8-K

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): February 11, 2013

LANDAUER, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware (State or Other Jurisdiction of Incorporation) 1-9788 (Commission File Number) 06-1218089 (IRS Employer Identification No.)

2 Science Road, Glenwood, Illinois 60425

(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (708) 755-7000

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):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 11, 2013, Landauer, Inc. (the “Company”) issued a Press Release announcing its earnings for its fiscal 2013 first quarter ended December 31, 2012. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 REGULATION FD DISCLOSURE

Beginning February 12, 2013, the Company will make available and distribute to analysts and prospective investors a slide presentation. The presentation materials include information regarding the Company’s operating and growth strategies and financial performance. Pursuant to Regulation FD, the presentation materials are attached as Exhibit 99.2 to this Current Report on Form 8-K.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d)	Exhibits.
	99.1	Press Release, dated February 11, 2013
	99.2	Investor Slide Presentation

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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.
February 11, 2013	By:	/s/ Michael K. Burke
		Michael K. Burke
		Senior Vice President and Chief Financial Officer (Principal Financial Officer)

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EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release, dated February 11, 2013
99.2	Investor Slide Presentation

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EX-99.1

Exhibit 99.1

News Release

LANDAUER

LANDAUER, INC. Reports

Fiscal 2013 First Quarter Results

For Further Information Contact:

Jim Polson

FTI Consulting

Phone: 312-553-6730

Email: jim.polson@fticonsulting.com

GLENWOOD, Ill. - February 11, 2013—Landauer, Inc. (NYSE: LDR), a recognized leader in personal and environmental radiation measurement and monitoring, outsourced medical physics services andhigh quality medical consumable accessories, today reported financial results for its fiscal 2013 first quarter ended December 31, 2012.

Fiscal 2013 First Quarter Highlights

· Revenue of $36.7 million in the first quarter of fiscal 2013

· First fiscal quarter 2013 operating income of $6.7 million includes IT platform enhancement expense ($1.2 million) and non-cash stock based compensation ($0.7 million)

· Net income of $4.9 million, or $0.52 per diluted share, included $0.06 per diluted share of IT platform enhancement, and non-cash stock based compensation expenses

· EBITDA of $11.5 million for fiscal 1Q13

· Company continued successful stabilization of IT platform following fiscal 4Q12 launch

· Company reaffirms fiscal 2013 guidance

“During the quarter, we focused on several strategic initiatives to further our competitive positioning and long-term growth. Our IT systems initiative is well into the stabilization phase after a successful launch and opportunities in the military and emergency response markets have continued to expand with Radwatch system revenue in the quarter,” said Bill Saxelby, President and CEO of Landauer. “We continued to make investments in technology which we believe will lead to new growth opportunities and we strengthened our human capital across a variety of key functions. These strategic efforts during the quarter, combined with our expectations and the opportunities that we see over the remainder of the year, leave us well positioned to achieve our fiscal 2013 guidance.”

Landauer, Inc.     2 Science Road     Glenwood, Illinois 60425-1586     Telephone: (708) 755-7000     Facsimile: (708) 755-7011

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First Fiscal Quarter Financial Overview and Business Segment Results

Revenues for the first fiscal quarter of 2013 were $36.7 million. The Medical Physics segment and the Medical Products segment contributed an increase of $0.2 million and $0.5 million, respectively due to their acquisitions over prior year. The Radiation Measurement segment experienced a decrease of $0.6 million. Revenue in the quarter included $1.7 million of Radwatch System sales, primarily to the U.S. military, while the prior year included the benefit of $2.0 million in InLight equipment sales into the military market. Consolidated revenue in the quarter was negatively affected $0.2 million by currency fluctuation, as compared with the prior year period, principally due to weakness in the Euro and Real against the U.S. dollar.

