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Jan 03, 2020
Exponent Q4 2019 Earnings Report
Exponent reported strong financial results with double-digit revenue growth and increased EBITDA margin.
Key Takeaways
Exponent's Q4 2019 revenues increased by 20% to $110.1 million, with net income rising to $19.1 million, or $0.36 per diluted share. The company benefited from increased demand for energy storage and battery technology services, integrity management assessments, and international arbitration engagements.
Total revenues and revenues before reimbursements grew 20% for the quarter.
Net income increased to $19.1 million, or $0.36 per diluted share.
EBITDA increased to $27.7 million.
Exponent capitalized on increased demand for proactive and reactive services related to energy storage and battery technology.
Exponent
Exponent
Exponent Revenue by Segment
Revenue by Segment
Engineering & Other Scientific Revenue
CapyFin.comEnvironmental & Health Revenue
CapyFin.com Forward Guidance
Exponent anticipates revenue growth in the mid-single digits for 2020 and expects EBITDA margin to expand 25 to 50 basis points.
Positive Outlook
- Will continue to leverage our core competencies as we deepen our client relationships
- Expand our reputation internationally
- Bring new talent to the firm.
- Prepared to deliver in-depth engineering and scientific insight into complex and evolving systems such as automated and electric vehicles, medical devices, consumer electronics and infrastructure
- Well-positioned to advise its clients as society continues to raise the bar on safety, health, sustainability, reliability and performance
Challenges Ahead
- 2019 results benefitted from an extra week and a large engagement for an electric utility related to wildfires and integrity management, which is expected to step down in 2020.
- In the process of divesting our German entity, with annual revenues of approximately $4 million, as its structural design and inspection services are not a strategic fit.
- The combination of these factors will create a challenging year over year comparison for 2020.
- Expect revenues before reimbursements for the full year 2020 to grow in the mid-single digits as compared to 2019.
- 2020 EBITDA1 margin is expected to expand 25 to 50 basis points, as compared to 2019