-----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, WreVGOhZexsjJaBANtVkXaFlOxRKjubPj4TAChSKQsMrMRJgH43E3/Pp/2FUyK42 BHSh6NxL4k7rS4m8gt1gDA== 0000892626-07-000110.txt : 20070731 0000892626-07-000110.hdr.sgml : 20070731 20070731131413 ACCESSION NUMBER: 0000892626-07-000110 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070731 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070731 DATE AS OF CHANGE: 20070731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LANDAUER INC CENTRAL INDEX KEY: 0000825410 STANDARD INDUSTRIAL CLASSIFICATION: MEASURING & CONTROLLING DEVICES, NEC [3829] IRS NUMBER: 061218089 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09788 FILM NUMBER: 071012017 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 8-K 1 ldr_8182.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): July 31, 2007 LANDAUER, INC. ------------------------------------------------------ (Exact Name of Registrant as Specified in its Charter) Delaware ---------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-9788 06-1218089 ------------------------ ------------------------------------ (Commission File Number) (I.R.S. Employer Identification No.) 2 Science Road, Glenwood, Illinois 60425 - ---------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) (708) 755-7000 ---------------------------------------------------- (Registrant's Telephone Number, Including Area Code) Not Applicable ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 1 ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On July 31, 2007, Landauer, Inc. ("LDR") issued a News Release announcing its earnings for the third fiscal quarter ended June 30, 2007. A copy of the News Release is furnished as Exhibit 99.1 to this current report on Form 8-K. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits. 99.1 News Release, dated July 31, 2007 2 SIGNATURE 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 hereunto duly authorized. LANDAUER, INC. Dated: July 31, 2007 /s/ Jonathon M. Singer ------------------------------ Jonathon M. Singer Senior Vice President, Treasurer, and Secretary (Principal Financial and Accounting Officer) 3 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 News Release, dated July 31, 2007 4 EX-99.1 2 exh_991.txt EXHIBIT 99.1 - ------------ News Release LANDAUER - -------------------------------------------------------------------------- LANDAUER, INC. REPORTS THIRD QUARTER RESULTS Higher Revenues Driven by International Sales; Impairment Charge, Investments in Long-term Growth Reduce Earnings For Further Information Contact: Jonathon M. Singer Senior Vice President, CFO 708-441-8311 - -------------------------------------------------------------------------- GLENWOOD, ILL. -- JULY 31, 2007 -- LANDAUER, INC. (NYSE: LDR), a recognized leader in personal and environmental radiation monitoring, today reported its revenue and net income for the three and nine months ended June 30, 2007. THIRD QUARTER 2007 HIGHLIGHTS .. Revenue grew 5 percent over the prior year's quarter to $20.6 million on increased international sales, fueled by higher volume in most regions and favorable exchange rates. .. Cost improvement plan initiated in early 2006 contributed to an increase in gross profit of $1.5 million, or 12 percent over the prior-year quarter. .. $2.4 million ($1.4 million after-tax) charge recorded for impairment and accelerated depreciation of information technology assets led to lower earnings. .. Earnings per diluted share were $0.57 after giving effect to charge. .. Management reiterates fiscal 2007 guidance of 4-5 percent growth for both revenue and earnings before charges. "We continued to experience strong markets for our products and services overseas, as well as the benefits from favorable currency translation," said Bill Saxelby, president and chief executive officer. "A full year of the cost improvement program led to a significant increase in our gross margin versus last year. These catalysts are allowing us to invest in the re-engineering of our business processes and the transformation of our customer facing systems. During the quarter, we completed the technical design of our new system and the evaluation of how the solution will be integrated into our existing infrastructure. This allowed us to determine which legacy assets had continuing value, and which were subject to an impairment charge or accelerated depreciation. Also we expanded our sales and marketing focus, under the direction of a new vice president. While these actions reduced near-term