SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
/X/ QUARTERLY REPORT pursuant to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1995 or
______________
/ / TRANSITION REPORT pursuant to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
For the transition from to
Commission File Number 1-9788
______
LANDAUER, INC.
--------------------------
(Exact name of registrant as specified in its charter)
Delaware 06-1218089
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
2 Science Road, Glenwood, Illinois 60425
------------------------------------------
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code (708) 755-7000
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No .
___ ____
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at May 11,
1995
--------------------------- ---------------------------
-----
Common stock, $.10 par value 8,477,285
PART I. FINANCIAL INFORMATION
LANDAUER, INC.
Balance Sheets
(000's)
ASSETS
______
<TABLE>
<CAPTION>
March 31, Sept.
30,
1995 1994
-------- -------
derived from
(unaudited) (audited
statements)
<S>
<C> <C>
Current assets:
Cash and cash equivalents $ 4,265 $ 2,178
Short-term investments 2,027 3,976
Accounts receivable, less allowances of
$118,000 at 3/31/95 and $138,000 at 9/30/94
6,989 6,253
Inventories 875 799
Prepaid expenses 156 78
Deferred taxes on income 818 824
Total current assets 15,130 14,108
Property, plant and equipment, at cost 16,463 14,935
Less: Accumulated depreciation
and amortization 8,558 7,856
Net property, plant and equipment 7,905 7,079
Investment in U.S. Treasury Securities 4,059 5,121
Cost of purchased businesses in excess of
net assets acquired 3,030 3,113
Equity in Japanese joint venture 3,714 3,688
Other assets 2,602 2,531
$ 36,440
$ 35,640
___________
___________
</TABLE>
The accompanying notes are an integral part of these financial
statements.
LANDAUER, INC.
Balance Sheets (Cont'd.)
(000's)
LIABILITIES AND STOCKHOLDERS' INVESTMENT
________________________________________
<TABLE>
<CAPTION>
March 31, Sept. 30,
1995 1994
------ ------
derived from
(unaudited) (audited
statements)
<S>
<C> <C>
Current liabilities:
Accounts payable $ 326$ 218
Deferred contract revenue 7,217 6,602
Dividend payable 2,119 1,865
Accrued compensation and related costs 689 880
Accrued pension costs 650 839
Accrued expenses 1,024 1,178
Accrued taxes on income 1,521 1,527
____________________
Total current liabilities
13,546 13,109
_________ _________
Stockholders' investment:
Preferred stock, $.10 par value per share -
Authorized - 1,000,000 shares
Outstanding - None
Common stock, $.10 par value per share -
Authorized - 20,000,000 shares
Outstanding - 8,477,285 shares 848 848
Premium paid in on common stock 7,848 7,831
Cumulative translation adjustments 879 879
Retained earnings 13,319 12,973
_________ _________
Total stockholders' investment
22,894 22,531
_________ _________
$ 36,440 $ 35,640
________ ________
</TABLE>
The accompanying notes are an integral part of these financial
statements.
LANDAUER, INC.
Statements of Income
(000's, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
March 31,March 31,March 31,
March 31,
1995 1994 1995 1994
------ ------ ------ -------
<S> <C>
<C> <C> <C>
Net revenues $ 8,673 $ 8,347$ 16,686 $ 15,834
Costs and expenses:
Cost of revenues 2,501 2,460 4,918 4,759
Selling, general and administrative 2,318 2,306 4,598
4,481
------ ------ ------ ------
4,819 4,766 9,516 9,240
------ ------ ------ ------
Operating income 3,854 3,581 7,170 6,594
Other income, net 347 219 642 438
------ ------ ------ ------
Income before income taxes 4,201 3,800 7,812 7,032
Income tax provision 1,566 1,436 2,917 2,654
------ ------ ------- -------
Net income $ 2,635
$ 2,364
$ 4,895 $ 4,378
__________
__________
____________________
Net income per share $ .31
$ .28
$ .58
$ .52
____________
____________
____________
____________
Average shares outstanding 8,477
8,477
8,477
8,477
___________
___________
____________
___________
</TABLE>
The accompanying notes are an integral part of these financial
statements.
LANDAUER, INC.
