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, 1996 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 August 9, 1996
--------------------------- ----------------------------
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,
1996 1995
----------- ----------
derived from
(unaudited)(audited statements)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 2,711 $ 1,915
Short-term investments 6,426 6,456
Accounts receivable
less allowances of
$151,000 at 6/30/96
and $151,000 at 9/30/95 8,115 6,972
Inventories 1,000 955
Prepaid expenses 80 280
Deferred taxes on income 746 746
-------- --------
Total current assets 19,078 17,324
Property, plant and equipment, 17,785 16,858
at cost Less: Accumulated
depreciation and amortization 10,115 9,104
-------- --------
Net property, plant and equipment 7,670 7,754
Investment in U.S. Treasury Securities 3,934 3,978
Cost of purchased businesses in excess
of net assets acquired 2,821 2,946
Equity in Japanese joint venture 3,893 4,104
Other assets 2,480 2,643
-------- --------
$ 39,876 $ 38,749
======== ========
</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,
1996 1995
--------- ---------
derived from
(unaudited)(audited statements)
<S> <C> <C>
Current liabilities:
Accounts payable $ 320 $ 638
Deferred contract revenue 8,270 7,599
Dividend payable 2,331 2,119
Accrued compensation and related costs
1,195 1,098
Accrued pension costs 1,191 704
Accrued expenses 1,664 1,219
Accrued taxes on income 573 1,587
------- --------
Total current liabilities 15,544 14,964
------- --------
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 7,620 7,561
Cumulative translation adjustments 283 819
Retained earnings 15,581 14,557
-------- --------
Total stockholders' investment 24,332 23,785
-------- --------
$ 39,876 $ 38,749
======== ========
</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,
1996 1995 1996 1995
-------- ------ ------ -------
<S> <C> <C> <C> <C>
Net revenues $ 9,010 $ 8,567 $ 27,188 $ 25,253
Costs and expenses:
Cost of revenues 2,739 2,508 8,155 7,426
Selling, general and
administrative 2,450 2,451 7,389 7,049
------ ------ ------ ------
5,189 4,959 15,544 14,475
------ ------ ------ ------
Operating income 3,821 3,608 11,644 10,778
Other income, net 372 350 1,175 992
------ ------ ------ ------
Income before income taxes 4,193 3,958 12,819 11,770
Income tax provision 1,584 1,471 4,802 4,388
------ ------ ------- -------
Net income $ 2,609 $ 2,487 $ 8,017 $ 7,382
======== ======== ======== ========
Net income per share $ .31 $ .29 $ .95 $ .87
======== ======== ======== ========
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,
1996 1995
------- -------
<S> <C> <C>
Net cash flow from operating activities:
Net income $ 8,017 $ 7,382
Adjustments to reconcile net income
to net cash from operating activities:
Depreciation and amortization 1,865 1,760
Equity in net income of foreign affiliate (705) (592)
Compensatory effect of stock options 59 (285)
Decrease in deferred income taxes -- (2)
Increase in accounts receivable (1,150) (722)
Increase in inventories (45) (122)
Decrease (increase) in prepaid expenses 200 (42)
Increase (decrease) in accounts payable (318) 162
Increase in deferred contract revenue 671 834
Increase in accrued expenses 15 197
Net increase in other non-current assets (418) (759)
------- -------
Net cash generated
from operating activities 8,191 7,811
Cash flow from investing activities:
Purchases of U.S. Treasury Securities (7,350) (2,927)
Maturities of U.S. Treasury Securities 7,424 3,528
Acquisition of property, plant,
and equipment (1,074) (1,859)
------- --------
Net cash used by investing activities (1,000) (1,258)
Cash flow from financing activities:
Dividend received from foreign affiliate 386 350
Dividends paid (6,781) (6,103)
-------- --------
Net cash used by financing activities (6,395) (5,753)
-------- --------
Net increase in cash 796 800
Opening balance - cash and cash equivalents 1,915 2,178
-------- --------
Ending balance - cash and cash equivalents $ 2,711 $ 2,978
======== ========
Supplemental Disclosure of Cash Flow
Information:
Cash paid for income taxes $ 5,815 $ 4,338
======== ========
Supplemental Disclosure of Non-cash
Financing Activity: Dividend declared $ 2,331 $ 2,119
======== ========
Foreign currency translation adjustment $ (536) $ 0
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
LANDAUER, INC.
Notes to Financial Statements - June 30, 1996
(Unaudited)
(1) Basis of Presentation
_____________________
The accompanying unaudited condensed financial statements reflect
the financial position of Landauer, Inc. ("Landauer") as of June
30, 1996 and September 30, 1995, and the results of operations
and cash flows for the three-month and nine-month periods ended
June 30, 1996 and 1995. 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, 1996 and September 30, 1995, and the
results of operations for the three-month and nine-month periods
ended June 30, 1996 and 1995, and cash flows for the nine-month
periods ended June 30, 1996 and 1995.
The accounting policies followed by the Company are set forth in
Note 1 to the Company's financial statements in the 1995 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, 1996 and 1995 are not necessarily
indicative of the results to be expected for the full year.
