LANDAUER INC GLENWOOD, Ill., Feb. 9, 2017 /PRNewswire/ -- Landauer, Inc. (NYSE: LDR), a recognized leader in personal and environmental radiation measurement and monitoring and outsourced medical physics services, today reported financial results for its fiscal 2017 first quarter ended December 31, 2016.
Fiscal 2017 First Quarter Highlights
-- Reported revenue of $37.6 million compared to $36.5 million in the first
quarter of 2016
-- Excluding the divested Medical Products business, pro forma revenue
increased 10.3% compared to the prior year
-- Military revenues increased $2.2 million
-- International revenues increased 7.3%
-- Reported net income of $4.4 million compared to $3.6 million in the
first quarter of 2016
-- Excluding the divested Medical Products business, pro forma net
income increased 29.4% compared to the prior year
-- On a GAAP basis, earnings per diluted share of $0.46 compared to $0.38
in the first quarter of 2016
Mike Kaminski, President and Chief Executive Officer of Landauer stated, "We are pleased with our fiscal 2017 first quarter financial results, which were in line with our expectations and demonstrate continued execution on our key initiatives. During the quarter, we continued to see strong demand in imaging physics and solid growth in our international business in addition to benefitting from a large military shipment in the period. At the same time, we remain on schedule and are highly focused on delivering a successful launch of our Verifii digital dosimetry platform. We are off to a good start in fiscal 2017 and we remain on track with the full year guidance we provided in December."
First Quarter Financial Overview
Revenues for the first fiscal quarter of 2017 were $37.6 million, a 3.0% increase compared to revenues of $36.5 million for the first fiscal quarter of 2016. Excluding the Medical Products business which was divested in the third fiscal quarter of 2016, total revenues increased $3.5 million or 10.3% compared to the prior year period. Radiation Measurement revenues for the quarter increased to $27.6 million from $24.7 million for the first fiscal quarter of 2016. Military sales in the first fiscal quarter of 2017 were $2.6 million compared to approximately $0.4 million in the first fiscal quarter of 2016. Medical Physics revenues increased $0.6 million, or 6.4%, to $10.0 million, due to strong demand for imaging services.
Operating income for the first fiscal quarter of 2017 was $7.4 million, compared to operating income of $6.2 million for the first fiscal quarter of 2016. Excluding the operating income from the divested Medical Products business, operating income increased $1.6 million compared to the prior year period due primarily to the timing of military sales.
Use of Non-GAAP Financial Measures
Management believes the disclosure of certain non-GAAP financial measures enhances investor understanding of our financial performance. Non-GAAP financial measures disclosed in this report include: Adjusted EBITDA, Pro Forma Revenue and Pro Forma Operating Income.
Adjusted EBITDA is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance and is not intended to be a presentation in accordance with GAAP. Since EBITDA (generally, net income plus interest expenses, taxes, depreciation and amortization) is not calculated identically by all companies, this presentation may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA represents net income with adjustments for net financing costs, depreciation and amortization, provision for income taxes, stock compensation expense, goodwill and other intangible assets impairments, and acquisition, reorganization and nonrecurring costs. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of certain non-cash and other items that may vary for different companies for reasons unrelated to overall operating performance.
In addition, the Company's management used Adjusted Net Income as a measure of earnings to eliminate the effects of certain non-cash items of the Company. Adjusted Net Income and Adjusted Earnings per Diluted Share represents net income with tax-effected adjustments for stock compensation expense.
The Pro Forma Revenue and Pro Forma Operating Income measures exclude the Medical Products business, which was divested in May 2016.
These financial measures are not recognized measurements under GAAP and should not be considered as an alternative to the most directly comparable measures presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included within this news release.
Conference Call Details
Landauer has scheduled its first quarter conference call for investors over the Internet on Thursday, February 9, 2017, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). To participate, callers should dial 866-866-1542 (within the United States and Canada), or 707-294-1539 (international callers), passcode 65124896, about 10 minutes before the presentation. To listen to a webcast on the Internet, please go to the Company's website at http://www.landauer.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 855-859-2056 (within the United States and Canada), or 404-537-3406 (international callers), passcode 65124896, which will be available through Saturday, March 11, 2017. The replay will also be available on Landauer's website for 30 days following the call.
About Landauer
Landauer is a leading global provider of technical and analytical services to determine occupational and environmental radiation exposure, as well as the leading domestic provider of outsourced medical physics services. 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. For information about Landauer, please visit their website at http://www.landauer.com
Safe Harbor Statement
Some of the information shared here (including, in particular, the section titled "Fiscal 2017 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 joint ventures; valuation of the Company's long-lived assets or reporting units relative to future cash flows; changes in pricing of services and products; 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 fiscal year ended September 30, 2016 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.