Gross margins were 54.8 percent for the first fiscal quarter of 2013, compared with 59.3 percent for the first fiscal quarter of 2012. The decrease in the gross margin was primarily due to higher costs associated with the new IT platform enhancement, as a portion of depreciation is now allocated to cost of sales since the project went operational during the fiscal fourth quarter of 2012, representing $0.5 million increase; as previously capitalized investment began its scheduled depreciation with a portion related to manufacturing production being allocated in cost of sales. Additional cost of sales in the quarter includes $0.4 million of ongoing IT system support expenses, over the prior year fiscal quarter. In addition, in the prior fiscal year quarter the Medical Physics segment had a significant level of commissioning sales, which are episodic in nature with that business operating on a relative fixed margin model.

Total selling, general and administrative expenses for the first fiscal quarter of 2013 were $13.4 million, an increase of $1.0 million, or 8.3 percent, compared to $12.4 million for the same quarter in fiscal 2012. For the first fiscal quarter of 2013, total selling, general and administrative included $0.7 million IT platform enhancement and $0.7 million of non-cash stock based compensation expenses. This compares with the $12.4 million reported for the first fiscal quarter of 2012, while the current quarter reflects $0.5 million increase in customer service related expenses and $0.3 million increase in IT platform enhancement related expenses. The prior year first fiscal quarter of 2012 included $0.8 million of non-cash stock based compensation related expenses. During the fourth quarter of 2012 the IT platform enhancement project successfully went operational and the balance of the above mentioned capitalized investment began its scheduled depreciation with a portion related to the non-manufacturing portion allocated to SG&A expenses, an increase of $0.3 million.

Operating income for the first fiscal quarter of 2013 was $6.7 million, a decrease of $0.9 million, or 11.8 percent compared with operating income of $7.6 million for the same quarter in fiscal 2012. Operating income, adjusted for non-recurring acquisition and reorganization expenses, IT platform enhancement related expenses, and non-cash stock based compensation expenses, for the first fiscal quarter of 2013 was $7.6 million, a 27.5 percent decrease, compared with adjusted operating income on a relative basis of $10.5 million for the first fiscal quarter of 2012.

Interest expense, net of investment income in the quarter, increased $0.4 million associated with borrowings to acquire IZI in the first fiscal quarter of 2012.

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The effective tax rate for the first fiscal quarter of 2013 and 2012 was 31.1 percent and 35.0 percent, respectively. The decrease in effective tax rate was due primarily to a change in the mix of earnings based on geographic location of the Company’s operations in various jurisdictions and the specific legal entities subject to taxation in those jurisdictions.

Net income for the first fiscal quarter ended December 31, 2012 was $4.9 million, or $0.52 per diluted share, which is consistent with the first fiscal quarter of 2012.

EBITDA for the fiscal first quarter 2013 was $11.5 million compared with $10.6 million in the comparable prior year period. The increase was due primarily to additional interest expense and depreciation offset slightly by lower tax expense. Adjusted EBITDA was $12.4 million compared to the prior year period Adjusted EBITDA of $13.5 million. A reconciliation of net income to EBITDA and Adjusted EBITDA is included in the attached financial exhibits.

Radiation Measurement Segment

Radiation Measurement revenues for the first fiscal quarter of 2013 decreased 2.2 percent, or $0.6 million, from the first fiscal quarter of 2012 to $26.4 million. The decrease in the quarter was primarily due to decreases at international subsidiaries over prior year first fiscal quarter.

Radiation Measurement operating income for the first fiscal quarter of 2013 decreased to $5.3 million, or 16.3 percent, from $6.3 million in the comparable prior year period. The decrease in operating income was due to increased IT expenses related to the company’s IT platform enhancement of $1.2 million, decreased revenues from international subsidiaries of $0.4 million additional customer service support of $0.5 million, additional manufacturing costs of $0.4 million, which was offset by prior year first quarter acquisition costs of $1.8 million. Corporate expenses for shared functions are recognized in the Radiation Measurement segment where they have been reported historically. Acquisition and reorganization costs are not allocated to the segments. As the Company’s business model evolves in increased complexity, management may determine it necessary to change this reporting practice to reflect any appropriate allocations.

