Exponent Reports Fourth Quarter and Fiscal Year 2012 Results

Exponent Reports Fourth Quarter and Fiscal Year 2012 Results

MENLO PARK, Calif., Jan. 30, 2013 (GLOBE NEWSWIRE) -- Exponent, Inc.
(Nasdaq:EXPO) today reported financial results for the fourth quarter and
fiscal year ended December 28, 2012.

For the fourth quarter of 2012, revenues before reimbursements increased 7% to
$65,049,000, as compared to $60,524,000 in the fourth quarter of 2011. Total
revenues increased 7% to $72,946,000, as compared to $67,916,000 in the same
period one year ago.

Net income for the fourth quarter increased 10% to $8,472,000, or $0.60 per
diluted share, as compared to $7,731,000, or $0.54 per diluted share, reported
in the same quarter one year ago. EBITDA^1 improved 10% to $15,607,000, as
compared to $14,139,000 in the fourth quarter last year.

For fiscal year 2012, revenues before reimbursements increased 8% to
$266,562,000, as compared to $246,667,000, in 2011. Total revenues increased
7% to $292,653,000, as compared to $272,446,000 in the prior year.

Net income for fiscal year 2012 improved 14% to $37,225,000, or $2.60 per
diluted share, as compared to $32,695,000, or $2.22 per diluted share,
reported in the prior year. EBITDA^1 improved 12% to $66,132,000, as compared
to $58,994,000, in 2011.

During 2012, Exponent generated $48.5 million in cash flow from operations,
repurchased $23.4 million of its common stock, and closed the year with $134.1
million in cash, cash equivalents and short-term investments.

"The fourth quarter concluded another good year of revenue growth and
profitability for Exponent," commented Dr. Paul Johnston, President and CEO.
"During our fourth quarter, we experienced good demand for both proactive and
reactive services and continued to benefit from activity related to a few
major assignments – resulting in high utilization despite our seasonally
slower quarter. Additionally, our defense technology development practice had
strong surveillance system product sales.

"Throughout 2012, we assisted a wide range of clients in addressing
significant technological, health and environmental matters by leveraging our
breadth of disciplines and depth of engineering and scientific knowledge. We
grew our consulting staff while achieving record utilization.

"For the year, we had notable contributions in our environmental and health
segment from our environmental sciences, ecological sciences, and chemical
regulation and food safety practices. In our engineering and other scientific
segment we had notable performances from our mechanics and materials,
electrical, thermal, and engineering management consulting practices.

"We previously communicated that over the last couple of years a few major
assignments have accounted for a greater than usual percentage of revenues,
and that there would be an impact on year-over-year revenue growth and profit
margins when these assignments stepped down. As we enter 2013 we have
experienced this anticipated step-down in these major assignments.
Additionally, we are seeing the impact of constraints on defense spending and
the reduction of forces in Afghanistan. As a result we expect 2013 revenues
before reimbursements to be approximately flat with 2012 and EBITDA^1 margin
to be down 250 to 300 basis points.

"As we look forward we will continue to build upon our differentiated market
position as a multidisciplinary engineering and scientific consulting firm
with unparalleled technical expertise and experience. We remain optimistic
about our market opportunities and look forward to translating these into
long-term shareholder value," concluded Dr. Johnston.

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference
call today, January 30, 2013, starting at 4:30 p.m. Eastern Time/1:30 p.m.
Pacific Time. The audio on the conference call is available by dialing
877-941-2068 or 480-629-9712. A live webcast of the call will be available on
the Investor Relations section of the Company's website at
www.exponent.com/investors. For those unable to listen to the live webcast, a
replay of the call will also be available on the Exponent web site, or by
dialing 800-406-7325 or 303-590-3030, and entering reservation 4588503#.

