Landauer, Inc. Reports Fiscal 2012 Fourth Quarter And Year End
Results
GLENWOOD, Ill., Dec. 10, 2012 /PRNewswire/ -- Landauer,
Inc. (NYSE: LDR), a recognized leader in personal and
environmental radiation measurement and monitoring, outsourced
medical physics services and high quality medical consumable
accessories, today reported financial results for its fiscal 2012
fourth quarter and year ended September 30,
2012.
Fiscal 2012 Highlights
- Revenue grew 26.5 percent to $152.4
million, compared to fiscal year 2011.
- Gross profit grew 19.3 percent to $87.0
million on increased revenue and improved business mix.
- Operating income of $28.2 million
includes $12.3 million of
non-recurring acquisition and reorganization ($4.3 million), IT platform enhancement
($2.2 million) expense, non-cash
stock based compensation ($2.4
million) and asset abandonments ($3.4
million) expenses.
- Net income of $19.3 million, or
$2.03 per diluted share, included
$0.94 per diluted share of
acquisition and reorganization, asset abandonment charges, IT
platform enhancement, and non-cash stock based compensation
expenses.
- Adjusted EBITDA of $54.2 million
increased 11.9 percent from fiscal 2011.
- Fiscal 2012 Adjusted Free Cash Flow was $38.7 million, a 26.6 percent increase from
fiscal 2011.
- Company successfully executed the launch and operation of IT
platform enhancement.
- Company issues Fiscal 2013 guidance.
"Fiscal 2012 was an important year for the Company as we
advanced several long-term strategic initiatives," said
Bill Saxelby, President and CEO of
Landauer. "We began the fiscal year with the acquisition of
IZI Medical Products, added experienced new talent to our team and
ended the fiscal year with the successful launch and implementation
of our IT systems initiative during the fiscal fourth quarter."
"Against a backdrop of ongoing global economic and political
uncertainty, we expanded our relationships in the military and
emergency response markets, our Medical Physics segment was
profitable and continues to build momentum and the Medical Products
business was successfully integrated," said Saxelby.
Fiscal Year Ended September 30,
2012 Financial Overview and Business Segment Results
Revenues for the fiscal year ended September 30, 2012 were $152.4 million, an increase of $31.9 million, or 26.5 percent compared with
revenues of $120.5 million for the
fiscal year 2011. The Medical Physics segment and the
Radiation Measurement segment contributed an increase of
$10.3 million and $8.1 million, respectively. The
contribution of the new Medical Products segment increased revenue
by $13.5 million.
Gross margins were 57.1 percent for the fiscal year 2012,
compared with 60.6 percent for the fiscal year 2011. The
decrease in the gross margin rate was primarily due to a shift in
the mix of cost of sales resulting from the overall growth of the
Medical Physics segment, which has lower margins compared to the
Radiation Measurement and Medical Products segments, along with
lower margin equipment sales, including Radwatch System sales to
the military and First Responder markets, in the Radiation
Measurement segment. During the fourth quarter the IT
platform enhancement project successfully went operational and as a
result previously capitalized investment began its scheduled
amortized depreciation with a portion related to manufacturing
production allocated in cost of sales, representing an increase of
$0.5 million.
Total selling, general and administrative for the fiscal year
2012 were $51.1 million, an increase
of $14.5 million, or 39.7 percent,
compared with selling, general and administrative of $36.6 million for the fiscal year 2011.
For fiscal 2012, total selling, general and administrative
before $4.3 million of non-recurring
acquisition expenses, $3.4 million
for asset abandonments, $2.2 million
of IT platform enhancement related expenses and $2.4 million of non-cash stock based compensation
expenses, were $46.5 million, or 30.5
percent of total revenues. This compares with the $33.9 million, or 28.2 percent of total revenues,
reported for fiscal 2011, before $1.5
million of non-recurring acquisition expenses, $1.2 million of IT platform enhancement related
expenses, and $1.5 million of
non-cash stock based compensation expenses. During the fourth
quarter the IT platform enhancement project successfully went
operational and as a result previously capitalized investment began
its scheduled amortized depreciation with a portion related to
administrative accounting of the system allocated in SG&A
expenses, representing an additional $0.5
million.
