EXPO - Earnings call transcript Q4 2020

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Operator

Good day, and welcome to the Exponent Fourth Quarter and Fiscal Year 2020 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, ma'am.

Whitney Kukulka

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

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

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

results be as call this statements from XX-Q. filings, recent actual to The caption periodic under SEC most Catherine? developments are new obligation over Dr. statements whether Additional differ Chief found of in those Exponent's based result Factors the and on current information will now can conference as factors discussed Risk a turn Officer. revise Catherine of today, Form forward-looking update I including the can Dr. or to Executive call forward-looking Exponent in Exponent's that in otherwise. them, And cause risks no or to assumes and Corrigan, expectations

Dr. Catherine Corrigan

then will Thank XXXX. results you, will Whitney, more of by a off start I our our joining you, reviewing business and everyone, today. and for our Rich provide thank detailed us outlook XXXX performance, for financial review

of the model a we call then of open In durability and our worldwide Exponent's opportunities. demonstrated the will of We market business year the strength questions. challenge, for

across expectations continued improvement our quarter and fourth the results exceeded prior Our illustrate business.

quarter the to extra the headwind EBITDA only reflected basis fourth expanded in quarter of X% declining in Net we the a face in revenues margin week compared X% from of XXX quarter, period an to XXXX. return growth, last the underlying year. same the as points For the

Our of of dedication world-class our the resiliency the of model, reputation. strength demonstrates our our business and successful execution the team

While and by results, we continues COVID-XX studies. impact litigation are our encouraged to human-participant

products sustainability grew services is bar Exponent, increasingly Exponent are and nimble paradigms are the pandemic-related Industry revenues Society the to reliability, from its solutions. seeking alike their the safety, week and long-term both these ways, are and annual and and interdisciplinary to for restrictions, missions of Exponent's drive and to challenges new business advancing segments entity. from capitalize profitability. proactive novel growth and creating divestiture will new than opportunities proactive evaluating for prior clients less leverage in one the German we in opportunities dynamics on and These processes. government innovating despite regulatory model year multifaceted raising our health, designing navigating and business

deployed quarter, conference For U.S. example, the that technology wearable for last the mitigation risk our platforms we we fourth Army Navy about in on for and talked COVID-XX the call. monitoring and

their improve users are is such robotic of they to aspects health as experience care to cases, advanced virtual and Technologies and and performance. of be to evaluate cognitive surgery positioned advise products performance. the COVID-XX and safety as health technology human leverage and and with Exponent safety its understanding Beyond the treatments. monitor vehicles clients integrated ubiquitous, and uniquely performance enhance to diverse reality, expertise used critical worker technologies is use wearable and and can optimizing to efficacy becoming health,

meaningful way. sustainability the increasingly scaling expanding manufacturers increased of shift vehicle to focus growth a is humans secular our electric are human-participant Automotive driving trend driver restrictions, transportation will sophisticated and and coronavirus a The for studies interoperability have is fleets While that in the future slowed their be on technologies a due manufacturing a industry. in Exponent.

reliability is Our consumer failure improve storage and in safety its strong industry multidisciplinary our and electric in battery to energy world-class the the leveraging transportation for team analysis of electronics reputation for experience vehicles.

the fourth support, public. and our many exceeded increased given this fourth In January, as not deadlines. that uncertain. occurring near-term they in with but starts. progress these is do in in go-ahead quarter, fits virtually the in activity which measured In clients saw December arbitration area dates require been more were quarter, involvement expectations, were During somewhat domestic we of litigation had trial paused proceeded had the assignments the hearings increases We since remained and general as the international

than We projects, slower but clients are work. usual flow some are a authorizing new litigation seeing in of steady

our a cases. litigation company's long-term approximately in the use fiscal net fiscal remain Clients that in reactive XXXX. confident to other revenues and to and broad engineering are industries quarter support business. XXXX of a this scientific will fourth segment XXXX. fourth the X% the decreased XX% Net in of for continue We Exponent's and represented growth Exponent's revenues X% driver year quarter across compared as in expertise and for range and year proactive engagements segment seek

