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Exponent Reports Second Quarter Fiscal Year 2017 Financial Results

MENLO PARK, Calif., July 18, 2017 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq:EXPO) today reported financial results for the second quarter ended June 30, 2017.

"Exponent's second quarter results exceeded our prior outlook. Our performance was driven by strength in our biomedical, construction consulting, electrical engineering, human factors and polymer science practices. Exponent continued to benefit from a large human factors assessment project for a client in the consumer products industry," commented Dr. Paul Johnston, Chief Executive Officer. "Growth on a year-over-year basis for the second quarter of 2017 was aided by the unusually soft results in the year-ago period. While we are still experiencing softness in a couple of industry sectors, we are encouraged by positive trends that we are seeing across the business."

"Our market position in international construction disputes, consumer product recalls and product liability claims continues to generate brand awareness on an international scale. Exponent's global presence continues to create additional opportunities for proactive engagements, specifically in design and regulatory consulting. Exponent's first half results demonstrate the growing demand for our diverse expertise to address complex business issues and the resilience of our business model," concluded Dr. Johnston.

Second Quarter Financial Results

In the second quarter of 2017, total revenues increased by 14% year over year and revenues before reimbursements increased 15% year over year. Total revenues were $87,840,000 as compared to $77,295,000 in the second quarter one year ago and revenues before reimbursements were $84,120,000 as compared to $73,334,000 last year.

Net income for the second quarter was $13,791,000, an increase of 32% as compared to $10,453,000 in the same period of 2016. Earnings per diluted share were $0.51, as compared to $0.38 in the second quarter of last year. EBITDA1 increased by 32% to $23,711,000 as compared to $18,030,000 in the same period one year ago.

Year to Date Financial Results

For the first half of 2017, total revenues increased 7% year over year and revenues before reimbursements increased 8% year over year. Total revenues were $171,962,000 as compared to $160,451,000 in the same period of 2016 and revenues before reimbursements were $164,587,000 as compared to $152,284,000 last year.

Net income was $30,367,000, or $1.13 per diluted share, in the first half of 2017 as compared to $25,803,000, or $0.95 per diluted share, in the same period of 2016. In the first quarter of 2016, Exponent early adopted a new accounting standard2 for the classification of tax adjustments associated with share-based awards. The tax benefit realized in the first half of 2017 was $6,054,000, or $0.22 per diluted share, as compared to $4,788,000 or $0.18 per diluted share in first half of 2016.

EBITDA1 in the first half of 2017 increased 15% to $42,453,000 as compared to $37,028,000 in the same period one year ago.

In the first half of 2017, Exponent paid $10.8 million in dividends, repurchased $7 million of common stock and ended the second quarter with $162 million in cash, cash equivalents and short-term investments.

In a separate press release today, Exponent announced a $0.21 quarterly dividend payment and reiterated its intent to continue to pay quarterly dividends.

Business Overview

Exponent's engineering and other scientific segment represented approximately 79% of the Company's second quarter net revenues. Net revenues in this segment grew 16% in the second quarter and 10% year to date as compared to last year. Year to date, Exponent has had significant growth from its proactive design and regulatory consulting services, specifically related to ongoing projects with clients in the consumer products industry. Demand from the medical device industry continued to grow during the quarter as clients called upon Exponent's multi-disciplinary teams for support in product development and litigation matters. The Company continued to expand its broad base of international construction dispute work with ongoing mining, gas terminal and power plant projects. Exponent continues to gain competitive advantage through its integrated team of experts by delivering solutions to complex capital projects. Additionally, after several quarters of flat revenue from the automotive industry, revenue grew in the second quarter as Exponent was called upon to evaluate safety and performance...


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