Operating income for the fiscal year 2012 was $28.2 million, a decrease of $6.7 million, or 19.2 percent, compared with
operating income of $34.9 million for
the same period in fiscal 2011. The decrease in operating
income was primarily driven by a $6.2
million increase in non-recurring acquisition and
reorganization costs and asset abandonment charges incurred in
fiscal 2012. An additional decline of $8.4
million in Radiation Measurement operating income, due
primarily to the higher selling, general and administrative, was
partially offset by an increase in operating income of $1.8 million in the Medical Physics segment and
the addition of the Medical Products segment which contributed
$5.3 million in operating income.
Operating income, adjusted for non-recurring acquisition and
reorganization expenses, asset abandonment charges, IT platform
enhancement related expenses, and non-cash stock based compensation
expenses, for the fiscal year 2012 was $40.5
million, a 3.7 percent increase compared with operating
income, adjusted for these items on a relative basis, of
$39.0 million for fiscal 2011.
Consolidated operating income for the twelve months of fiscal 2012
was negatively affected $0.6 million
by currency fluctuation, as compared with the prior year period,
principally due to weakness in the Euro and the Real against the
U.S. dollar.
Total other income and expense for the fiscal year 2012 declined
$1.9 million from the prior year
period. An increase of $1.0
million in the equity in income of joint ventures was offset
by a $2.9 million increase in net
interest expense associated with borrowings to acquire IZI in the
first fiscal quarter of 2012.
The effective tax rate was 28.6 percent and 31.4 percent for
fiscal 2012 and 2011, respectively. The fiscal 2012 effective tax
rate decreased due primarily to an increased realization of the
Foreign Tax Credit and an increased research and development credit
by a foreign affiliate.
Net income for the fiscal year 2012 was $19.3 million, a decrease of $5.2 million, or 21.5 percent, compared with
$24.5 million for fiscal 2011.
Excluding the costs associated with the acquisitions and
reorganization costs, asset abandonment charges, IT platform
enhancement and non-cash stock based compensation, net income was
$28.1 million, as compared to
$27.4 million in the comparable prior
year period. The resulting adjusted diluted earnings per share for
the fiscal year ended September 30,
2012 were $2.97 per share,
excluding $0.94 per diluted share of
acquisition and reorganization, asset abandonment charges, IT
platform enhancement, and non-cash stock based compensation
expenses. This compares with $2.89
per share, excluding $0.31 per
diluted share of acquisition, IT platform enhancement, and non-cash
stock based compensation expenses, for the fiscal year ended
September 30, 2011.
Earnings before interest, taxes, depreciation and amortization
("EBITDA") for the fiscal year 2012 were $41.9 million, a 5.5 percent decrease compared
with $44.3 million in fiscal year
2011. The decrease was due primarily to the increase in
non-recurring acquisition and reorganization costs, asset
abandonment charges, IT platform enhancement and non-cash stock
based compensation. Adjusted EBITDA for fiscal 2012 was
$54.2 million, an 11.9 percent
increase compared with $48.5 million
in fiscal 2011. Adjusted earnings before interest, taxes,
depreciation and amortization, acquisition related expenses, IT
platform enhancement expenses, and non-cash stock based
compensation expenses ("Adjusted EBITDA"). Adjusted
Free Cash Flow (Adjusted EBITDA, plus or minus changes in working
capital, less capital expenditures) for fiscal 2012 was
$38.7 million, a 26.6 percent
increase over the comparable prior year period of $30.6 million, due principally to improved
working capital partially offset by increased capital
expenditures. A reconciliation of net income to EBITDA,
Adjusted EBITDA, and Adjusted Free Cash Flow is included in the
attached financial exhibits.
Radiation Measurement Segment
Radiation Measurement revenues for the fiscal year 2012
increased 8.1 percent, or $8.1
million, from fiscal 2011 to $107.9
million. Of the increase, $6.7
million was related to the impact of higher equipment sales
from the Company's ongoing initiatives with the military
market. International Radiation Measurement revenues
increased $1.3 million, or 4.5
percent, from the comparable prior year period, driven primarily by
organic growth in most regions, including both equipment sales and
service revenues, partially offset by $2.0
million of foreign exchange losses.
Radiation Measurement operating income for the fiscal year 2012
decreased to $21.5 million, a 39.1
percent decrease from $35.4 million
in the comparable prior year period, impacted by the increase and
mix in lower margin equipment sales both domestically and
internationally, including Radwatch System sales to the military,
and higher selling, general and administrative expenses.
