Exponent(US:EXPO)2023-02-23 16:00Financial Performance - Revenues for 2022 increased by 10.1% to $513,293,000 compared to $466,269,000 in 2021, driven by an increase in billable hours and billing rates [162]. - Net income for 2022 was $102,330,000, a slight increase from $101,202,000 in 2021, with diluted earnings per share rising to $1.96 from $1.90 [165]. - Total operating income increased by 29.3% to $140,842,000 in 2022 from $108,927,000 in 2021, driven by higher revenues in the Engineering and Other Scientific segment [180]. - Revenues before reimbursements rose to $463,820,000 in 2022, up from $434,850,000 in 2021, with EBITDA at $137,217,000, representing 29.6% of revenues [196]. Expenses and Costs - Compensation and related expenses decreased by 5.0% to $264,235,000, representing 51.5% of total revenues in 2022, down from 59.6% in 2021 [173]. - General and administrative expenses increased by 54.8% to $23,660,000, representing 4.6% of total revenues, up from 3.3% in 2021 [177]. - Other income decreased significantly by 150.9% to $(8,608,000) in 2022 from $16,910,000 in 2021, primarily due to changes in the value of assets associated with the deferred compensation plan [184]. - The corporate operating expenses decreased by 34.1% to $(39,177,000) in 2022 from $(59,425,000) in 2021, mainly due to a reduction in deferred compensation expenses [183]. Operational Metrics - Billable hours increased by 4% to 1,465,000 in 2022 from 1,405,000 in 2021, while technical full-time equivalent employees rose by 6% to 955 [169]. - Utilization rates decreased slightly to 74% in 2022 from 75% in 2021, indicating a need for continued focus on efficiency [169]. - The utilization rate decreased to 74% in 2022 from 75% in 2021, impacting EBITDA margins [196]. Segment Performance - The Engineering and Other Scientific segment saw revenues rise by 12.3% to $427,796,000, while the Environmental and Health segment's revenues increased by 0.2% to $85,497,000 [170]. Cash Flow and Taxation - Net cash provided by operating activities was $93,807,000 in 2022, down from $124,568,000 in 2021, indicating a decrease in cash flow generation [187]. - The effective tax rate increased to 22.6% in 2022 from 19.6% in 2021, attributed to a decrease in excess tax benefits from stock-based awards [186]. Future Outlook and Investments - The company plans to continue expanding its capabilities through selective hiring and investments in corporate infrastructure to enhance service offerings [166]. - Capital expenditures are expected to continue, with cash reserves potentially used for stock repurchases, dividends, and strategic acquisitions [192]. Foreign Currency Exposure - The company had net assets of approximately $10.7 million in British Pounds, $1.8 million in Chinese Yuan, and $1.1 million in Hong Kong Dollars as of December 30, 2022, indicating exposure to foreign currency risks [201]. - The company does not use foreign exchange contracts to hedge currency exposures, which may affect future results due to international expansion [203].