MENLO PARK, Calif. -- Exponent, Inc.
(Nasdaq: EXPO - News) today reported financial results for the fourth quarter and
year ended December 30, 2005.
For the fourth quarter of 2005, net income increased 38% to $2,710,000, or
$0.31 per diluted share, as compared to $1,966,000, or $0.22 per diluted
share, in the same period of 2004. Revenues for the quarter increased 11% to
$38,958,000, as compared to $35,059,000 in the same period a year ago.
Revenues before reimbursements increased 8% to $34,605,000, as compared to
$32,049,000 last year.
For fiscal year 2005, net income increased by 18% to $14,186,000, or $1.62
per diluted share, as compared to $12,040,000, or $1.41 per diluted share, in
the same period of 2004. Revenues for the full year increased 2% to
$155,196,000, as compared to $151,509,000 in fiscal year 2004. Revenues
before reimbursements increased 3% to $142,861,000 as compared to $138,718,000
last year.
"We are pleased with our financial performance for the quarter, where
revenues before reimbursements, excluding defense technology development,
increased 10% over the prior year," commented Michael Gaulke, CEO and
President. "Our civil engineering practice had a strong quarter, as we
assisted clients with the aftermath of hurricanes Katrina and Rita. In our
biomechanics practice, we continued to grow our business, working with clients
in their medical device development as well as in accident injury analysis.
While our defense technology development business was soft, as expected, we
completed the delivery of 332 robots, which are currently being deployed in
Iraq.
"2005 was highlighted by strong performance in our civil engineering,
biomechanics, and food and chemicals practices. At the same time, we
effectively managed our business and improved margins over the prior year. We
generated $13.8 million in cash from operations and closed the year with $69
million in cash, cash equivalents and short-term investments. In the second
half of the year, we realized success in our recruiting efforts, achieving a
five percent increase in technical full-time equivalent employees.
"As we look to 2006, we remain committed to recruiting key personnel, and
continuing to expand our business while focusing on strategic areas, including
health sciences, construction and design consulting. We believe that our
diversified offerings uniquely position Exponent for growth in 2006 and
beyond. In addition, we will focus on further improving our operating results
and continuing to create value for shareholders," concluded Mr. Gaulke.
Today's Conference Call Information
Exponent will discuss its financial results in more detail on a conference
call today, January 26, 2006, starting at 4:30 p.m. Eastern Time/1:30 p.m.
Pacific Time. The audio on the conference call is available by dialing
888-830-3976. A live webcast of the call will be available on the Investor
Relations section of the Company's web site at 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 800-642-1687 and entering
the reservation #4245286.
About Exponent
Exponent is an engineering and scientific consulting firm providing
solutions to complex problems. Exponent's multidisciplinary organization of
scientists, physician, engineers, and business consultants brings together
more than 70 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
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 effects of competitive services and pricing, 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 "Factors That
May Affect Future Operating Results and Market Price of Stock" 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.
EXPONENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters Ended December 30, 2005 and December 31, 2004
(in thousands, except per share data)
Quarter Ended Year Ended
December December December December
30, 31, 30, 31,
2005 2004 2005 2004
Revenues
Revenues before reimbursements $34,605 $32,049 $142,861 $138,718
Reimbursements 4,353 3,010 12,335 12,791
Revenues 38,958 35,059 155,196 151,509
Operating expenses
Compensation and related expenses 23,519 21,420 93,963 90,760
Other operating expenses 4,686 4,884 18,618 18,801
Reimbursable expenses 4,353 3,010 12,335 12,791
General and administrative
expenses 2,969 2,819 9,900 9,833
35,527 32,133 134,816 132,185
Operating income 3,431 2,926 20,380 19,324
Other income
Interest income, net 388 172 1,205 471
Miscellaneous income, net 336 231 1,033 608
724 403 2,238 1,079
Income before income taxes 4,155 3,329 22,618 20,403
Income taxes 1,445 1,363 8,432 8,363
Net income $2,710 $1,966 $14,186 $12,040
Net income per share:
Basic $0.33 $0.25 $1.75 $1.56
Diluted $0.31 $0.22 $1.62 $1.41
Shares used in per share
computations:
Basic 8,173 8,008 8,106 7,707
Diluted 8,845 8,738 8,769 8,537
EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 30, 2005 and December 31, 2004
(in thousands)
December December
30, 31,
2005 2004
Assets
Current assets:
Cash and cash equivalents $13,216 $4,680
Short-term investments 55,682 55,366
Accounts receivable, net 46,211 38,586
Prepaid expenses and other assets 2,900 2,674
Deferred income taxes 2,156 2,205
Total current assets 120,165 103,511
Property, equipment and leasehold
improvements, net 29,839 30,211
Goodwill 8,607 8,607
Other assets 5,630 1,803
$164,241 $144,132
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $4,136 $4,330
Accrued payroll and employee
benefits 19,910 18,528
Deferred revenues 2,364 1,681
Total current liabilities 26,410 24,539
Other liabilities 3,487 1,484
Deferred rent 1,144 1,087
Total liabilities 31,041 27,110
Stockholders' equity:
Common stock 8 8
Additional paid-in capital 46,880 42,282
Deferred stock-based compensation (1,917) (907)
Accumulated other comprehensive
(loss) income (93) 114
Retained earnings 88,322 75,525
Total stockholders' equity 133,200 117,022
$164,241 $144,132