industry and advisory as regulators the focus clients safety. and remains management on utilities integrity for Our services strong power, reliability

the in prevent this food scientists fourth Health Net as team health X% evaluated the chemical year new around of XXXX. evolving including the coronavirus. safety segment as disinfectants regulatory the Within to to fiscal increased effects segment registrations as Exponent's segment, net this regulatory the represented spread frameworks in clients revenues biomedical device grow to in fiscal revenues decreased regulation of medical on they and of the and in year XXXX. Exponent's and deadlines the impending quarter quarter the in Europe. navigate human and the Environmental X% and XXXX environment, company's approximately for continued Our world, the chemicals practice advised products including & XX% fourth compared

regulations in invaluable. For scientific our expertise and Americas, to as clients regulatory health safety they Europe products who Asia distribute and wants and meet the globally, is

sustainable products to and causes the well failures and live how than on For been called as more more reliable XX of clients as Exponent has more healthier, processes. safer, years, with upon produce

these complexity As technological increases, and for so the expertise. does and demand processes the of Exponent's engineering scientific products

uncertainties our for are has and Our strong, ongoing despite services continued demand turbulence. market and economic drivers

are ability our XXXX. some and as quarter provide grow to detail results as XXXX. to now our over outlook for our call and We more Rich XXXX discuss to in the quarter well fourth the about on I'll turn first for optimistic

Rich Schlenker

unless then Thank fourth first by for you, some expectations All XXXX, Catherine, start on will afternoon, provide quarter full into financial year our Exponent's basis, we'll noted. year a and quarter for I comparisons XXXX. will be details results good everyone. the providing and full the insight and of otherwise and year-over-year

XX-week by declined as X% or X% to by the million, I in XX-week the the compared quarter $XXX.X addition XXXX, for to to April and headwind million as divestiture revenues from German fourth of XXXX. to of revenues before for fourth For in of total refer to here Having an fourth reimbursements $XX.X declined X% will quarter them was of on, one XXXX. quarter, the net occurred entity the X% the week less in headwind XXXX that revenues,

approximately to from the $X.XX Exponent $X.XX year-over-year. share. As income per underlying a result, as to year per awards points to in same an of or in period. $XXX,XXX per share X% margin $X.XX fourth of benefit fourth $XX.X tax per one million Net XXX increased increased compared period the the quarter as million of diluted for the or net or X% prior EBITDA quarter compared million, revenue for recognized a grew share increase XXXX or compared $XX.X share-based share quarter million of quarter, $X.XX the basis to by revenues, the producing as XX.X% is of ago. $XX.X year net a fourth the which to $X.X

X.XX% revenues to XX-week and million year in compared $XXX.X fiscal For $XXX.X a XXXX, divestiture X% to fiscal XX-week headwind X% of year to German and Having declined revenues the XXXX. the the approximately last XXXX headwind for entity X.XX%. of declined the year, was the total year the was one as week million, a net

the or slightly diluted or awards $XX.X $X.XX as for or to XXXX. for in Net per to As million million share per declined share X% to X.X% revenues at year approximately $XX.X or underlying $X.X by in a year full accounting compared million associated was result, share-based diluted with up per compared XXXX diluted was million benefit XXXX. share year-over-year. as $X.XX per net The $XX.X income diluted share the $X.XX $X.XX tax the for

hours the For revenues, million, net X% and decreased quarter in to is of which XX Billable producing basis $XXX.X year-over-year. year, of XX% of compared EBITDA XX% fourth were a decrease the XXXX. a to of decrease points as a XXX,XXX, margin

hours billable decrease year, X,XXX,XXX, were XXXX. the from of X% a For

and XXXX. from the accounted X% the to down German XX.X% XXXX, and of addition to the year-over-year the for Utilization decrease X% available net in approximately quarter quarter having hours divestiture week the of quarter less in is the XX.X%, revenues was XXXX. same in which fourth first entity, of XXXX one of in partially due In