About Exponent

Exponent is an engineering and scientific consulting firm providing solutions
to complex problems. Exponent's multidisciplinary organization of scientists,
physicians, engineers, and business consultants brings together more than 90
technical disciplines to address complicated issues facing industry and
government today. The firm has been best known for analyzing accidents and
failures to determine their causes, but in recent years it has become more
active in assisting clients with human health, environmental and engineering
issues associated with new products to help prevent problems in the future.

Exponent may be reached at (888) 656-EXPO, info@exponent.com, or
www.exponent.com.

This news release contains, and incorporates by reference, certain
"forward-looking" statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995, and the rules promulgated pursuant
to the Securities Act of 1933, as amended, and the Securities Exchange Act of
1934, as amended thereto under) that are based on the beliefs of the Company's
management, as well as assumptions made by and information currently available
to the Company's management. Such forward-looking statements are subject to
the safe harbor created by the Private Securities Litigation Reform Act of
1995. When used in this document and in the documents incorporated herein by
reference, the words "anticipate," "believe," "estimate," "expect" and similar
expressions, as they relate to the Company or its management, identify such
forward-looking statements. Such statements reflect the current views of the
Company or its management with respect to future events and are subject to
certain risks, uncertainties and assumptions. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions prove
incorrect, the Company's actual results, performance, or achievements could
differ materially from those expressed in, or implied by, any such
forward-looking statements. Factors that could cause or contribute to such
material differences include the possibility that the demand for our services
may decline as a result of changes in general and industry specific economic
conditions, the timing of engagements for our services, the effects of
competitive services and pricing, the absence of backlog related to our
business, our ability to attract and retain key employees, the effect of tort
reform and government regulation on our business, and liabilities resulting
from claims made against us. Additional risks and uncertainties are discussed
in our Annual Report on Form 10-K under the heading "Risk Factors" and
elsewhere in the report. The inclusion of such forward-looking information
should not be regarded as a representation by the Company or any other person
that the future events, plans, or expectations contemplated by the Company
will be achieved. The Company undertakes no obligation to release publicly any
updates or revisions to any such forward-looking statements.

^1 EBITDA is a non-GAAP financial measure defined by the Company as net income
before income taxes, interest income, depreciation and amortization. EBITDAS
is a non-GAAP financial measure defined by the Company as EBITDA before
stock-based compensation. The Company regards EBITDA and EBITDAS as useful
measures of operating performance and cash flow to complement operating
income, net income and other GAAP financial performance measures.
Additionally, management believes that EBITDA and EBITDAS provide meaningful
comparisons of past, present and future operating results. Generally, a
non-GAAP financial measure is a numerical measure of a company's performance,
financial position or cash flow that either excludes or includes amounts that
are not normally excluded or included in the most directly comparable measure
calculated and presented in accordance with GAAP. These measures, however,
should be considered in addition to, and not as a substitute or superior to,
operating income, cash flows, or other measures of financial performance
prepared in accordance with GAAP. A reconciliation of the measures to GAAP is
set forth below.

                                                                
EXPONENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters Ended December 28, 2012 and December 30, 2011
(unaudited)
(in thousands, except per share data)
                                                                
                                    Quarters Ended    Years Ended
                                    December December December  December
                                     28,      30,      28,       30,
                                    2012    2011    2012     2011
                                                                
Revenues                                                         
Revenues before reimbursements       $65,049 $60,524 $266,562 $246,667
Reimbursements                       7,897    7,392    26,091    25,779
                                                                
Revenues                             72,946   67,916   292,653   272,446
                                                                
Operating expenses                                               
Compensation and related expenses    41,188   39,594   171,809   156,853
Other operating expenses             6,152    5,894    23,574    23,238
Reimbursable expenses                7,897    7,392    26,091    25,779
General and administrative expenses  3,994    3,843    13,559    13,116
                                                                
                                    59,231   56,723   235,033   218,986
                                                                
Operating income                     13,715   11,193   57,620    53,460
                                                                
Other income                                                     
Interest income, net                 83       95       328       236
Miscellaneous income, net            640      1,792    3,801     1,123
                                    723      1,887    4,129     1,359
                                                                