earnings, they reflect our willingness to invest in long-term growth." - -------------------------------------------------------------------------- Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586 Telephone: 708-755-7000 Fax: 708-755-7011 landauerinc.com -more- LANDAUER, INC. ADD 1 INTERNATIONAL EXPANSION CONTINUES TO FUEL REVENUES FOR THE THREE AND NINE MONTHS Revenues for the third quarter of fiscal 2007 were $20.6 million, a 5 percent increase compared with $19.6 million at this time last year. Domestic revenue was flat while international revenue increased 24 percent, or $909,000, driven by strong growth in all regions, the addition of an Australian venture and the impact of favorable currency translation. Cost of sales declined 8 percent from the same quarter last year, benefiting from the profit improvement program initiated in the second quarter of fiscal 2006. As a result, the gross profit margin expanded to 68 percent from 64 percent in the year-ago period. Selling, general and administrative expenses for the third quarter grew 32 percent versus the same quarter last year. The increase was driven primarily by approximately $500,000 of spending to re-engineer business processes and to replace the company's IT systems that support customer relationship management and the order-to-cash cycle. Other factors contributing to the increase included international spending to support growth, the impact of foreign currency exchange, higher expenses for salary and benefits related to staff additions, and increased professional fees. As part of the IT initiative announced earlier this year, management completed the technical design phase of the project and the resulting final evaluation of the usefulness of investments made in legacy information systems' hardware and software. As previously disclosed, these assets had a net book value of approximately $4.6 million. Of these assets, $3.5 million were determined to be either impaired or subject to accelerated depreciation. This resulted in a third quarter charge of $2.4 million ($1.4 million, after-tax), of which $2.2 million was for impaired assets. Net income for the most recent quarter was $3.9 million, compared with $5.1 million a year ago. Earnings per diluted share for the three months were $0.42 versus $0.56 in 2006. After giving effect to the asset impairment and accelerated depreciation charge, net income for the quarter was $5.3 million, or $0.57 per diluted share. For the nine months ended on June 30, 2007, revenues increased 6 percent to $62.4 million versus $58.9 million at this time last year, also reflecting higher international sales. The gross profit margin improved to 67 percent versus 63 percent for last year's nine months. Costs and expenses for the first nine months of fiscal 2007 increased $3.7 million, or 10 percent, primarily due to the factors discussed above. Year-to-date net income was $14.7 million, a 2 percent increase over prior year. Earnings per diluted share were $1.60 compared with $1.58 for the same period a year ago. After giving effect to the asset impairment and accelerated depreciation charge year-to-date net income was $16.1 million, or $1.75 per diluted share. FINANCIAL POSITION REMAINS STRONG Total assets at June 30, 2007, were $97.4 million, up 8 percent from the prior year, including $19.0 million in working capital and $18.2 million in cash. Landauer continued to be debt free. Cash provided by operating activities compared with the prior year increased 7 percent to $19.1 million for the year-to-date. -more- LANDAUER, INC. ADD 2 OUTLOOK FOR THE FOURTH QUARTER AND YEAR "We continue to expect that revenues for fiscal 2007 will grow by 4-5 percent," explained Saxelby. "However, investments in our information systems initiative will accelerate in the coming quarter. In addition, we will record approximately $500,000 of additional depreciation in the fourth quarter from accelerating the depreciation of certain IT assets. As a result, we believe earnings for fiscal 2007 - including these charges - will be flat with 2006, when we reported revenues of $79.0 million, net income of $19.0 million, and diluted earnings per share of $2.09. Last year's results included $1.0 million in after-tax reorganization and management transition charges. Excluding the impairment and accelerated depreciation charges, earnings are currently expected to grow 4-5 percent, consistent with prior guidance. "We are excited about the important advances we continue to make on our three management priorities: improving