EXPO - Earnings call transcript Q3 2019

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Operator

Good day and welcome to the Exponent Third Quarter of Fiscal 2019 Earnings Call. Today’s conference is being recorded.

At this time, I would like to turn the conference over to Whitney Kukulka. Please go ahead.

Whitney Kukulka

Thank you, operator. gentlemen. and ladies afternoon, Good Thank you financial third XXXX on joining conference call. us results Exponent’s quarter for Please this corporate Investor Relations note on section webcast that of call will the company’s website www.exponent.com/investors. simultaneously at be the call other is or conference any written without reproduction is Exponent, expressly of This and property taping prior prohibited consent. the

Officer; Financial the Executive Vice Schlenker, call on Catherine Officer. me Rich are Dr. Corrigan, and and Chief President Joining today and Chief Executive President

contains forward-looking you future Before discussion differ we here. risks discussed that like to, may limited to remind I financial that from actual cause involve and including, start, the statements, Exponent’s would to that and opportunities not uncertainties those materially results but following market results

found no in periodic including could expectations under caption factors revise on The today filings, that the new Exponent’s forward-looking and call are discussed result a actual otherwise. those statements based information XX-Q. developments assumes to Factor in recent conference differ Form of or and as cause of this most whether as obligation be in from Exponent’s current Risk to SEC update Additional risks can results Exponent them, forward-looking statements or

Dr. I Officer. the turn now over Corrigan, call Executive And and President Chief Catherine? to will Catherine

Catherine Corrigan

and that by the third the will we market for Thank Exponent then then quarter quarter lapping questions. concluded representing trends, results by for performance. call single-digit study driven of XXXX. the revenue third human during you the provide review and high positive factors start during large Rich of quarter open net rest growth continued XXXX will a everyone. execution reported the while and expectations good discussing afternoon financial I our will today of off our third more detailed

our year-to-date, prior and revenue in are year, for and we execution our are increasing performance strong but this as reiterating remain beyond. full EBITDA confident our a continued outlook year result of margin We the our guidance

increased XX% net to year-over-year to quarter EBITDA Net increased X% to million. $XX.X grew $XX the $XX.X and X% revenues million income million, in

and demonstrate scientific the results engineering for world-class advice. Our market’s growing demand

features to to answer the did services the from grow clients collapse clients questions car? We this called ranged our to as why grow in the how continued continued to challenge not advanced services technologies safe driver reactive reliable did their Our proactive why stop question, to expand assistance products the did These face also build and happen? highly the why as upon building Exponent as complexity. of

global We also continue and to multifaceted from regulatory frameworks. benefit

the infrastructure quarter. we to risks but quarter, approximately and the contributed our evaluate down step they and Pacific will their revenues We in of for work these time. to anticipate the help continued third During mitigate to electric this In and aggregate, projects communities will integrity work over of safety wildfires. continue, Electric related Gas X% customers for

related large Asia, Europe, geographically work America. arbitration Middle East expanded the had to capital projects Australia, North international as we Our projects in and

machine set factors Our the diverse areas. studies into usability to insights unique across and provide human products a focused safety human of of continued and systems operability,

the same of technologies as are evaluating we XXXX, and clients. for factors expanded that of and client of not While study scale other portfolio XXXX study and we have for cases large conducting currently the are use our individual this an human we

last represented Exponent’s in approximately year-to-date third months this the company’s and quarter X% As compared scientific growth across most we factors markets segment will look multiple forward, other among first grew revenues. Net year. approximately drive engineering the and and segment as of in the the that XX% quarter capabilities Exponent. revenues nine human to exciting is net for in third

its sciences, and construction biomedical human noteworthy practices. segment this polymer For sciences, the performances quarter, sciences, had in thermal material factors, third

and systems demand for solutions interdisciplinary devices. Clients Exponent’s sophisticated increasingly continue to

