Attached files
EXHIBIT 99.1
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News Release
LANDAUER
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LANDAUER, INC. REPORTS
FISCAL 2010 FOURTH QUARTER AND FULL YEAR RESULTS
Revenue Growth Driven by Acquisitions
Continued Execution of Strategic Priorities
For Further Information Contact:
Jonathon M. Singer
Senior Vice President, CFO
708-441-8311
jsinger@landauerinc.com
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GLENWOOD, ILL. -- DECEMBER 7, 2010 -- 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, 2010.
FISCAL 2010 HIGHLIGHTS
. Revenue grew 22 percent to a record of $114.4 million on contribution
from acquired companies and InLight product revenue.
. Gross profit grew 11 percent to $69.9 million on increased sales and
revenue mix.
. Operating income increased 7 percent to $34.6 million.
. Net income rose 1 percent to $23.7 million, or $2.52 per diluted
share.
. Dividend increased $0.05 to $2.20 per share for fiscal 2011.
. Acquisition of Global Physics Solutions, Inc. completed as a platform
to expand into the medical physics services market.
"During fiscal 2010 we made significant progress in expanding the scope of
our core business." stated Bill Saxelby, President and CEO of Landauer.
"Through our acquisitions in the medical physics market we have expanded
our services to support the safe utilization of radiation in the healthcare
setting. The market acceptance has been excellent. We see strong interest
in a service offering that incorporates elements of medical physics,
patient monitoring and our occupational monitoring competencies. In
addition, we have successfully developed radiation monitoring equipment
that is targeted at the unique needs of the U.S. military and first
responder markets and are optimistic we will see continued sales into these
markets in fiscal 2011."
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Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586
Telephone: 708.755.7000 Fax: 708.755.7011 landauerinc.com
LANDAUER, INC.
ADD 1
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 our strategic priorities of
optimizing the core business, driving competitive growth, and pursuing
strategic expansion. In fiscal 2011 we will continue to enhance our
products and service offerings, as well as increase our operating
efficiency. In addition, we continue to demonstrate our commitment to
returning value to shareholders through our dividend program, which we
increased again in fiscal 2011 by $0.05 to $2.20 per share."
REVENUE GROWTH DRIVEN BY ACQUISITIONS
Revenues for fiscal 2010 were $114.4 million, a 22 percent increase
compared with the $93.8 million reported for fiscal 2009. Domestic revenue
increased 21 percent, or $14.3 million, on contribution from the Medical
Physics segment of $14.0 million. International revenue increased 26
percent, or $6.2 million, due to contribution of acquired companies of $4.3
million, organic growth of $1.1 million and the strengthening of most
foreign currencies against the dollar of $0.8 million.
Cost of sales for fiscal 2010 was $44.5 million, a 45 percent increase
compared with the $30.8 million reported for fiscal 2009. The primary
factor contributing to the increase was $12.6 million of increased cost
from acquired companies. The gross margin declined to 61 percent from 67
percent in the year ago period, primarily due to the expected lower margin
contribution of the Medical Physics segment. Selling, general and
administrative costs for fiscal 2010 were $33.2 million, a 19 percent
increase compared with the $27.9 million reported for fiscal 2009. The
primary factor contributing to the increase was approximately $5.9 million
of increased spending from acquired companies.
In conjunction with the fiscal 2010 acquisition activity, the Company
incurred $2.0 million ($1.6 million after-tax) of acquisition and
reorganization costs. During 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 resulting in $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 fiscal 2009.
Other income for fiscal 2010 was $1.4 million, a 37 percent decline
compared with $2.2 million for fiscal 2009. The decline is primarily due
to increased interest expense on debt incurred to support the Company's
acquisition activity. The effective tax rate for fiscal 2010 increased to
33 percent compared with 32 percent for fiscal 2009.
Net income for the fiscal year ended September 30, 2010 was $23.7 million,
an increase of 1 percent compared with $23.4 million for fiscal 2009. This
resulted in diluted earnings per share for the current year of $2.52
compared with $2.49 reported a year ago. Excluding the effect of
acquisition and reorganization costs, net income for fiscal 2010 was $25.3
million, or $2.69 per diluted share. 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.
Adjusted earnings before interest, taxes, depreciation and amortization
("EBITDA") for fiscal 2010 were $44.4 million, a 5 percent increase
compared with $42.3 million reported for fiscal 2009. A reconciliation of
net income to adjusted EBITDA is included in the attached financial
exhibits.
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LANDAUER, INC.
