Improvements Driven by International Growth and InLight Product Sales
GLENWOOD, Ill., April 29 /PRNewswire-FirstCall/ -- Landauer, Inc.
(NYSE: LDR), a recognized leader in personal and environmental radiation
monitoring, today reported that its performance set new records for revenue
and net income for the three and six months ended March 31, 2008.
Second Quarter 2008 Highlights
-- Revenue reached a record $23.7 million on InLight equipment sales and
higher international sales, driven by higher volume in most regions,
favorable exchange rates and a new venture in Mexico.
-- Increased volume and continued cost management contributed to a
$1.7 million, or 12 percent, increase in gross profit over the prior
-- Operating cash flow increased 45 percent to $15.2 million.
-- Net income grew 8 percent to $6.4 million, or $0.69 per diluted share.
-- Signed agreement with Health Canada to provide InLight products in
2008, to support Canada's Emergency Response Strategy.
"We are pleased to report another quarter of record revenue and strong earnings growth. Our continued strong performance in the current economic environment confirms the stability of our business model," stated Bill Saxelby, President and CEO of Landauer. "Our solid results are directly attributable to executing on our strategic priorities of optimizing the core business, driving competitive growth, and pursuing strategic expansion. We have managed our resources to ensure progress against all of our strategic priorities, and the success of this balanced approach is reflected in our financial performance and strong cash flows."
Saxelby continued, "Our focus on international expansion remains strong, as the InLight product platform continues to be adopted around the globe. The second quarter saw us close the single largest order in Landauer's history, as we signed a $2 million agreement to provide our InLight dosimetry equipment to the National Dosimetry Services of Health Canada to support Canada's nationwide Emergency Response Strategy. Landauer has delivered approximately $750,000 of finished products in the fiscal quarter ended March 31, 2008 under the contract. We believe the recent ventures in Australia and Mexico and product sales into Italy, and now Canada, affirm the superiority of InLight's OSL technology."
InLight Equipment and International Expansion Fuels Revenues, Earnings for Quarter, Six Months
Revenues for the second quarter of fiscal 2008 were $23.7 million, a 10 percent increase compared with $21.6 million at this time last year. Domestic revenue rose 5 percent or $939,000 for the quarter, due primarily to InLight equipment sales. International revenue increased 26 percent, or $1.2 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 percent from 67 percent in the year ago period. Selling, general and administrative expenses for the second fiscal quarter grew 13 percent, or $709,000. Factors contributing to the increase included international spending to support growth, the impact of foreign exchange, higher salary and benefits related to staff additions, and investments in sales and marketing resources.
Net income for the most recent quarter grew 8 percent to $6.4 million, compared with $5.9 million a year ago. Earnings per diluted share for the three months were $0.69 versus $0.65 in 2007.
For the six months ended on March 31, 2008, revenues increased 9 percent to $45.6 million versus $41.8 million at this time last year, also reflecting higher international sales and domestic InLight equipment volume. The gross profit margin improved to 68 percent versus 66 percent from last year's six-month period ended March 31, 2007. Costs and expenses for the first half of fiscal 2008 increased $2.4 million or 9 percent primarily due to the factors cited for the quarter ended March 31, 2008. Year-to-date net income was $11.7 million, up 8 percent from $10.8 million. Earnings per diluted share were $1.27 compared with $1.18 for the same period last year.
Financial Position Remains Strong
Total assets at March 31, 2008, were $106 million, up 9 percent from the prior year end, including $29.1 million in working capital and $27.0 million in cash. Landauer was debt free at quarter end. Cash provided by operating activities increased 45 percent, to $15.2 million, for the first half of the year as compared to the six months ended March 31, 2007.
Outlook for the Second Half
Saxelby concluded, "As the leading provider of dosimetry services, we believe that the flexibility of our business model lends itself to increasing revenue both domestically and internationally as we serve the growing awareness of the risks of global radiation exposure. Past investments in fostering a culture of productivity improvements and strengthening our core infrastructure have contributed to our positive performance, as we continue to make progress towards the completion of our systems initiative and accelerate sales growth. We will continue to work hard to secure our market leading position while also continuing to evaluate potential growth opportunities in which we can leverage our business offerings."
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 the performance in the first half of the fiscal year, the Company anticipates performance in the upper end of the planned ranges for revenue and net income.
Conference Call Details
Landauer's second quarter conference call for investors is scheduled for Tuesday, April 29th, at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time). To participate, callers should dial 800-240-2134 about 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.
Landauer is the world's leading provider of technical and analytical services and products 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
section titled "Outlook for the Second Half") 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 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 Six months ended
March 31, March 31,
2008 2007 2008 2007
Net revenues $23,743 $21,633 $45,552 $41,793
Costs and expenses:
Cost of sales 7,515 7,130 14,716 14,221
Selling, general and
administrative 6,259 5,550 12,859 11,319
charges 188 - 376 -
13,962 12,680 27,951 25,540
Operating income 9,781 8,953 17,601 16,253
Other income, net 581 507 1,285 1,052
Income before taxes and
minority interest 10,362 9,460 18,886 17,305
Income taxes 3,866 3,529 7,045 6,459
Income before minority interest 6,496 5,931 11,841 10,846
Minority interest 66 (9) 135 47
Net income $6,430 $5,940 $11,706 $10,799
Net income per common share:
Basic $0.70 $0.65 $1.27 $1.19
Weighted average shares
outstanding 9,209 9,116 9,184 9,103
Diluted $0.69 $0.65 $1.27 $1.18
Weighted average shares
outstanding 9,268 9,184 9,247 9,180
Summary Consolidated Balance Sheets
(unaudited; amounts in thousands)
March 31, September 30,
Cash and cash equivalents $27,044 $21,069
Receivables, net of allowances 23,362 19,750
Other current assets 8,059 9,686
Total current assets 58,465 50,505
Net property, plant and equipment 16,885 16,654
Equity in joint venture 5,536 4,978
Goodwill and other intangible assets, net of
amortization 18,425 18,327
Dosimetry devices, net of amortization 4,837 5,345
Deferred income taxes 501 333
Other assets 1,397 1,198
TOTAL ASSETS $106,046 $97,340
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $2,277 $1,682
Dividends payable 4,643 4,375
Deferred contract revenue 15,310 13,832
Other current liabilities 7,164 8,078
Total current liabilities 29,394 27,967
Pension and postretirement obligations 10,118 9,575
Other non-current liabilities 544 -
Total non-current liabilities 10,662 9,575
Minority interest in subsidiary 388 288
Stockholders' equity 65,602 59,510
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $106,046 $97,340
|SOURCE Landauer, Inc.|
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