Exponent Reports First Quarter Fiscal 2013 Results

Exponent Reports First Quarter Fiscal 2013 Results

MENLO PARK, Calif., April 17, 2013 (GLOBE NEWSWIRE) -- Exponent, Inc.
(Nasdaq:EXPO) today reported financial results for the first quarter ended
March 29, 2013.

For the first quarter of 2013, revenues before reimbursements increased 4% to
$68,992,000, as compared to $66,470,000 in the first quarter of 2012. Total
revenues were $72,660,000, as compared to $71,925,000 in the same period one
year ago.

Net income for the first quarter was $7,976,000, or $0.56 per diluted share,
as compared to $8,201,000, or $0.57 per diluted share, reported in the same
quarter one year ago. EBITDA^1 was $14,609,000, as compared to $14,800,000 in
the first quarter last year.

During the first quarter, Exponent repurchased $11,700,000 of its common
stock, and closed the quarter with $111,000,000 in cash, cash equivalents and
short-term investments.

"The first quarter was better than we expected as we posted revenue growth and
solid utilization," commented Dr. Paul Johnston, President and CEO. "Following
a slower January, we received some additional follow-on activities related to
major assignments and continued to see a steady flow of new work. During the
quarter we had notable performances in our electrical, thermal sciences,
biomedical engineering, human factors, and engineering management and
construction consulting practices.

"Looking forward we still expect 2013 revenues before reimbursements to be
approximately flat with 2012. We are improving our 2013 outlook on EBITDA
margin by 25 basis points to be down by 225 to 275 basis points as compared to
the previous year. This guidance reflects the offsetting effects of reduced
revenues from a few major assignments and defense work, with increased
revenues from growth of the remaining business.

"We remain optimistic about our long-term ability to build upon our
differentiated market position as a leading multi-disciplinary engineering and
scientific consulting firm. We will continue to enhance shareholder value
through stock repurchases and quarterly dividends," concluded Dr. Johnston.

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference
call today, April 17, 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 4613643#.

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 March 29, 2013 and March 30, 2012
(unaudited)
(in thousands, except per share data)
                                               
                                    
                                    Quarters Ended
                                    March 29, March 30,
                                    2013      2012
                                               
Revenues                                        
Revenues before reimbursements       $68,992   $66,470
Reimbursements                       3,668      5,455
                                               
Revenues                             72,660     71,925
                                               
Operating expenses                               
Compensation and related expenses   48,562     46,175
Other operating expenses             6,147      5,562
Reimbursable expenses                3,668      5,455
General and administrative expenses 3,432      2,917
                                               
                                    61,809     60,109
                                               
Operating income                    10,851     11,816
                                               
Other income                                    
Interest income, net                 45         77
Miscellaneous income, net            2,609      1,840
                                    2,654      1,917
                                               
Income before income taxes           13,505     13,733
                                               
Income taxes                         5,529      5,532
                                               
                                               
Net income                          $7,976    $8,201
                                               
                                               
Net income per share:                            
Basic                                $0.58     $0.59
Diluted                              $0.56     $0.57
                                               
Shares used in per share computations:
Basic                                13,667     13,859
Diluted                              14,125     14,419


EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 29, 2013 and December 28, 2012
(unaudited)
(in thousands)
                                                              
                                                              
                                                   March 29, December 28,
                                                   2013      2012
Assets                                                         
Current assets:                                                
Cash and cash equivalents                           $101,501  $113,268
Short-term investments                              9,541      20,881
Accounts receivable, net                            80,552     85,361
Prepaid expenses and other assets                   6,829      8,277
Deferred income taxes                               8,222      7,657
Total current assets                                206,645    235,444
Property, equipment and leasehold improvements, net 28,256     27,446
Goodwill                                            8,607      8,607
Other assets                                        51,467     43,920
                                                   $294,975  $315,417
                                                              
Liabilities and Stockholders' Equity
Current liabilities:                                           
Accounts payable and accrued liabilities            $7,006    $10,386
Accrued payroll and employee benefits               30,411     54,720
Deferred revenues                                   5,428      6,665
Total current liabilities                           42,845     71,771
Other liabilities                                   32,422     25,685
Deferred rent                                       1,593      1,532
Total liabilities                                   76,860     98,988
                                                              
Stockholders' equity:                                           
Common stock                                        16         16
Additional paid-in capital                          137,199    123,693
Accumulated other comprehensive loss                (723)      (250)
Retained earnings                                   201,917    206,057
Treasury stock, at cost                             (120,294)  (113,087)
Total stockholders' equity                          218,115    216,429
                                                   $294,975  $315,417


EXPONENT, INC.
EBITDA and EBITDAS (1)
For the Quarters Ended March 29, 2013 and March 30, 2012
(unaudited)
(in thousands)
                                                         
                                      
                                      Quarters Ended
                                      March 29,         March 30,
                                      2013              2012
                                                         
Net Income                             $7,976            $8,201
                                                         
Add back (subtract):                                       
                                                         
Income taxes                           5,529              5,532
Interest income, net                   (45)               (77)
Depreciation and amortization          1,149              1,144
                                                         
EBITDA (1)                             14,609             14,800
                                                         
Stock-based compensation               5,291              4,457
                                                         
EBITDAS (1)                            $19,900           $19,257
                                                         
                                                         
                                                         
(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.

CONTACT: (888) 656-EXPO
         info@exponent.com
         www.exponent.com