(2) Cash Dividends
______________
On June 12, 1996, the Company declared a regular quarterly cash
dividend in the amount of $.275 per share payable on July 11,
1996, to stockholders of record on June 27, 1996. On March 13,
1996, the Company declared a regular quarterly cash dividend in
the amount of $.275 per share payable on April 11, 1996, to
stockholders of record on March 28, 1996. On November 9, 1995,
the Company declared a regular quarterly cash dividend in the
amount of $.275 per share payable on January 11, 1996, to
stockholders of record on December 29, 1995.
Regular quarterly cash dividends of $.25 per share ($1.00
annually) were declared during fiscal 1995.
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, 1996 and 1995 amounted to $8,191,000 and
$7,811,000, respectively. Investing activities for the first
nine months of fiscal 1996 and 1995 resulted in net dispositions
of U.S. Treasury securities of $74,000 and $601,000,
respectively. Offsetting these were acquisitions of property,
plant and equipment in the amount of $1,074,000 and $1,859,000,
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 1996 are expected
to amount to $1,000,000, principally for computer hardware, the
development of software systems, and acquisition of equipment to
support growth, technology enhancements and cost reductions. 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 services in advance. Such
advance payments amounted to $8,270,000 and $7,599,000,
respectively, as of June 30, 1996 and September 30, 1995, and are
included in deferred contract revenue. While these amounts
represent more than one-half of current liabilities, such amounts
do not represent a cash requirement.
Results of Operations
_____________________
Revenues for the quarter ended June 30, 1996 were 5% higher
compared with the same quarter a year ago. The increase in
revenues was attributable to modest gains in the Company's
traditional radiation dosimetry business and higher radon
protection plan sales. Gross margins for the third fiscal
quarter were 69.6% of the revenues compared to 70.7% for the same
period in fiscal 1995. The increase in margins was primarily
attributable to higher costs associated with radon protection
plan revenues.
Selling, general and administrative expenses were lower in the
current quarter as a percent of revenues at 27.2% compared to
28.6% for the third quarter of fiscal 1995. As a result,
operating income for the third fiscal quarter of 1996 was 42.4%
of revenues compared to 42.1% for the same period last year.
Income before income taxes was 46.5% of revenues for the quarter
just ended compared to 46.2% for the third fiscal quarter of
1995.
The effective tax rate for the Company during the third quarter
of fiscal 1996 was slightly higher at 37.8% compared with 37.2%
for the same period last year. Resulting net income of
$2,609,000 for the third fiscal quarter of 1996 was 5% higher
than $2,487,000 reported in fiscal 1995. Income per share for
the quarter was $.31 versus $.29 for the third fiscal quarter of
1995.
LANDAUER, INC.
Management's Discussion and Analysis of Financial Condition
and Results of Operations (Cont'd.)
Revenues for the nine months ended June 30, 1996, were almost 8%
higher compared with the first nine months of fiscal 1995. The
increase in revenues was attributable to unit gains and higher
pricing in the Company's traditional radiation dosimetry
business, as well as higher radon protection plan sales. Gross
margins for the first nine months of fiscal 1996 were lower at
70.0% of revenues compared with 70.6% a year ago. The decrease
in gross margins was principally attributable to higher costs
associated with the increased radon protection plan activity.
Selling, general, and administrative expenses were lower for the
first nine months of fiscal 1996 as a percent of revenues at
27.2% compared to 27.9% for the first nine months of fiscal 1995.
The decrease reflected a modest growth rate in expenses relative
to the level of business activity. As a result, operating income
for the first nine months of fiscal 1996 was 42.8% of revenues
compared to 42.7% for the same period last year. Income before
income taxes was 47.1% of revenues for the nine months just
ended, compared with 46.6% for the same period in fiscal 1995.
The effective tax rate for the Company during the first nine
months of fiscal 1996 was 37.5% compared with 37.3% for the first
nine months of 1995. Resulting net income of $8,017,000 for the
first nine months of 1996 was almost 9% higher than $7,382,000
reported in fiscal 1995. Income per share thus far in fiscal
1996 was $.95 versus $.87 for the same period in fiscal 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 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 9, 1996
/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-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> JUN-30-1996
<CASH> 2,711
<SECURITIES> 6,426
<RECEIVABLES> 8,266
<ALLOWANCES> 151
<INVENTORY> 1,000
<CURRENT-ASSETS> 19,078
<PP&E> 17,785
<DEPRECIATION> 10,115
<TOTAL-ASSETS> 39,876
<CURRENT-LIABILITIES> 15,544
<BONDS> 0
<COMMON> 848
0
0
<OTHER-SE> 23,484
<TOTAL-LIABILITY-AND-EQUITY> 39,876
<SALES> 27,188
<TOTAL-REVENUES> 27,188
<CGS> 8,155
<TOTAL-COSTS> 8,155
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 12,819
<INCOME-TAX> 4,802
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<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,017
<EPS-PRIMARY> .95
<EPS-DILUTED> .95
</TABLE>
