- Sales of $366.0 million for the quarter
and $679.8 million for the six-month period
- Adjusted EBITDA(1) of $30.3 million for
the quarter and $41.6 million for the six-month period
- Net income of $10.1 million, or $0.38
per diluted share for the quarter and $4.7 million, or $0.18 per
diluted share for the six-month period
- Total backlog of $2.809 billion as of
March 31, 2016
- Completed acquisition of GATR
Technologies, Inc. in February 2016
- Completed first phase of
efficiency-enhancing OneCubic ERP implementation
- Sales guidance for fiscal 2016 revised
to $1.51 billion to $1.56 billion; EPS guidance revised to $1.20 to
$1.40 per diluted share; EBITDA(1) guidance revised to $70
million to $85 million, Adjusted EBITDA(1)(2) guidance revised
to $130 million to $145 million
Cubic Corporation (NYSE: CUB) today reported its financial
results for the quarter and six months ended March 31, 2016.
“We are pleased with this quarter’s financial performance,
consistent with our plan, over the first quarter of this year and
continue to expect a strong second half, particularly in the fourth
quarter, leading to better financial performance compared to the
previous fiscal year,” said Bradley H. Feldmann, president and
chief executive officer of Cubic Corporation. “Fiscal year 2016
continues to be a transition year as we invest to implement our
OneCubic ERP system and supply chain efficiency efforts. This,
coupled with the addition of several high-margin, high-growth C4ISR
businesses will propel us to record sales and adjusted EBITDA in
fiscal year 2017.”
Second Quarter Results
Sales for the second quarter of fiscal 2016 were $366.0 million
compared to $338.8 million in fiscal 2015, an increase of 8
percent. Second quarter sales were higher for all three business
segments compared to last year’s second quarter. Foreign currency
exchange translation reduced sales by $7.7 million for the quarter
when compared to prior year exchange rates. Sales from recent
acquisitions for the second quarter of fiscal 2016 were $15.1
million compared to $10.8 million last year.
The operating loss for the quarter was $9.1 million compared to
operating income of $23.2 million in the second quarter last year.
Operating results in the second quarter of 2016 were significantly
impacted by accounting requirements for business acquisitions,
including an $18.5 million charge recognized in connection with the
acquisition of GATR Technologies, LLC (GATR). Due to the structure
of certain of GATR’s share-based payment awards to its employees
and the acceleration of vesting of these certain awards in
connection with the acquisition of GATR, Cubic was required to
recognize $18.5 million of compensation expense, rather than
purchase consideration, for a portion of the purchase price that
was paid to the seller that was distributed to the recipients of
these awards. Recently acquired businesses generated an operating
loss of $24.8 million for the quarter ended March 31, 2016,
including this $18.5 million charge and other business acquisition
charges and transaction costs compared to an operating loss of $1.5
million for the quarter ended March 31, 2015. Foreign currency
exchange translation further reduced operating income by $0.8
million. Costs incurred in the second quarter of 2016 for strategic
and IT system resource planning as part of OneCubic initiatives
totaled $9.4 million compared to $0.8 million in the second quarter
of last year.
Adjusted EBITDA(1), which excludes acquisition-related expenses,
expenses related to ERP system development and supply chain process
redesign, restructuring costs and other non-operating income and
expenses was $30.3 million or 8.3 percent of sales for the
quarter compared to $41.4 million or 12.2 percent of sales in the
second quarter of fiscal 2015. Adjusted EBITDA(1) for the quarter
was impacted by the Cubic Transportation Systems
(CTS) follow-on fare collections contract in London that has
lower margins than the legacy contract, as well as cost growth on a
ground combat training system that Cubic Global Defense Systems
(CGD Systems) is delivering in the Far East and lower shipments of
high-margin air combat systems.
Net income attributable to Cubic shareholders was $10.1 million,
or $0.38 per diluted share, compared to a net loss attributable to
Cubic shareholders of $11.0 million, or $0.41 per diluted share, in
the second quarter of fiscal 2015. The change was primarily caused
by the impact of income taxes. A discrete tax benefit of $22.2
million was recorded in the second quarter of fiscal 2016 related
to the partial release of a U.S. deferred tax asset valuation
allowance following the acquisition of GATR, partially offset by a
discrete tax expense of $5.9 million related to non-deductible
compensation expense paid to the sellers of GATR.
Results for Six Months Ended March 31, 2016
Sales for the first half of fiscal 2016 were $679.8 million
compared to $657.3 million in fiscal 2015. Sales grew for the
quarter from Cubic Global Defense Services (CGD Services) and CGD
Systems, but decreased from CTS. The decline in CTS sales was
primarily due to the impact of currency exchange rates. The average
exchange rates between the prevailing currency in foreign
operations and the U.S. dollar had a negative impact on sales of
$17.2 million for the six-month period compared to the same periods
last year. Sales from recent acquisitions for the first half of
fiscal 2016 were $22.9 million compared to $11.8 million last
year.
