EXHIBIT 99.1
Exponent Reports Strong Second Quarter 2011 Results
MENLO PARK, Calif., July 20, 2011 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq:EXPO) today reported financial results for the second quarter and six months ended July 1, 2011.
For the second quarter of 2011, total revenues increased 8% to $65,106,000, as compared to $60,439,000 in the same period one year ago. Revenues before reimbursements increased 10% to $60,573,000, as compared to $55,128,000 in the second quarter of 2010.
Net income for the quarter was up 13% to $8,217,000, or $0.55 per diluted share, as compared to $7,280,000, or $0.48 per diluted share, reported in the same quarter a year ago. EBITDA1 improved 13% to $14,987,000, as compared to $13,293,000 in the second quarter last year.
During the second quarter of 2011, Exponent repurchased $16 million of its common stock, bringing the 2011 year-to-date repurchase total to $23 million. The Company closed the second quarter with $95 million in cash, cash equivalents and short-term investments.
For the first half of 2011, total revenues increased 16% to $138,579,000, as compared to $119,845,000 in the same period of last year. Revenues before reimbursements increased 13% to $124,756,000, as compared to $110,329,000 in the same period of 2010.
Net income for the first half of 2011 improved 20% to $16,220,000, or $1.08 per diluted share, as compared to $13,519,000, or $0.90 per diluted share, reported in the prior year period. EBITDA1 in the first half of 2011 improved 18% to $29,409,000, as compared to $24,833,000 in the first half of 2010.
"We are pleased with our performance in the quarter, showing continued revenue growth and profitability," commented Dr. Paul Johnston, President and CEO. "Our utilization remained strong as we experienced sustained demand related to a few major assignments. We had notable contributions from our mechanics and materials, electrical, thermal sciences, and human factors practices.
"Looking forward, we are mindful of the comparison against an unusually strong second half of 2010, where utilization and product sales were significantly higher than historical levels. Nevertheless, given our strong performance in the first half of 2011, we are now raising our full-year expectations for EBITDA1 margin to be only slightly down and for growth in revenue before reimbursements to be in the high single digits, as compared to 2010.
"We added key talent in the quarter, expanding our breadth of disciplines and depth of knowledge in engineering and science. Our professionals continue to demonstrate the appropriate expertise and experience to answer clients' important technology, health, and environmental questions," concluded Dr. Johnston.
Today's Conference Call Information
Exponent will discuss its financial results in more detail on a conference call today, July 20, 2011, 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 4456038#.
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 July 1, 2011 and July 2, 2010 |
| (unaudited) |
| (in thousands, except per share data) |
| | | | | |
| | | |
| | Quarter Ended | Six Months Ended |
| | July 1,
2011 | July 2,
2010 | July 1,
2011 | July 2,
2010 |
| Revenues | | | | |
| Revenues before reimbursements | $ 60,573 | $ 55,128 | $ 124,756 | $ 110,329 |
| Reimbursements | 4,533 | 5,311 | 13,823 | 9,516 |
| Revenues | 65,106 | 60,439 | 138,579 | 119,845 |
| | | | | |
| Operating expenses | | | | |
| Compensation and related expenses | 38,508 | 34,060 | 81,208 | 71,840 |
| Other operating expenses | 5,704 | 5,388 | 11,486 | 10,607 |
| Reimbursable expenses | 4,533 | 5,311 | 13,823 | 9,516 |
| General and administrative expenses | 2,984 | 2,905 | 6,319 | 5,600 |
| | | | | |
| | 51,729 | 47,664 | 112,836 | 97,563 |
| Operating income | 13,377 | 12,775 | 25,743 | 22,282 |
| | | | | |
| Other income | | | | |
| Interest income, net | 41 | 66 | 62 | 129 |
| Miscellaneous income, net | 542 | (560) | 1,534 | 400 |
| | 583 | (494) | 1,596 | 529 |
| | | | | |
| Income before income taxes | 13,960 | 12,281 | 27,339 | 22,811 |
| | | | | |
| Income taxes | 5,743 | 5,001 | 11,119 | 9,292 |
| | | | | |
| | | | | |
| Net income | $ 8,217 | $ 7,280 | $ 16,220 | $ 13,519 |
| | | | | |
| Net income per share: | | | | |
| Basic | $ 0.57 | $ 0.51 | $ 1.12 | $ 0.95 |
| Diluted | $ 0.55 | $ 0.48 | $ 1.08 | $ 0.90 |
| | | | | |
| Shares used in per share computations: | | | | |
| Basic | 14,402 | 14,377 | 14,467 | 14,295 |
| Diluted | 14,971 | 15,054 | 15,062 | 15,009 |
| |
| |
| EXPONENT, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| July 1, 2011 and December 31, 2010 |
| (unaudited) |
| (in thousands) |
| | | |
| | July 1,
2011 | December 31,
2010 |
| Assets | | |
| Current assets: | | |
| Cash and cash equivalents | $ 69,453 | $ 106,549 |
| Short-term investments | 25,569 | -- |
| Accounts receivable, net | 76,737 | 72,034 |
| Prepaid expenses and other assets | 7,860 | 10,585 |
| Deferred income taxes | 7,195 | 5,426 |
| Total current assets | 186,814 | 194,594 |
| Property, equipment and leasehold improvements, net | 27,731 | 27,267 |
| Goodwill | 8,607 | 8,607 |
| Other assets | 33,673 | 28,424 |
| | $ 256,825 | $ 258,892 |
| | | |
| Liabilities and Stockholders' Equity | | |
| Current liabilities: | | |
| Accounts payable and accrued liabilities | $ 8,847 | $ 9,715 |
| Accrued payroll and employee benefits | 36,235 | 41,888 |
| Deferred revenues | 4,831 | 6,131 |
| Total current liabilities | 49,913 | 57,734 |
| Other liabilities | 20,228 | 15,481 |
| Deferred rent | 2,016 | 1,877 |
| Total liabilities | 72,157 | 75,092 |
| | | |
| Stockholders' equity: | | |
| Common stock | 16 | 16 |
| Additional paid-in capital | 106,090 | 96,089 |
| Accumulated other comprehensive loss | (131) | (451) |
| Retained earnings | 163,717 | 156,086 |
| Treasury stock, at cost | (85,024) | (67,940) |
| Total stockholders' equity | 184,668 | 183,800 |
| | $ 256,825 | $ 258,892 |
| |
| |
| EXPONENT, INC. |
| EBITDA and EBITDAS (1) |
| For the Quarters Ended July 1, 2011 and July 2, 2010 |
| (unaudited) |
| (in thousands) |
| | | | | |
| | | | | |
| | Quarter Ended | Six Months Ended |
| | July 1,
2011 | July 2,
2010 | July 1,
2011 | July 2,
2010 |
| | | | | |
| Net Income | $ 8,217 | $ 7,280 | $ 16,220 | $ 13,519 |
| | | | | |
| Add back (subtract): | | | | |
| | | | | |
| Income taxes | 5,743 | 5,001 | 11,119 | 9,292 |
| Interest income, net | (41) | (66) | (62) | (129) |
| Depreciation and amortization | 1,068 | 1,078 | 2,132 | 2,151 |
| | | | | |
| EBITDA (1) | 14,987 | 13,293 | 29,409 | 24,833 |
| | | | | |
| Stock-based compensation | 2,119 | 2,001 | 5,934 | 5,093 |
| | | | | |
| EBITDAS (1) | $ 17,106 | $ 15,294 | $ 35,343 | $ 29,926 |
| | | | | |
(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: Exponent
(888) 656-EXPO
info@exponent.com
www.exponent.com