 MENLO PARK, Calif., July 30, 2020 GLOBE NEWSWIRE -- Exponent, Inc. Nasdaq:EXPO today reported financial results for the second quarter of fiscal year 2020 ended July 3, 2020. We are pleased with the responsiveness of our employees and the adaptiveness of our company to todays uncertain environment. Clients continue to call upon Exponent to address their challenges and to evaluate their opportunities, despite the rapid change and unpredictability that the pandemic has infused into their operating plans. While net revenues declined 12 in the second quarter, the fundamentals of our business remain strong and we continue to operate in a position of financial strength. We ended the quarter with 190 million in cash, cash equivalents and short-term investments, no debt, and reiterated our intent to continue quarterly dividends, commented Dr. Catherine Corrigan, President and Chief Executive Officer.The demand for Exponents interdisciplinary solutions is durable as companies continue to innovate and deploy increasingly complex products and systems. At the same time, societys focus on safety, health, sustainability, and reliability requires rigorous science and data-driven analysis, which are hallmarks of Exponents more than 50 years of service. Our agility in assembling and deploying diversely skilled teams drawing upon more than eight hundred highly credentialed consultants across a vast array of disciplines has manifested itself yet again as we advise clients on a variety of issues prompted by COVID-19. Exponent has a long history and strong track record of delivering for all of our stakeholders, and we are confident in the resilience of our business and our ability to deliver growth over the long term, continued Dr. Corrigan.Second Quarter Financial ResultsFor the second quarter of 2020, total revenues were 92.0 million, down 14 as compared to 106.5 million in the same period a year ago. Revenues before reimbursements, or net revenues, were 87.9 million, down 12 as compared to 100.3 million in the second quarter of 2019.Net income for the second quarter of 2020 was 16.3 million or 0.31 per diluted share as compared to 21.0 million or 0.39 per diluted share in the same period of 2019. The tax benefit for the classification of tax adjustments associated with share-based awards was 0.9 million in the second quarter of 2020 and 0 in same period last year. Inclusive of the tax benefit, Exponents consolidated tax rate was 23.7 in the second quarter, as compared to 27.2 for the same period in 2019.EBITDA1 decreased to 22.8 million, or 26.0 of net revenue, as compared to 29.6 million or 29.5, in the second quarter of 2019.Year to Date Financial ResultsFor the first half of 2020, total revenues decreased 4 to 198.0 million as compared to 205.5 million in the same period of 2019. Revenues before reimbursements decreased 3 to 187.6 million as compared to 193.7 million in the same period one year ago.Net income for the first half of 2020 was 42.6 million, or 0.80 per diluted share, as compared to 43.7 million, or 0.81 per diluted share, in the same period of 2019. The tax benefit for the classification of tax adjustments associated with share-based awards realized in the first half of 2020 was 9.7 million as compared to 5.7 million in the same period last year. Inclusive of the tax benefit, Exponents consolidated tax rate was 6.2 in the first half of 2020, as compared to 16.2 for the same period last year.EBITDA1 decreased to 47.8 million, or 25.5 of net revenues, as compared to 53.4 million or 27.6 in the same period one year ago.In the first half of 2020, Exponent distributed 20.1 million in dividends, repurchased 40.0 million in common stock and closed the period with 190.2 million in cash, cash equivalents and short-term investments.In a separate press release today, Exponent announced a 0.19 quarterly dividend payment and reiterated its intent to continue to pay quarterly dividends. The Company also announced that its Board of Directors authorized an additional 45 million for future share repurchases.Business OverviewExponents engineering and other scientific segment represented 78 of the Companys second quarter net revenues. Net revenues in this segment decreased 15 in the second quarter, as compared to 2019. Business restrictions associated with COVID-19 caused project delays across multiple areas of the business. The most substantial impact occurred to our litigation support work for the transportation industry, with most assignments paused due to court-related delays. At the same time, we continued to see strength in integrity management advisory services for the utilities sector as clients focus on power reliability, in particular during the impending fire season in the western United States. Exponents environmental and health segment represented 22 of the Companys second quarter net revenues. Net revenues in this segment decreased 2 in the second quarter, as compared to 2019. This segment also experienced delays in projects for the transportation and oil and gas industries. Within this segment, the chemical regulation and food safety practice continued to grow as Exponents scientists evaluated the effects of chemicals and new products on human health and the environment, including disinfectants for the novel coronavirus.Management Commentary and Response to COVID-19 Exponent responded quickly and carefully to address the unprecedented challenges created by the pandemic. We have successfully adapted and will continue to evolve our business development, recruiting and operational approaches, yielding benefits both during and after this crisis. We have accelerated our sharing of in-depth scientific and regulatory knowledge through webinars and thought leadership pieces, which has fostered new client relationships and projects. We have shifted all recruiting activities online, allowing us to reach a more geographically expansive set of candidates. The health and safety of our team remain top priorities, and therefore we have leveraged our internal expertise to establish protocols that allow us to safely continue laboratory activities and resume human participant studies. Our business continuity plan and robust infrastructure have empowered productive remote work, and employees continue to work from home unless they are performing laboratory testing or inspections. Our leadership team has responded with enhanced internal communications to encourage increased connectivity across the firm.We are pleased that Exponent has been able to effectively address our clients needs with a mostly remote workforce. The relaxation of business restrictions in June allowed us to resume laboratory testing, inspections, and human participant studies for clients in non-essential industries. Field inspections of sites and products have increased due to lifting of travel restrictions, but are still occurring at a reduced level since many businesses are not fully operational. We successfully completed multiple human participant studies in June, utilizing our enhanced health and safety protocols. Demand for these studies continues to grow, but some are delayed because of uncertainty surrounding COVID-19 related restrictions. We remain optimistic about the long-term growth of this area.We continue to receive new retentions for litigation support, and work is ongoing for many existing matters. At the same time trial dates continue to be delayed, removing imminent deadlines and causing some clients in particular the automotive industry to pause work. Courts have been experimenting with virtual bench trials as well as social distancing for in-person trials, so we expect trials will gradually increase. We are pleased to be sharing our scientific and regulatory knowledge on health and safety issues related to the novel coronavirus. We have been engaged by clients to provide regulatory support in the United States and Europe as they register their new or existing disinfectant products. We have also been advising clients on occupational health and safety concerns including COVID-19 testing, contact tracing, and disinfecting as they strive to protect their employees, customers, and students. Furthermore, we have leveraged our breadth of disciplines from chemists and physicists to engineers to evaluate disinfectant products from hand sanitizers to ultraviolet light. Business OutlookAs society continues to raise its expectations for safety, health, sustainability and reliability, and products and processes continue to grow in their technological complexity, Exponent will evolve to stay ahead of the curve. These market drivers have powered Exponents growth for over 50 years and have led to increased demand for our interdisciplinary solutions despite periods of macroeconomic turbulence.As a result of the current business, travel and physical distancing restrictions caused by the COVID-19 pandemic, net revenues for the first three weeks of the third quarter declined approximately 5 to 8 year-over-year. While there are opportunities for improvement, the high degree of uncertainty surrounding how and over what timeframe each region will impose or relax restrictions means that there could be further reduction to our revenues in the short term. Therefore, we cannot reliably provide financial guidance at this time, commented Richard Schlenker, Executive Vice President and Chief Financial Officer.We have been nimble and pragmatic in our response to new market dynamics amid the unpredictable and rapidly evolving backdrop associated with COVID-19. I am proud of our employees for responding with the same seriousness, intellectual rigor, and fact-based analysis that we have employed for over 50 years. 