Radiation Measurement operating income for fiscal 2012 was
negatively affected $0.6 million, as
compared with the prior year period, by currency fluctuation,
principally due to weakness in the Euro and the Real against the
U.S. dollar.
Corporate expenses for shared functions, as well as acquisition
and reorganization costs are recognized in the Radiation
Measurement segment where they have been reported historically. As
the Company's business model evolves, management may determine it
necessary to change this reporting practice to reflect any
appropriate allocations.
Radiation Measurement operating income, adjusted for the impact
of acquisition related transaction expenses, asset abandonment
charges, IT platform enhancement expenses, and non-cash stock based
compensation expenses, for fiscal 2012 decreased 16.2 percent, or
$6.4 million, to $33.1 million compared with adjusted operating
income of $39.5 million for the
comparable period in fiscal 2011.
Medical Physics Segment
Medical Physics revenues for fiscal 2012 of $30.9 million increased 50.3 percent, or
$10.3 million, from the comparable
period in fiscal 2011 of $20.6
million on $2.2 million of
organic growth and $8.1 million due
to the impact of acquired companies. The Medical Physics segment
operating income of $2.1 million, or
6.7 percent of revenues (before trade name impairment charges
$0.75 million, reorganization charges
$0.32 million, and acquisition
related charges $0.9 million),
increased $1.6 million as compared to
a loss of $0.5 million, for fiscal
2011. The improvement in operating income was primarily due to
operating efficiencies in the core Medical Physics business and
higher episodic premium services leveraging a relatively fixed cost
structure, as well as higher volume sales inclusive of acquired
companies.
Medical Products Segment
With the acquisition of IZI on November
14, 2011, the Company now operates in a third reportable
segment, Medical Products. Revenues for the period from the date of
acquisition through September 30,
2012 were $13.5 million.
Medical Products operating income was $5.3
million or 39.1 percent of revenues for the same period.
Given the acquisition of IZI was completed during the first quarter
of fiscal 2012, there is no direct comparison to the prior fiscal
year.
Fourth Fiscal Quarter Financial Overview and Business Segment
Results
Revenues for the fourth fiscal quarter of 2012 were $37.4 million, an increase of $6.9 million, or 22.6 percent compared with
revenues of $30.5 million for the
same quarter in fiscal 2011. The Radiation Measurement
segment contributed an increase of $2.0
million, the Medical Physics segment contributed an increase
of $1.8 million and the Medical
Products segment increased revenues by $3.1
million. Excluding revenue from the acquired
businesses during the year, as compared with the prior year
quarter, revenue increased 7.2 percent. Revenue in the
quarter included $2.7 million of
Radwatch System sales, primarily to the U.S. military.
Consolidated revenue in the quarter was negatively affected
$0.6 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 54.3 percent for the fourth fiscal quarter of
2012, compared with 58.3 percent for the fourth fiscal quarter of
2011 The decrease in the gross margin rate was primarily due to an
increase in Medical Physics segment revenues, which has lower
margins compared to the Radiation Measurement and Medical Products
segments, along with the Radiation Measurement segment increase of
lower margin equipment sales, inclusive of sales to the military
and emergency response markets, in the fourth fiscal quarter of
2012, as compared to the prior year period. During the fourth
quarter the IT platform enhancement project successfully went
operational and as a result previously capitalized investment began
its scheduled amortized depreciation with a portion related to
manufacturing production allocated in cost of sales, an increase of
$0.65 million for the fiscal year to
date.
Total selling, general and administrative for the fourth fiscal
quarter of 2012 were $19.1 million,
an increase of $8.4 million, or 77.9
percent, compared with selling, general and administrative of
$10.7 million for the same quarter in
fiscal 2011. The selling, general and administrative increase
was due to $3.4 million of asset
abandonment charges, $1.8 million
associated with acquired companies purchased subsequent to the
prior year's comparable quarter. For the fourth fiscal
quarter of 2012, total selling, general and administrative
before $3.4 million of
non-recurring asset abandonment charges, $1.0 million IT platform enhancement related
expenses, and $1.8 million of
acquisition and reorganization expenses and $0.3 million of non-cash stock based compensation
expenses were $12.6 million or 33.6
percent of total revenues. This compares with the $9.2 million, or 30.2 percent of total revenues,
reported for the fourth fiscal quarter of 2011, before $0.3 million of IT platform enhancement related
expenses and $1.3 million of
acquisition related expenses. During the fourth quarter the
IT platform enhancement project successfully went operational and
as a result previously capitalized investment began its scheduled
amortized depreciation with a portion related to administrative
accounting of the system allocated in SG&A expenses, an
increase of $0.69 million.