Medical Physics Segment

Medical Physics revenues for the first fiscal quarter of 2013 increased 2.0 percent, or $0.2 million, from the comparable period in fiscal 2012 to $7.6 million due to the impact of acquired companies. The Medical Physics segment operating income was $0.8 million, or 10.4 percent of revenues, as compared to $0.9 million, or 12.0 percent of revenues, in the first fiscal quarter of 2012.

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Medical Products Segment

Medical Products revenues for the first fiscal quarter of 2013 increased 22.7 percent, or $0.5 million, from the first fiscal quarter of 2012 to $2.7 million. Medical Products operating income for the first fiscal quarter of 2013 was $0.7 million, or 24.9 percent of revenues, as compared to $0.4 million, or 16.7 percent of revenues, in the first fiscal quarter of 2012. The increase in revenue and operating income is due primarily to a full quarter results in fiscal 2013 versus only 1.5 months in fiscal 2012.

Balance Sheet

Landauer ended the first fiscal quarter of 2013 with total assets of $300.8 million, a decrease of $1.3 million compared to total assets of $302.1 million at the end of fiscal 2012. The Company completed the quarter with $16.5 million of cash and cash equivalents on the balance sheet and unused borrowing capacity of $29.2 million under its current $175 million credit facility, which provides adequate liquidity to meet its current and anticipated obligations. Net operating cash flow generated during the first fiscal quarter of 2013 was $2.1 million.

Fiscal 2013 Outlook

Landauer’s business plan for fiscal 2013 currently anticipates aggregate revenues for the year to be in the range of $164 to $168 million. The business plan also anticipates a blended effective tax rate for the full fiscal year in the range of 32 percent to 35 percent.

Based upon the above assumptions, the Company anticipates reported net income for fiscal 2013 in the range of $21 to $23 million and Adjusted EBITDA expected for fiscal 2013 in the range of $55 to $58 million.

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Conference Call Details

Landauer has scheduled its first quarter conference call for investors over the Internet on Tuesday, February 12, 2013, at 9:00 a.m. Central Time (10 a.m. Eastern Time). To participate, callers should dial 877-941-0843 (within the United States and Canada), or 480-629-9819 (international callers) 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 at least 15 minutes early to register, download and install any necessary audio software.  Investors may access a replay of the call by dialing 800-406-7325 (within the United States and Canada), or 303-590-3030 (international callers), passcode 4594725#, which will be available through Tuesday, March 12, 2013. The replay will also be available on Landauer’s website for 90 days following the call.

About Landauer

Landauer is a leading global provider of technical and analytical services to determine occupational and environmental radiation exposure, the leading domestic provider of outsourced medical physics services, as well as a provider of high quality medical accessories used in radiology, radiation therapy, and image guided surgery procedures. For more than 50 years, the Company has provided complete radiation dosimetry services to hospitals, medical and dental offices, universities, national laboratories, nuclear facilities 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 customers, and the analysis and reporting of exposure findings. The Company provides its dosimetry services to approximately 1.8 million individuals globally. In addition, through its Medical Physics segment, the Company provides therapeutic and imaging physics services to the medical physics community. Through its Medical Products segment, the Company provides medical consumable accessories used in radiology, radiation therapy, and image guided surgery procedures.

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Safe Harbor Statement

Some of the information shared here (including, in particular, the section titled “Fiscal 2013 Outlook”) 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 future performance, the Company’s development and introduction of new technologies in general; the ability to protect and utilize the Company’s intellectual property; continued customer acceptance of the InLight technology; the adaptability of optically stimulated luminescence (OSL) technology to new platforms and formats; military and other government funding for the purchase of certain of the Company’s equipment and services; the impact on sales and pricing of certain customer group purchasing arrangements; changes in spending or reimbursement for medical products or services; the costs associated with the Company’s research and business development efforts; the usefulness of older technologies and related licenses and intellectual property; the effectiveness of and costs associated with the Company’s IT platform enhancements; 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 ability to integrate the operations of acquired businesses and to realize the expected benefits of acquisitions; the risks associated with conducting business internationally; costs incurred for potential acquisitions or similar transactions; other anticipated financial events; the effects of changing economic and competitive conditions, including instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; foreign exchange rates; government regulations; accreditation requirements; changes in the trading market that affect the costs of obligations under the Company’s benefit plans; 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. Additional information may be obtained by reviewing the information set forth in Item 1A “Risk Factors” and Item 7A “Quantitative and Qualitative Disclosures about Market Risk” and information contained in the Company's Annual Report on Form 10-K for the year ended September 30, 2012 and other reports filed by the Company, from time to time, with the Securities and Exchange Commission. The Company does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events or changes in the Company’s expectations, except as required by law.