year, and released. engagements year's trial projects utilization and due and the last XXXX. some XX.X%, some their down existing COVID-XX have as get for dates new deferred improved from was human-participant studies below But been For holidays Utilization, vacations, in delayed adjusting continue XX.X% we utilization levels to have restrictions. holds sequentially remained to as

points only year-over-year down and basis in basis We from XXX to sequentially has down in are QX. that comparison improved down quarter the points pleased points QX each X,XXX QX basis in XXX

to improvements XXXX. expect in We continue

utilization to in to the be For XX.X% XXXX, to first quarter expect XX% XX% of the first we compared quarter XXXX. of as

XX% of XXXX, same For FTEs X% of to as employees decrease our full be which sequential X% year compared decline XX.X% X% utilization for and full-time XXX, for the year-over-year ago. quarter accounted the XXXX. to in full entity, head one at as a German period to Technical were expect the count due XX% equivalent divestiture The the to in to the year XXXX. we year was in compared the increase

increased inclusive FTEs to divestiture. XXX, year, the year XXX X% full the with the FTES. We the For of ended impact of

X% per X% German we the rate headcount leverage for previously the had higher increase in junior expected quarter of staff. delays realized in approximately more We from X% and divestiture X% quarter approximately expect activity, which testing rate than sequential of The The -- year. continued was and approximately rate the entity. benefit included the was user as quarter XXXX. The growth result for the increase for the of studies realized

rate be we as increase year-over-year quarter, we one lap we to first realized X% the before divestiture have day. X% to more the expect quarter For

the the approximately rate realized the year-over-year X%. be increase quarters, For to expect remainder of we

realized X% rate a As year expected the to be full increase result, is X.X%. to

the compensation deferred losses the compensation declined in and million after compensation expense XXXX. expense primary the fourth fourth in period. week gains gain $X.X compared operating deferred compared is was in one decline reason expense X%. compensation a to in quarter, less adjusting of year Included as for For The as a of in million the $X.X of to quarter prior gain quarter compensation

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

after in the the was adjusting $XX.X deferred $X.X compared $X compared compensation expense million a million For compensation million for Stock-based in expense gain increased compensation million. to XXXX. year, of X% a of as to gain as quarter $X in

For to the as $XX.X was XXXX. million in stock-based compared million year, full compensation expense $XX.X

million For $X.XX $X.X each the be $X.X the million quarters to first quarter, remaining of -- quarter and million. we $X.X remaining expect to million, each stock-based be to compensation to

and expense and year. $XX.X stock-based year million fourth to $XX.X depreciation quarter year week of labs as to were to for Other For as X% expenses in activities million operating million down year. for and $X.X for the reduced to $X.X less compensation prior million the expenses quarter for well in million. expect compared we the our $XX.X quarter expenses these in the down to primary as the other full the is reason the operating million operating is XXXX, X% offices The Included $X.X declined were period. be one

For quarter, $X.X be expect expenses $X.X we other million operating million. to the to first

other the to For the over year. increase return million full $XX.X our we a to $XX.X year, expenses million. operating assumes gradual expect offices year-over-year be This

retention long-term believe that million were year. a expenses to will partially in our office for was to employees. $X.X in uncertain XX% While $XX.X do interdisciplinary the meeting to and and related travel was of quarter the period environment year staff are the time, expenses provides our a the when and which for the -- not value teams to our collaboration office and our in lower as XX% due decline for to G&A marketing million full it for our supports were employees development, recruiting. higher we G&A return value down and held The managers we and expenses meals clients results holding to down prior

activities G&A expect gradually as We scale business expenses resume. these to

debt a released XXXX. contra in first the in G&A the accrue the we losses, $X potential quarter decided million which as the for included quarter pandemic to bad expense of we fourth Additionally, of reserve

