(1)Basis of Presentation and Consolidation

As used herein, the “Company” or “Landauer” refers to Landauer, Inc. and its subsidiaries.

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013 and other financial information filed with the Securities and Exchange Commission (the “SEC”).

The accounting policies followed by the Company are set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013. There have been no changes to the accounting policies for the six month period ended March 31, 2014.

The results of operations for the three and six month period ended March 31, 2014 are not necessarily indicative of the results to be expected for the full fiscal year. The September 30, 2013 balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary for a fair statement of such financial statements. Certain reclassifications have been made in the financial statements for comparative purposes. These reclassifications have no effect on the results of operations or financial position of the Company.

Revision of Prior Period Financial Statements

In connection with the preparation of the consolidated financial statements for the second quarter of fiscal 2014, the Company identified an error in the treatment of accrued additions for property, plant and equipment in the Consolidated Statements of Cash Flows. This error affected the year-to-date Consolidated Statements of Cash Flows presented in each of the quarters of fiscal 2013 and the first quarter of fiscal 2014, as well as the consolidated financial statements for the fiscal years ended September 30, 2013, 2012 and 2011. This error resulted in an understatement of net cash provided by operating activities and net cash used in investing activities in each of the quarters of fiscal 2013 and the first quarter of fiscal 2014, as well as the year-end consolidated financial statements for the fiscal years ended September 30, 2013 and 2011. This error resulted in an overstatement of net cash provided by operating activities and net cash used in investing activities for the fiscal year ended September 30, 2012. In addition, the Company identified an error in its Consolidated Statement of Cash Flows which affected the quarters in 2013. This error related to the classification of debt financing fees and it resulted in an understatement of net cash provided by operating activities and net cash used by financing activities. In accordance with accounting guidance presented in ASC 250-10 and SEC Staff Accounting Bulletin No. 99, Materiality, the Company assessed the materiality of these errors and concluded that they were not material to any of the Company’s previously issued financial statements. The Company will revise its previously issued financial statements to correct for these errors. These revisions did not impact the Company’s Consolidated Statements of Operations or Consolidated Balance Sheets for any of these periods.

The following tables present the effect of this correction on the Company’s Consolidated Statements of Cash Flows for all periods affected:



	Three Months Ended December 31, 2013						Year Ended September 30, 2013
(Dollars in Thousands)	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Cash flows from operating activities:
(Decrease) increase in accounts payable and other accrued liabilities	$	(3,502)	$	174	$	(3,328)	$	(3,389)	$	2,793	$	(596)
Net cash provided by operating activities		9,954		174		10,128		22,957		2,793		25,750
Cash flows used by investing activities:
Acquisition of property, plant and equipment		(1,071)		(174)		(1,245)		(6,352)		(2,793)		(9,145)
Net cash used by investing activities		(3,590)		(174)		(3,764)		(8,503)		(2,793)		(11,296)



	Nine Months Ended June 30, 2013						Six Months Ended March 31, 2013
(Dollars in Thousands)	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Cash flows from operating activities:
(Increase) decrease in other operating assets, net	$	(3,679)	$	200	$	(3,479)	$	(3,039)	$	200	$	(2,839)
(Decrease) increase in accounts payable and other accrued liabilities		(4,006)		2,849		(1,157)		(4,310)		1,351		(2,959)
Net cash provided by operating activities		16,533		3,049		19,582		7,473		1,551		9,024
Cash flows used by investing activities:
Acquisition of property, plant and equipment		(5,286)		(2,849)		(8,135)		(4,611)		(1,351)		(5,962)
Net cash used by investing activities		(7,259)		(2,849)		(10,108)		(5,289)		(1,351)		(6,640)
Cash flows used by financing activities:
Long-term borrowings - loan		19,600		(200)		19,400		10,500		(200)		10,300
Net cash used by financing activities		(17,705)		(200)		(17,905)		(8,776)		(200)		(8,976)



	Three Months Ended December 31, 2012						Year Ended September 30, 2012
(Dollars in Thousands)	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Cash flows from operating activities:
(Decrease) increase in accounts payable and other accrued liabilities	$	(5,775)	$	1,812	$	(3,963)	$	3,982	$	(677)	$	3,305
Net cash provided by operating activities		2,340		1,812		4,152		37,517		(677)		36,840
Cash flows used by investing activities:
Acquisition of property, plant and equipment		(1,902)		(1,812)		(3,714)		(15,196)		677		(14,519)
Net cash used by investing activities		(2,355)		(1,812)		(4,167)		(126,133)		677		(125,456)



	Year Ended September 30, 2011
(Dollars in Thousands)	As Previously Reported		Adjustment		As Revised
Cash flows from operating activities:
(Decrease) increase in accounts payable and other accrued liabilities	$	(323)	$	492	$	169
Net cash provided by operating activities		31,237		492		31,729
Cash flows used by investing activities:
Acquisition of property, plant and equipment		(12,923)		(492)		(13,415)
Net cash used by investing activities		(17,349)		(492)		(17,841)