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Cubic Corporation: Cubic Corp. (NYSE: CUB) Reports Continued Strong Performance for the Quarter Ended June 30, 2009

^{Published on 2009-08-05 13:42:53, Last Modified on 2009-08-05 13:43:05 - Market Wire}
 

SAN DIEGO, CA--(Marketwire - August 5, 2009) - Cubic Corporation (NYSE: [ CUB ]) today reported higher earnings on higher sales for the quarter ended June 30, 2009. Sales for the third fiscal quarter were $248.2 million compared to $232.9 million last year, and net income increased by 76 percent to $14.9 million or 56 cents per share this year from $8.5 million or 32 cents per share last year.

Operating income increased in the third quarter to $21.6 million this year from $11.5 million last year. Cash flow from operations was $49.5 million in the quarter.

Nine-month Results

For the nine months ended June 30, 2009, sales increased to $735.9 million from $645.9 million last year. Net income increased by 50 percent to $43.3 million for the nine-month period, or $1.62 per share, compared to last year's net income of $28.8 million, or $1.08 per share. Operating income for the first nine months increased to $64.6 million this year from $42.4 million in 2008. Cash flow from operations was $134.6 million in the nine-month period.

The earnings of $1.62 per share for the nine-month period exceeded the Company's record high earnings for a full twelve-month period of $1.56 per share in fiscal year 2007.

Backlog

Total backlog increased to $2.116 billion at June 30, 2009 from $1.772 billion at September 30, 2008. Transportation systems backlog increased $199 million and defense backlog increased $145 million during the first nine months of the year. The acquisition of a transportation systems service operation in July 2009 will increase transportation systems backlog in the fourth quarter by more than $100 million.

Liquidity

The company again improved its strong liquidity position during the third quarter, and ended the period with $227.6 million in cash.

Cubic Corporation is the parent company of two major business segments: defense and transportation. The Cubic Defense group is a world leader in realistic combat training systems, mission support services and defense electronics. Cubic Transportation Systems is a leader in the design and manufacture of automated fare collection systems and services for public transit authorities worldwide. For more information about Cubic, see the company's Web site at [ www.cubic.com ].

In addition to historical matters, this release contains forward-looking statements which are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward-looking statements involve predictions of future results. Investors are cautioned that forward-looking statements involve risks and uncertainties which may affect the Company's business and prospects. These include the effects of politics on negotiations and business dealings with government entities, economic conditions in the various countries in which the Company does or hopes to do business, competition and technology changes in the defense and transit industries, and other competitive and technological factors.

Any statements about the Company's expectations, beliefs, plans, objectives, assumptions or future events or future financial and/or operating performance are not historical and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "may," "will," "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "believe," "intend," "predict," "potential," "opportunity" and similar words or phrases or the negatives of these words or phrases. These statements involve estimates, assumptions and uncertainties.

Since actual results or outcomes may differ materially from those expressed in any forward-looking statements made by the Company, investors should not place undue reliance on any forward-looking statements. In addition, past financial and/or operating performance is not necessarily a reliable indicator of future performance and investors should not use the Company's historical performance to anticipate results or future period trends. Further, any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict which factors will arise. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