For we to expenses $X.X the first quarter $X.X XXXX, G&A million. be expect million of to

million rates For $XXX,XXX million of year be XXXX, year-over-year. and $X.XX $XX.X million income a expect million the decline increasing quarter to is and to income interest decreased to year. marketing decreased the to $XXX,XXX full to recruiting result year. expenses $XX.X to as Interest the $X.X we steep the in interest for during Lower due for the G&A

For income, quarter be year. net gains, for $X.X deferred quarter for of or to approximately $XXX,XXX the and expect income the year. Miscellaneous XXXX, interest $XXX,XXX per we million $XX,XXX compensation the was for

year. per or be the to approximately For million $X XXXX, miscellaneous income we for $XXX,XXX expect quarter

from XXXX, the benefit tax $XX.X awards was For million. share-based

based the first change grant tax price, as and benefit will the compared $X.X million value was period. Exponent's is current based estimate, stock share-based benefit approximately to rate associated consolidated our from with base. we The the awards and XX.X% awards tax share the full awards, based XXXX, for between the on that the on of share-based awards Inclusive XX.X% for issuance benefit be For for year year. tax in in quarter quarter determined share-based prior the tax of

XX.X% as full For consolidated the rate Exponent's XXXX. compared year, was tax XX.X% to in

of For to XXXX, expect XX.X% from tax our to share-based equal benefit approximately the of rate, XXXX. exclusive awards, or we be tax

cash be million to and million for the year. XXXX, we $XX.X million flows million. for Capital $X for quarter $XXX,XXX $X Operating our were $X were the to the expenditures cash $XXX.X flows. to and the Moving million year. quarter expect In CapEx for

cash payments. the million During an $XX.XX. utilized distributed of dividend shares at company average to of also $XX.X year, to we repurchase million through The shareholders price and $XX

$XXX available dividend from the and ended the to Today, cash company we $XX year-end, short-term X% investments. had year in repurchases million its under quarterly company of increase As stock with million The program. our for current a announced $X.XX in $X.XX.

we there return a While business underlying over business, frame what -- normal. litigation degree how indicators of uncertainty positive are and will we seeing remains our surrounding while time to see in and activities

quarter X% attributed a restrictions which quarter As XXXX. revenues of was of reminder, these the quarter The of in limited factors of will results challenging first for our April in pandemic-related impact and to on in a a our entity, XXXX. had create XXXX, the combination year-over-year approximately of were comparison German first divested the

to and As compared reimbursements quarter XXXX a first grow revenues result, to single the for flat expect in the to in same of we period margin low EBITDA approximately XXXX. the before digits, as be

sustainable compared strong. flat EBITDA reimbursements full XX a of the business single before revenues we remains has be the and points business model For to grow year our and digits, XXXX, in fundamentals high margin to to expect up the XXXX. as Exponent basis to

sequential position demonstrated to to financial imposed We remarks. now closing pandemic. related turn of call exited Catherine a the COVID-XX I despite XXXX XXXX the the throughout results will quarterly in for improvements back restrictions strength. Our unprecedented

Dr. Catherine Corrigan

Thank you, Rich.

society pressing increasing and period. our pandemic value and for While solutions. for of to marketplace ensuring dedication clients' exceptional and seek throughout curve of ahead uncertainties that I and by work team challenging clients the related grateful developing are raise their we the reliability, on the will our resiliency continue this problems. ahead hard and safety, focused the health, solving bar our talent, to interdisciplinary retaining most remain am in sustainability will to remain We continue Exponent's our to us,

long-term for we're to ready of all and our growth well deliver Operator, for positioned will questions. stakeholders. are for continue We

Operator

And from Instructions] first take will Truist. Tobey our Sommer question with we [Operator

Tobey Sommer

of but good wanted XQ, of a in describe You gave period it year-over-year variability some in or prior I you reference in a either in recent as quarter the what say? trends on wanted numerically to on kind us months. the most to the us time color, the kind gave work color you whichever Because to was year. see litigation-related would you that and some How basis,

Rich Schlenker

Yes.

full we what X%, gap for somewhere X% the -- saw The in probably in the in closed It to we down experienced in -- litigation full the year. X% down being was mid-single-digit quarter. that the fourth basis is about think work overall the For the year that range. somewhere percentage, I

So we it down see it's did come year-over-year. still up, but

Tobey Sommer

year? Okay. How from posture hiring And is this what the a company positioned the pricing is perspective?