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During the past several years, the Company has been engaged in an initiative to re-engineer many of its business processes and replace significant components of its information technology systems. A principal component of this initiative is the implementation of new enterprise resource planning software and other applications to manage certain business operations. This enhancement of the Company’s IT platform has been a complex project and has involved extensive customization of the Company’s software and IT systems. In July 2012, the enhanced IT platform became operational. Although the Company has been encouraged by its experience with the enhanced platform during the first few months of the platform’s start-up phase, there can be no assurance that, during the remainder of this start-up phase, the new platform will continue to maintain its functionality at the levels anticipated or otherwise meet the Company’s business and operational objectives. If unforeseen problems arise, the Company’s operations could be adversely impacted, including the ability of the Company to perform one or more of the following in a timely manner: customer quotes, customer orders, product shipment, customer services and support, order billing and tracking, contractual obligations fulfillment and related operations. As previously disclosed, the Company expects to incur ongoing maintenance expenditures for the new IT platform at levels higher than the Company traditionally experienced under its prior platform. Unforeseen problems with the new platform could increase further such expenditures.

Financial Tables Follow

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Landauer, Inc. and Subsidiaries 

First Fiscal Quarter 2013 Consolidated Statements of Income (Unaudited)

	Three Months Ended December 31,
(Dollars in Thousands, Except per Share)	2012		2011
Net revenues	$	36,681	$	36,669
Costs and expenses:
Cost of sales		16,563		14,906
Selling, general and administrative		13,391		12,361
Acquisition and reorganization costs		0		1,849
Costs and expenses		29,954		29,116
Operating income		6,727		7,553
Equity in income of joint ventures		1,528		804
Interest income (expense), net		(1,033)		(590)
Other income (expense), net		95		59
Income before taxes		7,317		7,826
Income taxes		2,274		2,742
Net income		5,043		5,084
Less: Net income attributed to noncontrolling interest		166		159
Net income attributed to Landauer, Inc.	$	4,877	$	4,925
Net income per share attributable to Landauer, Inc. shareholders:
Basic	$	0.52	$	0.52
Weighted average basic shares outstanding		9,336		9,348
Diluted	$	0.52	$	0.52
Weighted average diluted shares outstanding		9,385		9,385
Dividends paid per share	$	0.55	$	0.55

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Landauer, Inc. and Subsidiaries 

Consolidated Balance Sheets (Unaudited)

