{"id":520235,"date":"2021-07-29T16:07:06","date_gmt":"2021-07-29T20:07:06","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/exponent-reports-second-quarter-of-fiscal-year-2021-financial-results\/"},"modified":"2021-07-29T16:07:06","modified_gmt":"2021-07-29T20:07:06","slug":"exponent-reports-second-quarter-of-fiscal-year-2021-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/exponent-reports-second-quarter-of-fiscal-year-2021-financial-results\/","title":{"rendered":"Exponent Reports Second Quarter of Fiscal Year 2021 Financial Results"},"content":{"rendered":"
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MENLO PARK, Calif., July 29, 2021 (GLOBE NEWSWIRE) — Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the second quarter of fiscal year 2021 ended July 2, 2021.<\/p>\n

\u201cDuring the second quarter, we saw broad-based strength across the business as pandemic-related restrictions eased, which supported a robust level of new assignments as well as ongoing work. As a result, net revenue increased 28% and EBITDA1<\/sup> margin expanded 630\u00a0basis points from the prior year period. Notably, our revenues from reactive engagements returned to pre-COVID-19 levels as seen in the second quarter of 2019, while revenues from proactive projects grew significantly compared to the same period,\u201d commented Dr. Catherine Corrigan, President and Chief Executive Officer.<\/p>\n

\u201cOur portfolio of client work is highly diversified, including climate vulnerability assessments with utilities, risk assessments in chemicals, and ongoing energy storage-related work, as well as projects in the automotive\u00a0and consumer products industries, further demonstrating the strength of our long-term strategy. As we look forward, while a degree of uncertainty remains surrounding the impact of coronavirus, we remain confident that our strong reputation, multidisciplinary expertise, world-class team and the durability of our market drivers uniquely position us for continued profitable growth,\u201d continued Dr. Corrigan.<\/p>\n

\n Second Quarter Financial Results<\/strong>\n <\/p>\n

Total revenues and revenues before reimbursements for the second quarter of 2021 increased 30% to $119.9 million and 28% to $112.5 million, respectively, as compared to $92.0 million and $87.9 million in the second quarter of 2020.<\/p>\n

Net income increased to $25.4 million, or $0.48 per diluted share, in the second quarter of 2021, as compared to $16.3 million, or $0.31 per diluted share, in the same period of 2020. The tax benefit for the classification of tax adjustments associated with share-based awards realized in the second quarter of 2021 was approximately zero, as compared to $0.9 million in the second quarter of 2020.<\/p>\n

EBITDA1<\/sup> increased to $36.3 million, or 32.3% of net revenues, in the second quarter of 2021, as compared to $22.8 million, or 26.0% of net revenues in the second quarter of 2020.<\/p>\n

\n Year to Date Financial Results<\/strong>\n <\/p>\n

Total revenues and revenues before reimbursements for the first half of 2021 increased 19% to $236.4 million and 18% to $222.0 million, respectively, as compared to $198.0 million and $187.6 million in same period one year ago.<\/p>\n

Net income increased to $56.2 million, or $1.06 per diluted share, in the first half of 2021, as compared to $42.6 million, or $0.80 per diluted share, in the same period of 2020. The tax benefit for the classification of tax adjustments associated with share-based awards realized in the first half of 2021 was $8.8 million, as compared to $9.7 million in the first half of 2020.
Inclusive of the tax benefit, Exponent\u2019s consolidated tax rate was 13.2% in the first half of 2021, as compared to 6.2% for the same period last year.<\/p>\n

EBITDA1<\/sup> increased to $68.1 million, or 30.6% of net revenues, in the first half of 2021, as compared to $47.8 million, or 25.5% of net revenues, in the first half of 2020.<\/p>\n

In the first half of 2021, Exponent paid $22.4 million in dividends. In addition, during the second quarter the Company repurchased $7 million of common stock, and closed the period with $240.0 million in cash, cash equivalents and short-term investments.\u00a0<\/p>\n

Business Overview<\/strong><\/p>\n

Exponent\u2019s engineering and other scientific segment represented 82% of the Company\u2019s net revenues in the second quarter. Net revenues in this segment increased 33% in the second quarter as compared to the prior year period. Growth was driven by strong demand for Exponent’s services across a broad range of industries and use cases. In addition to the steady increase in litigation support and human participant studies, our multidisciplinary battery team continues to see demand for its solutions in electric vehicles and energy storage. Our work in international arbitrations and integrity management advisory services continued at strong levels.<\/p>\n

Exponent\u2019s environmental and health segment represented 18% of the Company\u2019s net revenues in the second quarter. Net revenues in this segment increased 9% in the second quarter as compared to the prior year period.\u00a0\u00a0 This segment also benefitted from increased activity in litigation related projects and support of human participant studies. The chemical regulation and food safety practice continued to grow as Exponent\u2019s scientists evaluated the effects of chemicals and new products on human health and the environment.<\/p>\n

\n Business Outlook<\/strong>\n <\/p>\n

\u201cThe continued strong demand for our services, as well as the positive momentum we have experienced in the first half of 2021 gives us confidence as we look to the remainder of the year. However, we recognize that uncertainty remains as the spread of COVID variants is presenting challenges across the globe,\u201d commented Richard Schlenker, Executive Vice President and Chief Financial Officer.<\/p>\n

For the third quarter of 2021 as compared to the same period one year prior, Exponent anticipates:<\/p>\n