-----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, JRXkqij3sT7FY9El4lw5caJgKyvd/G1HNX88eRwPDOeREIEuLidS8t8dSo+gVeD+ iA3rWOnyFlhrR2nSL5eC4Q== 0000825410-98-000009.txt : 19980514 0000825410-98-000009.hdr.sgml : 19980514 ACCESSION NUMBER: 0000825410-98-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980513 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: SEC FILE NUMBER: 001-09788 FILM NUMBER: 98617863 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 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 March 31, 1998 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 May 12, 1998 --------------------------- ------------------------------- Common stock, $.10 par value 8,609,299 PART I. FINANCIAL INFORMATION LANDAUER, INC. Balance Sheets (000's) ASSETS - ----------- Mar. 31, Sept. 30, 1998 1997 -------- --------- (Derived from audited (Unaudited) statements) Current assets: Cash and cash equivalents $ 7,762 $ 1,860 Short-term investments 2,969 8,381 Accounts receivable, less allowances of $245,000 at 3/31/98 and $219,000 at 9/30/97 9,433 8,568 Inventories 1,271 1,108 Prepaid expenses 158 96 Deferred taxes on income 1,318 1,318 -------- -------- Total current assets 22,911 21,331 Property, plant and equipment, at cost 21,589 19,412 Less: Accumulated depreciation and amortization 12,579 11,681 -------- -------- Net property, plant and equipment 9,010 7,731 Investment in U.S. Treasury Securities 3,986 4,969 Cost of purchased businesses in excess of net assets acquired 2,529 2,612 Equity in Japanese joint venture 3,830 4,133 Other assets 2,905 2,959 -------- -------- $ 45,171 $ 43,735 ======== ======== The accompanying notes are an integral part of these financial statements. LANDAUER, INC. Balance Sheets (Cont'd.) (000's) LIABILITIES AND STOCKHOLDERS' INVESTMENT - ----------------------------------------- Mar. 31, Sept. 30, 1998 1997 -------- --------- (Derived from audited (Unaudited) statements) Current liabilities: Accounts payable $ 909 $ 573 Deferred contract revenue 8,812 8,710 Dividend payable 2,798 2,551 Accrued compensation and related costs 1,331 1,534 Accrued pension costs 795 627 Accrued taxes on income 1,064 832 Accrued expenses 1,853 2,288 ---------- ---------- Total current liabilities 17,562 17,115 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 - 8,609,299 shares at 3-31-98 and 8,504,091 shares at 9-30-97 861 850 Premium paid in on common stock 8,422 7,860 Cumulative translation adjustments (396) (59) Retained earnings 18,722 17,969 ---------- ---------- Total stockholders' investment 27,609 26,620 ---------- ---------- $ 45,171 $ 43,735 ========== ========== 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 Six Months Ended --------------------- ------------------- Mar. 31, Mar. 31, Mar. 31 Mar. 31 1998 1997 1998 1997 -------- -------- ------- ------- Net Revenues $ 10,965 $ 10,441 $ 21,293 $ 19,588 Cost and expenses: Cost of revenues 3,173 3,003 6,467 5,896 Selling, general and administrative 2,973 2,800 5,629 5,137 -------- -------- ------- ------- 6,146 5,803 12,096 11,032 -------- -------- ------- ------- Operating Income 4,819 4,638 9,197 8,556 Other income and expense, net 383 383 776 757 -------- -------- ------- ------- Income before income taxes 5,202 5,021 9,973 9,313 Income taxes 1,905 1,838 3,640 3,365 -------- -------- ------- ------- Net income $ 3,297 $ 3,183 $ 6,333 $ 5,948 ======== ======== ======== ======== Income per common share $ 0.38 $ 0.38 $ 0.74 $ 0.70 ======== ======== ======== ======== Average shares outstanding 8,609 8,477 8,562 8,477 ======== ======== ======== ======== The accompanying notes are an integral part of these financial statements. LANDAUER, INC. Statements of Cash Flows (000's) (Unaudited) Three Months Ended ------------------ Mar. 31, Mar. 31, 1998 1997 -------- -------- Net cash flow from operating activities: Net income $ 6,333 $ 5,948 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 1,437 1,286 Equity in net income of foreign affiliate (372) (371) Compensatory effect of stock options 573 63 Increase in accounts receivable (854) (1,089) Increase in inventories (163) (317) (Increase) decrease in prepaid expenses (62) 27 Increase (decrease) in accounts payable 336 (17) Increase (decrease) in deferred contract revenue 102 (37) Decrease in accrued expenses (238) (94) Increase in net long-term assets (402) (656) ------- ------- Net cash generated from operating activities 6,690 4,743 Cash flow from investing activities: Purchases of U.S. Treasury Securities (2,953) (6,947) Maturities of U.S. Treasury Securities 9,348 8,342 Acquisition of property,plant,and equipment (2,177) (936) ------- ------- Net cash provided by investing activities 4,218 459 Cash flow from financing activities: Dividend received from foreign affiliate 326 356 Dividends paid (5,332) (4,874) ------- ------- Net cash used in financing activities (5,006) (4,518) ------- ------- Net increase in cash 5,902 684 Opening balance - cash and cash equivalents 1,860 3,359 ------- ------- Ending balance - cash and cash equivalents $ 7,762 $ 4,043 ======= ======= Supplemental Disclosure of Cash Flow Information: Cash paid for income taxes $ 1,974 $ 3,399 ======= ======= Supplemental Disclosure of Non-cash Financing Activity: Dividend declared $ 2,798 $ 2,543 ======== ======== Foreign currency translation adjustment $ (337) $ (435) ======== ======== The accompanying notes are an integral part of these financial statements. LANDAUDER, INC. Notes to Financial Statements - March 31, 1998 (Unaudited) (1) Basis of Presentation --------------------- The accompanying unaudited condensed financial statements reflect the financial position of Landauer, Inc. ("Landauer") as of March 31, 1998 and September 30, 1997, and the results of operations for the three- month and six-month periods ended March 31, 1998 and 1997 and cash flows for the six-month periods ended March 31, 1998 and 1997. 