Operating income for the fourth fiscal quarter of 2012 was
$1.2 million, a decrease of
$5.8 million, or 82.7 percent
compared with operating income of $7.0
million for the same quarter in fiscal 2011. The decrease in
operating income was primarily driven by a decrease of $6.5 million in the Radiation Measurement segment
offset by the addition of the Medical Products segment which
contributed $1.0 million in operating
income. Operating income, adjusted for non-recurring
acquisition and reorganization expenses, asset abandonment charges,
IT platform enhancement related expenses, and non-cash stock based
compensation expenses, for the fourth fiscal quarter of 2012 was
$7.8 million, a 9.5 percent increase
compared with adjusted operating income on a relative basis of
$8.6 million for the fourth fiscal
quarter of 2011.
Interest expense, net of investment income in the quarter,
increased $0.5 million associated
with borrowings to acquire IZI in the first fiscal quarter of
2012.
The effective tax rate for the fourth fiscal quarter of 2012 and
2011 was 14.9 percent and 25.3 percent, respectively. The decrease
in effective tax rate was due primarily to an increased realization
of the Foreign Tax Credit and an increased research and development
credit by a foreign affiliate.
Net income for the fourth fiscal quarter ended September 30, 2012 was $0.7 million, or $0.07 per diluted share. This represents a
decrease of $4.5 million, or 87.1
percent, compared with $5.2 million,
or $0.54 per diluted share, for the
fourth fiscal quarter of 2011. Excluding the costs associated with
the acquisitions and reorganizations, asset abandonment, IT
platform enhancement, and non-cash stock based compensation, net
income was $6.2 million, as compared
to $6.3 million in the prior year
period. The resulting diluted earnings per share for the fourth
fiscal quarter of 2012 were $0.66,
excluding $0.59 per diluted share of
acquisition and reorganization, asset abandonment, IT platform
enhancement, and non-cash stock based compensation expenses. This
compares with $0.67, excluding
$0.12 per diluted share of
acquisition, IT platform enhancement, and non-cash stock based
compensation expenses, for the fourth fiscal quarter of 2011.
EBITDA was $5.4 million, a 43.6
percent decrease compared with $9.5
million in the comparable prior year period. The decrease
was due primarily by a decrease of $8.0
million in the Radiation Measurement segment offset by the
addition of the Medical Products segment which contributed
$1.0 million in operating
income. Adjusted EBITDA was $11.9
million, a 7.7 percent increase compared to the prior year
period Adjusted EBITDA of $11.1
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 fourth fiscal quarter of
2012 increased 8.2 percent, or $2.0
million, from the fourth fiscal quarter of 2011 to
$26.6 million. The increase in
the quarter is due principally to a contribution of $2.7 million from the impact of higher equipment
sales, primarily from the Company's ongoing initiatives with the
military and first responder markets. International Radiation
Measurement revenues decreased $0.1
million, from the comparable prior year period, driven
primarily by organic growth in most regions, including both
equipment sales and service revenues, partially offset by
$0.6 million of foreign currency
translation losses.
Radiation Measurement operating income for the fourth fiscal
quarter of 2012 decreased to $0.4
million, a 94.1 percent decrease from $6.9 million in the comparable prior year
period. The decrease in the quarter is due principally to a
$4.3 million increase in
non-recurring acquisition and reorganization costs, asset
abandonment charges, IT platform enhancement and non-cash stock
based compensation related expenses lower margin equipment sales,
both domestically and internationally, including Radwatch System
sales to the military, and higher selling, general and
administrative expenses. Corporate expenses for shared
functions, as well as acquisition and reorganization costs are
recognized in the Radiation Measurement segment where they have
been reported historically. 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.
Radiation Measurement operating income for the fourth
fiscal quarter of 2012 was negatively affected $0.2 million, as compared with the prior year
period, by currency fluctuation, principally due to weakness in the
Euro and the Real against the U.S. dollar.
