MENLO PARK, Calif., July 18 /PRNewswire-FirstCall/ -- Exponent, Inc. today reported financial results for the second quarter ended June 29, 2007.
For the second quarter of 2007, total revenues increased 22% to $50,637,000, as compared to $41,654,000 in the same period of 2006. Revenues before reimbursements increased 17% to $45,816,000, as compared to $39,053,000 in the same period of 2006. Net income increased 37% to $5,002,000, or $0.30 per diluted share, as compared to $3,650,000, or $0.21 per diluted share, in 2006.
EBITDAS(1) for the second quarter of 2007 increased 41% to $10,146,000, as compared to $7,204,000 in the same period of 2006. Exponent closed the second quarter of 2007 with $52.2 million in cash, cash equivalents and short-term investments. During the quarter, Exponent repurchased $8.8 million of common stock as part of its ongoing repurchase program.
"We are very pleased with our financial results for the second quarter, including strong revenue growth, improved utilization and expanding margins," commented Michael Gaulke, Chairman and CEO. "In the quarter several practices had very good performances, including electrical, thermal sciences, defense technology development, human factors, mechanics and materials, environmental, and ecological sciences.
"During the first half of 2007, we saw strong demand for our services and are pleased with our expansion in several strategic growth areas including health sciences consulting, product design consulting, energy consulting, and defense technology development. Exponent continues to work at maintaining its differentiated market position as a multidisciplinary engineering and scientific consulting firm with unparalleled technical expertise," concluded Mr. Gaulke.
For the first half of 2007, total revenues increased 19% to $99,510,000, as compared to $83,681,000 reported in the same period of 2006. Revenues before reimbursements increased 16% to $91,249,000, as compared to $78,672,000 in the same period of 2006. Net income for the first half of 2007 improved 35% to $10,057,000, or $0.61 per diluted share, as compared to $7,472,000, or $0.42 per diluted share, reported in the same period of 2006.
EBITDAS(1) for the first half of 2007 increased 38% to $20,900,000, as compared to $15,125,000 for the same period one year ago.
Today's Conference Call Information
Exponent will discuss its financial results in more detail on a conference call today, July 18, 2007, 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 800-240-2134. 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 #11093298.
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's consultants analyze failures and accidents to determine their causes and provide answers to help prevent such problems. 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 29, 2007 and June 30, 2006
(in thousands, except per share data)
Quarter Ended Six Months Ended
June 29, June 30, June 29, June 30,
2007 2006 2007 2006
Revenues
Revenues before reimbursements $45,816 $39,053 $91,249 $78,672
Reimbursements 4,821 2,601 8,261 5,009
Revenues 50,637 41,654 99,510 83,681
Operating expenses
Compensation and related expenses 30,207 26,044 60,229 52,790
Other operating expenses 5,305 4,967 10,442 9,732
Reimbursable expenses 4,821 2,601 8,261 5,009
General and administrative expenses 3,244 2,714 6,059 5,432
43,577 36,326 84,991 72,963
Operating income 7,060 5,328 14,519 10,718
Other income
Interest income, net 460 533 944 1,031
Miscellaneous income, net 808 123 1,203 501
1,268 656 2,147 1,532
Income before income taxes 8,328 5,984 16,666 12,250
Income taxes 3,326 2,334 6,609 4,778
Net income $5,002 $3,650 $10,057 $7,472
Net income per share:
Basic $0.33 $0.22 $0.67 $0.45
Diluted $0.30 $0.21 $0.61 $0.42
Shares used in per share computations:
Basic 15,193 16,357 15,121 16,427
Diluted 16,532 17,631 16,461 17,711
EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 29, 2007 and December 29, 2006
(in thousands)
June 29, December 29,
2007 2006
Assets
Current assets:
Cash and cash equivalents $6,243 $5,238
Short-term investments 45,958 52,844
Accounts receivable, net 61,492 48,208
Prepaid expenses and other assets 4,698 3,484
Deferred income taxes 3,821 2,232
Total current assets 122,212 112,006
Property, equipment and leasehold
improvements, net 29,293 29,577
Goodwill 8,607 8,607
Other assets 10,565 11,026
$170,677 $161,216
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $7,032 $4,887
Accrued payroll and employee
benefits 23,667 21,773
Deferred revenues 4,200 4,066
Total current liabilities 34,899 30,726
Other liabilities 4,094 5,088
Deferred rent 1,987 1,097
Total liabilities 40,980 36,911
Stockholders' equity:
Common stock 16 16
Additional paid-in capital 56,567 50,799
Accumulated other comprehensive
income 125 93
Retained earnings 106,171 101,226
Treasury stock, at cost (33,182) (27,829)
Total stockholders'
equity 129,697 124,305
$170,677 $161,216
EXPONENT, INC.
EBITDAS (1)
For the Quarters Ended June 29, 2007 and June 30, 2006
(in thousands)
Quarter Ended Six Months Ended
June 29, June 30, June 29, June 30,
2007 2006 2007 2006
Net Income $5,002 $3,650 $10,057 $7,472
Add back (subtract):
Income taxes 3,326 2,334 6,609 4,778
Interest income, net (460) (533) (944) (1,031)
Depreciation and amortization 969 898 1,886 1,780
Stock-based compensation 1,309 855 3,292 2,126
EBITDAS (1) $10,146 $7,204 $20,900 $15,125
(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.
Exponent, Inc.