-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S2ShrPqodXx7+QuTmYhJKmcD3dwxpf1oCwlj8hhOqNAu9ncejFd8432feP7lh/2U QfYaNcarQgNwnveSa8fHxQ== 0000825410-96-000008.txt : 19960813 0000825410-96-000008.hdr.sgml : 19960813 ACCESSION NUMBER: 0000825410-96-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960812 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: LANDAUER INC CENTRAL INDEX KEY: 0000825410 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-TESTING LABORATORIES [8734] IRS NUMBER: 061218089 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09788 FILM NUMBER: 96608030 BUSINESS ADDRESS: STREET 1: TWO SCIENCE RD CITY: GLENWOOD STATE: IL ZIP: 60425 BUSINESS PHONE: 7087557000 MAIL ADDRESS: STREET 1: 2 SCIENCE ROAD CITY: GLENWOOD STATE: IL ZIP: 60425 FORMER COMPANY: FORMER CONFORMED NAME: TECH OPS LANDAUER INC DATE OF NAME CHANGE: 19910521 10-Q 1 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q /X/ QUARTERLY REPORT pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 1996 or _____________ / / TRANSITION REPORT pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition from to Commission File Number 1-9788 ______ LANDAUER, INC. -------------------------- (Exact name of registrant as specified in its charter) Delaware 06-1218089 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 2 Science Road, Glenwood, Illinois 60425 ------------------------------------------ (Address of principal executive offices and Zip Code) Registrant's telephone number, including area code (708) 755-7000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No . ___ ____ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at August 9, 1996 --------------------------- ---------------------------- Common stock, $.10 par value 8,477,285 PART I. FINANCIAL INFORMATION LANDAUER, INC. Balance Sheets (000's) ASSETS ______
June 30, Sept. 30, 1996 1995 ----------- ---------- derived from (unaudited)(audited statements) Current assets: Cash and cash equivalents $ 2,711 $ 1,915 Short-term investments 6,426 6,456 Accounts receivable less allowances of $151,000 at 6/30/96 and $151,000 at 9/30/95 8,115 6,972 Inventories 1,000 955 Prepaid expenses 80 280 Deferred taxes on income 746 746 -------- -------- Total current assets 19,078 17,324 Property, plant and equipment, 17,785 16,858 at cost Less: Accumulated depreciation and amortization 10,115 9,104 -------- -------- Net property, plant and equipment 7,670 7,754 Investment in U.S. Treasury Securities 3,934 3,978 Cost of purchased businesses in excess of net assets acquired 2,821 2,946 Equity in Japanese joint venture 3,893 4,104 Other assets 2,480 2,643 -------- -------- $ 39,876 $ 38,749 ======== ========
The accompanying notes are an integral part of these financial statements. LANDAUER, INC. Balance Sheets (Cont'd.) (000's) LIABILITIES AND STOCKHOLDERS' INVESTMENT ________________________________________
June 30, Sept. 30, 1996 1995 --------- --------- derived from (unaudited)(audited statements) Current liabilities: Accounts payable $ 320 $ 638 Deferred contract revenue 8,270 7,599 Dividend payable 2,331 2,119 Accrued compensation and related costs 1,195 1,098 Accrued pension costs 1,191 704 Accrued expenses 1,664 1,219 Accrued taxes on income 573 1,587 ------- -------- Total current liabilities 15,544 14,964 ------- -------- Stockholders' investment: Preferred stock, $.10 par value per share - Authorized - 1,000,000 shares Outstanding - None -- -- Common stock, $.10 par value per share - Authorized - 20,000,000 shares Outstanding - 8,477,285 shares 848 848 Premium paid in on common stock 7,620 7,561 Cumulative translation adjustments 283 819 Retained earnings 15,581 14,557 -------- -------- Total stockholders' investment 24,332 23,785 -------- -------- $ 39,876 $ 38,749 ======== ========
The accompanying notes are an integral part of these financial statements. LANDAUER, INC. Statements of Income (000's, except per share amounts) (Unaudited)
Three Months Ended Nine Months Ended ----------------------- ------------------ June 30, June 30, June 30, June 30, 1996 1995 1996 1995 -------- ------ ------ ------- Net revenues $ 9,010 $ 8,567 $ 27,188 $ 25,253 Costs and expenses: Cost of revenues 2,739 2,508 8,155 7,426 Selling, general and administrative 2,450 2,451 7,389 7,049 ------ ------ ------ ------ 5,189 4,959 15,544 14,475 ------ ------ ------ ------ Operating income 3,821 3,608 11,644 10,778 Other income, net 372 350 1,175 992 ------ ------ ------ ------ Income before income taxes 4,193 3,958 12,819 11,770 Income tax provision 1,584 1,471 4,802 4,388 ------ ------ ------- ------- Net income $ 2,609 $ 2,487 $ 8,017 $ 7,382 ======== ======== ======== ======== Net income per share $ .31 $ .29 $ .95 $ .87 ======== ======== ======== ======== Average shares outstanding 8,477 8,477 8,477 8,477 ======== ======== ======== ========