 CUBIC CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED) (amounts in thousands, except per share data) Nine Months Ended Three Months Ended June 30, June 30, 2009 2008 2009 2008 --------- --------- --------- --------- Net sales Products $ 382,065 $ 360,362 $ 135,338 $ 130,266 Services 353,836 285,532 112,839 102,626 --------- --------- --------- --------- 735,901 645,894 248,177 232,892 Cost and expenses Products 280,481 280,258 98,766 104,661 Services 299,017 240,695 95,524 86,922 Selling, general and administrative 85,958 75,740 29,895 26,865 Research and development 5,857 6,752 2,343 2,969 --------- --------- --------- --------- 671,313 603,445 226,528 221,417 --------- --------- --------- --------- Operating income 64,588 42,449 21,649 11,475 Other income (expenses): Interest and dividends 1,256 5,047 398 2,254 Interest expense (1,622) (2,227) (595) (836) Other income 1,536 334 1,006 6 Minority interest in loss of subsidiary - (103) - (221) --------- --------- --------- --------- Income before income taxes 65,758 45,500 22,458 12,678 Income taxes 22,450 16,700 7,550 4,200 --------- --------- --------- --------- Net income $ 43,308 $ 28,800 $ 14,908 $ 8,478 ========= ========= ========= ========= Basic and diluted net income per common share $ 1.62 $ 1.08 $ 0.56 $ 0.32 ========= ========= ========= ========= Dividends per common share $ 0.09 $ 0.09 $ - $ - ========= ========= ========= ========= Average number of common shares outstanding 26,730 26,725 26,732 26,724 ========= ========= ========= ========= CUBIC CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) June 30, September 30, 2009 2008 (Unaudited) (See note below) -------------- -------------- ASSETS Current assets: Cash and cash equivalents $ 227,630 $ 112,696 Accounts receivable - net 226,433 268,884 Inventories - net 56,782 45,118 Deferred income taxes and other current assets 42,660 48,630 -------------- -------------- Total current assets 553,505 475,328 -------------- -------------- Long-term contract receivables 10,580 19,930 Property, plant and equipment - net 49,399 53,887 Goodwill 59,267 61,032 Purchased intangibles 16,525 19,060 Deferred income taxes and other non-current assets 12,179 12,015 -------------- -------------- $ 701,455 $ 641,252 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 29,344 $ 23,288 Customer advances 118,713 74,963 Other current liabilities 70,763 85,832 Income taxes payable 7,988 6,017 Current portion of long-term debt 4,571 6,045 -------------- -------------- Total current liabilities 231,379 196,145 -------------- -------------- Long-term debt 20,849 25,700 Other long-term liabilities 23,565 30,555 Shareholders' equity: Common stock 12,530 12,485 Retained earnings 445,770 404,868 Accumulated other comprehensive income 3,433 7,570 Treasury stock at cost (36,071) (36,071) -------------- -------------- 425,662 388,852 -------------- -------------- $ 701,455 $ 641,252 ============== ============== Note: The balance sheet at September 30, 2008 has been derived from the audited financial statements at that date. CUBIC CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) (amounts in thousands, except per share data) Nine Months Ended Three Months Ended June 30, June 30, 2009 2008 2009 2008 --------- --------- --------- --------- Operating Activities: Net income $ 43,308 $ 28,800 $ 14,908 $ 8,478 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 10,719 6,139 3,871 2,035 Changes in operating assets and liabilities 80,579 26,647 30,764 26,019 --------- --------- --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES 134,606 61,586 49,543 36,532 --------- --------- --------- --------- Investing Activities: Acquisitions, net of cash acquired (7,886) - - - Net additions to property, plant and equipment (3,894) (6,799) (1,284) (1,935) Proceeds from sales of marketable securities - 66,300 - 10,000 Purchases of marketable securities - (39,100) - (10,000) --------- --------- --------- --------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (11,780) 20,401 (1,284) (1,935) --------- --------- --------- --------- Financing Activities: Principal payments on long-term borrowings (5,830) (5,950) (136) (173) Purchases of treasury stock - (2) - (2) Dividends paid (2,405) (2,405) (2,405) (2,405) Other 45 128 - - --------- --------- --------- --------- NET CASH USED IN FINANCING ACTIVITIES (8,190) (8,229) (2,541) (2,580) --------- --------- --------- --------- Effect of exchange rates on cash 298 (730) 14,771 (683) --------- --------- --------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 114,934 73,028 60,489 31,334 Cash and cash equivalents at the beginning of the period 112,696 73,563 167,141 115,257 --------- --------- --------- --------- CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD $ 227,630 $ 146,591 $ 227,630 $ 146,591 ========= ========= ========= =========