[Exponent Reports Fourth Quarter and Fiscal Year 2024 Financial Results](index=1&type=section&id=Exponent%20Reports%20Fourth%20Quarter%20and%20Fiscal%20Year%202024%20Financial%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) Exponent's Q4 exceeded expectations, concluding a strong year with mid-single-digit net revenue growth and improved EBITDA margin, driven by proactive and reactive services, with 2025 demand anticipated from tech advancements and industry challenges - **Q4 results exceeded expectations**, with annual net revenue growth in the **mid-single digits** and **improved utilization and EBITDA margin**[2](index=2&type=chunk) - Key growth drivers in 2024 included **proactive services** for **consumer electronics and utilities**, and **reactive services** for **utilities and medical devices**, with the **chemicals industry showing improvement in Q4**[2](index=2&type=chunk) - Anticipated demand drivers for 2025 include **technological advancements in transportation**, **energy infrastructure challenges**, **digital health and wearables**, and **heightened chemical scrutiny**[3](index=3&type=chunk) [Fourth Quarter 2024 Financial Results](index=1&type=section&id=Fourth%20Quarter%20Financial%20Results) Exponent's 14-week Q4 2024 saw total revenues increase by **11.3%** to **$136.8 million** and net income rise to **$23.6 million**, with EBITDA at **$31.2 million** Q4 2024 vs. Q4 2023 Financial Highlights | Metric | Q4 2024 (14 weeks) | Q4 2023 (13 weeks) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $136.8M | $122.9M | +11.3% | | Revenues before Reimbursements | $123.8M | $113.9M | +8.7% | | Net Income | $23.6M | $20.9M | +12.9% | | Diluted EPS | $0.46 | $0.41 | +12.2% | | EBITDA | $31.2M | $30.5M | +2.3% | | EBITDA Margin (as % of net revenues) | 25.2% | 26.8% | -1.6 p.p. | - The fourth quarter of 2024 was a **14-week period**, compared to a **13-week period** in 2023, which contributed to the revenue increase[4](index=4&type=chunk) - The consolidated tax rate was **24.7%** in Q4 2024, down from **30.4%** in Q4 2023, influenced by a **$0.6 million tax benefit** from share-based awards[5](index=5&type=chunk) [Fiscal Year 2024 Financial Results](index=1&type=section&id=Fiscal%20Year%202024%20Financial%20Results) For the 53-week fiscal year 2024, total revenues increased by **4.1%** to **$558.5 million**, with net income rising to **$109.0 million** and a strong year-end cash position of **$258.9 million** Fiscal Year 2024 vs. Fiscal Year 2023 Financial Highlights | Metric | FY 2024 (53 weeks) | FY 2023 (52 weeks) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $558.5M | $536.8M | +4.1% | | Revenues before Reimbursements | $518.5M | $497.2M | +4.3% | | Net Income | $109.0M | $100.3M | +8.7% | | Diluted EPS | $2.11 | $1.94 | +8.8% | | EBITDA | $147.1M | $137.7M | +6.8% | | EBITDA Margin (as % of net revenues) | 28.4% | 27.7% | +0.7 p.p. | - The company increased its quarterly cash dividend from **$0.28 to $0.30 per share**[9](index=9&type=chunk) - During fiscal year 2024, Exponent paid **$58.3 million in dividends** and closed the period with **$258.9 million in cash and cash equivalents**[10](index=10&type=chunk) [Business Segment Performance](index=1&type=section&id=Business%20Overview) The Engineering and Other Scientific segment, **84%** of FY2024 net revenues, grew **5%**, while the Environmental and Health segment, **16%** of net revenues, saw an **11%** Q4 increase driven by chemicals Segment Revenue Before Reimbursements Performance | Segment | % of FY24 Net Revenue | Q4 2024 YoY Growth | FY 2024 YoY Growth | | :--- | :--- | :--- | :--- | | Engineering and Other Scientific | 84% | +8% | +5% | | Environmental and Health | 16% | +11% | Approx. Flat | - Growth in the Engineering segment was