Record Revenues Benefit from Strong International Performance and InLight
GLENWOOD, Ill., Jan. 31 /PRNewswire-FirstCall/ -- Landauer, Inc. (NYSE:
LDR), a recognized leader in personal and environmental radiation
monitoring, today reported record performance in its first fiscal quarter
ended December 31, 2007.
First Quarter Fiscal 2008 Highlights
-- Revenue reached a record $21.8 million on higher international revenues
in several regions and sales of InLight equipment.
-- Gross Margin increased $1.5 million, or 12 percent, on increased
revenue and continued cost management.
-- Operating cash flow expanded 12 percent to $8.5 million.
-- Net income grew 9 percent to $5.3 million, or $0.57 per diluted share.
-- Formed new joint venture with leading provider of dosimetry services in
Mexico effective January 1, 2008.
"Our strong financial performance, which includes another quarter of record revenues, is a direct reflection of executing on our key strategic initiatives: Optimizing our core business, driving competitive growth, and pursuing strategic expansion," explained Bill Saxelby, President and Chief Executive Officer of Landauer. "Our top-line growth was positively impacted by our objective to expand internationally through the InLight product platform. Continued strong revenue contribution from our international subsidiaries and the addition of our new venture in Mexico are key indicators of continued progress against this priority."
Saxelby added, "While our efforts regarding the global expansion of InLight has been one successful tactic in our strategic plan, our long term success reflects continued progress across all of our strategic initiatives. We believe our revenue and earnings growth are attributable to these efforts as well as the favorable industry environment in which we operate. Despite challenges in the overall economy, our major customer base is less exposed to the economic headwinds than many industries. As a result of our investments in an experienced management team, cutting edge technology, and a streamlined and efficient infrastructure, we believe Landauer is well positioned to capitalize on the growth opportunities offered by the continuing awareness of the risk of radiation exposure. As we move forward in fiscal 2008, we intend to build upon the momentum that we have generated while leveraging all of Landauer's capabilities."
Quarterly Earnings Rise on Higher International Sales and Continued Cost
Revenues for the first three months of fiscal 2008 were $21.8 million, an 8 percent increase compared with the $20.2 million at this time last year. Domestic revenue rose nearly 4 percent or $573,000 for the quarter, attributable primarily to InLight equipment sales. International revenue was up 24 percent, or $1.1 million, led by growth in most regions, strong InLight service and equipment growth and the impact of favorable currency translation.
Cost of sales increased 2 percent from the same quarter last year while the gross margin expanded to 67 percent from 65 percent in the year ago period. Selling, general and administrative expenses for the first quarter grew 14 percent, or $831,000. Of the increase, $384,000 was driven by spending to reengineer business processes and to replace the company's IT systems that support customer relationship management and the order-to-cash cycle. Other 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 9 percent to $5.3 million, compared with $4.9 million a year ago. Earnings per diluted share for the three months were $0.57 versus $0.53 in fiscal 2007.
Continued Strong Financial Position
Total assets at December 31, 2007, were $100 million, up 6 percent from the prior-year period, including $24.8 million in working capital and $23.8 million in cash. At December 31, 2007, Landauer was debt free. The company's cash provided by operating activities increased 12 percent to $8.5 million for the latest three months.
Saxelby also commented on recent developments within the company. "We continue to make progress towards the completion of our systems initiative, which upon implementation later this fiscal year will significantly upgrade our IT and front-end systems infrastructure. During the quarter, Landauer also recorded several significant InLight equipment sales into the nuclear market and China, which are one-time revenue contributions that were already incorporated in our guidance. While we enjoy a secure position within the core business of dosimetry services, we are always seeking potential areas in which we could leverage our business offerings and will continue to evaluate peripheral markets in which we could apply our service offerings."
Landauer's business plan for fiscal 2008 currently anticipates aggregate revenue growth for the year to be in the range of 4 - 5 percent. The company anticipates a net income increase in the range of 6 - 8 percent excluding the impact of the 2007 asset impairment and accelerated depreciation charges.
Conference Call Details
Landauer's first quarter conference call for investors is scheduled for Thursday, January 31, at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time). To participate, callers should dial 800-366-7449 (within the United States or Canada), or 303-262-2130 (international callers) 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 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 and other countries.
Safe Harbor Statement
Some of the information shared here (including, in particular, the
section titled "2008 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 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
First Quarter Fiscal 2008 Financial Highlights
(unaudited; amounts in thousands, except per share data)
Three months ended
Net revenues $21,809 $20,160
Costs and Expenses:
Cost of sales 7,201 7,091
Selling, general and administrative 6,600 5,769
Accelerated depreciation charges 188 -
Operating income 7,820 7,300
Other income -- net 704 545
Income before income taxes and minority interest 8,524 7,845
Income taxes 3,179 2,930
Income before minority interest 5,345 4,915
Minority interest 69 56
Net income $5,276 $4,859
Net Income per Common Share:
Basic $0.58 $0.53
Weighted average shares outstanding 9,160 9,113
Diluted $0.57 $0.53
Weighted average shares outstanding 9,227 9,195
Summary Consolidated Balance Sheets
(unaudited, amounts in thousands)
December 31, September 30,
Cash and cash equivalents $23,764 $21,069
Receivables, net of allowances 21,686 19,750
Other current assets 7,861 9,686
Total current assets 53,311 50,505
Net property, plant and equipment 17,037 16,654
Equity in joint venture 4,619 4,978
Goodwill and other intangible assets, net of
amortization 18,205 18,327
Dosimetry devices, net of amortization 5,036 5,345
Other assets 1,267 1,198
Deferred income taxes 544 333
TOTAL ASSETS $100,019 $97,340
LIABILITIES AND STOCKHOLDERS'
Accounts payable $1,851 $1,682
Dividends payable 4,612 4,375
Deferred contract revenue 14,484 13,832
Other current liabilities 7,606 8,078
Total current liabilities 28,553 27,967
Pension and postretirement obligations 9,918 9,575
Other non-current liabilities 792 -
Total non-current liabilities 10,710 9,575
Minority interest in subsidiary 198 288
Stockholders' equity 60,558 59,510
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $100,019 $97,340
|SOURCE Landauer, Inc.|
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