Statements of Cash Flows
(000's)
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
---------------
---
March 31, March 31,
1995 1994
------- -------
<S>
<C> <C>
Net cash flow from operating activities:
Net income $ 4,895 $ 4,378
Adjustments to reconcile net income to net cash
from operating activities:
Depreciation and amortization 1,174 1,121
Equity in net income of foreign affiliate
(375) (258)
Compensatory effect of stock options (294) 6
Increase (decrease) in deferred income taxes 6
(26)
Increase in accounts receivable (736) (576)
Increase in inventories (76) (150)
Decrease (increase) in prepaid expenses(78) 66
Decrease in accounts payable 108 100
Increase (decrease) in deferred contract revenue 615
(156)
Increase (decrease) in accrued expenses
(540) 174
Net increase in other non-current assets
(460) (556)
_____________________
Net cash generated from operating activities 4,239
4,123
Cash flow used by investing activities:
Disposition of investments - net 3,011 486
Acquisition of property, plant, and equipment
(1,528) (692)
____________________
Net cash generated from (used by) investing activities 1,483
(206)
Cash flow from financing activities:
Dividend received from foreign affiliate 349 321
Dividends paid (3,984) (3,561)
__________ __________
Net cash used by financing activities (3,635) (3,240)
__________ __________
Net increase in cash 2,087 677
Opening balance - cash and cash equivalents 2,178 2,862
________ ________
Ending balance - cash and cash equivalents $ 4,265 $ 3,539
________ ________
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes $ 2,975 $ 2,251
________ ________
Supplemental Disclosure of Non-cash Financing Activity:
Dividend declared $ 2,119 $ 1,865
________ _______
</TABLE>
The accompanying notes are an integral part of these financial
statements.
LANDAUER, INC.
Notes to Financial Statements - March 31, 1995
(Unaudited)
(1) Basis of Presentation
_____________________
The accompanying unaudited condensed financial statements reflect
the financial position of Landauer, Inc. ("Landauer") as of March
31, 1995 and September 30, 1994, and the results of operations
and cash flows for the three-month and six-month periods ended
March 31, 1995 and 1994. In the opinion of management, the
accompanying unaudited condensed financial statements contain all
adjustments necessary to present fairly the financial position of
Landauer as of March 31, 1995 and September 30, 1994, and the
results of operations for the three-month and six-month periods
ended March 31, 1995 and 1994, and cash flows for the six-month
periods ended March 31, 1995 and 1994.
The accounting policies followed by the Company are set forth in
Note 1 to the Company's financial statements in the 1994 Landauer
Annual Report on Form 10-K, which is incorporated by reference.
The results of operations for the three-month and six-month
periods ended March 31, 1995 and 1994 are not necessarily
indicative of the results to be expected for the full year.
(2) Cash Dividends
______________
On March 15, 1995, the Company declared a regular quarterly cash
dividend in the amount of $.25 per share payable on April 13,
1995, to stockholders of record on March 31, 1995. On November
3, 1994, the Company declared a regular quarterly cash dividend
in the amount of $.25 per share payable on January 12, 1995, to
stockholders of record on December 30, 1994.
Regular quarterly cash dividends of $.22 per share ($.88
annually) were declared during fiscal 1994.
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
_______________________________
Landauer's cash flow from operating activities for the six months
ended March 31, 1995 and 1994 amounted to $4,239,000 and
$4,123,000, respectively. Investing activities for the first
half of fiscal 1995 and 1994 resulted in net dispositions of
principally short-term U.S. Treasury securities of $3,011,000 and
$486,000, respectively. Offsetting these were acquisitions of
property, plant and equipment in the amount of $1,528,000 and
$692,000, respectively. The Company's financing activities were
limited to payments of cash dividends, offset by foreign
dividends received from Nagase-Landauer, Ltd., our Japanese joint
venture.
LANDAUER, INC.
Management's Discussion and Analysis of Financial Condition
and Results of Operations (Cont'd.)
The Company has no long-term liabilities and its requirement for
cash flow to support investing activities is generally limited.
Capital expenditures for the balance of fiscal 1995 are expected
to amount to $1,100,000, principally for the development of
computer hardware and software systems and acquisition of
equipment for productivity and technology enhancements. The
Company anticipates that funds for these capital improvements
will be provided from operations.
The Company presently maintains no external sources of liquidity,
and, in the opinion of management, resources are adequate for
projected operations and capital spending programs, as well as
continuation of the regular cash dividend program.
Landauer requires limited working capital for its operations
since many of its customers pay for annual services in advance.
Such advance payments amounted to $7,217,000 and $6,602,000,
respectively, as of March 31, 1995 and September 30, 1994, and
are included in deferred contract revenue. While these amounts
represent approximately one-half of current liabilities, such
amounts do not represent a cash requirement.