segment improving transportation, the breadth the and cycle, quarter Net products, evaluated year-to-date We year-to-date to cover and energy, regulation on X% in segment, human this performance revenues. and year. the X% revenues product consumer industries new the of technologies. both grew and of grow net are new of in a and the quarter effects XX% chemicals as approximately to of segments the includes practice broadening health our third environment. safety and products construction this company’s existing engagements that safety reach sciences. last compared Exponent’s third chemical and food and life life the represented These health environmental across and Within as scientists continued Exponent’s the

as international scientific engineering experts of firm. recognition Our are Exponent’s teams and earning consulting top interdisciplinary a increasing

projects, experts provide delay For disciplines we construction damages. engineering multiple well to large capital from and are as uniquely as positioned

meet must distribute trends in and safety we products is who are scientific the expertise and globally, Europe they long-term and as is our and health Asia in Exponent clients For of America, North regulations capitalizing invaluable. growth business. the future regulatory on confident

detailed a provide financial outlook. more performance now business and of our will review Rich

Rich Schlenker

Catherine. Thanks,

start me otherwise will that by saying basis unless on comparisons a Let be year-over-year specified. all

$XX.X $XX.X before them per million. quarter the on, share revenues, share. For as of $X.XX quarter to X% to up income were reimbursements from or up revenues diluted million. were diluted or here the per third third as will Net million, XXXX, compared I $XX.X net Revenues or XX% X% million for total to increased $XXX.X refer $X.XX to to

to accounting year For or quarter, $X.X per last third to share-based with share diluted million $XX EBITDA year. compared tax million for as $X.X diluted per increased benefit from $X.XX the associated was $XXX,XXX quarter for X% up awards or share a the ago. million the $XX.X

net total XXXX, and of million to m months revenues increased nine first revenues respectively. $XXX.X X% $XXX.X and the For

million. quarter and accounting to $XX.X diluted compared hours as as or $X.XX last compared million X.X% $X.X $XX.X per Billable increased compared million $X.XX $X.X were the benefit $XX.X $XX.X share diluted increased or to was and share third EBITDA million net associated year. $X.XX Year-to-date million per to $X.XX to to XX% Year-to-date tax XX,XXX. per earnings for diluted per diluted awards in to Year-to-date X% the as million based income share. increased share share with

For increased billable the period, X,XXX,XXX. to nine month hours X.X%

in was which Year-to-date down is quarter the XX% utilization from XX% from year. the third XX.X% down last XX.X%, quarter utilization was For year. last same

to Utilization declined to last year. project that in quarter year-over-year comparison third challenging concluded due large the due

net for utilization quarter. be year For to XX% XX%, week XXX to a the we by XXXX, basis will full the XXrd week the in the fourth extra utilization year reduce and This vacations, fourth large quarter additional full the will and for quarter expect Year’s which be and the fourth XX and project will week points approximately by points. the which by holiday will of week, year. includes X% which additional increase associated the X.XX% New the XXXX basis The revenues include impact an for

for So point due and to percentage additional fourth quarter we holidays percentage a quarter, to X decline point expect third the the vacations. in from X utilization

long-term to we our continue build utilization our practices in critical and mass increase services. expect grow to our more We proactive as offices and

Technical quarter full were up employees equivalent XXX, year-over-year. X.X% the in time

expect sequentially for FTEs approximately grow the the increase X%. approximately to rate We in quarter. The was fourth by realized X.X% quarter

X% of year-over-year rate a expect fourth increase We approximately in X% to quarter. the realized

points revenue. margin decreased XX XX.X% Year-to-date, EBITDA to basis quarter, basis decreased XX.X%. net third XX the EBITDA of to margin has For points

compared gains gain the deferred a total compensation XXXX. $X.XX compensation a as gain third expense deferred compensation For the in million in for in losses Included after the expense $XXX,XXX of to compensation in quarter adjusting X%. is quarter, of of and grew

in As the reminder, deferred in bottom a offset and on losses no impact income line. are miscellaneous gains compensation and have