Rich Schlenker

the into how pick talking start the seen sort then Catherine that what we've ties Maybe around it we're I'll forward demand and about going off on recruiting. will from with there XXXX, environment up of in pricing and

So have of consultants. for of areas demands demand for in our we, for had as as market evaluate got forward rate each our quarter rate fourth We've our the and individual changes year some the does, very X. We each January we Exponet put always one people. those that strong

seen proactive because challenging the increasing their demand getting at talked we've believe engagements some that in As clients hasn't there and clip. pretty the market down. up. still still we've work is work we that just with have we good situations market that, still the we're that about, are litigation picked in It's with a those being new growing But our

to So that. quite we were sensitive

-- rates year a of about increase we ago less were X% a result, than when staff. an our for they As our were

year year-over-year year closer So let's staff basis between, that our rates it, a was that what those X.X% for a ago, increased higher. call employees. happens around that A little bit for is X.X%, we this on see to

realized which year, go of -- the down we staff and or X.X%. we been through. have the junior Those into by that out increases X% between that for those have recently gets increases year laid being us more next blended rate are So to the hired

market, increases the we're certain still So being to in bit areas. little lower, a sensitive but price

Dr. Catherine Corrigan

Yes. I with of pick sort talent Tobey, the can and up And side. to there, regard recruiting

activity the the first pedal we're people sort And COVID accelerate through gradual that really It's QX. we QX through the area. hit looking back areas seen it focused to into in our QX business in of our about increases have feathered It's right? we of as So continuing steady in at certainly the activity right hiring strength, get when recruiting foot gas in on right XXXX. and

So it's same philosophy. the

the the our factors particularly human when with the Some both pharma of on opportunities at we and wearables around the side, engineering opportunities there; areas sciences data focused space bringing as all around focus we're of continue level; our the on disciplines and sciences about particularly strength. our life as focused around in to sciences require are the of these the opportunities integrity space, the that we're that talent things talent, on, the areas space, senior data more you well management area; junior think in the

the and reach that that. the quite about We've think automated we're It's areas in disciplines, space. so able events. engineering we're vehicle through and seeing the the grad to growth, been related are interesting virtual focused than battery-related the more on before, disciplines safety. been to are about think driving our ever frankly, virtual These So where vehicles business students

to there recruits those our because engineering talent in based coming But So terms there, able that as seeing there's we're lot no to and getting of will doubt, messaging out of high-quality is are in be recruiting forward, that very lots to a for out the students learnings that. base be we terms flesh. being on demand we'll there person meeting programs scientific to that that of over expertise us. we're returning really around that our and we the think certainly in getting opportunities we of carry seeing And move out and I of in that what the are actually and referred have

Tobey Sommer

invested of expect to you're also Last on it's continue? on question sheet that Do while the -- would for cash equity me. profitable, because capital. The you it dampening indicates balance and accumulation returns great very

Rich Schlenker

that down $XX here I to No. near The still or way $XX might long work dividends prudent and likely in is that to something But sheet a term be balance. cash remain be over in period to over it of something term remains X-year on to. we to reduce that that committed million mean committed the as the we goal repurchases, million to will that the management the a time. Board balance through and remain still X-

Operator

Andrew Blair. take with will question from Nicholas next We our William

Andrew Nicholas

start you've we're a is current that out there strength markets. relatively could almost year demand guess a I your to could you relative the the your scale seen of of your capture? of what wondering if from today anything the pandemic, just in speak Exponent's I kind you about is mean but realize competitors could versus proven competitive disruption Now set I'm I'm for has in competitive fragmented, say curious and the advantage what competitive to pre-pandemic? future extent environment it any