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 March 31, 1998 and September 30, 1997, and the results of operations for the three-month and six-month periods ended March 31, 1998 and 1997, and cash flows for the six-month periods ended March 31, 1998 and 1997. The accounting policies followed by the Company are set forth in Note 1 to the Company's financial statements in the 1997 Landauer Annual Report on Form 10-K, which is incorporated by reference. The results of operations for the three-month and six-month periods ended March 31, 1998 and 1997 are not necessarily indicative of the results to be expected for the full year. (2) Cash Dividends -------------- On March 6, 1998, the Company declared a regular quarterly cash dividend in the amount of $.32 1/2 per share payable on April 3, 1998, to stockholders of record on March 20, 1998. On November 6, 1997, the Company declared a regular quarterly cash dividend in the amount of $.32 1/2 per share payable on January 2, 1998, to stockholders of record on December 19, 1997. Regular quarterly cash dividends of $.30 per share ($1.20 annually) were declared during fiscal 1997. 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 six months ended March 31, 1998 and 1997 amounted to $6,690,000 and $4,743,000, respectively. Investing activities for the first half of fiscal 1998 and 1997 resulted in a net decrease in investments in principally U.S. Treasury securities of $6,395,000 and $1,395,000, respectively. Offsetting these were acquisitions of property, plant and equipment in the amount of $2,177,000 and $936,000, 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. 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 1998 are expected to amount to approximately $4,000,000, principally for the development of software systems, and the acquisition of equipment to support technology enhancements. 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 $8,812,000 and $8,710,000, respectively, as of March 31, 1998 and September 30, 1997, and are included in deferred contract revenue. While these amounts represent approximately one-half of current liabilities, such amounts do not represent a cash requirement. Results of Operations - --------------------- Revenues for the quarter ended March 31, 1998 were 5% higher compared with the same quarter a year ago. The increase in revenues was primarily attributable to gains in the Company's traditional radiation dosimetry business. Gross margins were 71.1% of revenues for the second quarter of fiscal 1998 comparable to the same period in 1997. Selling, general and administrative expenses for the current quarter were 27.1% as a percent of revenues compared to 26.8% for the second quarter of fiscal 1997. As a result, operating income for the second fiscal quarter of 1998 was 43.9% of revenues compared to 44.4% for the same period last year. Income before income taxes was 47.4% of the revenues for the quarter just ended compared to 48.1% for the second fiscal quarter of 1997. The effective tax rate for the Company during the second quarter of fiscal 1998 was 36.6% comparable to the same period last year. Resulting net income of $3,297,000 for the second fiscal quarter of 1998 compared with $3,183,000 reported in fiscal 1997. Income per share for the quarter was $.38 versus $.37 for the second fiscal quarter of 1997. Revenues for the six months ended March 31, 1998, were 9% higher compared with the first six months of fiscal 1997. The increase in revenues were attributable to gains in the Company's traditional radiation dosimetry business. Gross margins for the first half of fiscal 1998 were 69.6% of revenues compared with 69.9% a year ago. Selling, general, and administrative expenses were 26.4% of revenues for the first half of fiscal 1998 compared to 26.2% for the LANDAUER, INC. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd.) first half of fiscal 1997. Operating income for the first half of fiscal 1998 was 43.2% of revenues compared with 43.7% for the same period last year. Income before income taxes was 46.8% of revenues for the six months just ended compared to 47.5% of revenues for the same period in fiscal 1997. The effective tax rate for the Company during the first half of fiscal 1998 was 36.5% compared with 36.1% a year ago. Resulting net income of $6,333,000 for the first six months of 1998 was 6.5% higher than $5,948,000 reported in fiscal 1997. Income per share thus far in fiscal 1998 was $.74 versus $.70 for the same period in fiscal 1997. LANDAUER, INC. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd.) 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 4. Submission of Matters to a Vote of Security Holders --------------------------------------------------- At its Annual Meeting held on February 4, 1998, the shareholders voted to re-elect Gary D. Eppen, Marvin G. Schorr and Michael D. Winfield as directors for three-year terms. Voting for all nominees were 6,765,995 shares (representing 79.6% of total shares outstanding), and votes for 53,081 shares were withheld from all nominees. Continuing as directors are Thomas M. Fulton, Robert J. Cronin, Richard R. Risk, Paul B. Rosenberg and Herbert Roth, Jr. The shareholders also voted to reappoint Arthur Andersen LLP as the Company's auditors for the following year, with 6,776,511 shares (79.7% of total shares outstanding) voting for, 19,224 shares against, and 23,527 shares abstaining. 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: May 12, 1998 /s/ James M. O'Connell - ----------------------------- James M. O'Connell Vice President and Treasurer (Principal Financial and Accounting Officer) EX-27 2
5 Art. 5 FDS for 2nd Quarter 10-Q 0000825410 LANDAUER, INC. 1,000 6-MOS SEP-30-1998 OCT-01-1997 MAR-31-1998 7,762 2,969 9,678 245 1,271 22,911 21,589 12,579 45,171 17,562 0 861 0 0 26,748 45,171 21,293 21,293 6,467 6,467 0 0 0 9,973 3,640 6,333 0 0 0 6,333 .74 .74
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