Exponent Inc. (NASDAQ:EXPO) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 04:30 pm ET


Exponent Inc. (NASDAQ:EXPO) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Exponent Second Quarter of Fiscal Year 2020 Earnings Call. [Operator Instructions]

At this time, I'd like to turn the conference over to Whitney Kukulka. Please go ahead.

Whitney Kukulka

Thank you, operator. Good afternoon, ladies and gentlemen, thank you for joining us on Exponent's second quarter of fiscal 2020 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 Dr. Catherine Corrigan, President and Chief Executive Officer 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 involve 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 risk factor in Exponent's most recent Form 10-Q. 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 I will now turn the call over to Dr. Catherine Corrigan, Chief Executive Officer. Catherine?

Catherine Ford Corrigan

Thank you, Whitney, and good afternoon, everyone. Thank you for joining our call today. I hope that all of you and your loved ones are staying healthy and safe. When we last spoke at the end of April, Exponent was in its fifth week of most employees working remotely and now, we've entered our fifth month. We are pleased with the responsiveness of our employees and the adaptiveness of our company to today's 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.

The fundamentals of our business remain strong and we continue to operate in a position of financial strength. While net revenues declined 12% in the second quarter, we were able to deliver earnings per share of $0.31, end the quarter with a $190 million in cash and no debt and reiterate our intent to continue quarterly dividends.

The demand for Exponent's interdisciplinary solutions is durable as companies continue to innovate and deploy increasingly complex products and systems. At the same time, society's focus on safety, health, sustainability and reliability requires a rigorous science and data-driven analysis, which are hallmarks of Exponent's more than 50 years of service. Our agility in assembling and deploying diversely skilled teams drawing upon more than 800 highly credentialed consultants across a vast array of disciplines has manifested itself yet again as we advise clients on