Dr. Catherine Corrigan

Thanks, Yes. Andrew.

our you services the As know, fragmented. is competitive for landscape

So opportunities principal finding are out competitors. the of virtually. different with there's we we seeing standpoint to are have we the done of, some those engaged this senior we out year our These capitalized in that coming recruiting conferences. we things spaces. terms opportunities say, of with talent folks as let's And number level is in our are But on in able side. being of that as no a hire competitors But of are engage being at technical different the doubt definitely from we've community,

so been thing not And That's easy in those. successful an we've attracting to do.

that relative success to the I But I are the of that. having conversations company that contributors part have sure, that with to the a Exponent's them. big of think opportunities we're are strength there forward-looking the those we and as for think, talk we folks and multiple

opportunity we've talent for been for and business resilience XX the simply of the represent durability to the an in and This -- business. And years. there's so us think do that I been over gather is

those to are out we've market have capitalize that our We trends. of competitors been we've really that continue some that, strong putting to seeing and able And message. been think on drivers, and I

Andrew Nicholas

week your for side, the in then one proactive encouraged. the for release of of presumably And on wondering in wave this in where Any having I'm quite and budgets heading you of a sense in growth the that uncertainty? seeing the of less this passed year your calendar COVID-related proactive expectation sense of lot talked sit into obviously, business XXXX, client what's about materially R&D larger divestiture, follow-up, the outperform despite work that's my type of are And increased in then next some now kind will relatedly, your XXXX? investment reactive year? clients of is proactive that

Dr. Catherine Corrigan

Yes. Thanks. It varies to outlook is. then forward-looking some extent across industries, that right? When sort you had COVID of think the about the and impact what

So look asset surgeries right? around like equation, real of independent we're there not you an if reliability the on pullbacks the impact drivers there think were kind I utility a -- situation, drivers life just uncertainty, things example are pandemic, there. COVID side So about around the and where the extreme you're industry, to, climate let's around drivers around in the things pretty That's sciences of around delivery, one can integrity, safety that. and of drivers elective power and seeing say, But of the like early right?

early complex. real-world around really and of evidence again some driving that, as regulatory budget those happening the strategy technologies we're go elective an more requirements, pharma around issues space large in to is extent, impending the surgeries forward life impact around looking saw we that usual at so somewhat And more sciences regulatory as become the regulation seeing is to things those but what that, have extent, like we release deadline a cycles are medical in growing the and Europe, -- these device on, the

the of cycles. to beginning over budget are and impact take of really drivers we're those seeing So sort again those nearly not

from they of we design space. seeing kind of electronics, device some next-generation return This consulting. of in they level the there. doing were medical think -- activity There you the as the and -- budgetary on. laboratory electronics that we look space of forward in are work were But as a their to lot the something the early is So prevented to are a about we around as do well devices, and impacts innovation

some in coming on are all side. the in these are that So all, drivers strong proactive back

of there's sort that independent side proactive further reactive, are of to going are increasing that -- of growth of of and terms In litigation drive there no COVID. between sort doubt balance along, trends there's the that

of these systems in automotive arena. the advanced Some things are assistance driver

You things like fluorinated substances about different environmental can they're that arena at where the think variety and and impact that. of tort looking the a toxic things

positioning seeing increased and those the We kinds varies inquiries retentions are ourselves and litigation of around on side.

sides and COVID the continue average, mentioned, with believe, for both a to will to we faster but grew to term. the long over XXXX. that during sure, But business. we faster rate of is continuing We So grow grow the for at effect that side, proactive side reactive on really the that time of likely reasons house, continue I've anticipate to grow

Operator

question with Berenberg. England next our from take will Sam We

Sam England

opportunities government in historically, under new small any I know any areas first the space there's of revenues portion one, you think government's do been the the under but see like you Biden work in do opportunities a you And administration? administration? that environmental for

