Higher Revenues Driven by International and InLight Equipment Revenues Growth GLENWOOD, Ill., July 29
GLENWOOD, Ill., July 29 /PRNewswire-FirstCall/ -- Landauer, Inc.
(NYSE: LDR), a recognized leader in personal and environmental radiation
monitoring, today reported its revenue and net income for the three and nine
months ended June 30, 2008.
Third Quarter 2008 Highlights
-- Revenue grew 6 percent over the prior year's quarter to $21.9 million
on continued strong demand for InLight products and increased
international sales.
-- Increased volume and continued operating leverage contributed to a $1.0
million, or 7 percent, increase in gross profit over the prior year.
-- Operating cash flow increased 27 percent to $24.3 million.
-- Net income grew to $5.8 million, or $0.62 per diluted share,
representing 9 percent growth over the 2007 third quarter earnings,
adjusted for a charge in the prior year.
"We are pleased to report solid revenue and earnings growth during the
quarter," stated Bill Saxelby, President and CEO of Landauer. "Our strong
financial performance during the quarter is a direct reflection of our
continued execution across our strategic priorities of optimizing the core
business, driving competitive growth, and pursuing strategic expansion. Going
forward, we will continue to focus on effectively managing our resources to
foster the appropriate level of progress and growth across each of these key
initiatives."
Saxelby continued, "As a leading driver behind Landauer's competitive
growth initiative, we continue to see strong demand for our InLight suite of
products. While the InLight platform has traditionally driven international
expansion, we have made progress during the quarter with sales of our InLight
products into the domestic medical market for patient monitoring applications
by hospitals and other segments of the medical community. We expect to see
continued acceptance of the InLight portfolio, both domestically and abroad,
as we leverage the superiority of our OSL technology against the need for
effective radiation monitoring worldwide."
International Expansion and InLight Fuel Revenues for the Three and Nine
Month Periods
Revenues for the third quarter of fiscal 2008 were $21.9 million, a 6
percent increase compared with $20.6 million at this time last year. Domestic
revenue rose 1 percent while international revenue increased 24 percent, or
$1.1 million, led by growth in most regions, strong InLight service and
equipment growth, the impact of favorable currency translation and the
addition of a new subsidiary in Mexico.
Cost of sales increased 5 percent from the same quarter last year, while
the gross margin expanded to 68.4 percent from 68 percent in the year ago
period. Selling, general and administrative expenses for the third quarter
increased 5 percent, or $307,000 versus the same quarter last year. Factors
contributing to the increase included international spending to support
growth, the impact of foreign exchange and higher salary and benefits related
to staff additions. These increases were partially offset by the reduction of
expense spending to re-engineer business processes and to replace the
company's IT systems that support customer relationship management and the
order-to-cash cycle.
As part of the IT initiative begun in fiscal 2007, management completed an
evaluation of the usefulness of investments made in legacy information
systems' hardware and software with a net book value of approximately $4.6
million. Of these assets, $3.5 million were determined to be either impaired
or subject to accelerated depreciation. This resulted in a fiscal 2007 third
quarter charge of $2.4 million ($1.4 million, after-tax), of which $2.2
million was for impaired assets.
Net income for the most recent quarter was $5.8 million, compared with
$3.9 million a year ago. Earnings per diluted share for the three months were
$0.62 versus $0.42 in 2007. Excluding the effect of the asset impairment and
accelerated depreciation charges, net income for the quarter in fiscal 2007
was $5.3 million, or $0.57 per diluted share.
For the nine months ended on June 30, 2008, revenues increased 8 percent
to $67.5 million versus $62.4 million at this time last year, reflecting
higher international sales and increases in InLight equipment placements. The
gross profit margin improved to 68 percent versus 67 percent for last year's
nine months. Selling, general and administrative expenses for the first nine
months of fiscal 2008 increased $1.8 million, or 11 percent, primarily due to
the factors discussed above. Year-to-date net income was $17.5 million, a 19
percent increase over prior year. Earnings per diluted share were $1.89
compared with $1.60 for the same period a year ago. Excluding the effect of
the asset impairment and accelerated depreciation charges, year-to-date net
income for fiscal 2007 was $16.1 million, or $1.75 per diluted share.
Financial Position Remains Strong
Total assets at June 30, 2008, were $112.2 million, up 15 percent from the
prior year, including $32.2 million in working capital and $32.1 million in
cash. Landauer had no outstanding debt as of June 30, 2008. Cash provided by
operating activities compared with the prior year increased 27 percent to
$24.3 million for the year-to-date. The increase is due primarily to the
increase in net income, dividends received from Nagase-Landauer, Ltd., and
contribution from the change in the components of working capital.