The accompanying notes are an integral part of these financial statements. LANDAUER, INC. Statements of Cash Flows (000's) (Unaudited)
Nine Months Ended ------------------ June 30, June 30, 1996 1995 ------- ------- Net cash flow from operating activities: Net income $ 8,017 $ 7,382 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 1,865 1,760 Equity in net income of foreign affiliate (705) (592) Compensatory effect of stock options 59 (285) Decrease in deferred income taxes -- (2) Increase in accounts receivable (1,150) (722) Increase in inventories (45) (122) Decrease (increase) in prepaid expenses 200 (42) Increase (decrease) in accounts payable (318) 162 Increase in deferred contract revenue 671 834 Increase in accrued expenses 15 197 Net increase in other non-current assets (418) (759) ------- ------- Net cash generated from operating activities 8,191 7,811 Cash flow from investing activities: Purchases of U.S. Treasury Securities (7,350) (2,927) Maturities of U.S. Treasury Securities 7,424 3,528 Acquisition of property, plant, and equipment (1,074) (1,859) ------- -------- Net cash used by investing activities (1,000) (1,258) Cash flow from financing activities: Dividend received from foreign affiliate 386 350 Dividends paid (6,781) (6,103) -------- -------- Net cash used by financing activities (6,395) (5,753) -------- -------- Net increase in cash 796 800 Opening balance - cash and cash equivalents 1,915 2,178 -------- -------- Ending balance - cash and cash equivalents $ 2,711 $ 2,978 ======== ======== Supplemental Disclosure of Cash Flow Information: Cash paid for income taxes $ 5,815 $ 4,338 ======== ======== Supplemental Disclosure of Non-cash Financing Activity: Dividend declared $ 2,331 $ 2,119 ======== ======== Foreign currency translation adjustment $ (536) $ 0 ======== ========
The accompanying notes are an integral part of these financial statements. LANDAUER, INC. Notes to Financial Statements - June 30, 1996 (Unaudited) (1) Basis of Presentation _____________________ The accompanying unaudited condensed financial statements reflect the financial position of Landauer, Inc. ("Landauer") as of June 30, 1996 and September 30, 1995, and the results of operations and cash flows for the three-month and nine-month periods ended June 30, 1996 and 1995. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments necessary to present fairly the financial position of Landauer as of June 30, 1996 and September 30, 1995, and the results of operations for the three-month and nine-month periods ended June 30, 1996 and 1995, and cash flows for the nine-month periods ended June 30, 1996 and 1995. The accounting policies followed by the Company are set forth in Note 1 to the Company's financial statements in the 1995 Landauer Annual Report on Form 10-K, which is incorporated by reference. The results of operations for the three-month and nine-month periods ended June 30, 1996 and 1995 are not necessarily indicative of the results to be expected for the full year. (2) Cash Dividends ______________ On June 12, 1996, the Company declared a regular quarterly cash dividend in the amount of $.275 per share payable on July 11, 1996, to stockholders of record on June 27, 1996. On March 13, 1996, the Company declared a regular quarterly cash dividend in the amount of $.275 per share payable on April 11, 1996, to stockholders of record on March 28, 1996. On November 9, 1995, the Company declared a regular quarterly cash dividend in the amount of $.275 per share payable on January 11, 1996, to stockholders of record on December 29, 1995. Regular quarterly cash dividends of $.25 per share ($1.00 annually) were declared during fiscal 1995. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources _______________________________ Landauer's cash flow from operating activities for the nine months ended June 30, 1996 and 1995 amounted to $8,191,000 and $7,811,000, respectively. Investing activities for the first nine months of fiscal 1996 and 1995 resulted in net dispositions of U.S. Treasury securities of $74,000 and $601,000, respectively. Offsetting these were acquisitions of property, plant and equipment in the amount of $1,074,000 and $1,859,000, respectively. The Company's financing activities were limited to payments of cash dividends, offset by foreign dividends received from Nagase-Landauer, Ltd., our Japanese joint venture. LANDAUER, INC. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd.) The Company has no long-term liabilities and its requirement for cash flow to support investing activities is generally limited. Capital expenditures for the balance of fiscal 1996 are expected to amount to $1,000,000, principally for computer hardware, the development of software systems, and acquisition of equipment to support growth, technology enhancements and cost reductions. The Company anticipates that funds for these capital improvements will be provided from operations. The Company presently maintains no external sources of liquidity, and, in the opinion of management, resources are adequate for projected operations and capital spending programs, as well as continuation of the regular cash dividend program. Landauer requires limited working capital for its operations since many of its customers pay for services in advance. Such advance payments amounted to $8,270,000 and $7,599,000, respectively, as of June 30, 1996 and September 30, 1995, and are included in deferred contract revenue. While these amounts represent more than one-half of current liabilities, such amounts do not represent a cash requirement. Results of Operations _____________________ Revenues for the quarter ended June 30, 1996 were 5% higher compared with the same quarter a year ago. The increase in revenues was attributable to modest gains in the Company's traditional radiation dosimetry business and higher radon protection plan sales. Gross margins for the third fiscal quarter were 69.6% of the revenues compared to 70.7% for the same period in fiscal 1995. The increase in margins was primarily attributable to higher costs associated with radon protection plan revenues. Selling, general and administrative expenses were lower in the current quarter as a percent of revenues at 27.2% compared to 28.6% for the third quarter of fiscal 1995. As a result, operating income for the third fiscal quarter of 1996 was 42.4% of revenues compared to 42.1% for the same period last year. Income before income taxes was 46.5% of revenues for the quarter just ended compared to 46.2% for the third fiscal quarter of 1995. The effective tax rate for the Company during the third quarter of fiscal 1996 was slightly higher at 37.8% compared with 37.2% for the same period last year. Resulting net income of $2,609,000 for the third fiscal quarter of 1996 was 5% higher than $2,487,000 reported in fiscal 1995. Income per share for the quarter was $.31 versus $.29 for the third fiscal quarter of 1995. LANDAUER, INC. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd.) Revenues for the nine months ended June 30, 1996, were almost 8% higher compared with the first nine months of fiscal 1995. The increase in revenues was attributable to unit gains and higher pricing in the Company's traditional radiation dosimetry business, as well as higher radon protection plan sales. Gross margins for the first nine months of fiscal 1996 were lower at 70.0% of revenues compared with 70.6% a year ago. The decrease in gross margins was principally attributable to higher costs associated with the increased radon protection plan activity. Selling, general, and administrative expenses were lower for the first nine months of fiscal 1996 as a percent of revenues at 27.2% compared to 27.9% for the first nine months of fiscal 1995. The decrease reflected a modest growth rate in expenses relative to the level of business activity. As a result, operating income for the first nine months of fiscal 1996 was 42.8% of revenues compared to 42.7% for the same period last year. Income before income taxes was 47.1% of revenues for the nine months just ended, compared with 46.6% for the same period in fiscal 1995. The effective tax rate for the Company during the first nine months of fiscal 1996 was 37.5% compared with 37.3% for the first nine months of 1995. Resulting net income of $8,017,000 for the first nine months of 1996 was almost 9% higher than $7,382,000 reported in fiscal 1995. Income per share thus far in fiscal 1996 was $.95 versus $.87 for the same period in fiscal 1995. PART II.OTHER INFORMATION Item 2. Legal Proceedings _________________ Landauer is involved in various legal proceedings but believes that these matters will be resolved without a material effect on its financial position. Item 6. Exhibits and Reports on Form 8-K ________________________________ (a) No exhibits are filed with this report. (b) There were no reports on Form 8-K during the quarter for which this report is filed. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LANDAUER, INC. Date: August 9, 1996 /s/ James M. O Connell _______________________________ James M. O'Connell Vice President and Treasurer (Principal Financial and Accounting Officer) EX-27 2 ART. 5 FDS FOR 3RD QUARTER 10-Q
5 0000825410 LANDAUER, INC. 1,000 9-MOS SEP-30-1996 OCT-01-1995 JUN-30-1996 2,711 6,426 8,266 151 1,000 19,078 17,785 10,115 39,876 15,544 0 848 0 0 23,484 39,876 27,188 27,188 8,155 8,155 0 0 0 12,819 4,802 8,017 0 0 0 8,017 .95 .95
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