Revenue and Earnings Driven by Continued Execution of Strategic
Priorities GLENWOOD, Ill., Dec. 1 /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 fourth quarter and fiscal year ended
September 30, 2009. Fiscal 2009 Highlights -- Revenue grew 4
percent to a record of $93.8 million on continued strong demand for
InLight products, increased international sales and strong domestic
badge revenues. -- Gross profit grew 3 percent to $63.1 million on
increased sales and revenue mix. -- Effective tax rate declined to
32 percent due primarily to changes in Illinois state tax law and
tax benefit of funding frozen pension plan. -- Net income rose 2
percent to $23.4 million, or $2.49 per diluted share, including the
after-tax effect of charges of $1.8 million, or $0.19 per diluted
share. -- Cash flow provided by operating activities declined $4.4
million to $30.2 million due to $6.4 million in excess
contributions to fund the Company's frozen pension plan. --
Increased dividend to $2.15 per share for fiscal 2010. -- On
November 9, 2009, announced the completion of the acquisition of
Global Physics Solutions, Inc. as a platform to expand into the
medical physics services market. "We are pleased with our financial
results for 2009. Despite a difficult global economic environment,
our performance was driven by the successful execution on our
strategic plan and the stability and strength of our business
model," stated Bill Saxelby, President and CEO of Landauer. "We
attribute our results to our continued execution on our long-term
strategic priorities to optimize the core business, drive
competitive growth and pursue strategic expansion. The continued
acceptance of our InLight suite of products, success of our
international expansion initiative and adoption of our offerings in
the medical, nuclear and military markets affirm the long-term
growth prospects for our core personal and environmental radiation
monitoring business. We have also made significant progress in our
systems initiative to replace the Company's information technology
systems that support customer relationship management and the
order-to-cash cycle, delivering successfully on several important
milestones during the past year." Saxelby continued, "The results
for this year demonstrate the balanced approach we are taking in
the pursuit of new growth opportunities and managing resources to
ensure progress against all of our strategic priorities. Our recent
acquisitions of Global Physics Solutions, Inc. and Gammadata
Matteknik AB are examples of our dedication to pursue new growth
opportunities. These high quality companies complement Landauer's
competencies and the financial characteristics of our core
business, while providing entrance into new market segments or
geographies." Balanced Performance Fuels Revenue Growth Revenues
for fiscal 2009 were $93.8 million, a 4 percent increase compared
with the $90.0 million reported for fiscal 2008. Domestic revenue
increased 5 percent, or $3.0 million, on InLight product demand and
growth in domestic badge revenue. Organic international revenue
growth of approximately 16 percent was offset by the impact of the
strengthening of the dollar against most foreign currencies, which
reduced revenue by approximately $2.7 million in the fiscal year,
resulting in a reported increase of 4 percent or, $0.8 million.
Cost of sales increased 6 percent for the fiscal year due to
increased cost of materials to support growth in InLight product
sales. Gross margin declined to 67.2 percent from 67.9 percent in
the year ago period due to revenue mix. Selling, general and
administrative expenses for fiscal 2009 increased 5 percent, or
$1.3 million. Factors contributing to the increase included
increased incentive compensation costs and higher salary and
benefits related to staff additions, increased professional fees
related primarily to international patent and trademark activities,
and increased expense spending for the Company's information
systems initiative. On February 5, 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. The Company
anticipates that the redesign of its retirement plans will result
in future cost savings while offering market based retirement
benefits to its employees. 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 during fiscal 2009. In
addition, the Company initiated a management reorganization plan to
strengthen selected roles in the organization. As a result, the
Company recognized $0.4 million ($0.3 million after-tax) of
reorganization charges during fiscal 2009. The effective tax rate
for fiscal 2009 decreased to 32% compared with 36% for fiscal 2008.
The reduction is due primarily to a change in the state tax rate
driven by changes in the Illinois state tax law, favorable
resolution of open tax positions, and the tax benefit of funding
the frozen pension plan. Net income for the fiscal year ended
September 30, 2009 was $23.4 million, an increase of 2 percent
compared with $23.0 million for fiscal 2008. This resulted in
diluted earnings per share for the current year of $2.49 compared
with $2.47 reported a year ago. Excluding the effect of the pension
curtailment and transition costs and the reorganization charges,
net income for fiscal 2009 was $25.1 million, or $2.68 per diluted
share. Fourth Quarter Performance For the quarter ended September
30, 2009, revenues increased 2 percent to $23.0 million compared
with $22.5 million a year ago. The gross margin was 68 percent,
unchanged from the fourth fiscal quarter of 2008. Selling, general
and administrative expenses for the quarter increased 12 percent to
$8.1 million. The increase was driven by $0.3 million of
incremental professional fees related primarily to international
patent and trademark activities, and $0.3 million increased expense
spending for the Company's information systems initiative. Net
income for the latest quarter was $5.3 million compared with $5.5
million in fiscal 2008. Earnings per diluted share for the quarter
were $0.56 and $0.59 in fiscal 2009 and 2008, respectively. Solid
Financial Position Landauer ended the year with total assets of
$125.2 million, cash of $36.5 million and working capital of $31.7
million. At September 30, 2009, Landauer continued to be debt free.