Outlook for the Fourth Quarter and Year
In conclusion, Saxelby stated, "Despite the turmoil in the broader
economy, we remain confident in our ability to manage our business model with
continued financial discipline while generating strong cash flows. Despite
increases in certain costs, such as postage and energy, our prudent control of
other expenses has allowed us to maintain an effective cost structure that is
benefiting us during these volatile times. Going forward, we remain confident
that the strength of our product offering, our market leading position in the
dosimetry service space, and our commitment to our shareholder's best
interests will drive the success of Landauer over the long-term."
Landauer's business plan for fiscal 2008 anticipated aggregate revenue
growth for the year to be in the range of 4 - 5 percent. The company also
planned a net income increase in the range of 6 - 8 percent excluding the
impact of the 2007 asset impairment and accelerated depreciation charges.
Based upon year to date performance, the Company anticipates fiscal 2008
performance in the upper end of the planned ranges for revenue and net income.
Conference Call Details
The company will host a conference call for investors today, Tuesday, July
29, at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time) to discuss the third
quarter results. To participate, please dial 800-366-7640 (within the United
States and Canada), or 303-262-2137 (international callers) approximately 10
minutes before the presentation. To listen to a webcast, please visit the
"Investors" page on the company's Web site at http://www.landauerinc.com at
least 15 minutes early to register, download and install any necessary audio
software. A replay of the call will remain available on the site for 90 days.
About Landauer
Landauer is the world's leading provider of technical and analytical
services to determine occupational and environmental radiation exposure. For
more than 50 years, the company has provided complete radiation dosimetry
services to hospitals, medical and dental offices, universities, national
laboratories, 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 services to 1.5 million people in the United States,
Japan, France, the United Kingdom, Brazil, Canada, China, Australia, Mexico
and other countries.
Safe Harbor Statement
Some of the information shared here (including, in particular, the
sections titled "Third Quarter 2008 Highlights" and "Outlook for the Fourth
Quarter and Year") 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, such as Luxel(R)+; the costs associated with the
company's research and business development efforts; the usefulness of older
technologies; the costs and effectiveness of 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 risks associated with
conducting business internationally; 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, 2007, and other reports filed by the
company from time to time with the Securities and Exchange Commission.
Financial Tables Follow
Summary Consolidated Income Statements
(unaudited, amounts in thousands, except per share data)
Three months ended Nine months ended
June 30, June 30,
20082007 2008 2007
Net Revenues $21,902 $20,589$67,454$62,382
Costs and expenses:
Cost of sales6,929 6,596 21,645 20,817
Selling, general and
administrative 6,471 6,164 19,330 17,483
Impairment and
accelerated
depreciation charges- 2,357376 2,357
13,400 15,117 41,351 40,657
Operating income 8,502 5,472 26,103 21,725
Other income, net 633 649 1,918 1,701
Income before income taxes
and minority interest 9,135 6,121 28,021 23,426
Income taxes 3,214 2,193 10,259 8,652
Income before minority interest 5,921 3,928 17,762 14,774
Minority interest therein 128 21263 68
Net income $5,793 $3,907$17,499$14,706
Net income per common share:
Basic$0.63 $0.43 $1.90 $1.61
Weighted average basic
shares outstanding 9,244 9,146 9,209 9,116
Diluted $0.62 $0.42 $1.89 $1.60
Weighted average
diluted shares
outstanding 9,307 9,208 9,273 9,186
Summary Consolidated Balance Sheets
(unaudited; amounts in thousands)
June 30, September 30,
20082007
ASSETS
Current assets:
Cash and cash equivalents $32,134 $21,069
Receivables, net of allowances 22,830 19,750
Other current assets 9,836 9,686
Total current assets 64,800 50,505
Net property, plant and equipment 16,812 16,654
Equity in joint venture5,602 4,978
Goodwill and other intangible assets, net of
amortization 18,359 18,327
Dosimetry devices, net of amortization 4,833 5,345
Deferred income taxes380 333
Other assets 1,411 1,198
TOTAL ASSETS$112,197 $97,340
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,727 $1,682
Dividends payable 4,670 4,375
Deferred contract revenue16,920 13,832
Other current liabilities 8,302 8,078
Total current liabilities 32,619 27,967
Non-current liabilities:
Pension and postretirement obligations 10,120 9,575
Other non-current liabilities 603 -
Total non-current liabilities 10,723 9,575
Minority interest in subsidiary 543 288
Stockholders' equity 68,312 59,510
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $112,197 $97,340
SOURCE Landauer, Inc.