(Dollars in Thousands)	December 31, 2012		September 30, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	16,497	$	17,633
Receivables, net of allowances of $1,163 and $1,088, respectively		36,391		35,165
Inventories		9,199		8,638
Prepaid income taxes		698		2,148
Prepaid expenses and other current assets		4,488		3,975
Current assets		67,273		67,559
Property, plant and equipment, at cost		103,330		101,375
Accumulated depreciation and amortization		(49,125)		(46,983)
Net property, plant and equipment		54,205		54,392
Equity in joint ventures		22,664		24,108
Goodwill		107,001		106,717
Intangible assets, net of accumulated amortization of $10,553 and $9,696, respectively		36,793		37,402
Dosimetry devices, net of accumulated depreciation of $9,316 and $8,879, respectively		6,537		6,189
Other assets (Note 4)		6,366		5,758
Assets	$	300,839	$	302,125
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,637	$	9,656
Dividends payable		5,342		5,345
Deferred contract revenue		15,065		14,947
Accrued compensation and related costs		5,520		8,260
Other accrued expenses		7,215		7,096
Current liabilities		39,779		45,304
Non-current liabilities:
Long-term debt		145,847		141,347
Pension and postretirement obligations (Note 6)		17,690		17,586
Deferred income taxes		15,745		15,733
Other non-current liabilities		998		1,053
Non-current liabilities		180,280		175,719
Stockholders’ equity:
Preferred stock, $.10 par value per share, authorized 1,000,000 shares; none issued		0		0
Common stock, $.10 par value per share, authorized 20,000,000 shares;  9,551,079 and 9,493,368 shares issued and outstanding at December 31, 2012 and September 30, 2012, respectively		955		949
Additional paid in capital		36,587		35,898
Accumulated other comprehensive loss		(5,788)		(5,272)
Retained earnings		47,793		48,142
Landauer, Inc. stockholders’ equity		79,547		79,717
Noncontrolling interest		1,233		1,385
Stockholders’ equity		80,780		81,102
Liabilities and Stockholders’ Equity	$	300,839	$	302,125

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Reconciliation of Net Income to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization

	Three Months Ended December 31,
	2012		2011
Net income attributed to Landauer, Inc.	$	4,877	$	4,925
Add back:
Interest expense, net		932		528
Depreciation and amortization		3,450		2,356
Provision for income taxes		2,274		2,742
Earnings before interest, taxes, depreciation and amortization (EBITDA)	$	11,533	$	10,551
Adjustments:
Non-cash stock-based compensation expense		684		830
IT platform enhancements expenses		178		282
Acquisition and reorganization costs		0		1,849
Sub-total adjustments		862		2,961
Adjusted EBITDA	$	12,395	$	13,512

Reconciliation of EPS to Adjusted EPS

	Three Months Ended December 31,
	2012		2011
Net income attributed to Landauer, Inc.	$	4,877	$	4,925
Sub-total adjustments		862		2,961
Income taxes on adjustments		(268)		(1,036)
Adjustments, net		594		1,925
Adjusted Net Income	$	5,471	$	6,850
Adjusted Net Income per Diluted Share	$	0.58	$	0.73

Adjusted Free Cash Flow

	Three Months Ended December 31,
	2012		2011
Adjusted EBITDA	$	12,395	$	13,512
Change in working capital		(6,429)		2,285
Capital expenditures		(1,902)		(3,839)
Adjusted Free Cash Flow	$	4,064	$	11,958