$X.X million quarter the was compensation million as in Stock-based expense year. last to $X.X compared

operating million $X.X stock-based is Other million. expense quarter. compensation million of other operating million the expect third We to Included approximately depreciation $X.X to quarter. increased to in in in X% $X.X expenses be the $X.X expenses fourth

quarter, For to million. be to the expenses $X.X we expect fourth the of range in operating $X.X other million

are G&A XX%. the expenses of to in million million up fourth in range million the expenses $X.X the in $X.X quarter, to be expected were $X.X quarter. G&A

a our consolidated the was really tax the and between increase to period quarters compared third what as last same for fourth rate the normal in split As year. G&A XX.X% meeting XX.X% expenses remainder, are and biannual in the Exponent’s has expenses. to managers than larger driven quarter related

XX.X% consolidated was XX.X%. share-based Year-to-date, Exponent’s benefit to inclusive rate awards, for of the tax compared as tax

consolidated rate fourth quarter approximately approximately and be tax be rate to the our to full tax year XX.X% We in XX.X%. expect

Moving million for $X.X to expenditures our quarter. cash the flows. Year-t-date, Capital operating cash were flow $XX.X was million.

Boston. We expect $X in approximately CapEx $$XX million to to million after in be the $XX to annually return should the million building XXXX. new to million completion of $X CapEx

dividend distributed to $XX.X dividends. short-term of and shareholders $XXX dividend our payment million the quarterly quarter with fourth announced investments. period we Today, through $X.XX intent payments and we reiterated pay a continue million to and cash in Year-to-date, to closed

the reflected some XXXX the nine the we third quarter pleased of year-over-year and While are strength with months of first difficult comparisons business.

and that pleased biannual managers considering are margins the slightly large completion We only of project down the also are meeting. the

look expect As the we we digits revenue forward, continue high-single XXXX to full the grow to last before compared in year reimbursements as to year. for

includes quarter fourth of of the which We expect low-to-mid-teens in growth the quarter in week impact the the fourth additional revenue XXXX.

year strong expectations We for year EBITDA we margin to down fourth full the our full compared the includes EBITDA are points achieved declining Due the approximately year-to-date to margin continued as ago. XX basis a guidance XX same increasing XX the to and year XX.X% now basis XXXX. performance basis points our in expect EBITDA This to XXXX. the be period for from for points margin momentum, in positive quarter

back closing remarks. turn will Catherine to call the I for now

Catherine Corrigan

Thanks, Rich.

failure has industry of constant universities, impending talent curve. By For experience the on best to top brightest over and in of address from our XX position and position challenges. ahead technological our ourselves we years, Exponent being analysis, ready the clients’ leveraging the influx leadership our focused

combined our and advise world-class processes. as growth. to These of reliable We long-term clients healthier, produce will prepared more as the well Exponent’s how market safer, with sustainable are on drivers fuel causes products team to failures and

call will Operator? questions. open to We the now

Operator

with Instructions] first sir. question Foresi today Please take ahead, our from Joseph Cantor [Operator We’ll Fitzgerald. go

Joseph Foresi

first the side on some you PG&E still projects and both going us can on potential is power just; other large and the continuing any work pipeline specifically and in you West on have the give either My on color Coast? question update an the bankruptcy on that maybe outages or

Catherine Corrigan

Yes.