Cash provided by operating activities was $30.2 million, including
approximately $6.4 million of incremental contributions to fund the
Company's frozen pension plan. On November 9, 2009, the Company
announced the acquisitions of Global Physics Solutions, Inc. for
$22 million in cash and Gammadata Matteknik AB for $6.7 million in
cash. The Company borrowed $18 million in connection with the
acquisitions. 2010 Outlook Landauer's business plan for fiscal 2010
anticipates currently aggregate revenue growth for the year to be
in the range of 25 to 30 percent, with the recently completed
acquisitions contributing 20 to 23 percent of the growth. The
business plan anticipates expense spending of $2.5 to $3.5 million
to support the successful completion of the Company's systems
initiative and the related post implementation support. The Company
anticipates a net income increase in the range of 4 to 8 percent,
excluding the impact of transaction related fees in fiscal 2010 and
the fiscal 2009 after tax impact of pension curtailment and
management reorganization charges of $1.8 million. Conference Call
Details Landauer has scheduled its fourth quarter and year-end
conference call for investors over the Internet on Tuesday,
December 1, 2009 at 2:00 p.m. Eastern Time (11:00 a.m. Pacific
Time). To participate, callers should dial 877-941-9205 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, passcode
4186707#, which will be available until January 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 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 "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;
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, 2008, and other reports filed by the company from
time to time with the Securities and Exchange Commission. Financial
Tables Follow Fourth Quarter Fiscal 2009 Financial Highlights
(unaudited, amounts in thousands, except per share data) Three
months ended Twelve months ended September 30, September 30, 2009
2008 2009 2008 ---- ---- ---- ---- Net revenues $22,967 $22,500
$93,827 $89,954 Costs and expenses: Cost of sales 7,373 7,269
30,766 28,914 Selling, general and administrative 8,098 7,259
27,891 26,589 Net defined benefit plan curtailment loss and
transition costs - - 2,236 - Impairment and accelerated
depreciation charges - - - 376 Reorganization charges (73) - 416 -
--- --- --- --- 15,398 14,528 61,309 55,879 Operating income 7,569
7,972 32,518 34,075 Other income, net 471 438 2,199 2,356 --- ---
----- ----- Income before income taxes and minority interest 8,040
8,410 34,717 36,431 Income taxes 2,718 2,859 11,071 13,118 -----
----- ------ ------ Income before minority interest 5,322 5,551
23,646 23,313 Minority interest 72 67 280 330 --- --- --- --- Net
income $5,250 $5,484 $23,366 $22,983 ====== ====== ======= =======
Net income per common share: Basic $0.56 $0.59 $2.51 $2.49 =====
===== ===== ===== Weighted average shares outstanding 9,318 9,281
9,293 9,237 ===== ===== ===== ===== Diluted $0.56 $0.59 $2.49 $2.47
===== ===== ===== ===== Weighted average shares outstanding 9,393
9,342 9,366 9,302 ===== ===== ===== ===== Summary Consolidated
Balance Sheets (unaudited, amounts in thousands) September 30,
September 30, 2009 2008 ---- ---- ASSETS Current Assets: Cash and
cash equivalents $36,493 $33,938 Receivables, net of reserves
20,663 19,738 Other current assets 11,381 15,053 ------ ------
Total current assets 68,537 68,729 Net property, plant and
equipment 26,151 20,185 Equity in joint venture 7,421 5,796
Goodwill and other intangible assets, net of amortization 17,380
18,102 Other operating assets, net of amortization 4,583 4,454
Other assets 1,133 1,424 ----- ----- TOTAL ASSETS $125,205 $118,690
======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current
Liabilities: Accounts payable $5,193 $981 Dividends payable 4,996
4,686 Deferred contract revenue 15,632 15,626 Other current
liabilities 11,054 12,931 ------ ------ Total current liabilities
36,875 34,224 Non-current Liabilities: Pension and postretirement
obligations 8,238 8,609 Deferred income taxes 4,608 4,622 Other
non-current liabilities 1,030 935 ----- --- Total non-current
liabilities 13,876 14,166 Minority interest in subsidiary 693 545
Stockholders' equity 73,761 69,755 ------ ------ TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $125,205 $118,690 ======== ========
DATASOURCE: Landauer, Inc. CONTACT: Jonathon M. Singer, Senior Vice
President, CFO of Landauer, Inc., +1-708-441-8311, Web Site:
http://www.landauerinc.com/
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