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EX-99.2

Exhibit 99.2

LANDAUER, INC. Fiscal 2013 First Quarter Results February 12, 2013

2 Safe Harbor Statement Some of the information shared here (including, in particular, the section titled “Fiscal 2013 Outlook”) 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 future performance, the Company’s development and introduction of new technologies in general ; the ability to protect and utilize the Company’s intellectual property ; continued customer acceptance of the InLight technology ; the adaptability of optically stimulated luminescence (OSL) technology to new platforms and formats ; military and other government funding for the purchase of certain of the Company’s equipment and services ; the impact on sales and pricing of certain customer group purchasing arrangements ; changes in spending or reimbursement for medical products or services ; the costs associated with the Company’s research and business development efforts ; the usefulness of older technologies and related licenses and intellectual property ; the effectiveness of and costs associated with the Company’s IT platform enhancements ; 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 ability to integrate the operations of acquired businesses and to realize the expected benefits of acquisitions ; the risks associated with conducting business internationally ; costs incurred for potential acquisitions or similar transactions ; other anticipated financial events ; the effects of changing economic and competitive conditions, including instability in capital markets which could impact availability of short and long - term financing ; the timing and extent of changes in interest rates ; the level of borrowings ; foreign exchange rates ; government regulations ; accreditation requirements ; changes in the trading market that affect the costs of obligations under the Company’s benefit plans ; 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 . Additional information may be obtained by reviewing the information set forth in Item 1 A “Risk Factors” and Item 7 A “Quantitative and Qualitative Disclosures about Market Risk” and information contained in the Company's Annual Report on Form 10 - K for the year ended September 30 , 2012 and other reports filed by the Company, from time to time, with the Securities and Exchange Commission . The Company does not undertake, and expressly disclaims, any duty to update any forward - looking statement whether as a result of new information, future events or changes in the Company’s expectations, except as required by law . During the past several years, the Company has been engaged in an initiative to re - engineer many of its business processes and replace significant components of its information technology systems . A principal component of this initiative is the implementation of new enterprise resource planning software and other applications to manage certain business operations . This enhancement of the Company’s IT platform has been a complex project and has involved extensive customization of the Company’s software and IT systems . In July 2012 , the enhanced IT platform became operational . Although the Company has been encouraged by its experience with the enhanced platform during the first few months of the platform’s start - up phase, there can be no assurance that, during the remainder of this start - up phase, the new platform will continue to maintain its functionality at the levels anticipated or otherwise meet the Company’s business and operational objectives . If unforeseen problems arise, the Company’s operations could be adversely impacted, including the ability of the Company to perform one or more of the following in a timely manner : customer quotes, customer orders, product shipment, customer services and support, order billing and tracking, contractual obligations fulfillment and related operations . As previously disclosed, the Company expects to incur ongoing maintenance expenditures for the new IT platform at levels higher than the Company traditionally experienced under its prior platform . Unforeseen problems with the new platform could increase further such expenditures .

3  Consolidated revenue $36.7 million, flat to prior year: - Acquisitions annualized $2.5 million: » Medical Products $2.2 million » Medical Physics $0.3 million  Consolidated gross profit $20.1 million, $1.6 million below prior year: - Additional IT Platform depreciation expense $0.5 million, and related system expense $0.4 million.  RadLight equipment sales $1.7 million to U.S. military tactical, and first responders markets.  Operating income of $6.7 million, includes $2.4 million expense related to: » IT Platform Enhancement, $1.2 million; $0.7 million increase over prior period » Additional interim costs associated with Customer Service Support $0.5 million » Non - cash stock based compensation expense, $0.7 million  GAAP net income of $4.9 million, or $0.52 per diluted share, included: » $0.06 of non - recurring and non - cash charges, after giving effect to tax  Dividend paid of $0.55 per share for the first fiscal quarter of 2013 » Providing an annual dividend rate of $2.20 » Paid on January 3, 2013 ▪ Q1 Adjusted EBITDA of $12.4 million and YTD Adjusted Free Cash Flow of $4.1 million Fiscal 2013 First Quarter Highlights

Value Creation Deliver Upside Growth 1. Optimize Core 2.Competitive Growth 3. Strategic Expansion Strategic Priorities Landauer Strategy Overview Strategic Expansion Optimize the Core Competitive Growth  New Management/ Structure • Chief Financial Officer Q1’12 • Radiation Measurement Segment Q3‘12 • Controller & Chief Accounting Officer Q4’12 • President, Medical Products Q1’13  R&D Investment • Military/ Next Gen Dosimetry Platform  IT Platform Enhancement • Went Live July 2012 • Full System Functionality/ Declining stabilization expense  OSL / InLight – Int’l. expansion  New Channels and Geographies • Military, First Responder • $20 million Orders Rec’d to date  New Products/ Existing Channel • Next Gen Dosimetry Platform • Patient Monitoring  Radiation Safety Continuum Execution: • Radiation Measurement Segment • Medical Physics Segment • Medical Products Segment  Leveraging core competencies and global footprint to expand opportunities • Markets • Services • Products 4

Therapeutic / Diagnostic Accessories Information Imaging Physics Therapy Physics Patient Monitoring Occupational Monitoring Consulting Strategic Expansion Existing Services with Penetration Opportunities (1) Complementary Adjacent Products / Services _____________________ (1) Average Revenue per Facility greater than $405K. The Radiation Safety Continuum 5 Medical Products Medical Physics Radiation Measurement Greater than $1.5 Billion Market Opportunity “Dose Accuracy” “Dose to Worker” “Dose to Patient”