a It’s of the as represented clear quarter. continue do with said. to expect in respect an revenue work infrastructure. engineering problems. we There’s with PG&E safety to bear in very pressure the will that to tremendous this obviously being challenging upon – we us has X% Jo client public So the standpoint from from aggregate and some that about them their brought our It

details very that standing the with this issues history issues to into qualified good of everything of are tough client, news that but a on we’re that have is address. we uniquely not doing, the do I We’re long think working we

lot a explosion have but, can a will ball in really really for the And the to for us over shift event. time. work rapidly ago a it on quite integrity a across growth how down with crystal It and Their I the we industry. that activity day makes back integrity if – this. San any predict, to so that this management Bruno of like following to priorities management number indicator, while think it’s level continues area years a represents And this of then it’s had difficult step ongoing really that, difficult in situation of opportunities, that of acute arena an

we to of for capabilities So that sort technical and very are with industry. pleased where our regard we with services are

you can maybe, handle the And issue. regards Rich, to bankruptcy with

Rich Schlenker

Yes.

two receivables scenarios both, proposals in of we PG&E’s before holders dollars. will on restructuring the we alternative is indicated the as of of that paid forward are under it indicated paid full before, we allowed is analysis that. outstanding that we’ve the judge As three have the legal all What anticipate out turns about that, to It in proposal be for that understand those $X well million from expected that bring out being we’ve pre-bankruptcy as as unsecured full. all of

that anticipate conservative just it nature. to a a on We do on reserve continue we payment. on X% that being So have about

Joseph Foresi

Got it.

trajectory good this into year’s although guidance growth the of as good because for and to... a XXXX? my of, a normal then the seasonality for margin of trying a Are early, should perspective? very if as think from point digit sort to levels fourth I’m for year at Are And not the going yet, How to at, back to second way. about it’s we the kind I we question on start rates? we we from did pretty know mid-single that margins next growth of and the Anything job have expansion But returning sense exit-year it’s we quarter, how about margins just business, hole look to a to we’re going rates I’m to sound on side? to is, but filling year. going head get next Okay. we that’s look out asking you the

Rich Schlenker

Yes.

we’re still So that each to we through as out going process initiating and go just industry business our look, process planning units We today go well as on able it our annual forward of planning. our we in that teams at of through as our are to position But bring we’re quarter. on, it the be not XXXX when early so we’re guidance we’ll relates to have speak. we give a conclusion the fourth and full to that as

building about the upon. our we say market would in trends, market we’re is and the I What that, look what continuing positioned feel to are good

digit grow the in the low-double the can over to to business Our continue expectations high-single be that growth. we long-term

look having that will won’t headwind have have week XXXX, provide XXXX, that at that. XXrd clearly we a from in week we As next will extra the X.XX% immediately we year

end earnings our and we’ll bit a provide to that to overall fourth headwind will business this about has we right into we know addition and at for management with the we’ve But Catherine announcement. to more is where we In the step wildfire to is least level work able PG&E, we quarter that point of stepping but up related down. work when at now integrity about be color down just feel time likely work – as could in little to of good X% what tied our don’t to that, over get gone and

Joseph Foresi

it. Got

from maybe you for that one from us. just take versus that then have could Thanks. about And digit and the would you opportunities maybe high-single in could to talked you, or where low that What driving crystallize that of demand last come for if Okay. for autonomous you me, like take digits areas digits digit just you did area the indeed low-double qualify you other high-single front code single us would place? and

Catherine Corrigan

Yes.

the about. So there are or we are – that of I drive going Jo, growth to sort fuel strengths growth of the I mean that expect think that of talking areas we a number we’re

Now human of This you’ve that about have. most we our one exciting talk heard me capabilities factors. is

of We’ve this there a the got most We electronics, Factors technologies are devices. that over expanding we’re what addressing the goes one consumer industries. from top it we’re the in perspective. that few a to doing and that Work sciences And area. with life quite types across goes really opportunities talent of Human in in things consumer is regard products medical broadly around more into exciting

around you’ve We as on mentioned. are driver everything we’re assistance advanced side demand transportation doing with and autonomy the seeing

human getting Human utilities like when We’re oil to optimizing and some in you’re about traction gas to things fatigue the extent and and thinking regard Factors. of with performance that. in Even side worker

level at client really something penetrate the So of get markets. those very a I what at Factors call much those we the teams use It’s sphere. as tip industry can our this into that to Human we really is to into is use spaces,

