Exponent Reports Fourth Quarter and Fiscal Year 2013 Results

Exponent Reports Fourth Quarter and Fiscal Year 2013 Results

MENLO PARK, Calif., Feb. 5, 2014 (GLOBE NEWSWIRE) -- Exponent, Inc.
(Nasdaq:EXPO) today reported financial results for the fourth quarter and
fiscal year ended January 3, 2014.

For the 14-week fourth quarter of 2013, revenues before reimbursements
increased 6% to $69,036,000, as compared to $65,049,000 in the13-week fourth
quarter of 2012. Total revenues were $72,772,000, as compared to $72,946,000
in the same period one year ago.

Net income for the fourth quarter increased 3% to $8,722,000, or $0.63 per
diluted share, as compared to $8,472,000, or $0.60 per diluted share, in the
fourth quarter of 2012. For the quarter EBITDA^1 increased 2% to $15,906,000,
as compared to $15,607,000 in the same period one year ago.

For the 53-week fiscal year 2013, revenues before reimbursements increased 5%
to $280,043,000, as compared to $266,562,000 in the 52-week fiscal year 2012.
Total revenues for 2013 were $296,168,000, as compared to $292,653,000 in
2012.

Net income for fiscal year 2013 increased 4% to $38,640,000, or $2.76 per
diluted share, as compared to $37,225,000, or $2.60 per diluted share, in
fiscal year 2012. For the year EBITDA^1 increased 4% to $68,769,000, as
compared to $66,132,000 one year ago.

For fiscal year 2013, Exponent generated $61.8 million in cash from
operations, repurchased $25.0 million of common stock, and paid dividends of
$7.9 million. The Company closed the year with $156.1 million in cash, cash
equivalents and short-term investments.

"We are pleased to have delivered solid financial results in 2013, with
continued revenue and net income growth, and strong cash flow from operations.
This performance allowed us to continue to return value to shareholders
through share repurchases and the initiation of dividend payments," commented
Dr. Paul Johnston, President and CEO. "For the year, we had notable
performances from our polymer science, mechanical engineering, biomedical,
engineering management and construction consulting practices.

"During 2013 we continued to build upon our leading position in reactive
services including investigations of accidents, product recalls, and health
and environmental exposures. Additionally, we expanded our market recognition
in proactive services including product design consulting, regulatory
consulting and risk management. We continue to see good growth opportunities
in both reactive and proactive services for 2014 and beyond.

"As we look at 2014 our growth in revenues before reimbursements will be
reduced because of a step-down in a few major assignments, lower defense
spending, an extra week in fiscal 2013 and $1.4 million of revenues recognized
upon payment in 2013 for work performed in the prior year. As a result, we
expect 2014 growth in revenues before reimbursements to be in the low single
digits and EBITDA^1 margin to be down approximately 100 basis points from
24.6% in 2013.

"Going forward we will continue to expand our expertise and experience to
address our clients' important technology, health and environmental questions.
We are 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, Wednesday, February 5, 2014, starting at 4:30 p.m. Eastern Time /
1:30 p.m. Pacific Time. The audio of 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 4662005#.

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 January 3, 2014 and December 28, 2012
(unaudited)
(in thousands, except per share data)
                                                            
                        Quarters Ended          Years Ended
                        January 3, December    January 3, December 28,
                                      28,
                        2014       2012       2014       2012
                        (14 Weeks) (13 Weeks) (53 Weeks) (52 Weeks)
                                                            
Revenues                                                     
Revenues before          $69,036    $65,049    $280,043   $266,562
reimbursements
Reimbursements           3,736       7,897       16,125      26,091
                                                            
Revenues                 72,772      72,946      296,168     292,653
                                                            
Operating expenses                                           
Compensation and related 46,289      41,188      184,084     171,809
expenses
Other operating expenses 6,505       6,152       25,299      23,574
Reimbursable expenses    3,736       7,897       16,125      26,091
General and              3,900       3,994       14,714      13,559
administrative expenses
                        60,430      59,231      240,222     235,033
                                                            
Operating income        12,342      13,715      55,946      57,620
                                                            
Other income                                                
Interest income, net     32          83          127         328
Miscellaneous income,    2,280       640         7,872       3,801
net
                        2,312       723         7,999       4,129
                                                            
Income before income     14,654      14,438      63,945      61,749
taxes
                                                            
Income taxes             5,932       5,966       25,305      24,524
                                                            
Net income              $8,722     $8,472     $38,640    $37,225
                                                            
Net income per share:                                        
Basic                    $0.64      $0.62      $2.84      $2.70
Diluted                  $0.63      $0.60      $2.76      $2.60
                                                            
Shares used in per share                                     
computations:
Basic                    13,556      13,733      13,616      13,780
Diluted                  13,949      14,208      14,025      14,293



EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
January 3, 2014 and December 28, 2012
(unaudited)
(in thousands)
                                                              
                                                  January 3, December 28,
                                                  2014       2012
Assets                                                         
Current assets:                                                
Cash and cash equivalents                          $122,948   $113,268
Short-term investments                             33,171      20,881
Accounts receivable, net                           74,675      85,361
Prepaid expenses and other assets                  10,450      8,277
Deferred income taxes                              8,135       7,657
Total current assets                               249,379     235,444
Property, equipment and leasehold improvements,    28,721      27,446
net
Goodwill                                           8,607       8,607
Other assets                                       55,154      43,920
                                                  $341,861   $315,417
                                                              
Liabilities and Stockholders' Equity                           
Current liabilities:                                           
Accounts payable and accrued liabilities           $6,137     $10,386
Accrued payroll and employee benefits              56,934      54,720
Deferred revenues                                  6,771       6,665
Total current liabilities                          69,842      71,771
Other liabilities                                  34,628      25,685
Deferred rent                                      2,332       1,532
Total liabilities                                  106,802     98,988
                                                              
Stockholders' equity:                                          
Common stock                                       16          16
Additional paid-in capital                         141,250     123,693
Accumulated other comprehensive income (loss)      109         (250)
Retained earnings                                  226,040     206,057
Treasury stock, at cost                            (132,356)   (113,087)
Total stockholders' equity                         235,059     216,429
                                                  $341,861   $315,417



EXPONENT, INC.
EBITDA and EBITDAS (1)
For the Quarters Ended January 3, 2014 and December 28, 2012
(unaudited)
(in thousands)
                                                           
                  Quarters Ended              Years Ended
                  January 3,  December 28,  January 3,  December 28,
                  2014        2012          2014        2012
                  (14 Weeks)  (13 Weeks)    (53 Weeks)  (52 Weeks)
                                                           
Net Income         $8,722      $8,472        $38,640     $37,225
                                                           
Add back                                                    
(subtract):
                                                           
Income taxes       5,932        5,966          25,305       24,524
Interest income,   (32)         (83)           (127)        (328)
net
Depreciation and   1,284        1,252          4,951        4,711
amortization
                                                           
EBITDA (1)         15,906       15,607         68,769       66,132
                                                           
Stock-based        2,336        2,446          13,168       12,378
compensation
                                                           
EBITDAS (1)        $18,242     $18,053       $81,937     $78,510
                                                           
(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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