Income before income taxes           14,438   13,080   61,749    54,819
                                                                
Income taxes                         5,966    5,349    24,524    22,124
                                                                
Net income                           $8,472  $7,731  $37,225  $32,695
                                                                
Net income per share:                                            
Basic                                $0.62   $0.56   $2.70    $2.31
Diluted                              $0.60   $0.54   $2.60    $2.22
                                                                
Shares used in per share                                         
computations:
Basic                                13,733   13,775   13,780    14,181
Diluted                              14,208   14,322   14,293    14,751
                                                                

                                                              
EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 28, 2012 and December 30, 2011
(unaudited)
(in thousands)
                                                              
                                                December 28, December 30,
                                                2012         2011
Assets                                                         
Current assets:                                                
Cash and cash equivalents                        $113,268     $84,439
Short-term investments                           20,881        25,260
Accounts receivable, net                         85,361        73,065
Prepaid expenses and other assets                8,277         8,521
Deferred income taxes                            7,657         7,293
Total current assets                             235,444       198,578
Property, equipment and leasehold improvements,  27,446        27,215
net
Goodwill                                         8,607         8,607
Other assets                                     43,920        34,388
                                                $315,417     $268,788
                                                              
Liabilities and Stockholders' Equity                           
Current liabilities:                                           
Accounts payable and accrued liabilities         $10,386      $6,738
Accrued payroll and employee benefits            54,720        48,089
Deferred revenues                                6,665         5,948
Total current liabilities                        71,771        60,775
Other liabilities                                25,685        19,456
Deferred rent                                    1,532         1,842
Total liabilities                                98,988        82,073
                                                              
Stockholders' equity:                                          
Common stock                                     16            16
Additional paid-in capital                       123,693       108,071
Accumulated other comprehensive loss             (250)         (471)
Retained earnings                                206,057       179,432
Treasury stock, at cost                          (113,087)     (100,333)
Total stockholders' equity                       216,429       186,715
                                                $315,417     $268,788
                                                              

                                                            
EXPONENT, INC.
EBITDA and EBITDAS (1)
For the Quarters Ended December 28, 2012 and December 30, 2011
(unaudited)
(in thousands)
                                                            
                 Quarters Ended               Years Ended
                 December 28,  December 30, December 28, December 30,
                 2012          2011         2012         2011
                                                            
Net Income        $8,472        $7,731       $37,225      $32,695
                                                            
Add back                                                     
(subtract):
                                                            
Income taxes      5,966          5,349         24,524        22,124
Interest income,  (83)           (95)          (328)         (236)
net
Depreciation and  1,252          1,154         4,711         4,411
amortization
                                                            
EBITDA (1)        15,607         14,139        66,132        58,994
                                                            
Stock-based       2,446          2,133         12,378        10,340
compensation
                                                            
EBITDAS (1)       $18,053       $16,272      $78,510      $69,334
                                                            
                                                            
(1) EBITDA is a non-GAAP financial measure defined by the Company as net
income before income taxes, interest income, depreciation and
amortization.EBITDAS is a non-GAAP financial measure defined by the Company
as EBITDA before stock-based compensation.The Company regards EBITDA and
EBITDAS as useful measures of operating performance and cash flow to
compliment operating income, net income and other GAAP financial performance
measures.Additionally, management believes that EBITDA and EBITDAS provide
meaningful comparisons of past, present and future operating
results.Generally, a non-GAAP financial measure is a numerical measure of a
company's performance, financial position or cash flow that either excludes or
includes amounts that are not normally excluded or included in the most
directly comparable measure calculated and presented in accordance with
GAAP.These measures, however, should be considered in addition to, and not as
a substitute or superior to, operating income, cash flows, or other measures
of financial performance prepared in accordance with GAAP.
                                                            
 
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