Exponent Inc. (NASDAQ:EXPO) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 19, 2018 • 04:30 pm ET


Exponent Inc. (NASDAQ:EXPO) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good day, and welcome to the Exponent's First Quarter of Fiscal 2018 Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Whitney Kukulka, Investor Relations. Please go ahead, ma'am.

Whitney Kukulka

Thank you, operator. Good afternoon, ladies and gentlemen. Thank you for joining us on Exponent's first quarter 2018 financial results conference call. Please note that this call will be simultaneously webcast on the Investor Relations section of the company's corporate website at www.exponent.com/investors. This conference call is the property of Exponent, and any taping or other reproduction is expressly prohibited without prior written consent. Joining me on the call today are Paul Johnston, Chief Executive Officer; Catherine Corrigan, President; and Rich Schlenker, Executive Vice President and Chief Financial Officer.

Before we start, I would like to remind you that the following discussion contains forward-looking statements, including, but not limited to, Exponent's market opportunities and future financial results that include risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward-looking statements can be found in Exponent's periodic SEC filings, including those factors discussed under the caption Factors Affecting Operating Results and Market Price Stock in Exponent's most recent Form 10-K. The forward-looking statements and risks in this conference call are based on current expectations as of today, and Exponent assumes no obligation to update or revise them, whether as a result of new developments or otherwise.

And now, I will turn the call over to Paul Johnston, Chief Executive Officer. Paul?

Paul Johnston

Thank you. Thank you for joining us today. Following my discussion of the first quarter 2018 results, Rich will provide a more detailed review of our financial performance and business outlook. Then Catherine will provide her thoughts and closing remarks, after which, we will open the call to your questions. Exponent continued its strong momentum from 2017, into the first quarter of 2018. We delivered strong financial results, while positioning the company for long-term success.

We grew first quarter net revenues by 13%, and expanded our EBITDA margin by 260 basis points to 26% of net revenues as compared to the same period last year. Our first quarter results benefited from positive market trends across several industries, practices and geographies, as well as the ongoing large shipment factors project, which we began discussing in the first quarter of 2017. We are seeing good demand for interdisciplinary advice related to battery technology from several industries including consumer products, automotive, medical device and energy.

We are being retained for both reactive and proactive services. We have been engaged to support clients with product recalls and litigation in addition to providing technology assessments and design consulting. Our battery expertise located in North America, Asia and Europe has been invaluable declines as their products are manufactured and sold around the globe. We continue to be called upon by clients in the automotive industry to analyze their most significant product