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FOURTH QUARTER PERFORMANCE
For the quarter ended September 30, 2010, revenues increased 27 percent to
$29.1 million compared with $23.0 million a year ago. Gross margin for the
fiscal fourth quarter increased 8 percent to $16.8 million compared with
$15.6 million a year ago. The gross margin was 58 percent compared with 68
percent for the fourth fiscal quarter of 2009. Selling, general and
administrative expenses for the quarter increased 10 percent to $8.9
million. The increase was driven primarily by $2.1 million of increased
spending from acquired companies. Earnings per diluted share for the
quarter were $0.48 and $0.56 in fiscal 2010 and 2009, respectively. Net
income for the latest quarter was $4.6 million compared with $5.3 million
in fiscal 2009. Adjusted EBITDA increased 7 percent to $9.9 million
compared with $9.2 million a year ago. A reconciliation of net income to
adjusted EBITDA is included in the attached financial exhibits.
SOLID FINANCIAL POSITION
Landauer ended the year with total assets of $150.7 million, cash of $7.7
million and negative working capital of $3.4 million, due to the
classification, as a current liability, of $12.5 million in outstanding
borrowings. These borrowings relate to $18.0 million in debt incurred to
support the acquisitions completed during fiscal 2010. This initial amount
has been reduced by $5.5 million with cash flow from operations. Cash
provided by operating activities was $26.3 million, a decline of 13 percent
from fiscal 2009. The decline is due primarily to an increase in prepaid
income taxes and a decline in deferred contract revenue offset by the
reduction in funding in long-term pension and postretirement obligations.
On November 12, 2010, the Company amended its current credit agreement to
increase the funds available under the agreement from $30.0 million to
$50.0 million and extend the maturity date to October 31, 2013, to support
the continued execution of our Medical Physics growth strategy.
2011 OUTLOOK
Saxelby explained, "We believe that the progress we have made in expanding
our service offering and continued execution on our strategic initiatives
positions us well to deliver market-leading performance and increased
shareholder value. However, healthcare economic challenges and related
pricing pressure impacted our core occupational monitoring business in
fiscal 2010 and we anticipate the trend to continue to impact the Company
in fiscal 2011."
Landauer's business plan for fiscal 2011 anticipates currently aggregate
revenue for the year to be in the range of $120 to $126 million, including
$4 to $8 million in sales to the U.S military and first responder markets.
Military and first responder market sales are dependent on military and
other governmental appropriations and approvals which have yet to be
obtained. The business plan anticipates spending of $10 to $12 million,
with $2 to $3 million of expense spending to support the successful
completion of the Company's systems initiative and the related post
implementation support. Based upon the above assumptions, the Company
anticipates reported net income for fiscal 2011 in the range of $24 to $26
million.
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LANDAUER, INC.
ADD 3
CONFERENCE CALL DETAILS
Landauer has scheduled its fourth quarter and year-end conference call for
investors on Tuesday, December 7, 2010 at 2:00 p.m. Eastern Time. To
participate, callers should dial 877-941-2928 (within the United States and
Canada), or 480-629-9726 (international) 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), passcode 4386030#,
which will be available through Thursday, December 30, 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 globally. In
addition, through its Global Physics Solutions subsidiary, the Company
provides therapeutic and imaging physics services to the medical physics
community.
SAFE HARBOR STATEMENT
Some of the information shared here (including, in particular, the section
titled "2011 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; 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; 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 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
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LANDAUER, INC.
ADD 4
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
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LANDAUER, INC.
ADD 5
FOURTH QUARTER FISCAL 2010 FINANCIAL HIGHLIGHTS
(unaudited, amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
------------------- -------------------
September 30, September 30,
2010 2009 2010 2009
-------- -------- -------- --------
Net revenues . . . . . . . . $ 29,072 $ 22,967 $114,367 $ 93,827
Costs and expenses:
Cost of sales. . . . . . 12,315 7,373 44,478 30,766
Selling, general and
administrative . . . . 8,927 8,098 33,224 27,891
Net defined benefit
plan curtailment loss
and transition costs . - - - 2,236
Acquisition and
reorganization costs . 345 (73) 2,028 416
-------- -------- -------- --------
21,587 15,398 79,730 61,309
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Operating income . . . . . . 7,485 7,569 34,637 32,518
Other income, net. . . . . . 298 471 1,396 2,199
-------- -------- -------- --------
Income before taxes. . . . . 7,783 8,040 36,033 34,717
Income taxes . . . . . . . . 3,087 2,718 11,893 11,071
-------- -------- -------- --------
Net income . . . . . . . . . 4,696 5,322 24,140 23,646
Less: Net income attri-
buted to noncontrolling
interest . . . . . . . . . 140 72 466 280
-------- -------- -------- --------
Net income attributed to
Landauer, Inc. . . . . . . $ 4,556 $ 5,250 $ 23,674 $ 23,366
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Net income per share
attributable to Landauer,
Inc. shareholders:
Basic. . . . . . . . . $ 0.49 $ 0.56 $ 2.53 $ 2.51
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Weighted average
basic shares
outstanding. . . . . 9,331 9,318 9,310 9,293
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Diluted. . . . . . . . $ 0.48 $ 0.56 $ 2.52 $ 2.49
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Weighted average
diluted shares
outstanding. . . . . 9,371 9,394 9,349 9,366
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LANDAUER, INC.
