Exponent Reports Second Quarter Fiscal Year 2015 Results

MENLO PARK, Calif., July 21, 2015 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq:EXPO) today reported financial results for the second quarter and six months ended July 3, 2015.

For the second quarter of 2015, revenues before reimbursements increased 4% to $75,272,000 from $72,331,000 in the second quarter of 2014. Total revenues also increased 4% to $79,864,000 from $76,574,000 in the same period one year ago.

Net income for the second quarter increased 4% to $11,697,000 from $11,264,000 in the second quarter of 2014. Earnings per diluted share increased to $0.43 as compared to $0.41 in the same quarter last year. EBITDA¹ increased 5% to $20,582,000 as compared to $19,669,000 in the same period one year ago.

For the first half of 2015, revenues before reimbursements increased 4% to $151,413,000 from $145,298,000 in the first half of 2014. Total revenues increased 5% to $160,157,000 from $152,536,000 in the same period one year ago.

Net income for the first half of 2015 increased 8% to $22,030,000 from $20,418,000 in the first half of 2014. Earnings per diluted share increased to $0.80 as compared to $0.73 in the same period of last year. EBITDA¹ increased 7% to $39,000,000 as compared to $36,312,000 in the same period one year ago.

Year to date 2015, Exponent repurchased $7 million of common stock and paid dividends of $8 million. The Company closed the quarter with $150 million in cash, cash equivalents and short-term investments.  

"We are pleased with our results in the first half of the year, delivering revenue and profit growth, along with improved margins and utilization, even as we increased headcount in order to drive long-term progress in both our proactive and reactive services," commented Dr. Paul Johnston, President and CEO.  "We had notable performances from our materials, biomedical, polymer science, structural engineering, thermal sciences, biomechanics and construction consulting practices as well as from our environmental group.

"We have previously indicated that we expected a major project to step down in the second half of 2015 to approximately half its run rate. As a result of a proposed resolution of this matter, our efforts going forward will be de minimis.  While our underlying growth remains in the high single digits, it will be partially offset by the significant decline in this major project as well as our defense work. As a result, we expect full year 2015 growth in revenues before reimbursements to be in the low single digits and EBITDA¹ margin to be down approximately 50 basis points from the 25% we achieved in 2014.

"We are optimistic about our long-term growth as our market position expands. We continue to be called upon to investigate the most significant accidents.  We are also seeing strong growth in design consulting, regulatory support and risk management," concluded Dr. Johnston.

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference call today, Tuesday, July 21, 2015, starting at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. The audio of the conference call is available by dialing (888) 523-1228 or (719) 325-2448. 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 (888) 203-1112 or (719) 457-0820, and entering passcode 6997907#.

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. The Private Securities Litigation Reform Act of 1995 subject to the safe harbor creates such forward-looking statements. 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.