EX-99.1 2 exh_991.txt EXHIBIT 99.1 ------------ News Release LANDAUER -------------------------------------------------------------------------- LANDAUER, INC. REPORTS RECORD RESULTS FOR 2006 FOURTH QUARTER AND YEAR 2006 Results Benefit from Cost Improvement Plan For Further Information Contact: Jonathon M. Singer Senior Vice President, CFO 708-756-9535 -------------------------------------------------------------------------- GLENWOOD, ILL.--NOVEMBER 29, 2006--LANDAUER, INC. (NYSE: LDR), a recognized leader in personal and environmental radiation monitoring services, today reported financial results for its fourth quarter and fiscal year ended September 30, 2006. FISCAL 2006 HIGHLIGHTS . Record revenue of $79.0 million, with double-digit growth in global InLight revenue . Operating cash flow grew 14 percent to $24.0 million . $2.1 million of net pre-tax savings recognized from profit improvement plan . Fourth quarter charge of $1.1 million ($0.6 million after tax), or $0.07 per diluted share, for management transition costs . Net income rose 11 percent to $19.0 million, or $2.09 per diluted share "Early in the year, we shared our goal of reducing the core business cost structure by $1.3 million, net of a $0.6 million reorganization charge," said Bill Saxelby, president and chief executive officer. "We delivered on this commitment by taking several steps including reorganizing several departments, establishing performance requirements for employees, and altering or eliminating some benefit programs. We accomplished these reductions while continuing to deliver high quality radiation detection products and services. During the year we continued the transition of our senior management team. Now the company's skill set includes greater expertise in business development, finance, IT transformation, plant operations and logistics - the experience we need to take Landauer to its next level of growth." - more - -------------------------------------------------------------------------- Landauer, Inc. 2 Science Road Glenwood, Illinois 60625 Phone: 708-755-7000 Fax: 708-755-7011 E-mail: landauerinc.com Landauer, Inc. Add 1 Revenues for fiscal 2006 were $79.0 million, a 5 percent increase compared with the $75.2 million reported for fiscal 2005. Domestic revenue increased 5 percent or $2.9 million in fiscal 2006, from gains in the core radiation monitoring business, strong performance for the Homebuyer's Preferred subsidiary, and a doubling of domestic InLight revenue. International revenue rose $0.9 million, or 6 percent, supported by growth in most markets, led by InLight sales. Landauer recognized charges of $0.6 million for reorganization costs and $1.1 million for management transition costs in 2006 and $2.3 million for management transition costs in 2005. Net of these charges, costs and expenses for fiscal 2006 grew by $1.5 million or 3 percent. This increase resulted primarily from the higher cost of equity-based compensation programs, due to the implementation of SFAS 123R, and higher depreciation and amortization, partially offset by the $2.1 million impact of the company's profit improvement plan. The effective tax rate was 38.0 percent in both fiscal 2006 and 2005. Net income for the year just ended was $19.0 million, an increase of 11 percent compared with $17.2 million for fiscal 2005. This resulted in diluted earnings per share for the current year of $2.09 compared with $1.90 reported a year ago. The impact of reorganization and management transition charges decreased diluted earnings per share by $0.11 and $0.15 in 2006 and 2005, respectively. STRONGER FOURTH QUARTER PERFORMANCE For the quarter ended September 30, 2006, revenues increased 6 percent to $20.2 million compared with $19.0 million a year ago. Costs and expenses for the quarter were down by $1.2 million, or 9 percent, from last year's three months, due to lower management transition cost this year. Excluding those charges, costs and expenses were flat between the two periods, reflecting the benefit of the profit improvement plan. For the quarter, the effective tax rate for 2006 was 40.0 percent compared with 44.2 percent for 2005. Net income for the latest quarter was $4.7 million compared with $3.1 million in 2005, a 50 percent improvement. Earnings per diluted share for the quarter were $0.51 compared with $0.34 in 2005. SOLID FINANCIAL POSITION Landauer ended the year with total assets of $90.7 million and working capital of $13.5 million. Total debt was $1.6 million at September 30, 2006. Cash provided by operating activities was $24.0 million, an increase of 14 percent from 2005. 2007: LAYING THE FOUNDATION TO ACCELERATE GROWTH "In 2006, we focused on optimizing our cost structure, strengthening our management team, and initiating a culture of accountability. In 2007, we will continue to manage aggressively the profitability of our base business, while we begin to lay the foundation for the acceleration of our long-term growth and continued creation of shareholder value. We expect to invest in our operations by reengineering our business processes, optimizing our sales execution, and increasing the organizational focus on cash flow and returns. Our goal is to create an infrastructure that can support a larger base of business with broader products and services, which will require further investment in our IT infrastructure. We will continue our global growth strategy focused on increased penetration of current client and geographic markets, logical extensions of our current products