Exponent(US:EXPO)2022-10-27 21:33Financial Data and Key Metrics Changes - Total revenues increased by 9.3% to $127.2 million, while net revenues rose by 6.2% to $115.1 million compared to Q3 2021 [18] - Net income slightly decreased to $24.4 million from $24.6 million in the prior year, but diluted earnings per share increased to $0.47 from $0.46 due to a reduced share count [19] - EBITDA increased by 1.6% to $34.6 million, with a margin of 30% of net revenues, a decrease of 140 basis points year-over-year [20] Business Line Data and Key Metrics Changes - Engineering and other scientific segments represented 84% of net revenues, with a 6.9% increase year-over-year, driven by demand in consumer products, energy, and transportation [12] - Environmental and health segments accounted for 16% of net revenues, increasing by 2.7% year-over-year, primarily due to growth in health data science and pharmaceuticals [13][14] Market Data and Key Metrics Changes - Strong demand was noted in sectors such as consumer products, utilities, automotive, and life sciences, with particular growth in virtual reality, wearable technologies, and energy storage [8][10] - Reactive business remained healthy, with increased litigation-related work and product safety engagements across various industries [11] Company Strategy and Development Direction - The company aims to continue being a strategic advisor, focusing on health, safety, and environmental challenges, which are integral to its long-term strategy [16] - There is a commitment to recruiting and retaining top-tier talent to support the expanding portfolio of competencies [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic volatility and uncertainty, emphasizing the importance of data-driven insights for clients [36] - For Q4 2022, the company anticipates mid to high single-digit revenue growth and a decrease in EBITDA margin by 175 to 275 basis points [27] Other Important Information - The company generated $29.4 million in cash from operations during Q3 and repurchased $30.4 million of common stock [26] - Capital expenditures for the full year are expected to be $12 million, with a focus on sustainable profitability and long-term shareholder value [35] Q&A Session Summary Question: What is the outlook for revenue growth in the upcoming quarters? - The company anticipates revenue growth in the mid to high single digits for Q4 2022, with a full-year growth expectation of 6% to 7% [27] Question: How is the company addressing talent acquisition and retention? - The company is focused on improving processes for attracting and retaining talent, with a robust hiring pipeline and decreasing turnover [15]