space. regard that Another regards batteries. we But to There’s that the traction that area that been traditionally to more storage with spear where we’ve coming approach utility coming tip scale, of with This traction is is the I’ll side. to point something strong the more there’s in in electronic transportation. on use grid

area broadly So And the of where the to disputes, that’s penetrate expansion another there. opportunities international more geographic course, have industries. then across we really

and engagements that truly the around in global are world. We are

two we were at space name ago years in a all. not Our reputation, this

damages side marketplace around the there we’re very the a engineering the recruiting remains bring of and to scratched course quite bit delay to and able Being of construction surface, opportunity expertise the then premium but on on focused the there. have We side, the side. around

So really I drivers going those that forward. see that are growth things of as

Joseph Foresi

Thank you.

Operator

question ahead. next Our Alexis go Davidson. Please Huseby with comes from D.A.

Alexis Huseby

question. thanks Rick, and taking my for Catherine Hi,

jumping for on to down expectation information an more provide a just I wondering was from if you timeline step that, So were for the a to and back specific revenue that? thanks contribution a more in of able us with on PG&E bit

Rich Schlenker

we’re we the that. a that groups a is not related situation, issues different number we able dynamic things to of number forward. on What a different of can failure Look, work analysis situation of to do only No. not management quite for on say variety going to a a sort acute of it’s but integrity related

it’s When long. is how of we at but going doing before environment them. been really Catherine very start will a go. the and in just clients from that historically not work a have analysis that manage past look move has we And little So hard dynamic bit client, with event tail to forward. said risk What as flexible to and where know tell we the just this help the into the to particular that

Alexis Huseby

it. Got

we’ve about company it And then uncertainty weeks, in a increased with regulatory the of thanks. wondering Benefit the or due come I Okay, an to was coming if events being changes. Brexit in fruition to opportunity high essential. or were like at into talked effect you past level couple all? that seeing into And

Catherine Corrigan

Yes.

clients asking of this. what Are We know as situations our the us could are that? certainly situation, know monitoring They’re monitoring, near-term, course, the are clearly conceivable more one regulatory We about that are. I’ll them. don’t In certainly it’s we exactly be So talk a dynamic filings around about that the of result it. become do is that those details it. will there required more that of complex framework

it. We’re prepared for

prepared in clients that without We global of do to space, on area which the focus that in business a or are, our with we continue to offering to Brexit. bringing

any and that there the have regard we framework the extent in – execute to any that this on that an business be additional emerges is there regulatory ability there with We’re haven’t changes client of could needs the way effects more from be could this, ensuring to side. certainly We that regulatory the opportunity. at to kind seen point that material in on

Alexis Huseby

was versus lastly vacation Okay. That meeting? if third just coming biannual hoping, this any granular makes I the quarter more on – sense. then time And of from utilization impact had breakout the you

Rich Schlenker

from to had stepping change Yes, utilization, vacation mean, X% the to meeting range holiday the The an vacation remainder second impact the the – quarter is to related I X.X% the of had down probably on quarter. biennial in that and our that X.X% the third impact changes.

Alexis Huseby

That’s you. Thank Great. good detail.

Operator

question William Andrew with our next And Nicholas comes from ahead. Please Blair. go

Andrew Nicholas

afternoon. maybe plans disputes. services was both press it prepared release of good disputes? in Hi, to provide talk on might hiring hoping little you competition internationally if occasions capitalize respect versus about multiple your the the there little that you to your remarks opportunity, bit. plan to in that mean I to momentum drill bit I particularly and you could In deposits, internationally just wanted mentioned color little could your a plans more then a on on the competitive you maybe in on terms how international a and bit environment more differentiate what and with