Dr. Catherine Corrigan

Navy. have to certainly, in that. I discussions that I with the Army well and for we've seen, delivered work mentioned, we've government Yes. client opportunities With asset that on believe with and regard potential that the actually wearables client, -- We about -- actually as engaged mean and expansion been we delivering for are example, are the seeing that,

said, within government In opposed space, regulatory typically to you sitting environmental base as the industry, terms our as or space are typically of, where let's those are areas is say, we side. client the the the

drive what regulations vehicles to say, safety-related this So or, whether there around perspective, number from about already potential around morning a we I baby food. we're regulatory will I like bar automated let's that's or news environmental going of regulatory the and regulation, seeing think see whether that is a of and had raising higher. that's things metallic are are mean I that contaminants in higher pharmaceuticals. a bar we mean just things

going of to see client, on way in per of opportunities terms don't for nearly us. industrial like anticipate the a would we in we se as grow that way the that, government that the So creates to side. is opportunity the course, a But that, in

Sam England

just Great. Asia about out there, they've You've side And Asian I to on the other many the of was in opportunity obviously the talked then over countries the wondering you're and of at seeing what moment? come the lot a pandemic. quicker in been

So see next bigger couple do years? there over opportunity of you the a

Dr. Catherine Corrigan

Yes.

our example, was -- to the issues been electronics XXXX. our into to -- certainly level -- extent, the that activities. there, what's of in going quarter. inability a fourth of So advisory strength variety in Part with terms going strength in consumer the some we in That's think, U.S. sort Asia around And has and relates on clients of suppliers really will the qualification to been work part of recently some in sense, very for space, with of clients' travel. continue

an service like think and pandemic, advisory for level really of do we opportunity so And coped there's our really that yet we're the sort leverage to an to we opportunity the past continue regard that. clients that, providing, we're with that's to value even continue going that demonstrating to think

infrastructure to internationally the is thing up some with diversification bring I'll sort that. and opportunities of Another about major are projects regard Asia, things we've talked there. the like with that regard of There to

around that our of centered activity some fact, in work There's Some is, Asia. there.

our our be addition of global really growth in driver, operations. So will in for only -- not domestic a be to Asia, sort that to operations but I broader think continue

Sam England

Great. maybe Rich. more And one then for just

the facilities You improvement do as people areas to you begin But there's in office. sustainable expenses? up to that costs any will on ramp to return you travel, hold like can noted that

Rich Schlenker

the remote likely might it's virtually at meals make have people I where time, same at their in and will that on we well. virtual area do I travel for successful basis that in some sure best or do forward. those environments a think an do activities going platforms decide in we as save to But and be looking we're of that how technology the think that we

of long-term But the reductions by our a be environment. isn't get to that that should cost think be in in to overall, time. to that I viewing will is be view that that returns costs I there at think savings that that on environment an able to So out will virtual time in in we this improvement get some but we major make out physical I investments over investment I'm might the point higher it, on offset able the the return come there balance

Operator

our take We'll with Sidoti. next Marc Riddick question from

Marc Riddick

I you And mentioned. wanted I what studies and maybe think relaxed Or about that the how it effectiveness we we could to touch couple and things if little locations? on certain should circle bit in have are wanted what on up user open maybe mind? looking rollout? in how social a return out being that of your be back what to to distancing, there's studies? jurisdictions around the thoughts a user that a the return How might kind vaccine map of you currently should of play of for road bit of a as

Rich Schlenker

Yes.

with forward development. that be look But I a up. to think able as of early would its is is I lined we number is that there we will studies some that move what that say have optimism in the forward, we

into the things first we be as it limited quarter, several are will things think time, going a level hopefully, to next stay-at-home first but better weeks out month remained on quarter. should quarter in the forward. the two, late but into But second change lining things at early -- just of a breaking basis up in over this these as and go I or getting orders, positive still a

Marc Riddick

you though seems user that started is there, get a studies the of Is it in to interest just it. So fair congestion? when customers it's as with matter your get a from