Medical Physics Segment
Medical Physics revenues for the fourth fiscal quarter of 2012
increased 30.0 percent, or $1.8
million, from the comparable period in fiscal 2011 to
$7.8 million on $0.2 million of organic growth and $1.6 million due to the impact of acquired
companies. The Medical Physics segment operating loss was
$0.2 million, or 2.4 percent of
revenues, as compared to breakeven operating income in the fourth
fiscal quarter of 2011. The improvement in operating income
was primarily due to operating efficiencies in the organic Medical
Physics business and higher episodic premium services leveraging a
relatively fixed cost structure, as well as higher volume sales
inclusive of acquired companies.
Medical Products
Segment
Medical Products revenues for the fourth fiscal quarter of 2012
were $3.1 million. Medical Products
operating income was $1.0 million or
32.3 percent of revenues for the fourth fiscal quarter of 2012.
Given the acquisition of IZI was completed during the first fiscal
quarter of 2012, there is no direct comparison to the prior year
quarter.
Balance Sheet
Landauer ended the fourth fiscal quarter of 2012 with total
assets of $302.1 million, an increase
of $133.4 million compared to total
assets of $168.7 million at the end
of fiscal 2011 due principally to the acquisition of IZI in
November 2011. The Company completed the year with
$17.6 million of cash and cash
equivalents on the balance sheet and unused borrowing capacity of
$33.7 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
fiscal year 2012 was $35.7 million,
representing a 14.2 percent increase over the prior year
period.
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:
- $3.0 million ($2.0 million net of tax) of non-recurring expense
spending to support the post implementation stabilization, and
associated customer support, of the Company's IT Platform systems
initiative.
- The blended effective tax rate for the full fiscal year is
anticipated to be within a 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.
Saxelby added, "As we look to 2013, Landauer is well positioned
to capitalize upon the important foundational work completed over
the last several years, which is due to the efforts of our
dedicated team around the world. With the right team in place, an
innovative market leading set of products and services, and our new
IT platform to support us, the future is bright for our
Company."
Conference Call Details
Landauer has scheduled its fourth quarter conference call for
investors over the Internet on Tuesday,
December 11, 2012, at 9:00 a.m.
Central Time (10 a.m. Eastern
Time). To participate, callers should dial
877-941-8609 (within the United
States and Canada), or
480-629-9692 (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 4579024#, which will
be available through Friday, January
11, 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.
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, 2011 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 weeks 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
Landauer, Inc. and Subsidiaries
Fourth
Fiscal Quarter 2012 Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
September 30,
|
|
Twelve
Months Ended
September 30,
|
(Dollars in Thousands, Except per
Share)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net
revenues
|
$
|
37,432
|
|
$
|
30,535
|
|
$
|
152,400
|
|
$
|
120,458
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
17,100
|
|
|
12,746
|
|
|
65,392
|
|
|
47,510
|
Selling, general and
administrative
|
|
13,880
|
|
|
9,486
|
|
|
51,096
|
|
|
36,576
|
Acquisition and
reorganization costs
|
|
1,790
|
|
|
1,259
|
|
|
4,299
|
|
|
1,489
|
Abandonment charges
|
|
3,443
|
|
|
0
|
|
|
3,443
|
|
|
0
|
Costs and
expenses
|
|
36,213
|
|
|
23,491
|
|
|
124,230
|
|
|
85,575
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
1,219
|
|
|
7,044
|
|
|
28,170
|
|
|
34,883
|
Equity in
income of joint ventures
|
|
626
|
|
|
490
|
|
|
3,181
|
|
|
2,191
|
Interest
expense, net
|
|
(742)
|
|
|
(284)
|
|
|
(3,308)
|
|
|
(270)
|
Other
income (expense), net
|
|
97
|
|
|
(21)
|
|
|
97
|
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before taxes
|
|
1,200
|
|
|
7,229
|
|
|
28,140
|
|
|
36,735
|
Income
taxes
|
|
180
|
|
|
1,829
|
|
|
8,040
|
|
|
11,527
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
1,020
|
|
|
5,400
|
|
|
20,100
|
|
|
25,208
|
Less: Net income attributed to noncontrolling
interest
|
|
351
|
|
|
214
|
|
|
830
|
|
|
670
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributed to Landauer, Inc.
