-----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, RMNpWRWopnw7E1luhLTSkCVqSdh5Kl5IYyr3MqQJwlBe5OWcbYFWlnB1MA7MW27j jg0uPm24Q2Y/NByth5WeFA== 0000825410-98-000013.txt : 19980817 0000825410-98-000013.hdr.sgml : 19980817 ACCESSION NUMBER: 0000825410-98-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980731 FILED AS OF DATE: 19980814 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: 98687939 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 June 30, 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 August 10, 1998 --------------------------- ------------------------------- Common stock, $.10 par value 8,609,299 PART I. FINANCIAL INFORMATION LANDAUER, INC. Balance Sheets (000's) ASSETS - ----------- June 30, Sept. 30, 1998 1997 -------- --------- (Derived from audited (Unaudited) statements) Current assets: Cash and cash equivalents $ 6,858 $ 1,860 Short-term investments 1,993 8,381 Accounts receivable, less allowances of $182,000 at 6/30/98 and $219,000 at 9/30/97 10,854 8,568 Inventories 1,370 1,108 Prepaid expenses 140 96 Deferred taxes on income 1,318 1,318 -------- -------- Total current assets 22,533 21,331 Property, plant and equipment, at cost 24,184 19,412 Less: Accumulated depreciation and amortization 12,751 11,681 -------- -------- Net property, plant and equipment 11,433 7,731 Investment in U.S. Treasury Securities 3,987 4,969 Cost of purchased businesses in excess of net assets acquired 2,487 2,612 Equity in Japanese joint venture 2,841 4,133 Other assets 2,863 2,959 -------- -------- $ 46,144 $ 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 - ----------------------------------------- June 30, Sept. 30, 1998 1997 -------- --------- (Derived from audited (Unaudited) statements) Current liabilities: Accounts payable $ 619 $ 573 Deferred contract revenue 9,817 8,710 Dividend payable 2,798 2,551 Accrued compensation and related costs 1,724 1,534 Accrued pension costs 862 627 Accrued taxes on income 411 832 Accrued expenses 2,288 2,288 ---------- ---------- Total current liabilities 18,519 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 6-30-98 and 8,504,091 shares at 9-30-97 861 850 Premium paid in on common stock 8,471 7,860 Cumulative translation adjustments (729) (59) Retained earnings 19,022 17,969 ---------- ---------- Total stockholders' investment 27,625 26,620 ---------- ---------- $ 46,144 $ 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 Nine Months Ended --------------------- ------------------- June 30, June 30, June 30, June 30, 1998 1997 1998 1997 -------- -------- ------- ------- Net Revenues $ 10,653 $ 9,984 $ 31,946 $ 29,572 Cost and expenses: Cost of revenues 3,314 3,140 9,781 9,035 Selling, general and administrative 2,804 2,781 8,433 7,918 -------- -------- ------- ------- 6,118 5,921 18,214 16,953 -------- -------- ------- ------- Operating Income 4,535 4,063 13,732 12,619 Other income and expense, net 357 378 1,133 1,135 -------- -------- ------- ------- Income before income taxes 4,892 4,441 14,865 13,754 Income taxes 1,794 1,581 5,434 4,946 -------- -------- ------- ------- Net income $ 3,098 $ 2,860 $ 9,431 $ 8,808 ======== ======== ======== ======== Income per common share $ 0.36 $ 0.34 $ 1.10 $ 1.04 ======== ======== ======== ======== Average shares outstanding 8,609 8,482 8,578 8,479 ======== ======== ======== ======== 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, 1998 1997 -------- -------- Net cash flow from operating activities: Net income $ 9,431 $ 8,808 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 2,141 1,937 Equity in net income of foreign affiliate (525) (561) Compensatory effect of stock options 622 176 Increase in accounts receivable (2,291) (1,058) Increase in inventories (262) (294) (Increase) decrease in prepaid expenses (44) 82 Increase (decrease) in accounts payable 46 (75) Increase in deferred contract revenue 1,107 10 Decrease in accrued expenses 4 151 Increase in net long-term assets (598) (820) ------- ------- Net cash generated from operating activities 9,631 8,356 Cash flow from investing activities: Purchases of U.S. Treasury Securities (2,953) (1,038) Maturities of U.S. Treasury Securities 10,323 956 Acquisition of property, plant, and equipment (5,025) (1,139) ------- ------- Net cash provided by (used in ) investing activities 2,345 (1,221) Cash flow from financing activities: Dividend received from foreign affiliate 1,152 356 Dividends paid (8,130) (7,417) ------- ------- Net cash used in financing activities (6,978) (7,061) ------- ------- Net increase in cash 4,998 74 Opening balance - cash and cash equivalents 1,860 3,359 ------- ------- Ending balance - cash and cash equivalents $ 6,858 $ 3,433 ======= ======= Supplemental Disclosure of Cash Flow Information: Cash paid for income taxes $ 4,423 $ 5,647 ======= ======= Supplemental Disclosure of Non-cash Financing Activity: Dividend declared $ 