Rich Schlenker

adapted higher Absolutely moved that and more do with forward the able being the to forward months. on community but been activities over certain -- more -- and in areas, we community, able volume have is is to but the case, to in be interactions And are couple months. and planned them have a expected few been of within the limited last move out

Marc Riddick

on the wondering about, curious was And know of thing good. I I'm necessarily if I parse tied I'm of you've But a are made was a this some sort sort mean, ballpark easy the I revenue, was it's not not that sure of how we tricky, to about that way buyers, things if general mention the then are working that ballpark? sort a what think this That's the about virus should that related there little of maybe it's that Okay. if out. the sure -- and a you're to I things one percentage could is -- of a know but to be as I

Rich Schlenker

Yes.

in We as three but board X.X% we've that related work of the QX. includes as Army for This revenues. quarter, saw yes, programs, over X% occupational and fourth X% health and revenues of wearables, the We the in to across our back quarters. the worked well tracing So on and and seeing it's were an Navy increase those test. it. just about seen things to was disinfectants programs In we safety contact testing across all

about came has wearables time. over up fourth step made of the revenue. been project that increasing with So big half period function that in quarter, maybe A it which of that

progress we a on make layer and top. then that So others the little did on

it full revenues And pandemic. some of were related so way brought about the our to X% XXXX in the year

Marc Riddick

Okay. me, little going litigation And guess. the a front. could one if wondering then last talk back for you to about one I I bit was

you're if think that that process? you it's But you when I calls if really can mentioned being I to international, of sort how far see think plays I any add a mentioned helpful. you? and Catherine, out And docket You see as just certain how you you as -- that broad as of had of just maybe I overview what is before just maybe which have sort sort of want wondering about things could seeing going -- we types how in courts to or give there's of what if or forward? how whether was little sort prior the so -- on certain passengers? sort -- out are maybe of put lays

Dr. Catherine Corrigan

Yes, yes.

projects things type I this sort of mean, come consistent boluses. That's mention. the is sort a type of few -- way there of tends the litigation fact work. So this in that to kind there's with to are in seeing these of of -- work we're what

across of closed. you this where push, were you to brought push they some in ease an activity more But initial domestic so we're have first a push might types so report part jury of the have starts. together, when of hard are conservative So be then litigation more States And workup when really to there's and extent tend that your The where back. to open, the as And judges because jury pretty like the your things dates, the what to it They when a vary doing some those you example, you're courts in that bring might were forward. We stay-at-home trial and the QX And XXXX do they geographies, litigation activity, are bit got they of a the cases right? for occasional relative saw dates orders, people and and go we matters for of a you've right, try your what tendency were we a on, in, year again. -- those early are -- the January, States bolus is then trial and in dates time COVID your and a trial more we that bit fits but multi-district to of analysis to even when these see unlock you bolus because then a saw later kind as portfolio. came they bolus does it -- things saw of generally there that. anticipating mentioned, big then there inspection, can't regard where get to substantial in saw simply in working seeing to in sort hold expert activities have are date. to unlocks given COVID in the you number within we with the increases frame. and putting anticipating

A court of variable. the it's state lot we at our level. work So is do that

of the of uncertainty out again. solicit this on type fall, the the the best and how that. uncertainties doing have gets date that quickly point. They're we So into see vis-à-vis, restrictions, out, there. we've of to of rolled had at rollout put there these the new virus still exists continue their be cetera. that pushed to are vaccine side who the But variance, et boluses around definitely But know I can we folks had now have personally then be activity and trials sort all the back

move line QX, tracking through of look to kind we're that that move we're line If believe on that will increase. So from path QX closely. kind QX we steady QX that, is trend that we time at the it can our what we hope and having and of think continue over to best truly We as year. upward to continue the

Operator

conclude joining wonderful Have and And question-and-answer a you participation today's We that today's does for day. your call. for session. thank

disconnect. now may You

Exponent (EXPO) 5 Feb 212020 Q4 Earnings call transcript