Exponent Reports Second Quarter Fiscal 2013 Results

Exponent Reports Second Quarter Fiscal 2013 Results

MENLO PARK, Calif., July 23, 2013 (GLOBE NEWSWIRE) -- Exponent, Inc.
(Nasdaq:EXPO) today reported financial results for the second quarter ended
June 28, 2013.

For the second quarter of 2013, revenues before reimbursements increased 5% to
$71,919,000, as compared to $68,318,000 in the second quarter of 2012. Total
revenues were $75,505,000, as compared to $74,484,000 in the same period one
year ago.

Net income for the second quarter was $10,848,000, or $0.77 per diluted share,
as compared to $10,327,000, or $0.72 per diluted share, reported in the same
quarter one year ago. EBITDA^1 increased 6% to $19,470,000, as compared to
$18,342,000 in the second quarter last year.

During the second quarter, Exponent generated $21.6 million in cash from
operations, repurchased $5.4 million of common stock, and paid a dividend of
$2.0 million. The Company closed the quarter with $123.1 million in cash, cash
equivalents and short-term investments.

"Revenue, utilization and EBITDA performance were better than expected during
the quarter," commented Dr. Paul Johnston, President and CEO. "During the
quarter we had notable performances in our mechanical, electrical, thermal
sciences, human factors, and chemical regulation and food safety practices, as
well as our infrastructure group. Our revenues before reimbursements during
the second quarter of 2013 included $1.75 million related to services
performed for a foreign client in prior periods, which was recognized upon
receipt of payment.

"We continued to see a steady flow of reactive engagements to investigate
accidents, product recalls, and health and environmental exposures.
Additionally we are seeing growth in our more proactive services including
product design consulting, regulatory consulting and risk management.

"Considering our better-than-expected performance year to date, we now expect
growth in revenues before reimbursements for the full year to be in the low
single digits. We are also improving our 2013 outlook on EBITDA margin by 75
basis points to be down by 150 to 200 basis points as compared to the previous
year. This guidance reflects the offsetting effects of reduced revenues from a
few major assignments and a decline in defense work, with increased revenues
from growth of the remaining business.

"We are optimistic about our long-term opportunities and remain focused on
further translating our unique scientific and engineering capabilities into
additional value," concluded Dr. Johnston.

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference
call today, Tuesday, July 23, 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
877-941-1427 or 480-629-9664. 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 passcode 4626926#.

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 June 28, 2013 and June 29, 2012
(unaudited)
(in thousands, except per share data)
                                                                
                                                                
                                  Quarter Ended       Six Months Ended
                                  June 28, June 29, June 28, June 29,
                                  2013     2012     2013     2012
                                                                
Revenues                                                         
Revenues before reimbursements     $71,919  $68,318  $140,911 $134,788
Reimbursements                     3,586     6,166     7,254     11,621
                                                                
Revenues                           75,505    74,484    148,165   146,409
                                                                
Operating expenses                                               
Compensation and related expenses 44,432    41,857    92,994    88,032
Other operating expenses           6,207     5,952     12,354    11,514
Reimbursable expenses              3,586     6,166     7,254     11,621
General and administrative         3,687     3,148     7,119     6,065
expenses
                                                                
                                  57,912    57,123    119,721   117,232
                                                                
Operating income                  17,593    17,361    28,444    29,177
                                                                
Other income                                                    
Interest income, net               36        88        81        165
Miscellaneous income (expense),    642       (201)     3,251     1,639
net
                                  678       (113)     3,332     1,804
                                                                
Income before income taxes         18,271    17,248    31,776    30,981
                                                                
Income taxes                       7,423     6,921     12,952    12,453
                                                                
                                                                
Net income                        $10,848  $10,327  $18,824  $18,528
                                                                
                                                                
Net income per share:                                            
Basic                              $0.80    $0.75    $1.38    $1.34
Diluted                            $0.77    $0.72    $1.34    $1.29
                                                                
Shares used in per share                                         
computations:
Basic                              13,637    13,835    13,658    13,847
Diluted                            14,007    14,316    14,068    14,373


EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 28, 2013 and December 28, 2012
(unaudited)
(in thousands)
                                                             
                                                             
                                                   June 28, December 28,
                                                   2013     2012
Assets                                                        
Current assets:                                               
Cash and cash equivalents                           $116,644 $113,268
Short-term investments                              6,417     20,881
Accounts receivable, net                            86,446    85,361
Prepaid expenses and other assets                   9,563     8,277
Deferred income taxes                               9,053     7,657
Total current assets                                228,123   235,444
Property, equipment and leasehold improvements, net 28,763    27,446
Goodwill                                            8,607     8,607
Other assets                                        48,836    43,920
                                                   $314,329 $315,417
                                                             
Liabilities and Stockholders' Equity                          
Current liabilities:                                          
Accounts payable and accrued liabilities            $5,964   $10,386
Accrued payroll and employee benefits               44,614    54,720
Deferred revenues                                   7,744     6,665
Total current liabilities                           58,322    71,771
Other liabilities                                   30,295    25,685
Deferred rent                                       2,474     1,532
Total liabilities                                   91,091    98,988
                                                             
Stockholders' equity:                                         
Common stock                                        16        16
Additional paid-in capital                          138,706   123,693
Accumulated other comprehensive loss                (709)     (250)
Retained earnings                                   210,585   206,057
Treasury stock, at cost                             (125,360) (113,087)
Total stockholders' equity                          223,238   216,429
                                                   $314,329 $315,417


EXPONENT, INC.
EBITDA and EBITDAS (1)
For the Quarters Ended June 28, 2013 and June 29, 2012
(unaudited)
(in thousands)
                                                              
                                                              
                       Quarter Ended             Six Months Ended
                       June 28,    June 29,    June 28,    June 29,
                       2013        2012        2013        2012
                                                              
Net Income              $ 10,848     $ 10,327     $ 18,824     $ 18,528
                                                              
Add back (subtract):                                           
                                                              
Income taxes            7,423        6,921        12,952       12,453
Interest income, net    (36)         (88)         (81)         (165)
Depreciation and        1,235        1,182        2,384        2,326
amortization
                                                              
EBITDA (1)              19,470       18,342       34,079       33,142
                                                              
Stock-based             3,040        2,727        8,331        7,184
compensation
                                                              
EBITDAS (1)             $ 22,510     $ 21,069     $ 42,410     $ 40,326
                                                              
                                                              
                                                              
(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
 
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