The operating loss was $17.2 million in the first six months of
2016 compared to operating income of $30.4 million in
2015. The change in operating income was largely driven by the
charges incurred related to business acquisitions described above.
Businesses acquired in 2016 and 2015 generated an operating loss of
$28.7 million for the six months ended March 31, 2016 compared to
an operating income of $3.0 million in the first half of 2015.
Additionally, the expenditures related to strategic and IT system
resource planning totaled $15.9 million for the first half of 2016
compared to $1.9 million in the first half of last year.
Adjusted EBITDA(1) decreased to $41.6 million in the first half
of 2016 from $60.2 million in the first half of last year largely
driven by the decreased margins on the follow-on fare collections
contract in London, and cost growth on a ground combat training
system being delivered in the Far East.
Net income attributable to Cubic shareholders was $4.7 million,
or $0.18 per diluted share, compared to a net loss attributable to
Cubic of $5.9 million, or $0.22 per diluted share, in the first six
months of fiscal 2015. The change is largely attributable to the
impact of income taxes as described above.
Total backlog was $2.809 billion at the end of the quarter
compared to $2.976 billion at September 30, 2015, a decrease of
$166.9 million. Business acquired in the first half of fiscal 2016
added $17.2 million of funded backlog and $49.0 million of total
backlog at acquisition.
Fiscal Year 2016 Guidance Update
Original FY 2016Guidance (4)
Revised FY 2016Guidance (3)
Change Total sales $1.450 to $1.500B
$1.510 to $1.560B Increased for C4ISR
acquisitions (GATR and TeraLogics), partially offset by FX
headwinds EBITDA (1) $85 to $100M $70
to $85M Decreased for acquisition costs and FX
headwinds, partially offset by C4ISR acquisitions profit
contribution Adjusted EBITDA (1) $125 to $140M
$130 to $145M (2)
Increased for C4ISR acquisitions profit
contribution, partially offset by FX headwinds
GAAP diluted EPS $1.30 to $1.55 $1.20
to $1.40 Decreased for acquisition costs and FX
headwinds, partially offset by income tax accounting (1)
EBITDA and Adjusted EBITDA are Non-GAAP
metrics - see the table included in the section titled “Use of
Non-GAAP Financial Information” for a reconciliation of these GAAP
and non-GAAP financial measures.
(2)
Revised fiscal year 2016 guidance for
Adjusted EBITDA adds back to EBITDA an estimated $34-$36 million of
pretax expense related to the strategic investment in ERP and
supply chain improvements and $30-$32 million of pretax acquisition
related expenses for recent business acquisitions.
(3) Key foreign exchange rates used in the revised forecasts
of sales, EPS, EBITDA and Adjusted EBITDA compared to the U.S.
dollar are as follows: British pound — 1.43; Australian dollar —
0.71; New Zealand dollar — 0.66. (4) Key foreign exchange
rates used in the original forecasts of sales, EPS, EBITDA and
Adjusted EBITDA compared to the U.S. dollar were as follows:
British pound — 1.55; Australian dollar — 0.72; New Zealand dollar
— 0.65.
Reportable Segment Results
Cubic Transportation Systems (40 percent of consolidated
sales for the first half of fiscal 2016)
Six Months Ended
Three Months Ended
March 31, March 31, 2016 2015 2016 2015 (in millions)
(in millions) Transportation Systems Segment Sales $ 274.5 $
278.2 $ 148.7 $ 146.7 Transportation Systems Segment
Operating Income $ 23.4 $ 39.1 $ 19.8 $ 27.0
CTS sales increased 1 percent in the second quarter to $148.7
million compared to $146.7 million last year, and decreased 1
percent for the six-month period to $274.5 million from $278.2
million last year. Foreign currency exchange rates had a
significant impact on the comparability of CTS sales between the
periods. The average exchange rates between the prevailing currency
in foreign operations and the U.S. dollar resulted in a decrease in
sales of $6.6 million for the second quarter and $13.4 million for
the six-month period compared to the same periods last year. For
the second quarter and first half of fiscal year 2016, CTS had
higher sales in North America but lower sales in the U.K. and
Australia.
CTS operating income decreased 27 percent in the second quarter
to $19.8 million compared to $27.0 million last year, and decreased
40 percent for the six-month period to $23.4 million from $39.1
million last year. The decreases in operating income for the
quarter and six-month period ended March 31, 2016 compared to the
same periods in 2015 is primarily the result of the transition to a
follow-on fare collections contract in London that has lower
margins than the legacy contract, particularly because it no longer
includes the award of usage bonuses once a year, in the second
fiscal quarter. In the first quarter of fiscal 2016, margins on the
follow-on contract were further impacted by transition costs. These
decreases were partially offset by increased operating margins on
contracts in Chicago, Vancouver and Sydney.
