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 June 30, 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>
June 30, Sept. 30,
1995 1994
----------- ----------
derived from
(unaudited)(audited statements)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 2,978 $ 2,178
Short-term investments 4,003 3,976
Accounts receivable
less allowances of
$99,000 at 6/30/95
and $138,000 at 9/30/94 6,975 6,253
Inventories 921 799
Prepaid expenses 120 78
Deferred taxes on income 826 824
-------- --------
Total current assets 15,823 14,108
Property, plant and equipment, 16,794 14,935
at cost Less: Accumulated
depreciation and amortization 8,908 7,856
-------- --------
Net property, plant and equipment 7,886 7,079
Investment in U.S. Treasury Securities 4,493 5,121
Cost of purchased businesses in excess
of net assets acquired 2,988 3,113
Equity in Japanese joint venture 3,930 3,688
Other assets 2,708 2,531
-------- --------
$ 37,828 $ 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>
June 30, Sept. 30,
1995 1994
--------- ---------
derived from
(unaudited)(audited statements)
<S> <C> <C>
Current liabilities:
Accounts payable $ 380 $ 218
Deferred contract revenue 7,436 6,602
Dividend payable 2,119 1,865
Accrued compensation and related costs 953 880
Accrued pension costs 805 839
Accrued expenses 1,226 1,178
Accrued taxes on income 1,637 1,527
------- --------
Total current liabilities 14,556 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 7,860 7,831
Cumulative translation adjustments 879 879
Retained earnings 13,685 12,973
-------- --------
Total stockholders' investment 23,272 22,531
-------- --------
$ 37,828 $ 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 Nine Months Ended
----------------------- ------------------
June 30, June 30, June 30, June 30,
1995 1994 1995 1994
-------- ------ ------ -------
<S> <C> <C> <C> <C>
Net revenues $ 8,567 $ 7,861 $ 25,253 $ 23,695
Costs and expenses:
Cost of revenues 2,508 2,349 7,426 7,108
Selling, general and
administrative 2,451 2,243 7,049 6,724
------ ------ ------ ------
4,959 4,592 14,475 13,832
------ ------ ------ ------
Operating income 3,608 3,269 10,778 9,863
Other income, net 350 233 992 671
------ ------ ------ ------
Income before income taxes 3,958 3,502 11,770 10,534
Income tax provision 1,471 1,306 4,388 3,960
------ ------ ------- -------
Net income $ 2,487 $ 2,196 $ 7,382 $ 6,574
======== ======== ======== ========
Net income per share $ .29 $ .26 $ .87 $ .78
======== ======== ======== ========
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>
Nine Months Ended
------------------
June 30, June 30,
1995 1994
------- -------
<S> <C> <C>
Net cash flow from operating activities:
Net income $ 7,382 $ 6,574
Adjustments to reconcile net income
to net cash from operating activities:
Depreciation and amortization 1,760 1,682
Equity in net income of foreign affiliate (592) (393)
Compensatory effect of stock options (285) 9
Increase in deferred income taxes (2) (39)
Increase in accounts receivable (722) (389)
Increase in inventories (122) (123)
Decrease (increase) in prepaid expenses (42) 133
Increase (decrease) in accounts payable 162 (148)
Increase (decrease) in deferred
contract revenue 834 (59)
Increase in accrued expenses 197 322
Net increase in net long-term
assets (759) (927)
------- -------
Net cash generated
from operating activities 7,811 6,642
Cash flow used by investing activities:
Disposition of investments - net 601 16
Acquisition of property, plant,
and equipment (1,859) (1,249)
------- --------
Net cash used by investing activities (1,258) (1,233)
Cash flow from financing activities:
Dividend received from foreign affiliate 350 321
Dividends paid (6,103) (5,426)
-------- --------
Net cash used by financing activities (5,753) (5,105)
-------- --------
Net increase in cash 800 304
Opening balance - cash and cash equivalents 2,178 2,862
-------- --------
Ending balance - cash and cash equivalents $ 2,978 $ 3,166
======== ========
Supplemental Disclosure of Cash Flow
Information:
Cash paid for income taxes $ 4,338 $ 3,717
======== ========
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 - June 30, 1995
(Unaudited)
(1) Basis of Presentation
_____________________
The accompanying unaudited condensed financial statements reflect
the financial position of Landauer, Inc. ("Landauer") as of June
30, 1995 and September 30, 1994, and the results of operations
and cash flows for the three-month and nine-month periods ended
June 30, 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 June 30, 1995 and September 30, 1994, and the
results of operations for the three-month and nine-month periods
ended June 30, 1995 and 1994, and cash flows for the nine-month
periods ended June 30, 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 nine-month
periods ended June 30, 1995 and 1994 are not necessarily
indicative of the results to be expected for the full year.