Financial Tables Follow
Landauer, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in Thousands) December 31, September 30,
2016 2016
---- ----
Assets
Cash and cash equivalents $12,442 $13,285
Receivables, net of allowances of $1,313 at
December 31, 2016 and $1,296 at September 30, 2016 32,482 31,998
Inventories 5,692 5,670
Prepaid expenses and other current assets 6,527 5,049
----- -----
Total current assets 57,143 56,002
------ ------
Net property, plant and equipment 46,053 46,417
Equity in joint ventures 24,956 26,174
Goodwill 33,335 33,807
Intangible assets, net of accumulated amortization
of $11,699 at December 31, 2016 and $11,772 at
September 30, 2016 9,003 9,297
Other assets 17,262 19,119
------ ------
Total assets $187,752 $190,816
======== ========
Liabilities
Total current liabilities $33,079 $34,498
Long-term debt 107,600 109,100
Other non-current liabilities 26,669 26,619
------ ------
Total liabilities 167,348 170,217
------- -------
Stockholders' equity
Landauer, Inc. stockholders' equity 19,215 19,178
Noncontrolling interest 1,189 1,421
----- -----
Total stockholders' equity 20,404 20,599
------ ------
Total Liabilities and Stockholders' Equity $187,752 $190,816
======== ========
Landauer, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended
December 31,
------------
(Dollars in Thousands,
Except per Share) 2016 2015
---- ----
Total revenues $37,572 $36,530
Cost and expenses:
Cost of sales 17,937 18,015
Selling, general and
administrative expense 12,193 12,263
------ ------
Total costs and expenses 30,130 30,278
------ ------
Operating income 7,442 6,252
Equity in income of joint
ventures 636 301
Other expense, net (1,122) (1,093)
------ ------
Income before taxes 6,956 5,460
Income tax expense 2,376 1,687
----- -----
Net income 4,580 3,773
Less: Net income
attributed to
noncontrolling interest 179 130
--- ---
Net income attributed to
Landauer, Inc. $4,401 $3,643
====== ======
Net income per share
attributable to
Landauer, Inc.
shareholders:
Basic $0.46 $0.38
===== =====
Weighted average basic
shares outstanding 9,540 9,460
Diluted $0.46 $0.38
===== =====
Weighted average diluted
shares outstanding 9,584 9,492
Landauer, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended
December 31,
------------
(Dollars in Thousands) 2016 2015
---- ----
Cash flows from operating
activities:
Net income $4,580 $3,773
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 2,678 2,797
Equity in income of joint ventures (636) (301)
Dividends from joint ventures - 1,195
Stock-based compensation and
related net tax benefits 744 457
Current and long-term deferred
taxes, net 1,752 632
Loss (gain) on sale, disposal and
abandonment of fixed assets 17 (9)
Gain on investments (58) (190)
Changes in operating assets and
liabilities (2,587) (2,413)
------ ------
Net cash provided by operating
activities 6,490 5,941
----- -----
Net cash used in investing
activities (2,415) (2,929)
Cash flows from financing
activities:
Long-term borrowings, net (1,500) (5,700)
Dividends paid to stockholders (2,682) (2,651)
Other financing activities, net (368) (156)
---- ----
Net cash used in financing
activities (4,550) (8,507)
------ ------
Effects of foreign currency
translation (368) (279)
---- ----
Net decrease in cash and cash
equivalents (843) (5,774)
Opening balance -cash and cash
equivalents 13,285 15,314
------ ------
Ending balance -cash and cash
equivalents $12,442 $9,540
======= ======
Non-GAAP Financial Measures
A reconciliation of EBITDA, Pro Forma Revenue and Pro Forma Operating Income (i.e., non-GAAP financial measures) to the most directly comparable GAAP measures is provided below:
Three Months Ended
December 31,
------------
(Unaudited, Dollars in
Thousands) 2016 2015
---- ----
EBITDA
Net income attributed to
Landauer, Inc. $4,401 $3,643
Add back:
Net financing costs 679 818
Depreciation and amortization 2,678 2,797
Provision for income taxes 2,376 1,687
----- -----
Earnings before interest,
taxes, depreciation and
amortization (EBITDA) $10,134 $8,945
------- ------
Three Months Ended
December 31,
------------
(Unaudited, Dollars in
Thousands) 2016 2015
---- ----
Pro Forma Revenue
Total Revenues, as reported $37,572 $36,530
------- -------
Less:
Medical Products adjustment - (2,473)
--- ------
Total Revenues, pro forma $37,572 $34,057
======= =======
Three Months Ended
December 31,
------------
(Unaudited, Dollars in
Thousands) 2016 2015
---- ----
Pro Forma Operating Income
Operating Income, as reported $7,442 $6,252
------ ------
Less:
Medical Products adjustment - (490)
--- ----
Total Operating Income, pro
forma $7,442 $5,762
====== ======
Segment Information
The following tables summarize financial information for each reportable segment for the three months ended December 31:
Three Months Ended
December 31,
------------
(Unaudited, Dollars in Thousands) 2016 2015
---- ----
Revenues by segment:
Radiation Measurement $27,632 $24,704
Medical Physics 9,940 9,353
Medical Products - 2,473
--- -----
Consolidated revenues $37,572 $36,530
======= =======
Three Months Ended
December 31,
------------
(Unaudited, Dollars in Thousands) 2016 2015
---- ----
Operating income (loss) by
segment:
Radiation Measurement $11,232 $8,898
Medical Physics 679 778
Medical Products - 490
Corporate (4,469) (3,914)
------ ------
Consolidated operating income $7,442 $6,252
====== ======
For Further Information Contact:
Michael DeGraff
Sard Verbinnen & Co
Phone: 312.895.4734
Email: mdegraff@sardverb.com
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SOURCE Landauer, Inc.
