GLENWOOD, Ill., Aug. 8, 2016 /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 2016 third quarter ended June 30, 2016.
Fiscal 2016 Third Quarter Highlights
- Reported revenue of $37.9 million increased 6.8% compared to the third quarter of 2015. Excluding the divested Medical Products and Radon businesses and the negative impact of foreign currency, revenue increased 15.2% compared to the prior year period
- Military product sales were $2.5 million
- Medical Physics revenues grew 7.9% year-over-year
- Reported operating income of $7.7 million, a 50.9% increase compared to the third quarter of 2015. Excluding the divested Medical Products and Radon businesses and negative impact of foreign currency, operating income increased 58.3% compared to the prior year period
- Consolidated operating income margin improved to 20.4% from 14.4% in the third quarter of 2015 driven by the shipment of military product and a decrease in selling, general and administrative expenses
- Net income of $7.3 million compared to $4.1 million in the third quarter of 2015
- Increase in net income driven by $2.7 million post-tax gain on divestiture of the Medical Products business
- Adjusted net income excluding stock compensation and other nonrecurring costs increased to $5.6 million from $4.5 million in the third quarter of 2015
- On a GAAP basis, earnings per diluted share of $0.76
- Adjusted earnings per diluted share of $0.58
Mike Kaminski, President and Chief Executive Officer of Landauer stated, "We are pleased with our third quarter results, which demonstrate effective execution on our key initiatives as we continue to build a strong foundation from which we will profitably expand our core business. Demand for our imaging physics and informatics solutions continues to drive increased recurring revenue and our lean initiatives are creating additional leverage leading to greater levels of profitability. We also made significant progress on the development of our Verifii digital dosimetry platform, passing a number of key technical milestones and beginning our initial rollout of customer field testing."
Third Fiscal Quarter Financial Overview and Business Segment Results
Revenues for the third fiscal quarter of 2016 were $37.9 million, a 6.8% increase compared to revenues of $35.5 million for the third fiscal quarter of 2015. Excluding the divested Medical Products and Radon businesses and negative impact of foreign currency, total revenues increased 15.2% compared to the prior year period. Radiation Measurement revenues for the quarter increased to $27.5 million from $24.1 million for the third fiscal quarter of 2015 primarily due to the completion of the first shipment of the military order that was announced in April. Medical Physics revenues increased $0.7 million, or 7.9%, to $9.6 million, due to increased demand for imaging services.
Operating income for the third fiscal quarter of 2016 was $7.7 million, compared to operating income of $5.1 million for the third fiscal quarter of 2015. Consolidated operating income margin improved to 20.4% from 14.4% in the third fiscal quarter of 2015. Excluding the operating income from the divested Medical Products and Radon businesses and negative impact of foreign currency, operating income increased 58.3% compared to the prior year period. These increased operating income results were driven by a decrease in selling, general and administrative expenses, as well as higher gross margins.
Fiscal Nine Months Financial Overview
Revenues for the first nine months of fiscal 2016 were $112.5 million, a 1.2% increase compared to $111.2 million for the first nine months of fiscal 2015. Excluding the divested Medical Products and Radon businesses and the negative impact of foreign currency, total revenues increased 8.6% compared to the prior year period. Domestic Radiation Measurement services revenues increased 2.5%, and revenues in the Medical Physics segment increased $2.9 million, or 11.2%, due to continued increased demand for imaging services.
Operating income for the first nine months of fiscal 2016 was $21.2 million, a 25.5% increase compared to operating income of $16.9 million for the first nine months of fiscal 2015. Excluding the operating income from the divested Medical Products and Radon businesses and negative impact of foreign currency, operating income increased 43.8% compared to the prior year period. The increase in operating income was driven by higher margin sales coupled with a decrease in selling, general and administrative expenses.
Fiscal 2016 Outlook
In order to reflect the divestiture of its Medical Products business in May, the Company is providing updated guidance for fiscal 2016. As communicated prior to the May 2016 divestiture of the Medical Products business, the Company anticipated aggregate revenues for fiscal 2016 to be in the range of $150 million to $157 million and adjusted net income in the range of $15 million to $18 million. The fiscal 2016 guidance included approximately $4.5 million of projected revenue and $0.5 million of projected net income for the divested Medical Products business from May 2016 to September 2016. The Company is confirming its fiscal 2016 guidance, updated to reflect this divestiture, and now anticipates full-year fiscal 2016 revenues to be in the range of $145.5 million to $152.5 million and adjusted net income to be near the top end of the range of $14.5 million to $17.5 million.
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,
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