MENLO PARK, Calif., July 16 /PRNewswire-FirstCall/ -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the second quarter ended June 27, 2008.
For the second quarter of 2008, revenues before reimbursements increased 11% to $50,801,000, as compared to $45,816,000, last year. Total revenues increased 9% to $54,956,000, as compared to $50,637,000, in the same period of 2007. Net income was up 16% to $5,793,000, or $0.36 per diluted share, as compared to $5,002,000, or $0.30 per diluted share, in the prior year period. EBITDAS(1) improved 17% to $11,907,000, as compared to $10,146,000, in the second quarter of 2007.
For the first half of 2008, revenues before reimbursements increased 13% to $102,823,000, as compared to $91,249,000, last year. Total revenues increased 12% to $111,216,000, as compared to $99,510,000, in the same period of 2007. Net income was up 21% to $12,140,000, or $0.76 per diluted share, as compared to $10,057,000, or $0.61 per diluted share, in the prior year period. EBITDAS(1) improved 23% to $25,745,000, as compared to $20,900,000, in the first half of 2007.
In the second quarter of 2008, Exponent repurchased $11.2 million of its common stock, bringing the total repurchases since the beginning of the year to $16 million. An additional $35 million remains available for future repurchases of common stock. Exponent ended the second quarter with $60.2 million in cash, cash equivalents and short-term investments.
"We are pleased that we had another quarter of solid growth as we continue to capitalize on our strategic market opportunities," commented Michael R. Gaulke, Chairman and CEO. "In the quarter we had several practices that performed well, including biomechanics, human factors, defense technology development, and mechanics & materials, in addition to our health group.
"Looking to the second half of 2008, we remain well positioned to post high single-digit to low double-digit growth in revenue before reimbursements for the full year. We will continue to hire key talent selectively and focus on capturing new growth opportunities across our practices. Exponent is committed to maintaining its differentiated market position as a leading multidisciplinary engineering and scientific consulting firm with unparalleled expertise," concluded Mr. Gaulke.
Today's Conference Call Information
Exponent will discuss its financial results in more detail on a conference call today, July 16, 2008, starting at 4:30 p.m. Eastern Daylight Time/1:30 p.m. Pacific Daylight Time. The audio on the conference call is available by dialing 800-762-4758. A live webcast of the call will be available on the Investor Relations section of the Company's web site at http://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 800-405-2236 and entering reservation 11117165#.
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 is best known for analyzing accidents and failures to determine their causes, but in recent years it has become more active in assisting clients with their new products to help prevent problems in the future. In addition, Exponent evaluates human health and environmental concerns to find cost-effective solutions.
Exponent may be reached at (888) 656-EXPO, info@exponent.com, or http://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) EBITDAS is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization, and stock-based compensation. The Company regards EBITDAS as a useful measure of operating performance and cash flow to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDAS provides 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. This measure, 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 EBITDAS to GAAP is set forth below.
EXPONENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters Ended June 27, 2008 and June 29, 2007
(in thousands, except per share data)
Quarter Ended Six Months Ended
June 27, June 29, June 27, June 29,
2008 2007 2008 2007
Revenues
Revenues before reimbursements $50,801 $45,816 $102,823 $91,249
Reimbursements 4,155 4,821 8,393 8,261
Revenues 54,956 50,637 111,216 99,510
Operating expenses
Compensation and related expenses 33,197 30,207 66,707 60,229
Other operating expenses 5,588 5,305 11,016 10,442
Reimbursable expenses 4,155 4,821 8,393 8,261
General and administrative
expenses 3,207 3,244 6,196 6,059
46,147 43,577 92,312 84,991
Operating income 8,809 7,060 18,904 14,519
Other income
Interest income, net 463 460 965 944
Miscellaneous income, net 355 808 290 1,203
818 1,268 1,255 2,147
Income before income taxes 9,627 8,328 20,159 16,666
Income taxes 3,834 3,326 8,019 6,609
Net income $5,793 $5,002 $12,140 $10,057
Net income per share:
Basic $0.38 $0.33 $0.81 $0.67
Diluted $0.36 $0.30 $0.76 $0.61
Shares used in per share
computations:
Basic 15,086 15,193 14,966 15,121
Diluted 16,100 16,532 16,050 16,461
EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 27, 2008 and December 28, 2007
(in thousands)
June 27, December 28,
2008 2007
Assets
Current assets:
Cash and cash equivalents $7,206 $10,700
Short-term investments 52,993 53,034
Accounts receivable, net 65,338 59,819
Prepaid expenses and other assets 6,841 5,754
Deferred income taxes 4,089 3,450
Total current assets 136,467 132,757
Property, equipment and leasehold
improvements, net 30,534 29,409
Goodwill 8,607 8,607
Other assets 13,856 11,618
$189,464 $182,391
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $10,472 $7,139
Accrued payroll and employee
benefits 26,889 30,366
Deferred revenues 5,934 6,458
Total current liabilities 43,295 43,963
Other liabilities 5,183 4,754
Deferred rent 1,560 1,755
Total liabilities 50,038 50,472
Stockholders' equity:
Common stock 16 16
Additional paid-in capital 70,162 59,772
Accumulated other comprehensive
income 513 347
Retained earnings 117,643 113,018
Treasury stock, at cost (48,908) (41,234)
Total stockholders'
equity 139,426 131,919
$189,464 $182,391
EXPONENT, INC.
EBITDAS (1)
For the Quarters Ended June 27, 2008 and June 29, 2007
(in thousands)
Quarter Ended Six Months Ended
June 27, June 29, June 27, June 29,
2008 2007 2008 2007
Net Income $5,793 $5,002 $12,140 $10,057
Add back (subtract):
Income taxes 3,834 3,326 8,019 6,609
Interest income, net (463) (460) (965) (944)
Depreciation and amortization 984 969 1,925 1,886
Stock-based compensation 1,759 1,309 4,626 3,292
EBITDAS (1) $11,907 $10,146 $25,745 $20,900
(1) EBITDAS is a non-GAAP financial measure defined by the Company as net
income before income taxes, interest income, depreciation and
amortization, and stock-based compensation. The Company regards
EBITDAS as a useful measure of operating performance and cash flow to
complement operating income, net income and other GAAP financial
performance measures. Additionally, management believes that EBITDAS
provides 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. This measure,
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.
SOURCE Exponent, Inc.
