Exponent, Inc. · NASDAQ:EXPO
Exponent — Investor Presentation (2022)
24 slides from Exponent's investor presentation, Sep 29, 2022
Slide 1: © Exponent, Inc. All rights reserved.
© Exponent, Inc. All rights reserved.
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
© Exponent, Inc. All rights reserved. 2 Forward Looking Statements & Non-GAAP Financial Measures This presentation release contains, and incorporates by reference, certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules pro
Slide 3: When Getting It Right Matters
© Exponent, Inc. All rights reserved. 3 When Getting It Right Matters Exponent harnesses the power of technical excellence, objectivity and disciplinary diversity to solve our clients’ toughest science, engineering and business challenges
Slide 4: Empowering Our Clients with Solutions for a Safe, Healthy, Sustainable and Technologically Complex World
© Exponent, Inc. All rights reserved. 4 Empowering Our Clients with Solutions for a Safe, Healthy, Sustainable and Technologically Complex World Overview EXPO by the Numbers • Multidisciplinary Consulting Capabilities • World Class Talent Leveraging Robust Scientific and Engineering Expertise $466M
Slide 5: 50+ Years of Positioning Exponent and Our Clients for the Future
© Exponent, Inc. All rights reserved. 5 50+ Years of Positioning Exponent and Our Clients for the Future Our ecosystem of knowledge has grown and evolved to help our clients meet the challenges they face Failure Analysis Associates (FaAA) Expansion: Test and Acquired was founded Engineering Center P
Slide 6: Our Global Footprint
© Exponent, Inc. All rights reserved. 6 Our Global Footprint
Slide 7: Why Invest in Exponent?
© Exponent, Inc. All rights reserved. 7 Why Invest in Exponent? Strong Growth Momentum Through Safety, Health and Environmental Trends Multidisciplinary Solutions Driven by Data, Speed and Scale Deep Bench of Scientists and Engineers Across Industries and Geographies Scientific Rigor Positions Our C
Slide 8: Exponent Is in the Center of Global Macro Trends
© Exponent, Inc. All rights reserved. 8 Exponent Is in the Center of Global Macro Trends
Slide 9: Providing a Multidisciplinary Set of Offerings
© Exponent, Inc. All rights reserved. 9 Providing a Multidisciplinary Set of Offerings Reactive Proactive Understanding the past with the ultimate goal Empowering our clients to chart a course for of determining root causes of events the future across a full product life cycle • Litigation Support L
Slide 10: Our World Class Talent
© Exponent, Inc. All rights reserved. 10 Our World Class Talent
Slide 11: Attracting, Developing and Rewarding Exceptional People with Diverse Backgrounds and Expertise
© Exponent, Inc. All rights reserved. 11 Attracting, Developing and Rewarding Exceptional People with Diverse Backgrounds and Expertise Is Central to Exponent’s Mission Exponent is constantly curating our world class culture and team through a thoughtful recruitment and retention process
Slide 12: Environmental, Social & Governance ("ESG") Our Commitments
© Exponent, Inc. All rights reserved. 12 Environmental, Social & Governance (“ESG”) Our Commitments Advancement of Diversity and Investment Safety and the Science in Our People Environment
Slide 13: Solutions for a Safe, Healthy, Sustainable and Technologically Complex World
© Exponent, Inc. All rights reserved. 13 Solutions for a Safe, Healthy, Sustainable and Technologically Complex World Polymers & Biomedical Environmental Sciences • Biomedical Engineering & Sciences • Ecological & Biological Sciences • Polymer Science & Materials Chemistry • Environmental & Earth Sc
Slide 14: Diverse Customer Relationships
© Exponent, Inc. All rights reserved. 14 Diverse Customer Relationships 10K 2K Our Clients FY21 FY21 Engagements Client Count CORPORATE LEGAL GOVERNMENT End Markets Served Chemical Construction & Consumer Consumer Electronics, Government Infrastructure Electronics Products Security & IT Life Science
Slide 15: Strong Growth Momentum Through Safety, Health and Environmental Trends
© Exponent, Inc. All rights reserved. 15 Strong Growth Momentum Through Safety, Health and Environmental Trends TRANSPORTATION UTILITIES CONSUMER LIFE SCIENCES & CHEMICAL ELECTRONICS HEALTHCARE Key • Automation • Aging infrastructure • Product safety and • Digital health • Effects on humans performa
Slide 16: When Getting It Right Matters
© Exponent, Inc. All rights reserved. 16 When Getting It Right Matters Exponent harnesses the power of technical excellence, objectivity and disciplinary diversity to solve our clients’ toughest science, engineering and business challenges
Slide 17: Financial Highlights
© Exponent, Inc. All rights reserved. 17 Financial Highlights
Slide 18: Proven Financial Results
© Exponent, Inc. All rights reserved. 18 Proven Financial Results Revenue ($M) EBITDA Margin1,2 (%) $466M 30.4% 500 $417M 32 27.3% 27.4% 27.0% $400M 24.9% 26.5% $380M 400 $348M $315M 24 300 16 200 100 8 0 0 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Dividends Paid ($M) Free Cash Flo
Slide 19: Capital Allocation
© Exponent, Inc. All rights reserved. 19 Capital Allocation Cash and Short Term Investments ($M): 2016-2021 2016-2021 350 Cash Returned to $297.7M 300 Shareholders: $242.5M $184M 250 $231.6M $208.6M $196.4M 200 Dividend Payments $173.7M 150 $133M 100 Repurchased Shares 50 (or 2.3M shares) 0 2016 201
Slide 20: Key Metrics – Fiscal Year
© Exponent, Inc. All rights reserved. 20 Key Metrics – Fiscal Year 20 ($ Millions) 2020 2021 % Change Revenues, net ($ millions) 378.4 434.9 15% EBITDA1 ($ millions) 102.1 132.3 30% EBITDA Margin2 27.0% 30.4% Net Income ($ millions) 82.6 101.2 23% Earnings per share 1.55 1.90 23% Average diluted sha
Slide 21: EBITDAS – Fiscal Year
© Exponent, Inc. All rights reserved. 21 EBITDAS – Fiscal Year 21 ($ Millions) 2020 2021 % Change Net Income $ 82.55 $101.20 23% Add back: Income taxes 14.38 24.64 71% Interest income (1.71) (.07) -96% Depreciation and amortization 6.87 6.49 -6% 1 EBITDA 102.10 132.26 30% Stock-based compensation 17
Slide 22: Key Metrics – Q1 2022
© Exponent, Inc. All rights reserved. 22 Key Metrics – Q1 2022 22 2021 2022 % Change Revenues, net ($ millions) 109.6 117.9 8% EBITDA1 ($ millions) 31.8 34.5 9% EBITDA Margin2 29.0% 29.2% Net Income ($ millions) 30.8 29.6 -4% Earnings per share 0.58 0.56 -3% Average diluted shares outstanding (milli
Slide 23: EBITDAS – Q1 2022
© Exponent, Inc. All rights reserved. 23 EBITDAS – Q1 2022 23 ($ Millions) 2021 2022 % Change Net Income $ 30.85 $ 29.61 -4% Add back: Income taxes (0.72) 3.20 543% Interest income (0.03) (0.02) -28% Depreciation and amortization 1.66 1.69 2% 1 EBITDA 31.76 34.48 9% Stock-based compensation 6.28 6.8
Slide 24: © Exponent, Inc. All rights reserved.
© Exponent, Inc. All rights reserved.