Addressable Markets 2005 2010 2011 2012 Occupational Monitoring Radon Military Emergency Response Forensics Dose Reconstruction Patient Dose Consumer Radiation Radiation Markers Radiation Shielding Occupation Monitoring Radiation Instruments Radiation Measurements Patient Dose Information Management Commissioning Data Analytics Peak Demand Services Imaging Therapy Radiation Measurements Center For Innovation = OUR ROADS TO GROWTH IN EXCESS OF $1.5 BILLION GLOBAL MARKET POTENTIAL Strategy Overview Through the Lens of 2012 6

7 Competitive Growth Expanding Global Military Relationships  The U.S. military has now issued orders in excess of $20 million to upgrade its tactical dosimetry capabilities, and dosimetry laboratory • Radwatch system shipments in Q1 ‘13 x $1.7 million primarily to the United States Military • FY 2012 Revenue $6.6 million • Pursuing additional orders with the Military and First Responders markets – approximately $3.0 million ▪ Recognition of global military interest in the Radwatch system - discussions continuing with six additional military organizations outside of the U.S. Progress with Emergency Responder Markets ▪ Continue to expand National Guard / FEMA / state / local emergency response opportunities ▪ Pursuing domestic nuclear emergency response center concept ▪ Issued 275,000 badges and currently monitoring ~100,000 Fukushima area individuals in Japan, which reinforces emergency response credibility Expansion of Nuclear Footprint  Continuing to pursue additional global nuclear power plant installations  Landauer’s current U.S. market share 62 percent, up from 32 percent in Q4’11; plus 100% of Électricité de France S.A.

Military and Emergency Response Market Opportunity  Expanding application of next generation technology to pursue global military and first responder radiation monitoring markets  The U.S. military has now issued orders in excess of $20 million to upgrade its tactical dosimetry capabilities, and dosimetry laboratory • Military tactical Radwatch system shipments began in Q3’12 • Pursuing additional orders with Military and First Responders markets – approximately $3 million ▪ Recognition of global military interest in the Radwatch system - discussions with six additional military organizations outside of the U.S. ▪ Developing mutual aid response strategy to synchronize first responders (National/ State/ Local), the nuclear industry, and medical trauma centers ▪ Began shipping FEMA emergency response orders in Q1 FY12. 8

9 Network of Activities - Synchronization

10 Strategic Expansion Medical Physics  Medical Physics produced $7.6 million in revenues for first fiscal quarter 2013  Ongoing efforts to increase episodic premium services, leveraging a relatively fixed cost structure  Continued focus on driving growth and profitability translated to another quarter of positive operating income, operating margin 10.4 percent  Operating Income $0.8 million Q1 FY 2013

Radiation Safety is becoming more complex Assessment Remediation Ongoing Execution Control & Monitor 11 Advanced imaging and treatment choices, healthcare consolidation and tougher regulations and standards are raising the bar for radiation safety

Nationally Recognized Top 15 Health System 12 • Incremental Opportunity $2M • Strategy: - Verifii™Quality Dashboards - Continued CEO Executive Sponsor Landauer Medical Physics Leadership and Oversight Across System: Physicist and Oncologist tied at the hip

13 Strategic Expansion Medical Products  Medical Products segment generated revenues of $2.7 million for first fiscal quarter 2013  Operating income was $0.7 million with an operating margin 24.9 percent for first fiscal quarter 2013  Experienced medical device CEO recruited in Q1 FY 2013

IZI Medical Market Map Spherz Radiation Therapy 14

15 Optimize the Core Systems Initiative Update  Went “Live” in July 2012  Full order to cash functionality; Successful Full Year financial close September 2012  Measured approach to the phased implementation paid dividends – Minimized the risk of any disruptions to customers or on Landauer daily operations  Remain positioned to realize the operational efficiencies of the new systems over the long - term  Over 7,000 customers now on new web enabled system; versus previously 3,000 customers on 3 - legacy mainframe systems