driven by demand from the **consumer products and utilities industries**[12](index=12&type=chunk) - The Environmental and Health segment's strong Q4 growth was primarily due to a **resurgence in engagements within the chemicals industry**[13](index=13&type=chunk) [Business Outlook for Fiscal Year 2025](index=2&type=section&id=Business%20Outlook) Exponent forecasts low-single-digit revenue growth for FY2025 with an EBITDA margin of **26.25% to 27.0%**, despite Q1 declines and initial headcount headwinds Q1 2025 Outlook (vs. Q1 2024) | Metric | Guidance | | :--- | :--- | | Revenues before reimbursements | Down in the low-single digits | | EBITDA % of net revenues | 25.0% to 26.0% | Full Fiscal Year 2025 Outlook (vs. FY 2024) | Metric | Guidance | | :--- | :--- | | Revenues before reimbursements | Grow in the low-single digits | | EBITDA % of net revenues | 26.25% to 27.0% | - The company is starting 2025 with a **5-6% headwind** in technical full-time-equivalent employees but expects to grow headcount by **1-2% sequentially each quarter**[14](index=14&type=chunk) - Fiscal year 2025 will be a **52-week year**, which poses a headwind for year-over-year comparisons against the **53-week fiscal year 2024**[14](index=14&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Income](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The income statement reflects year-over-year increases in both quarterly and annual revenues and net income, with FY2024 total revenues reaching **$558.5 million** and net income **$109.0 million** Condensed Consolidated Statements of Income (in thousands) | | Quarters Ended | | Years Ended | | | :--- | :--- | :--- | :--- | :--- | | | **Jan 3, 2025** | **Dec 29, 2023** | **Jan 3, 2025** | **Dec 29, 2023** | | **Revenues before reimbursements** | **$123,764** | **$113,872** | **$518,490** | **$497,189** | | Total revenues | $136,766 | $122,900 | $558,514 | $536,766 | | Operating income | $27,253 | $18,394 | $119,557 | $111,322 | | Income before income taxes | $31,328 | $30,088 | $147,370 | $135,896 | | **Net income** | **$23,589** | **$20,929** | **$109,002** | **$100,339** | | **Diluted Net income per share** | **$0.46** | **$0.41** | **$2.11** | **$1.94** | [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of January 3, 2025, Exponent's total assets increased to **$777.3 million**, driven by a rise in cash to **$258.9 million**, with total liabilities at **$356.2 million** and equity at **$421.1 million** Condensed Consolidated Balance Sheets (in thousands) | | Jan 3, 2025 | Dec 29, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $258,901 | $187,150 | | Total current assets | $446,881 | $379,532 | | **Total Assets** | **$777,270** | **$646,777** | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $163,183 | $161,909 | | **Total liabilities** | **$356,202** | **$290,692** | | **Total stockholders' equity** | **$421,068** | **$356,085** | | **Total Liabilities and Stockholders' Equity** | **$777,270** | **$646,777** | [Reconciliation of Non-GAAP Measures (EBITDA & EBITDAS)](index=5&type=section&id=EBITDA%20and%20EBITDAS) The reconciliation shows FY2024 EBITDA increased to **$147.1 million** and EBITDAS, excluding stock-based compensation, rose to **$170.3 million** EBITDA and EBITDAS Reconciliation (in thousands) | | Quarters Ended | | Years Ended | | | :--- | :--- | :--- | :--- | :--- | | | **Jan 3, 2025** | **Dec 29, 2023** | **Jan 3, 2025** | **Dec 29, 2023** | | Net Income | $23,589 | $20,929 | $109,002 | $100,339 | | *Plus: Taxes, Interest, D&A* | ... | ... | ... | ... | | **EBITDA** | **$31,233** | **$30,540** | **$147,058** | **$137,662** | | Stock-based compensation | $4,857 | $3,180 | $23,239 | $20,357 | | **EBITDAS** | **$36,090** | **$33,720** | **$170,297** | **$158,019** |