ADD 6
RECONCILIATION OF NET INCOME TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(unaudited, amounts in thousands)
Three Months Ended Twelve Months Ended
------------------- -------------------
September 30, September 30,
2010 2009 2010 2009
-------- -------- -------- --------
Net income attributed to
Landauer, Inc. . . . . . . $ 4,556 $ 5,250 $ 23,674 $ 23,366
Add back:
Interest and other
(income) expense . . . (21) (178) 105 (624)
Income taxes . . . . . . 3,087 2,718 11,893 11,071
Depreciation and
amortization . . . . . 1,946 1,509 6,681 5,845
-------- -------- -------- --------
Earnings before interest,
taxes, depreciation
and amortization . . . . . 9,568 9,299 42,353 39,658
-------- -------- -------- --------
Adjustments:
Net defined benefit plan
curtailment loss and
transition costs . . . . - - - 2,236
Acquisition and reorgani-
zation costs . . . . . . 345 (73) 2,028 416
-------- -------- -------- --------
Adjusted earnings before
interest, taxes, deprecia-
tion and amortization. . . $ 9,913 $ 9,226 $ 44,381 $ 42,310
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USE OF NON-GAAP FINANCIAL MEASURES
In evaluating the Company's financial performance and outlook, management
uses adjusted EBITDA. Adjusted earnings before interest, taxes,
depreciation and amortization is a non-GAAP measure. Management believes
that such measure supplements evaluations using operating income, net
income, and diluted earnings per share and other GAAP measures, and is a
useful indicator for investors. This indicator can help readers gain a
meaningful understanding of our core operating results and future prospects
without the effect of non-cash or other one-time items and the Company's
ability to generate cash flows from operations that are available for
taxes, capital expenditures, and debt repayment. Investors should recognize
that these non-GAAP measures might not be comparable to similarly titled
measures of other companies. These measures should be considered in
addition to, and not as a substitute for or superior to, any measure of
performance, cash flows or liquidity prepared in accordance with accounting
principles generally accepted in the United States.
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LANDAUER, INC.
ADD 7
SUMMARY CONSOLIDATED BALANCE SHEETS
(unaudited, amounts in thousands)
September 30, September 30,
2010 2009
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ASSETS
Current Assets:
Cash and cash equivalents. . . . . . . $ 7,659 $ 36,493
Receivables, net of allowances . . . . 23,702 20,663
Other current assets . . . . . . . . . 14,796 11,381
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Total current assets . . . . . . . . . . . 46,157 68,537
Net property, plant and equipment. . . . . 39,815 26,151
Equity in joint venture. . . . . . . . . . 8,446 7,421
Goodwill and other intangible assets,
net of amortization. . . . . . . . . . . 49,270 17,380
Dosimetry devices, net of amortization . . 5,579 4,583
Other assets . . . . . . . . . . . . . . . 1,429 1,133
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TOTAL ASSETS . . . . . . . . . . . . . . . $150,696 $125,205
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable . . . . . . . . . . . $ 7,180 $ 5,193
Dividends payable. . . . . . . . . . . 5,143 4,996
Deferred contract revenue. . . . . . . 14,305 15,632
Short-term debt. . . . . . . . . . . . 12,504 -
Other current liabilities. . . . . . . 10,420 11,054
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Total current liabilities. . . . . . . . . 49,552 36,875
Non-current liabilities:
Pension and postretirement
obligations. . . . . . . . . . . . . 10,089 8,238
Deferred income taxes. . . . . . . . . 9,934 4,608
Other non-current liabilities. . . . . 1,418 1,030
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Total non-current liabilities. . . . . . . 21,441 13,876
Landauer, Inc. stockholders' equity. . . . 78,790 73,761
Noncontrolling interest. . . . . . . . . . 913 693
-------- --------
Total equity . . . . . . . . . . . . . . . 79,703 74,454
-------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY . . . . . . . . . . $150,696 $125,205
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