the profitability of our base business, expanding global InLight sales, and sharpening our internal focus by finding opportunities to enhance our market position and generate an even higher return on capital. The investments we've made this year in systems and sales and marketing resources are important pieces that help lay the critical foundation for Landauer's long-term success," concluded Saxelby. CONFERENCE CALL DETAILS The company will host a conference call for investors today, Tuesday, July 31, at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time) to discuss the third quarter results. To participate, please dial 800-811-8824 about 10 minutes before the presentation. To listen to a webcast, please visit the "Investors" page on the company's Web site at www.landauerinc.com at least 15 minutes early to register, download and install any necessary audio software. A replay of the call will remain available on the site for 90 days. ABOUT LANDAUER Landauer is the world's leading provider of technical and 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. -more- LANDAUER, INC. ADD 3 SAFE HARBOR STATEMENT Some of the information shared here (including, in particular, the sections titled "Third Quarter 2007 Highlights" and "Outlook for the Fourth Quarter and Year") constitutes forward-looking statements that are based on 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 assumptions may not materialize to the extent assumed, and risks and uncertainties may cause actual results to be different from what is anticipated today. 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, 2006, and other reports filed by the company from time to time with the Securities and Exchange Commission. FINANCIAL TABLES FOLLOW -more- LANDAUER, INC. ADD 4 SUMMARY CONSOLIDATED INCOME STATEMENTS (unaudited, amounts in thousands, except per share data) Three months ended Nine months ended June 30, June 30, ------------------- ------------------- 2007 2006 2007 2006 -------- -------- -------- -------- Net Revenues $ 20,589 $ 19,591 $ 62,382 $ 58,859 Costs and expenses: Cost of sales 6,596 7,142 20,817 22,061 Selling, general and administrative 6,164 4,687 17,483 14,342 Impairment and accelerated depreciation charges 2,357 - 2,357 - Reorganization charge - - - 600 -------- -------- -------- -------- 15,117 11,829 40,657 37,003 -------- -------- -------- -------- Operating income 5,472 7,762 21,725 21,856 Other income, net 649 428 1,701 1,304 -------- -------- -------- -------- Income before income taxes and minority interest 6,121 8,190 23,426 23,160 Income taxes 2,193 3,019 8,652 8,652 -------- -------- -------- -------- Income before minority interest 3,928 5,171 14,774 14,508 Minority interest therein 21 50 68 132 -------- -------- -------- -------- Net income $ 3,907 $ 5,121 $ 14,706 $ 14,376 ======== ======== ======== ======== Net income per common share: Basic $ 0.43 $ 0.57 $ 1.61 $ 1.59 ======== ======== ======== ======== Average shares outstanding 9,146 9,048 9,116 9,025 ======== ======== ======== ======== Diluted $ 0.42 $ 0.56 $ 1.60 $ 1.58 ======== ======== ======== ======== Average shares outstanding 9,208 9,104 9,186 9,098 ======== ======== ======== ======== -more- LANDAUER, INC. ADD 5 SUMMARY CONSOLIDATED BALANCE SHEETS (unaudited; amounts in thousands) June 30, September 30, 2007 2006 -------- ------------- ASSETS Current Assets: Cash and cash equivalents $ 18,154 $ 15,420 Receivables, net of reserves 21,866 20,284 Other current assets 8,447 6,273 -------- -------- Total current assets 48,467 41,977 -------- -------- Net property, plant and equipment 16,131 16,416 Equity in joint venture 4,360 3,980 Goodwill and other intangible assets, net of amortization 19,385 19,650 Other operating assets, net of amortization 5,720 6,502 Deferred income taxes 2,247 1,222 Other assets 1,127 927 -------- -------- TOTAL ASSETS $ 97,437 $ 90,674 ======== ======== LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities: Accounts payable $ 1,702 $ 1,439 Notes payable - 1,649 Dividends payable 4,368 4,092 Deferred revenue 14,782 13,761 Other current liabilities 8,793 7,488 -------- -------- Total current liabilities 29,645 28,429 -------- -------- Non-current Liabilities: Pension and postretirement liabilities 8,778 8,348 -------- -------- Total non-current liabilities 8,778 8,348 Minority interest in subsidiary 193 198 Stockholders' investment 58,821 53,699 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 97,437 $ 90,674 ======== ======== # # # -----END PRIVACY-ENHANCED MESSAGE-----