Landauer's revenues decrease 2.7% to $36.5 million in first fiscal quarter of 2016

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 2016 first quarter ended December 31, 2015.

Fiscal 2016 First Quarter Highlights

• Revenue of $36.5 million compared to $37.5 million in the first quarter of 2015
  • Domestic Radiation Measurement services revenues increased 2.8% year-over-year
  • Medical Physics revenues grew 10.6% year-over-year
  • $1.6 million reduction in revenue related to divestiture of Radon business
  • $1.2 million unfavorable impact from foreign currency
  • Revenues grew 5.2%, excluding the unfavorable impact of foreign currency and the divested Radon business
• Operating income of $6.2 million, a 1.6% increase compared to the first quarter of 2015
  • Consolidated operating income margin improved to 17.1% from 16.4% in the first quarter of 2015 driven by a decrease in selling, general and administrative expenses
• Net income of $3.6 million compared to $4.4 million in the first quarter of 2015
• Adjusted net income of $4.1 million on track with full-year guidance
• On a GAAP basis, earnings per diluted share of $0.38

Mike Kaminski, President and Chief Executive Officer of Landauer stated, "Our fiscal 2016 first quarter financial results were in line with our expectations and reflect the consistent demand for our products and solutions, especially within our Medical Physics business. Our core services that contribute to our recurring revenue base demonstrated strong growth, and I am pleased with the progress we have made driving improvement in our operating margins across all our segments. Looking ahead, we are well positioned to continue making significant progress on our strategic initiatives, including growth of our informatics solutions and continued development of our next generation dosimetry platform."

First Fiscal Quarter Financial Overview and Business Segment Results

Revenues for the first fiscal quarter of 2016 were $36.5 million, a 2.7% decrease compared to revenues of $37.5 million for the first fiscal quarter of 2015. Radiation Measurement revenues for the quarter were $24.7 million compared to $26.5 million for the first fiscal quarter of 2015. The decrease in revenues was primarily due to the elimination of the Company's Radon business through its divestiture in September 2015, resulting in a $1.6 million reduction in revenues. In addition, unfavorable foreign currency translation rates reduced revenues by $1.2 million. Domestic Radiation Measurement services revenues increased 2.8%, partially offsetting the impact of the Radon business divestiture and the foreign currency rates. Medical Physics revenues increased $0.9 million, or 10.6%, to $9.4 million, due to increased imaging services.

Operating income for the first fiscal quarter of 2016 was $6.2 million, compared to operating income of $6.1 million for the first fiscal quarter of 2015. Operating income results reflect a decrease in selling, general and administrative expenses, driven by restructuring within the executive management team as well as lower professional fees. Consolidated operating income margin improved to 17.1% from 16.4% in the first fiscal quarter of 2015, driven by the decrease in selling, general and administrative expenses, with improvement across all business segments.

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 Net Income as a measure of earnings to eliminate the effects of certain non-cash and nonrecurring items of the Company. 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. However, Adjusted EBITDA and Adjusted Net Income 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.