LDR IT Evolution: 2006 - 2012 Applications (since 2007) Infrastructure (since 2007) • Customer Records - o ver 500M records migrated from IBM legacy system to new IT System platform • Data Center Co - location Strategy – implemented in FY12. Disaster Recovery / Risk Mitigation: total investment to date $1.75M • Landauer Databases - 250% increase in databases supported: 75  300 • Landauer Application Servers - 320% growth in servers: 45  196 2003 Luxel + Technology introduced 2005 InLight Product Technology released 2007 • COMET Program started • 229 Applications Supported 2010 • Nagase Landauer online w/ ILS • COMET Phase 1 Finance released 2009 • First ILS Software Solution Developed • SIS and RadWizard released to market 2011 • COMET Phase 2.0 myLDR.com • RadWizard 2.0 released • MyLDR.com - 6000+ Customers vs. 3000 Customers on IBM legacy systems • RadWatch Military / Emergency Response Software - enabled $7.1M revenue achievement in FY12 • MicroStar Software Platform – over 400 Customers supported since 2007. Enabled $9M one - time revenue, and $500K recurring revenue since 2011 • Independent Laboratory Systems – 15 Global Customer installations / infrastructure support since April, 2009 • RadWizard Data Management System – Over 450 Customers / 150K participants monitored • Customer Facing Solutions – 45 developed since 2007 • Application Portfolio – over 300 different application solutions supported: customers & internal solutions 2012 • COMET Phase 3.0, myLDR.com 2.0 • RadWizard 3.0 released Landauer I/T Org: Basis of Support 16

FY 2013 Outlook 17 Fiscal 2013 Outlook ▪ Expected Revenue $164 to $168 million, which includes a full fiscal year of contributions from the IZI Medical Products acquisition, versus 10.5 months in fiscal 2012 ▪ Adjusted EBITDA of $55 to $58 million ▪ Net Income of $21 to $23 million FY 2013 Outlook vs. FY 2012 Actual ▪ New IT Platform Enhancement Expenses: $4.0 million incremental (Non - cash $2.4 million) ▪ Non - cash Stock Based Compensation Expense: $0.9 million incremental

FY 2013 Outlook vs. FY 2012 Actual New IT Platform Enhancement Expenses – Depreciation/ Steady State/ Customer Service / Implementation/ Stabilization expenses: • Total FY 2013 vs. FY 2012 $4.0 million increased expense over prior year (previously, $5.6 million): – Depreciation, additional $2.4 million » Split between COG’s ($1.4 million) and SG&A ($1.0 million). – Ongoing Steady State expenses, additional $2.7 million (previously, $2.4 million). – Customer Service Support expense, $0.8 million; declines over time. (Previously, $1.0 million). – FY 2012 Implementation Expense ($ 1.2 million) – eliminated in FY 2013. – Non - recurring stabilization expense, lower by $0.7 million (previously, estimated increase of $908 thousand). 18 Actual Actual Previous Estimate Revised Estimate Q1 Actual 2011 2012 2013 2013 2013 Implementation Expense 1,185 1,172 - - - Depreciation 1,005 1,914 4,282 4,344 1,048 Cust. Service 1,100 832 512 Comet Steady State - 2,388 2,653 463 Comet Stabilization Expense 983 1,891 280 178 Total 2,190 4,069 9,661 8,109 2,201

FY 2013 Outlook vs. FY 2012 Actual Non - Cash Stock Based Compensation Nov.’13 Revised Guidance Guidance – FY 2013 Forecast $3.6M $3.3M – FY 2012 Actual $2.4M – Delta $1.2M $0.9M 19

20 Dividend Policy Dividend Policy • Board of Directors declared a regular quarterly cash dividend of $0.55 per share for the first quarter of fiscal 2013 – This represents an annual rate of $2.20 per share, consistent with fiscal 2012 levels – For the first fiscal quarter, the dividend was paid on January 3, 2013 to shareholders of record on December 10, 2012

Questions? Fiscal 2013 First Quarter Results February 12th, 2013