|
$
|
669
|
|
$
|
5,186
|
|
$
|
19,270
|
|
$
|
24,538
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per share attributable to Landauer, Inc. shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.07
|
|
$
|
0.55
|
|
$
|
2.04
|
|
$
|
2.60
|
Weighted average
basic shares outstanding
|
|
9,397
|
|
|
9,394
|
|
|
9,389
|
|
|
9,395
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
|
0.07
|
|
$
|
0.54
|
|
$
|
2.03
|
|
$
|
2.58
|
Weighted average
diluted shares outstanding
|
|
9,456
|
|
|
9,477
|
|
|
9,437
|
|
|
9,477
|
Landauer, Inc. and Subsidiaries
Consolidated Balance Sheets
As of
September 30,
|
|
|
|
|
|
|
|
(Dollars in Thousands)
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
17,633
|
|
$
|
7,914
|
Receivables, net of
allowances of $1,088 in 2012 and $794 in 2011
|
|
|
35,165
|
|
|
25,516
|
Inventories
|
|
|
8,638
|
|
|
8,286
|
Prepaid income
taxes
|
|
|
2,148
|
|
|
4,921
|
Prepaid expenses and other
current assets
|
|
|
3,975
|
|
|
4,005
|
Current
assets
|
|
|
67,559
|
|
|
50,642
|
Property,
plant and equipment, at cost:
|
|
|
|
|
|
|
Land and
improvements
|
|
|
591
|
|
|
619
|
Buildings and
improvements
|
|
|
4,327
|
|
|
4,233
|
Internal software
|
|
|
50,108
|
|
|
49,238
|
Equipment
|
|
|
46,349
|
|
|
42,708
|
|
|
|
101,375
|
|
|
96,798
|
Accumulated depreciation and amortization
|
|
|
(46,983)
|
|
|
(49,157)
|
Net
property, plant and equipment
|
|
|
54,392
|
|
|
47,641
|
Equity in
joint ventures
|
|
|
24,108
|
|
|
10,699
|
Goodwill
|
|
|
106,717
|
|
|
39,962
|
Intangible
assets, net of accumulated amortization of $9,696 in 2012 and
$7,355 in 2011
|
|
|
37,402
|
|
|
10,908
|
Dosimetry
devices, net of accumulated depreciation of $8,879 in 2012 and
$9,728 in 2011
|
|
|
6,189
|
|
|
5,618
|
Other
assets
|
|
|
5,758
|
|
|
3,186
|
ASSETS
|
|
$
|
302,125
|
|
$
|
168,656
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
9,656
|
|
$
|
5,457
|
Dividends payable
|
|
|
5,345
|
|
|
5,301
|
Deferred contract
revenue
|
|
|
14,947
|
|
|
14,713
|
Short-term debt
|
|
|
0
|
|
|
19,805
|
Accrued compensation and
related costs
|
|
|
8,260
|
|
|
5,607
|
Other accrued
expenses
|
|
|
7,096
|
|
|
7,066
|
Current
liabilities
|
|
|
45,304
|
|
|
57,949
|
Non-current liabilities:
|
|
|
|
|
|
|
Long-term debt
|
|
|
141,347
|
|
|
0
|
Pension and postretirement
obligations
|
|
|
17,586
|
|
|
14,202
|
Deferred income
taxes
|
|
|
15,733
|
|
|
12,805
|
Other non-current
liabilities
|
|
|
1,053
|
|
|
1,292
|
Non-current liabilities
|
|
|
175,719
|
|
|
28,299
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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;
9,493,368 and
9,462,807 issued and outstanding, respectively, in 2012 and
2011
|
|
|
949
|
|
|
946
|
Additional
paid in capital
|
|
|
35,898
|
|
|
33,791
|
Accumulated other comprehensive loss
|
|
|
(5,272)
|
|
|
(3,129)
|
Retained
earnings
|
|
|
48,142
|
|
|
49,724
|
Landauer,
Inc. stockholders' equity
|
|
|
79,717
|
|
|
81,332
|
Noncontrolling interest
|
|
|
1,385
|
|
|
1,076
|
Stockholders' equity
|
|
|
81,102
|
|
|
82,408
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
302,125
|
|
$
|
168,656
|
Reconciliation of Net Income to Adjusted
Earnings before Interest, Taxes, Depreciation and
Amortization
|
|
Three
Months Ended
September 30,
|
|
2012
|
|
2011
|
Net income
attributed to Landauer, Inc.