Results of Operations
_____________________
Revenues for the quarter ended March 31, 1995 were 4% higher
compared with the same quarter a year ago. The increase in
revenues was entirely attributable to gains in the Company's
traditional radiation dosimetry business. Gross margins for the
second fiscal quarter were 71.2% of the revenues compared to
70.5% for the same period in fiscal 1994. The increase in
margins was attributable to higher revenues and lower direct
labor and overhead costs.
Selling, general and administrative expenses were lower for the
current quarter as a percent of revenues at 26.7% compared to
27.6% for the second quarter of fiscal 1995. The decrease
reflected a growth in revenues with only a slight increase in
expenses. As a result, operating income for the second fiscal
quarter of 1995 was 44.4% of revenues compared to 42.9% for the
same period last year. Income before income taxes was 48.4% of
the revenues for the quarter just ended compared to 45.5% for the
second fiscal quarter of 1994.
The effective tax rate for the Company during the second quarter
of fiscal 1995 was 37.3% compared with 37.8% for the same period
last year. Resulting net income of $2,635,000 for the second
fiscal quarter of 1995 was more than 11% higher than $2,364,000
reported in fiscal 1994. Income per share for the quarter was
$.31 versus $.28 for the second fiscal quarter of 1994.
LANDAUER, INC.
Management's Discussion and Analysis of Financial Condition
and Results of Operations (Cont'd.)
Revenues for the six months ended March 31, 1995, were 5% higher
compared with the first six months of fiscal 1994. The increase
in revenues was attributable to gains in the Company's
traditional radiation dosimetry business. Gross margins for the
first half of fiscal 1995 were higher at 70.5% of revenues
compared with 69.9% a year ago. The increase in gross margins
was principally attributable to a lower growth rate in overhead
costs relative to the increase in revenues.
Selling, general, and administrative expenses were lower for the
first half of fiscal 1995 as a percent of revenues at 27.6%
compared to 28.3% for the first half of fiscal 1994. The
decrease reflected a lower growth rate in expenses than in
revenues. As a result, operating income for the first half of
fiscal 1995 was 43.0% of revenues compared to 41.6% for the same
period last year. Income before income taxes was 46.8% of
revenues for the six months just ended, compared with 44.4% for
the same period in fiscal 1994.
The effective tax rate for the Company during the first half of
fiscal 1995 was lower at 37.3% compared with 37.7% for the first
six months of 1994. Resulting net income of $4,895,000 for the
first six months of 1995 was 12% higher than $4,378,000 reported
in fiscal 1994. Income per share thus far in fiscal 1995 was
$.58 versus $.52 for the same period in fiscal 1994.
LANDAUER, INC.
March 31, 1995
PART II.OTHER INFORMATION
Item 2. Legal Proceedings
_________________
Landauer is involved in various legal proceedings but believes
that these matters will be resolved without a material effect on
its financial position.
Item 4. Submission of Matters to a Vote of Security Holders
___________________________________________________
At its Annual Meeting held on February 1, 1995, the shareholders
voted to re-elect Marvin G. Schorr, Gary D. Eppen, and Michael D.
Winfield as directors for three-year terms. Voting for all
nominees were 6,971,504 shares (representing 82.2% of total
shares outstanding), and votes for 127,799 shares were withheld
from all nominees. Continuing as directors are Richard H. Leet,
C. Vincent Vappi, Thomas M. Fulton, Paul B. Rosenberg, and
Herbert Roth, Jr.
Shareholders voted to approve an incentive compensation plan for
executive officers with 6,655,406 shares (representing 78.5% of
total shares outstanding) voting for the proposal, 197,502
against, and 248,295 abstaining.
The shareholders also voted to reappoint Arthur Andersen LLP as
the Company s auditors for the following year, with 7,028,898
shares (82.9% of total shares outstanding) voting for, 58,702
shares against, and 13,603 shares abstaining.
Item 6. Exhibits and Reports on Form 8-K
________________________________
(a) No exhibits are filed with this report.
(b) There were no reports on Form 8-K during the quarter
for which this report is filed.
SIGNATURES
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 thereunto duly authorized.
LANDAUER, INC.
Date: May 11, 1995
/s/ James M. O Connell
_______________________________
James M. O'Connell
Vice President and Treasurer
(Principal Financial and
Accounting Officer)
