports investment in growth initiatives and dividend •Industry-leading technology; proprietary Optically Stimulated Luminescence (OSL) crystal manufacturing process •Installed based of over 73,000 customers; 1.8 million individuals served worldwide •90% recurring revenue; 94% annual customer retention •Ability to provide enterprise radiation management or product only model Global Leader in Occupational Radiation Products and Services Increased Regulation Drives Demand Compelling Growth and Expansion Opportunities Strong Financial Profile
Financial Overview
Landauer Financial Overview $120.5 $152.1 $149.7 $155.1 2011 2012 2013 2014 Revenue ($ in millions, FYE 9/30) $48.2 $54.0 $47.9 $44.4 2011 2012 2013 2014 Adjusted EBITDA ($ in millions, FYE 9/30) .Approximately 90% of revenue derived from subscriptions and is recurring in nature .Increase operating income at a higher growth rate than revenue .Contract with U.S. Army, Reserve and National Guard to replace its antiquated radiation monitoring system provides opportunities to expand to other global military and first responder markets .Strategic expansion contributing to long term growth prospects .Strong history of EBITDA to support dividend, reinvestment in the core business and capital required to support strategic expansion
Key Q3 FY 2015 Financial Drivers .Revenue of $35.5 million in the third quarter of fiscal 2015 down $0.4 million y/y due to unfavorable FX .Domestic Radiation Measurement revenues grew by 1.5% over the prior year period .Medical Physics revenues grew 8.5% over the prior year period, driven by demand for our solutions to The Joint Commission’s new Diagnostic Imaging requirements that became effective July 1, 2015 .Adjusted operating income of $5.1 million versus $4.1 million in prior year period .Net income of $4.1 million, or $0.42 per diluted share .Adjusted EBITDA of $9.2 million, an increase of 8.7% y/y Q3 FY15 Financial Highlights $25.3 $24.1 $8.2 $8.9 $2.4 $2.4 $0 $10 $20 $30 $40 Q3 2014 Q3 2015 Millions Revenue Rad Measurement Med Physics Med Products $35.9 $35.5 $8.5 $9.2 $0 $5 $10 Q3 2014 Q3 2015 Millions Adjusted EBITDA $25.3 $15.5 $0 $10 $20 $30 Q3 2014 Q3 2015 Millions Free Cash Flow
Q3 2015 YTD
Adjusted Results ($ Millions) Q3 YTD As Reported Non-cash Stock Based Compensation Q3 YTD Adjusted Revenue $111.2 - $111.2 Net Income $12.0 $1.1 $13.1 Adjusted EBITDA $27.2 $1.4 $28.6 Underlying Assumptions for 2015 .As communicated in our previous earnings release, due to the impact of unfavorable foreign currency rates, we expected results for FY2015 near the lower end of the range .We expect the adverse impact of FX to reduce y/y revenue by $6.0 million, Adjusted Net Income by $0.8 million and Adjusted EBITDA by $2.8 million .Given these estimated results, we are revising guidance for Revenue and Adjusted EBITDA .We expect Adjusted Net Income to be above mid-point of the prior range Outlook Fiscal Year 2015 Outlook ($ Millions) Q3 YTD Adjusted Full-Year Prior Guidance Full-Year Revised Guidance Revenue $111.2 $153 -$163 $150 -$153 Adjusted Net Income $13.1 $16 -$19 $17 -$19 Adjusted EBITDA $28.6 $41 -$46 $38 -$41
Appendix
Business Facts Proven Technology Platform Fiscal 2014 Financial Highlights Diverse Markets .$155 Million in Annual Revenue .$37 Million in International Sales .~ 90% Recurring Revenues .$44.4 Million in Adjusted EBITDA .Adjusted EBITDA margin 28.6% .Headquartered in Glenwood, IL .Founded in 1954 .Approximately 650 employees .8 global markets .73,000 annual customers served; 1.8M annual individuals served .94%+ Customer retention rates inlight_clip_holder_front_L.png .Industry standard OSL technology .Passive measurement of wide range of radiation from low energy X-Ray to high energy neutron .Development of new digital dosimetry platform: Verifii™ Landauer at a Glance C:UsersmdegraffAppDataLocalMicrosoftWindowsTemporary Internet FilesContent.OutlookEQH1N7PWDosimeter.2.png IDN Hospitals Imaging Centers Regional Hospitals Physician Offices Veterinarian Dental Energy Emergency Response Military/National Security/DOE W:LandauerInvestorsInvestor deckImages73470968_5.jpg W:LandauerInvestorsInvestor deckImagesL41513.2429.jpg Acute Care Hospitals Professional Offices Industrial
Landaur (NYSE:LDR)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Landaur (NYSE:LDR)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024