Exponent Reports Third Quarter Fiscal 2013 Results

Exponent Reports Third Quarter Fiscal 2013 Results

MENLO PARK, Calif., Oct. 16, 2013 (GLOBE NEWSWIRE) -- Exponent, Inc.
(Nasdaq:EXPO) today reported financial results for the third quarter ended
September 27, 2013.

For the third quarter of 2013, revenues before reimbursements increased 5% to
$70,096,000, as compared to $66,725,000 in the third quarter of 2012. Total
revenues increased 3% to $75,231,000, as compared to $73,298,000 in the same
period one year ago.

Net income for the third quarter increased 8% to $11,094,000, or $0.79 per
diluted share, as compared to $10,225,000, or $0.72 per diluted share,
reported in the third quarter of 2012. EBITDA^1 increased 8% to $18,784,000,
as compared to $17,383,000 in the same period one year ago.

During the third quarter, Exponent generated $17,394,000 in cash from
operations, repurchased $4,093,000 of common stock, and paid a dividend of
$1,970,000. The Company closed the quarter with $135,043,000 in cash, cash
equivalents and short-term investments.

"Revenue, utilization and profitability were better than expected in the
quarter as we had solid growth from our underlying business while our major
assignments did not tail-off as quickly as anticipated. During the quarter we
had notable performances in our polymer sciences, mechanical engineering,
biomedical, construction consulting and chemical regulation and food safety
practices," commented Dr. Paul Johnston, President and CEO.

"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 middle
single digits. We are also improving our 2013 outlook on EBITDA margin by 100
basis points to be down by 50 to 100 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 and a 53^rd week in 2013.

"We continue to see an increasing demand for our multi-disciplinary consulting
services. We are adding talent that will ensure that we have the resources to
address our clients' most important engineering and scientific business issues
now and into the future," concluded Dr. Johnston.

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference
call today, Wednesday, October 16, 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 4644191#.

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 September 27, 2013 and September 28, 2012
(unaudited)
(in thousands, except per share data)
                                                                
                                  Quarter Ended       Nine Months Ended
                                  September September September September
                                   27,       28,       27,       28,
                                  2013     2012     2013     2012
                                                                
Revenues                                                         
Revenues before reimbursements     $70,096  $66,725  $211,007 $201,513
Reimbursements                     5,135     6,573     12,389    18,194
                                                                
Revenues                           75,231    73,298    223,396   219,707
                                                                
Operating expenses                                               
Compensation and related expenses 44,801    42,589    137,795   130,621
Other operating expenses           6,440     5,908     18,794    17,422
Reimbursable expenses              5,135     6,573     12,389    18,194
General and administrative         3,695     3,500     10,814    9,565
expenses
                                  60,071    58,570    179,792   175,802
                                                                
Operating income                  15,160    14,728    43,604    43,905
                                                                
Other income                                                    
Interest income, net               14        80        95        245
Miscellaneous income, net          2,341     1,522     5,592     3,161
                                  2,355     1,602     5,687     3,406
Income before income taxes         17,515    16,330    49,291    47,311
                                                                
Income taxes                       6,421     6,105     19,373    18,558
                                                                
Net income                        $11,094  $10,225  $29,918  $28,753
                                                                
Net income per share:                                            
Basic                              $0.82    $0.75    $2.19    $2.08
Diluted                            $0.79    $0.72    $2.13    $2.01
                                                                
Shares used in per share                                         
computations:
Basic                              13,598    13,694    13,638    13,796
Diluted                            13,993    14,196    14,047    14,317



EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 27, 2013 and December 28, 2012
(unaudited)
(in thousands)
                                                              
                                               September 27, December 28,
                                               2013          2012
Assets                                                         
Current assets:                                                
Cash and cash equivalents                       $121,747      $113,268
Short-term investments                          13,296         20,881
Accounts receivable, net                        82,177         85,361
Prepaid expenses and other assets               9,512          8,277
Deferred income taxes                           8,295          7,657
Total current assets                            235,027        235,444
Property, equipment and leasehold improvements, 28,372         27,446
net
Goodwill                                        8,607          8,607
Other assets                                    52,471         43,920
                                               $324,477      $315,417
                                                              
Liabilities and Stockholders' Equity                           
Current liabilities:                                           
Accounts payable and accrued liabilities        $5,139        $10,386
Accrued payroll and employee benefits           47,645         54,720
Deferred revenues                               6,155          6,665
Total current liabilities                       58,939         71,771
Other liabilities                               32,483         25,685
Deferred rent                                   2,416          1,532
Total liabilities                               93,838         98,988
                                                              
Stockholders' equity:                                          
Common stock                                    16             16
Additional paid-in capital                      140,013        123,693
Accumulated other comprehensive loss            (156)          (250)
Retained earnings                               219,493        206,057
Treasury stock, at cost                         (128,727)      (113,087)
Total stockholders' equity                      230,639        216,429
                                               $324,477      $315,417



EXPONENT, INC.
EBITDA and EBITDAS (1)
For the Quarters Ended September 27, 2013 and September 28, 2012
(unaudited)
(in thousands)
                                                   
                   Quarter Ended                  Nine Months Ended
                   September 27,    September    September   September
                                       28,          27,         28,
                   2013             2012        2013       2012
                                                              
Net Income          $11,094          $10,225     $29,918    $28,753
                                                              
Add back                                                       
(subtract):
                                                              
Income taxes        6,421             6,105        19,373      18,558
Interest income,    (14)              (80)         (95)        (245)
net
Depreciation and    1,283             1,133        3,667       3,459
amortization
                                                              
EBITDA (1)          18,784            17,383       52,863      50,525
                                                              
Stock-based         2,501             2,748        10,832      9,932
compensation
                                                              
EBITDAS (1)         $21,285          $20,131     $63,695    $60,457
                                                              
(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.

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