|
$
|
669
|
|
$
|
5,186
|
Add
back:
|
|
|
|
|
|
Interest expense,
net
|
|
650
|
|
|
284
|
Income taxes
|
|
180
|
|
|
1,829
|
Depreciation and
amortization
|
|
3,879
|
|
|
2,241
|
Earnings
before interest, taxes, depreciation and amortization
(EBITDA)
|
$
|
5,378
|
|
$
|
9,540
|
Adjustments:
|
|
|
|
|
|
Non-cash stock-based compensation
expense
|
|
319
|
|
|
(5)
|
IT platform enhancements
expenses
|
|
982
|
|
|
265
|
Acquisition and reorganization
costs
|
|
1,790
|
|
|
1,259
|
Abandonment
|
|
3,443
|
|
|
0
|
Sub-total adjustments
|
|
6,534
|
|
|
1,519
|
Adjusted
earnings before interest, taxes, depreciation and
amortization
(Adjusted EBITDA)
|
$
|
11,912
|
|
$
|
11,059
|
|
|
|
Twelve
Months Ended
September 30,
|
|
2012
|
|
2011
|
Net income
attributed to Landauer, Inc.
|
$
|
19,270
|
|
$
|
24,538
|
Add
back:
|
|
|
|
|
|
Interest expense,
net
|
|
2,969
|
|
|
270
|
Income taxes
|
|
8,040
|
|
|
11,527
|
Depreciation and
amortization
|
|
11,631
|
|
|
7,991
|
Earnings
before interest, taxes, depreciation and amortization
(EBITDA)
|
$
|
41,910
|
|
$
|
44,326
|
Adjustments:
|
|
|
|
|
|
Non-cash stock-based
compensation expense
|
|
2,434
|
|
|
1,481
|
IT platform
enhancements expenses
|
|
2,155
|
|
|
1,185
|
Acquisition and
reorganization costs
|
|
4,299
|
|
|
1,489
|
Abandonment
|
|
3,443
|
|
|
0
|
Sub-total
adjustments
|
|
12,331
|
|
|
4,155
|
Adjusted
earnings before interest, taxes, depreciation and
amortization
(Adjusted EBITDA)
|
$
|
54,241
|
|
$
|
48,481
|
Reconciliation of EPS to Adjusted
EPS
|
|
Three
Months Ended
September 30,
|
|
2012
|
|
2011
|
Net income
attributed to Landauer, Inc.
|
$
|
669
|
|
$
|
5,186
|
|
|
|
|
|
|
Sub-total
adjustments
|
|
6,534
|
|
|
1,519
|
Income
taxes on adjustments
|
|
(980)
|
|
|
(384)
|
Adjustments, net
|
|
5,554
|
|
|
1,135
|
|
|
|
|
|
|
Adjusted
net income
|
$
|
6,223
|
|
$
|
6,321
|
|
|
|
|
|
|
Adjusted
net income per diluted share
|
$
|
0.66
|
|
$
|
0.67
|
Weighted
average diluted shares outstanding
|
|
9,456
|
|
|
9,477
|
|
|
|
Twelve
Months Ended
September 30,
|
|
2012
|
|
2011
|
Net income
attributed to Landauer, Inc.
|
$
|
19,270
|
|
$
|
24,538
|
|
|
|
|
|
|
Sub-total
adjustments
|
|
12,331
|
|
|
4,155
|
Income
taxes on adjustments
|
|
(3,527)
|
|
|
(1,305)
|
Adjustments, net
|
|
8,804
|
|
|
2,850
|
|
|
|
|
|
|
Adjusted
net income
|
$
|
28,074
|
|
$
|
27,388
|
|
|
|
|
|
|
Adjusted
net income per diluted share
|
$
|
2.97
|
|
$
|
2.89
|
Weighted
average diluted shares outstanding
|
|
9,437
|
|
|
9,477
|
Adjusted Free Cash Flow
|
|
Twelve
Months Ended
September 30,
|
|
2012
|
|
2011
|
Adjusted
EBITDA
|
$
|
54,241
|
|
$
|
48,481
|
Change in
working capital
|
|
(337)
|
|
|
(4,990)
|
Capital
expenditures
|
|
(15,196)
|
|
|
(12,923)
|
Adjusted
Free Cash Flow
|
$
|
38,708
|
|
$
|
30,568
|
SOURCE Landauer, Inc.