2,798 $ 2,545 ======== ======== Foreign currency translation adjustment $ (670) $ (85) ======== ======== The accompanying notes are an integral part of these financial statements. LANDAUDER, INC. Notes to Financial Statements - June 30, 1998 (Unaudited) (1) Basis of Presentation --------------------- The accompanying unaudited condensed financial statements reflect the financial position of Landauer, Inc. ("Landauer") as of June 30, 1998 and September 30, 1997, and the results of operations and cash flows for the three-month and nine-month periods ended June 30, 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 June 30, 1998 and September 30, 1997, and the results of operations for the three-month and nine-month periods ended June 30, 1998 and 1997, and cash flows for the nine-month periods ended June 30, 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 nine-month periods ended June 30, 1998 and 1997 are not necessarily indicative of the results to be expected for the full year. (2) Cash Dividends -------------- On June 4, 1998, the Company declared a regular quarterly cash dividend in the amount of $.32 1/2 per share payable on July 2, 1998, to stockholders of record on June 18, 1998. 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 nine months ended June 30, 1998 and 1997 amounted to $4,998,000 and $74,000, respectively. Investing activities for the nine months ended June 30, 1998 and 1997 resulted in net maturities of U.S. Treasury securities of $7,370,000 in fiscal 1998 and net purchases of U.S. Treasury securities of $82,000 in fiscal 1998. Offsetting these were acquisitions of property, plant and equipment in the amount of $5,025,000 and $1,139,000, 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 1998 are expected to amount to approximately $2,000,000, principally for the acquisition of equipment to support the company's introduction of the Luxel product line, the development of supporting software systems, and computer hardware. 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 $9,817,000 and $8,710,000, respectively, as of June 30, 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 June 30, 1998 were 7% 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 for the third fiscal quarter were 68.9% of revenues compared to 68.5% for the same period in fiscal 1997. The increase in margins was primarily attributable to a price increase effective April 1, 1998 Selling, general and administrative expenses were slightly lower in the current quarter as a percent of revenues at 26.3% compared to 27.9% for the third quarter of fiscal 1997. As a result operating income for the third fiscal quarter of 1998 was 42.6% of revenues compared to 40.7% for the same period last year. Income before income taxes was 45.9% of revenues for the quarter just ended, compared to 44.5% for the third fiscal quarter of 1997. The effective tax rate for the Company during the third quarter of fiscal 1998 was 36.7% compared with 35.6% for the same period last year. Resulting net income of $3,098,000 for the third fiscal quarter of 1998 was 8% higher than $2,860,000 reported in fiscal 1997. Income per share for the quarter was $.36 versus $.34 for the third fiscal quarter of 1997. Revenues for the nine months ended June 30, 1998, were 8% higher compared with the first nine months of fiscal 1997. The increase in revenues was attributable to higher pricing in the Company's traditional radiation dosimetry business, as well as higher international sales. Gross margins for the first nine months of fiscal 1998 were 69.4% of revenues, the same as last year. LANDAUER, INC. Management's Discussion and Analysis of Financial Condition and Results of Operations (Cont'd.) Selling, general and administrative expenses were slightly lower for the first nine months as a percent of revenues at 26.4% compared to 26.8% for the first nine months of 1997. As a result, operating income for first nine months of 1998 was 43% of revenues compared to 42.7% for the same period last year. Income before income taxes at 46.5% of revenues for the first nine months was comparable to a year ago. The effective tax rate for the Company during the first nine months of fiscal 1998 was 36.6% compared with 36.0% for the first nine months of 1998. Resulting net income of $9,431,000 for the first nine months of 1998 was 7% higher than $8,808,000 reported in fiscal 1997. Income per share thus far in fiscal 1998 was $1.10 versus $1.04 for the same period in fiscal 1997. 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 10, 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 3rd Quarter 10-Q 0000825410 LANDAUER, INC. 1,000 9-MOS SEP-30-1998 OCT-01-1997 DEC-31-1998 6,858 1,993 11,036 182 1,370 22,533 24,184 12,751 46,144 18,519 0 861 0 0 26,764 46,144 31,946 31,946 9,781 9,781 0 0 0 14,865 5,434 9,431 0 0 0 9,431 1.10 1.10
-----END PRIVACY-ENHANCED MESSAGE-----