(2) Cash Dividends
______________
On June 14, 1995, the Company declared a regular quarterly cash
dividend in the amount of $.25 per share payable on July 13,
1995, to stockholders of record on June 29, 1995. 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 nine
months ended June 30, 1995 and 1994 amounted to $7,811,000 and
$6,642,000, 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 $601,000 and
$16,000, respectively. Offsetting these were acquisitions of
property, plant and equipment in the amount of $1,859,000 and
$1,249,000, 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 $700,000, principally for computer hardware, the
development of 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 $7,436,000 and $6,602,000,
respectively, as of June 30, 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 June 30, 1995 were 9% higher
compared with the same quarter a year ago. The increase in
revenues was entirely attributable to unit gains and higher
pricing in the Company's traditional radiation dosimetry
business. Gross margins for the third fiscal quarter were 70.7%
of the revenues compared to 70.1% for the same period in fiscal
1994. The increase in margins was primarily attributable to
higher revenues.
Selling, general and administrative expenses were slightly higher
in the current quarter as a percent of revenues at 28.6% compared
to 28.5% for the third quarter of fiscal 1995. As a result,
operating income for the third fiscal quarter of 1995 was 42.1%
of revenues compared to 41.6% for the same period last year.
Income before income taxes was 46.2% of revenues for the quarter
just ended compared to 44.5% for the third fiscal quarter of
1994.
The effective tax rate for the Company during the third quarter
of fiscal 1995 was slightly lower at 37.2% compared with 37.3%
for the same period last year. Resulting net income of
$2,487,000 for the third fiscal quarter of 1995 was more than 13%
higher than $2,196,000 reported in fiscal 1994. Income per share
for the quarter was $.29 versus $.26 for the third fiscal quarter
of 1994.
LANDAUER, INC.
Management's Discussion and Analysis of Financial Condition
and Results of Operations (Cont'd.)
Revenues for the nine months ended June 30, 1995, were about 7%
higher compared with the first nine months of fiscal 1994. The
increase in revenues was attributable to unit gains and higher
pricing in the Company's traditional radiation dosimetry
business. Gross margins for the first nine months of fiscal 1995
were higher at 70.6% of revenues compared with 70.0% a year ago.
The increase in gross margins was principally attributable to a
lower growth rate in costs relative to the increase in revenues.
Selling, general, and administrative expenses were lower for the
first nine months of fiscal 1995 as a percent of revenues at
27.9% compared to 28.4% for the first nine months of fiscal 1994.
The decrease reflected a lower growth rate in expenses that in
revenues. As a result, operating income for the first nine
months of fiscal 1995 was 42.7% of revenues compared to 41.6% for
the same period last year. Income before income taxes was 46.6%
of revenues for the nine months just ended, compared with 44.5%
for the same period in fiscal 1994.
The effective tax rate for the Company during the first nine
months of fiscal 1995 was lower at 37.3% compared with 37.6% for
the first nine months of 1994. Resulting net income of
$7,382,000 for the first nine months of 1995 was 12% higher than
$6,574,000 reported in fiscal 1994. Income per share thus far in
fiscal 1995 was $.87 versus $.78 for the same period in fiscal
1994.
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 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: August 11, 1995
/s/ James M. O Connell
_______________________________
James M. O'Connell
Vice President and Treasurer
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000825410
<NAME> LANDAUER, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> OCT-01-1994
<PERIOD-END> JUN-30-1995
<CASH> 2,978
<SECURITIES> 4,003
<RECEIVABLES> 7,074
<ALLOWANCES> 99
<INVENTORY> 921
<CURRENT-ASSETS> 15,823
<PP&E> 16,794
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<COMMON> 848
0
0
<OTHER-SE> 22,424
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<SALES> 25,253
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<CGS> 7,426
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<OTHER-EXPENSES> 0
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<INCOME-PRETAX> 11,770
<INCOME-TAX> 4,388
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<DISCONTINUED> 0
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<NET-INCOME> 7,382
<EPS-PRIMARY> .87
<EPS-DILUTED> .87
</TABLE>
