Landauer Reports Fiscal 2015 Third Quarter Results

GLENWOOD, Ill., Aug. 10, 2015 /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 2015 third quarter ended June 30, 2015.

Fiscal 2015 Third Quarter Highlights

• Revenue of $35.5 million, a 1.1% decrease compared to the year-ago period
  • Domestic Radiation Measurement revenues grew 1.5% year-over-yea
  • Medical Physics revenues grew 8.5% year-over-year
  • Unfavorable impact due to foreign currency rates reduced revenues by $1.5 million. Excluding the impact of foreign currency exchange rates, revenues increased 3.1%.
• Operating income of $5.1 million, compared to an operating loss of $59.6 million in the prior year period
  • Adjusted operating income increased $1.0 million compared to the third quarter of fiscal 2014
  • Professional fees reduced operating income by $0.5 million year-over-year
• Net income of $4.1 million, compared to a net loss of $36.3 million in the prior year period
  • Adjusted net income of $4.5 million was up $2.4 million compared to the third quarter of fiscal 2014
• Adjusted EBITDA of $9.2 million, an increase of 8.7% year-over-year

Mike Leatherman, President and Chief Executive Officer of Landauer stated, “While we continue to experience the negative impact of unfavorable foreign currency rates, our underlying results demonstrate the strength of our position as the leading provider of enterprise-wide solutions for our customers. At the same time, we are particularly encouraged by the 8.5% growth in revenues in our Medical Physics segment.”

Leatherman continued, “We continue to make progress on our growth initiatives, including our next generation digital dosimeter platform, Verifii and are well positioned to meet the emerging needs for a broader radiation management solution. We are seeing strong demand for our solutions following the Joint Commission’s new Diagnostic Imaging requirements that became effective for hospitals and ambulatory care centers on July 1 and believe this trend will continue to drive further growth opportunities and long-term value for shareholders.”

Third Fiscal Quarter Financial Overview

Revenues for the third fiscal quarter of 2015 were $35.5 million, a 1.1% decrease compared to revenues of $35.9 million for the third fiscal quarter of 2014. Radiation Measurement revenues for the third fiscal quarter of 2015 were $24.1 million, a 4.7% decrease compared to $25.3 million for the third fiscal quarter of 2014. The decrease in revenues was primarily due to the unfavorable impact of changes in foreign currency exchange rates of $1.5 million, partially offset by an increase in domestic revenues of $0.3 million. Medical Physics revenues increased $0.7 million, due to increased imaging services. Medical Products revenues were flat.

Operating income for the third fiscal quarter of 2015 was $5.1 million, compared with an operating loss of $59.6 million for the third fiscal quarter of 2014. The increase in operating income was driven by the $62.2 million goodwill and other intangible assets impairment charge, and $1.6 million in reorganization expenses recorded during the third fiscal quarter of 2014 that were not present in the third fiscal quarter of 2015. Adjusted operating income increased $1.0 million due to our lean initiatives and continued focus on higher margin, recurring revenues.

Fiscal Nine Months Financial Overview

Revenues for the first nine months of fiscal 2015 were $111.2 million, a 1.7% decrease compared to revenues of $113.1 million for the first nine months of fiscal 2014. Revenues in the Radiation Measurement segment decreased $4.3 million due to an unfavorable foreign currency impact of $3.7 million and a decrease in product sales in Europe of $1.0 million. Revenues in the Medical Physics segment increased $2.1 million, primarily driven by increased imaging services of $1.6 million. Revenues in the Medical Products segment increased $0.4 million primarily due to the full-period impact of a modest acquisition in December 2013.

Operating income for the first nine months of fiscal 2015 was $16.9 million, compared to an operating loss of $47.3 million for the first nine months of fiscal 2014. The increase in operating income was due to the goodwill and other intangible assets impairment charge recorded in the prior year that was not present in the first nine months of fiscal 2015. Adjusted operating income margins increased to 15.2% in the first nine months of fiscal 2015 from 14.7% in the first nine months of fiscal 2014.

Fiscal 2015 Outlook

As communicated in Landauer’s second quarter earnings announcement, the Company continues to expect unfavorable foreign currency rates will negatively impact full-year results for fiscal year 2015. Specifically, the adverse impact of foreign currency year-over-year is expected to result in a reduction in revenue of approximately $6.0 million, a reduction of Adjusted Net Income of approximately $0.8 million and a reduction of Adjusted EBITDA of approximately $2.8 million. Accordingly, Landauer is revising its full-year 2015 guidance as follows:

Use of Non-GAAP Financial Measures

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 Operating Income and Adjusted Net Income as measures of earnings to eliminate the effects of certain non-cash and nonrecurring items of the Company and Adjusted Free Cash Flow as a measure of liquidity to eliminate the effects of certain acquisition and reorganization costs. Adjusted Operating Income represents operating income with adjustments for goodwill and other intangible assets impairments and acquisition, reorganization and nonrecurring costs. Adjusted Net Income represents net income with tax-effected adjustments for stock compensation expense, goodwill and other intangible assets impairments and acquisition, reorganization and nonrecurring costs. Adjusted Free Cash Flow represents net cash provided by operating activities with adjustments for capital expenditures and acquisition, reorganization and nonrecurring costs.

However, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income and Adjusted Free Cash Flow 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 third quarter conference call for investors over the Internet on Tuesday, August 11, 2015, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To participate, callers should dial 866-866-1542 (within the United States and Canada), or 707-294-1539 (international callers), passcode 1110120, 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 1110120, which will be available through Friday, September 11, 2015. 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, 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. 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 2015 Outlook”) constitutes forward-looking statements that are based on assumptions and involve certain risks and uncertainties.

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