and services, and entrance of adjacent markets when these offer the return on investment we seek." Saxelby concluded. Landauer, Inc. Add 2 Landauer's business plan for fiscal 2007 currently anticipates aggregate revenue growth for the year to be in the range of 4 - 5 percent. The company anticipates this will translate into a net income increase in the range of 6 - 8 percent excluding the impact of the 2006 restructuring charge and management transition costs. However, this performance could be impacted by investments necessary to support the acceleration of long-term growth. CONFERENCE CALL DETAILS Landauer has scheduled its fourth quarter and year-end conference call for investors over the Internet on Wednesday, November 29, 2006, at 3:00 p.m. Eastern Time (12:00 p.m. Pacific Time). To participate, callers should dial 877-502-9274 about 10 minutes before the presentation. To listen to a webcast on the Internet, please go to the company's website at http://www.landauerinc.com or http://viavid.net/dce.aspx?sid=00003780 at least 15 minutes early to register, download and install any necessary audio software. A replay of the call will remain available at the site for 90 days. ABOUT LANDAUER Landauer is the world's leading provider of 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, under the subhead "2007: Laying the Foundation to Accelerate Growth") constitutes forward-looking statements that are based on certain 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; introduction and customer acceptance of the InLight technology; the adaptability of optically stimulated luminescence (OSL) technology to new platforms and formats, such as Luxel+; the costs associated with the company's research and business development efforts; the usefulness of older technologies; 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 Landauer, Inc. Add 3 assumptions may not materialize to the extent assumed, and risks and uncertainties may cause actual results to be different from anticipated results. 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 "Significant Risk Factors" section in the company's Annual Report on Form 10-K for the year ended September 30, 2005 and other reports filed by the Company from time to time with the Securities and Exchange Commission. FINANCIAL TABLE FOLLOW Landauer, Inc. Add 4 FOURTH QUARTER FISCAL 2006 FINANCIAL HIGHLIGHTS (unaudited, amounts in thousands, except per share data) Three Months Ended Twelve Months Ended September 30, September 30, -------------------- -------------------- 2006 2005 2006 2005 -------- -------- -------- -------- Net Revenues . . . . . . $ 20,184 $ 18,990 $ 79,043 $ 75,221 Cost and expenses: Cost of sales. . . . . 6,673 6,881 28,734 28,308 Selling, general and administrative . . . 5,862 6,824 20,804 20,362 -------- -------- -------- -------- 12,535 13,705 49,538 48,670 Operating income . . . . 7,649 5,285 29,505 26,551 Other income, net. . . . 188 354 1,492 1,381 -------- -------- -------- -------- Income before income taxes and minority interest . . . . . . . 7,837 5,639 30,997 27,932 Income taxes . . . . . . 3,131 2,490 11,783 10,623 -------- -------- -------- -------- Income before minority interest. . . 4,706 3,149 19,214 17,309 Minority interest therein. . . . . . . . 36 45 168 101 -------- -------- -------- -------- Net income . . . . . . . $ 4,670 $ 3,104 $ 19,046 $ 17,208 ======== ======== ======== ======== Net income per common share: Basic. . . . . . . . . $ 0.51 $ 0.35 $ 2.11 $ 1.92 ======== ======== ======== ======== Average shares outstanding. . . . . 9,073 8,993 9,046 8,966 ======== ======== ======== ======== Diluted. . . . . . . . $ 0.51 $ 0.34 $ 2.09 $ 1.90 ======== ======== ======== ======== Average shares outstanding. . . . . 9,142 9,071 9,112 9,038 ======== ======== ======== ======== - more - Landauer, Inc. Add 5 SUMMARY CONSOLIDATED BALANCE SHEETS (unaudited, amounts in thousands) September 30, September 30, 2006 2005 ------------- ------------- ASSETS Current Assets: Cash and cash equivalents. . . . . . $ 15,420 $ 9,598 Receivables, net of reserves . . . . 20,284 17,987 Other current assets . . . . . . . . 6,273 8,004 -------- -------- Total current assets . . . . . . . . . 41,977 35,589 Net property, plant and equipment. . . . 16,416 17,907 Equity in joint venture. . . . . . . . . 3,980 4,467 Goodwill, net of amortization. . . . . . 13,273 13,261 Other intangible assets, net of amortization. . . . . . . . . . 6,377 6,926 Other operating assets, net of amortization. . . . . . . . . . 6,502 6,537 Other assets . . . . . . . . . . . . . . 927 1,172 Deferred income taxes. . . . . . . . . . 1,222 -- -------- -------- TOTAL ASSETS . . . . . . . . . . . . . . $ 90,674 $ 85,859 ======== ======== LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities: Accounts payable . . . . . . . . . . $ 1,439 $ 1,595 Notes payable. . . . . . . . . . . . 1,649 4,048 Dividends payable. . . . . . . . . . 4,092 3,815 Deferred revenue . . . . . . . . . . 13,761 12,702 Other current liabilities. . . . . . 7,488 7,673 -------- -------- Total current liabilities. . . . . . . 28,429 29,833 Non-current Liabilities: Pension and postretirement liabilities. . . . . . . . . . . . 8,348 7,062 Deferred income taxes. . . . . . . . -- 238 -------- -------- Total non-current liabilities. . . . . 8,348 7,300 Minority interest in subsidiary. . . . 198 128 Stockholders' investment . . . . . . . 53,699 48,598 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT . . . . . . . $ 90,674 $ 85,859 ======== ======== # # #