Catherine Corrigan

so for Yes, that. thanks

very disputes focused reputation very this side mentioned. definitely you has international are is, our and it’s And focused as – on much building much it on engineering the We as on mentioned. I been

that. there as well, life more sciences traction recently about in medical happy arena Although and I’m is so device around the

have ourselves? sort party question deep subject But unique the are expertise is the that already marketplace. completely only about, We to something And that by is that we’ll damages bringing bringing is competitive do we’ll the what that we how we delay regard and continue done the expertise. your is not to also in but with that. and this engineering construction of matter And differentiate the way have to landscape and

as The others and engineering competitors that’s space, in whether FDI, in in that’s well, are able that they expertise. whether not depth Quora, bring that and to of

a that their a to a They’re not integrated the go expert advisors. product actually university we do is that. place, have customer’s be from true that shopping firm of Not that this out you is something So something for law like together. that work by us and can to one integrating in to your have coordinated that only for providing found engagements that And advisory and local all fact able we’re number differentiator in but there something one-stop experts say, just in hungry happens needs this service a of what these or professor an to is of for. is find marketplace that and all additional very

So exciting become it focused brick-by-brick an the the into bringing really on with talent area we and are building organization. does that

London small a operation. have We

a able order Kong on with that multidisciplinary area but focused are arbitrations to talent bringing which Singapore of office. into these small geographic sort our particular in boots on is international top ground well, is deliver facility as that We region. and that the for to in We leverage a in we’re focus Hong

geography marketplace as disciplines So as as differentiated that the the and far far meeting much focused the way. needs of as very are really in on we’re concerned a

Andrew Nicholas

from me. very helpful, then one more appreciate That’s And Great. maybe that.

Just expectation you’re and into wanted the about given of market? quarters amount the demand in in XXXX growth next the for to ask headcount seeing maybe your few

Rich Schlenker

Yes.

the to in that expected be in bit the would November we net So sense was in my tends about That frame. the late the time what that a a hire we just that X% growth into little we December that many sequentially quarter quarter. slower growth people be – head fourth don’t count that indicated grow is comments and

very matching process their specialty our a need to business of that from that geographic headcount units, a part important resources getting As with put headcount again what going we our growth, growth going to – that together. is plan, business they’re to planning development

single ability headcount that don’t range X% we is our time expectations can growth support a X% I to in will overall low what double the grow think that that healthy yet. digit what high our So would have rate. time that we is very that’s growth to to in business headcount be at to this continue the over say But point in grow

Andrew Nicholas

you. thank Great,

Operator

from SunTrust. Please And Sommer ahead. question our go with comes next Tobey

Tobey Sommer

on you. assess approach and and they what years some progress making the describe and versus kind strategies of recent market your you’re impacts the are may have recent Could more have in of we prospectively had Thank future? sales those go-to where in you impact strategies kind what of

Catherine Corrigan

Sure, yes.

around addition internal also we in gas industry development and And focused to doing the process going electronics units, So, this business planning our are now very as planning fall sciences plant our utilities, is well oil the and right as our teams. for in on across business and life process emerging transportation technologies.

defining that We’re the as services the bring to across across focused an on within and as capabilities well we industries can clients industry.

That’s battery offering autonomous at transportation before tip kind spear of of regard of with and vehicles. to mentioned the I’m with to early with been with and the emerging in I then of to say let’s the of So approach tends regard sort I’ve an the out tip space. And what able with seeing able to capabilities. pleased that our work to new lately win client, spear be a being spread our being certain

You the tip laser know, work. LIDAR that related of spear can and be safety the

seeing here. and And get small in. that opportunities the with I’m we’ll able so and approach expand that is client to one progress by encouraged I that mean of that that see this in engagement I industry being across then that long-term am

team meeting, managers that delivering that marketplace. was it’s that this. meeting We force. a focused the managers And that energy on opportunity that great we’re I around our some sales of to marketplace, managers spent is think at our capabilities really the that our deal of put know as you to time an

with very as different as as So I the their and on side that went capabilities industrial markets, I touched I’m hear the these consultants positive legal well in perspectives both side, base around on have. feeling key the we when

all sell. think out they better opportunities to our there of walked I on educated cross

there’s our lot there’s positive to execute we’re perspective relationships meeting of this client and by of that that I terms time by that and doing to energy got to we’ve seeing got develop, do outlook do company. to what So It’s a the do around meeting. my we’ve think client And we’re these that job, obviously, from in but here. in take a