MENLO PARK, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the fourth quarter and fiscal year 2024 ended January 3, 2025. "Our fourth quarter results exceeded expectations, capping off a solid year that demonstrated the resilience of the business. With a laser focus on aligning resources with demand, we grew net revenues in the mid-single digits for the year and at the same time delivered significantly improved utilization and EBITDA1 margin. We ...

MENLO PARK, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today announced that its Board of Directors has raised its quarterly cash dividend from $0.28 to $0.30 per share of common stock. The quarterly cash dividend of $0.30 per share of common stock is to be paid on March 21, 2025 to all common stockholders of record as of March 7, 2025. Exponent has paid, and expects to continue to pay, quarterly dividends each year in March, June, September, and December. Future declarations of ...

MENLO PARK, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO), today announced that it will report Fourth Quarter and fiscal year 2024 financial results for the period ended January 3, 2025 following the close of the market on Thursday, February 6, 2025. On that day, Dr. Catherine Corrigan, Chief Executive Officer and President, and Richard Schlenker, Executive Vice President and Chief Financial Officer, will host a conference call and webcast at 4:30 p.m. ET (1:30 p.m. PT) to discuss ...

Economic strength, encouraging service activities, increased adoption, and the success of the work-from-home trend enable Zacks Consulting Services industry players to support the demand environment. Driven by these positives, investors interested in the industry would do well to keep stocks like Gartner, Inc. (IT) , Stantec Inc. (STN) and Exponent, Inc. (EXPO) in their portfolio. About the Industry Companies grouped under the Consulting Services category offer professional advice in management, IT, human r ...

Financial Data and Key Metrics Changes - Total revenues increased by 2% to $136.3 million in Q3 2024, while revenues before reimbursements remained flat at $125.1 million compared to the same period in 2023 [11] - Net income rose to $26 million or $0.50 per diluted share, up from $24.5 million or $0.48 per diluted share in the prior year [11] - EBITDA increased by 4% to $35.8 million, resulting in a margin of 28.6% of net revenues, compared to 27.6% in the same period of 2023 [12] - Utilization rate improved to 73.4%, up from 69.6% year-over-year [12] Business Line Data and Key Metrics Changes - Proactive engagements saw growth driven by user experience studies and product development consulting in the consumer electronics sector, while reactive work moderated due to high growth comparisons from the previous year [4][6] - The engineering and other scientific segment accounted for 84% of revenues before reimbursements, with a 2% increase in revenues, while the environmental and health segment, representing 16% of revenues, decreased by 6% [8] Market Data and Key Metrics Changes - The consumer electronics sector showed a healthy rebound, contributing to proactive engagement growth, while the chemical sector faced persistent headwinds due to restructuring among major companies [4][7] - The utility sector's growth was attributed to asset integrity management engagements amid increased regulatory scrutiny [6] Company Strategy and Development Direction - The company is focused on aligning resources with market demand, achieving a utilization rate of 75% for the first nine months of 2024, and is raising margin guidance while maintaining revenue guidance for the full year [9] - The company aims to expand its capabilities and grow its team, emphasizing the importance of multidisciplinary expertise in addressing complex safety, health, and environmental challenges [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties due to its diversified portfolio, which positions it well for future growth opportunities [10] - The company anticipates mid-single-digit revenue growth for Q4 2024 and is optimistic about market trends as it expands offerings to meet evolving client needs [14][15] Other Important Information - The company expects average technical full-time equivalent employees to decline by approximately 7% year-over-year, with a sequential headcount growth of 1% to 2% anticipated in each quarter of 2025 [16] - The tax rate for Q4 2024 is expected to be around 28%, compared to 30.4% in the same quarter last year [18] Q&A Session Summary Question: Clarification on FTE growth expectations - Management expects to end the year with around 945 FTEs and anticipates a sequential growth of 1% to 2% in each quarter of 2025 [22] Question: Weaker reactive performance explanation - The decline in reactive performance is attributed to difficult comparisons with previous years and the completion of significant engagements [23] Question: Industry trends for 2025 - Management is optimistic about the consumer electronics sector, noting a healthy level of growth, while the chemicals sector is undergoing restructuring, which may impact spending [24][25] Question: Headcount growth and its impact on growth outlook - Higher turnover than expected affected headcount growth, but management remains confident in recruiting efforts and the ability to meet client demand [32][39] Question: Trajectory of the reactive business - Management expects the reactive business to grow year-over-year, despite current lower engagement sizes, due to strong demand and complex issues requiring their expertise [37]

Exponent (EXPO) came out with quarterly earnings of $0.50 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.17%. A quarter ago, it was expected that this engineering and scientific consulting company would post earnings of $0.50 per share when it actually produced earnings of $0.57, delivering a surprise of 14%.Over the last ...

MENLO PARK, Calif., Oct. 03, 2024 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO), today announced that it will report Third Quarter of fiscal year 2024 financial results for the period ended September 27, 2024 following the close of the market on Thursday, October 24, 2024. On that day, Dr. Catherine Corrigan, Chief Executive Officer and President, and Richard Schlenker, Executive Vice President and Chief Financial Officer, will host a conference call and webcast at 4:30 p.m. ET (1:30 p.m. PT) to discuss ...

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