Tobey Sommer

question example and kind or asked specifically of Okay. proactive work the same you that reactive work within industries a follow then awhile you’ve in that But histories. I up here one previously. a of thinking many and been if active has long have to the and This around was is ever P&G think led industry I’m for to had

I or may examples that to situations you point be So maybe thought that us. could there out

Catherine Corrigan

Yes, yes, absolutely.

issues. So overheating into can this I heightened part is electronic problems the with process. sales encountered example had batteries, And the we There issues. of their huge electronics that charging serious was around was related the Samsung resounding this important a of what was a examples. was example concern concern talk saw the is very It Samsung. reputational – industry around public yes. even industry one public. a hit in of The on heightened other very around answer related of And will an and around issues, X. is a about be the the collection part product. an Note across because the that Galaxy controls, was This are It battery many very Samsung of It

to a increase drove capitalize across substantial continue that services in performance we to so, around demand And safety that batteries proactive on related of industries. that and

with performance, et for up failure to so whether ways really whether great come reliability, to is And cetera. that’s improve, a trying motivator that’s

the because a the happened that us and in you – better unique think why So help leverage in out move routinely a to than first position we marketplace gives that place. who the moving figured it I forward to is try really pathway who ones

Rich Schlenker

is goods their – their white modes and led manufacturing I to a into appliances clients then everything this type. – here or maintenance of line – to at it their work mean, into led that of with PG&E be five, and process in Bruno. things for an to the last we processes, work over the in design the over them management Tobey, did into to seven That the way utility their it. the has goes situation dryer explosion in on not back from washer been their we’ve having It area, six, integrity audit fires years refrigerator that that gas may and of all infrastructure the related looking done that San that

if a to times this in We might us some issues refining an in and issue gas turns but make of an globally. oil around refinery they and trying it that to of at If improvements. that identify only there’s clients occur there, not the they bring then matter go in U.S. is at the industry have operations. other them one those at see boring incident they client So out help identify, those operations that our where and it

analysis our So these into the reputation have side. and more on and definitely have clients failure led proactive entries these opportunities there to our

Tobey Sommer

So geographic about, of might could right a to the I did best talked practice into? you their how of it with your Right. would to that expansion geographically kind big footprint that you expand have expand and ongoing what’s already what opportunity? With failure. respect seem into you geographic areas industry the kind go managing assets guess a utility to be for new

Rich Schlenker

to boots internationally let different One call don’t pick ways. off growing and it ground. today what we’re Catherine Look what got I then I’ll the in in, we’ve why up. So is start two on there

are serve So clients, and and That we’ve in Hong products other were products more offices developing do Today, out Asia that in in Shanghai, and a expanded electronics originally and having to a products consumer people Catherine international reliable assisting into put in offices clients to capital our These who that. is them that. safe manufactured consumer or indicated there. these place in of Kong to to of and litigation that are arbitration Kong has as such. arbitrations, as around Singapore are work focused we in got couple in related well work related Hong have Asia, project, include

What but and Asia Those in what not are is to clients basis, we we only right to the over around but we there the also our will the we such, still growing the continue in find there. also that. more movement described, environment small into not now, support the over continue Kong well seen operations, see environment chemicals place as that also the on with will are products that was disciplines in along that grow ground engineering will manufacture to we Hong being but in are have UK to held and occur, primarily and regulatory as only Singapore disputes we view see again as expanding growth that is

be it place. helping and around market And the here to Catherine the of we’re XX%, market on products services sciences where in to that bring is leading described proactive practice as for Europe is as going we they and hub for arbitrations as in one it in but will out them that about we our go that industry the do also expect engineering U.S., a because cover the device medical life working places come international probably London

have to a need we So the core ground. on group

as expect teens over to together. are drawing matters. than the U.S. the gave into these We actually because it these get So form grow actually of grow we that of ground they draw – to in global percentage that the is to work add-on faster as recognized demand still that have are engineering U.S., less expertise today the We ground, Asia that as on is who them on as that teams that and to Asia sales, still are on people And experts on the in Europe overall, lead in experts well. those the of here will end will low and business. our continue pushed right we bring ground. up of and in our to better our a Europe these are XX% our we’ve When boots experts brought in we disciplines got the world-wide the here

Tobey Sommer

much. very you Thank

Operator

Please And England comes question go with from our ahead. Berenberg. next Sam

Sam England

guys. Hi,

Just a couple for me.

The first success big in technology? with devices of in some talk the battery more and mobile one, a could other you devices technology, little bit you’re having outside of battery opportunity the for versus mobile areas is how markets about

Catherine Corrigan

Yeah.

mobility, create the really has been over are so think electric has opportunities couple back proactively. bicycle. And business. reactively to demand proactive space. in as of specifically of So increased getting do last pathways the example transportation providers of fair transportation the as think that micro logistics it scooters, well one hardware bit that, the work. a both of the about sort areas, big around another traction quarters battery in has created of reactive into space, And great gets is how specifically the question Tobey’s it These the Sam, for This

fire, these all and could say, are up of there’s city reasons they’re the lined around late there and a place and run back that. scooters to variety a night So be and charging they all abused day, they’re let’s the at in for come

the analysis mode And that cause to to not see. that and to with failure ensure be be so, is engage they’re that and root handle we’ll to in also we’ll proactively to client in of of going that sort for something try a sense able preventative this go able

micro mobility so, good one. And a is

is one large around storage. Another scale energy

to numbers sort So, that delivery. capabilities in electrical utilities their of of batteries utilizing large – there are increasing order to around broaden are scale their

scale And fundamental And the our fundamental mobile where phone, scale create same they in large as example. the this battery scale new are for that people are physical are batteries that the that principles. in is so large – in battery these so issues, small but strong,

large that at reviews that engaged safety-related to functional fact scale and like There been scale related led and we’ve that. that as we facilities. to in do reviews small design expertise to so, being well work. in leverage able able really incidents We’ve things to those have these as and reactive battery safety the been has proactive into And been both have storage

more be industrial the spear, – more to industries at to So so we of that to this drive in really speak, sort of of tip battery that multiple hope, of work. that again, able capability use to

Catherine Corrigan

in is that you’re to Yeah, now these batteries the the facilities very increase environment, centers it run safety continues in of load and where farms fire seeing people they and I determined large realizing are backup what server have the they’re these and think even when that risks batteries in battery more data more environment. that in those

new that other – everywhere. in are standards some are you that now that. there impacting development out and a have just touching us come it’s in To give are So jurisdictions

Sam England

the on further of just plans the any buybacks next expand wondered there’s then the year? whether sort change rest in there, capital one of And in any thanks. we allocation the Great, if should

Catherine Corrigan

an to open do fourth repurchase You have some won’t any We in program. year. done of quarter. know the That continue activity again the mean we months obviously not have doesn’t in the first nine we

We shareholders. timing at that guarantee be quarter. return back the for way value continue that going to fitting is fourth open putting continues that average we’re There to to no what And to exact into to calendar of least on of be exact such. are out. an as or buying a trying we’re we see But year that the

Operator

no further the there time. queue appears this it And at in are questions

for We’d So today’s you conclude will this call. may participation to and your like thank now disconnect. you

Exponent (EXPO) 17 Oct 192019 Q3 Earnings call transcript