Cubic Global Defense Systems (31 percent of consolidated
sales for the first half of fiscal 2016)
Six Months Ended Three Months Ended March 31, March
31, 2016 2015 2016 2015 (in millions) Cubic
Global Defense Systems Segment Sales $ 212.2 $ 192.6 $ 116.3 $ 94.6
Cubic Global Defense Systems Segment Operating Loss $ (24.6
) $ (0.4 ) $ (21.2 ) $ 2.3
CGD Systems sales increased 23 percent in the second quarter of
fiscal 2016 to $116.3 million compared to $94.6 million last year,
and increased 10 percent for the first half of fiscal 2016 to
$212.2 million from $192.6 million last year. Sales were higher
from ground combat training system and simulator sales, partially
offset by lower sales from modular networking and baseband
communications equipment. Sales of air combat training systems were
higher for the second quarter of 2016 compared to the second
quarter last year, but were lower for the first half of 2016
compared to the first half of last year. Sales generated by
businesses acquired by CGD Systems during 2016 and 2015 totaled
$15.1 million and $22.9 million for the three- and six-month
periods ended March 31, 2016, respectively compared to $10.8
million and $11.8 million for the three- and six-month periods
ended March 31, 2015, respectively.
CGD Systems incurred an operating loss of $21.2 million in the
second quarter of fiscal 2016 compared to operating income of $2.3
million in the second quarter last year, and an operating loss of
$24.6 million for the first half of 2016 compared to an operating
loss of $0.4 million for the first half last year. The operating
loss in fiscal 2016 was primarily caused by charges incurred in
connection with the accounting for business acquisitions in the
first half of fiscal 2016. Including the impacts of business
acquisition accounting, the businesses acquired in 2016 and 2015
had an operating loss of $24.8 million for the second quarter of
fiscal 2016 compared to an operating loss of $1.5 million in the
second quarter of fiscal 2015. These businesses incurred an
operating loss of $28.7 million in the first half of 2016 compared
to an operating loss of $3.0 million in the first half of 2015. For
the second quarter and first half of fiscal 2016, operating income
was higher than in the same periods in 2015 on increased simulator
sales, but was lower on decreased sales of networking and baseband
communications equipment. In addition, cost growth on a ground
combat training system the Company is delivering in the Far East,
and reduced sales of higher margin air combat training systems to
the Far East reduced operating income on ground combat training
systems and air combat training systems in the second quarter and
first half of fiscal 2016 compared to the second quarter and first
half of fiscal 2015.
Cubic Global Defense Services (29 percent of consolidated
sales for the first half of fiscal 2016)
Six Months Ended Three Months Ended March 31, March
31, 2016 2015 2016 2015 (in millions) (in millions)
Cubic Global Defense Services Segment Sales $ 193.1 $ 186.5
$ 101.0 $ 97.5 Cubic Global Defense Services Segment
Operating Income $ 4.5 $ 1.1 $ 4.3 $ 1.1
CGD Services sales increased 4 percent in the second quarter to
$101.0 million compared to $97.5 million last year, and increased 4
percent for the six-month period to $193.1 million from $186.5
million last year. Sales for the second quarter and first half of
fiscal 2016 were higher primarily because of increased activity at
the Joint Readiness Training Center (JRTC) and higher activity
supporting Special Operations Forces training.
CGD Services operating income increased nearly 300 percent in
the second quarter to $4.3 million compared to $1.1 million last
year, and increased over 300 percent for the six-month period to
$4.5 million from $1.1 million last year. In the second quarter and
first half of fiscal 2016, operating margins increased on higher
sales of Special Operations Forces training and on greater activity
at the JRTC. For the first half of fiscal 2016, the increases in
operating income were partially offset by an operating loss
realized in the first quarter of fiscal 2016 on a Marine Corps
training contract that was bid in an extremely competitive
environment. CGD Services operating margins also increased due to a
decrease in amortization expense related to purchased intangible
assets.
Cash Flows
Operating activities used cash of $37.7 million in the first
half of 2016. For the six months ended March 31, 2016, CGD Systems
used cash due primarily to acquisition related costs, while the
operating activities of CTS and CGD Services had positive cash
flows. The Company paid cash of $243.5 million in connection with
the acquisitions of GATR and TeraLogics in the first half of 2016.
Financing activities for the six-month period consisted primarily
of the net receipt of proceeds of $180.0 million from short-term
borrowings and $74.7 million from long-term borrowings that, in
addition to existing cash resources, were used to finance
operations and the business acquisitions above.
Conference Call
Cubic management will host a conference call to discuss the
Company’s second quarter and six month results today, Monday, May
2, 2016 at 1:00 p.m. EDT/10:00 a.m. PDT, which will be
simultaneously broadcast over the Internet. Bradley H. Feldmann,
president and chief executive officer and John “Jay” D. Thomas,
executive vice president and chief financial officer, will host the
call.
Conference Dial-In Information
Financial analysts and institutional investors interested in
participating in the call are invited to dial:
- (877) 407-9708 for domestic
callers
- (201) 689-8259 for international
callers
Please dial-in approximately 10 minutes prior to the start of
the call.
Audio Webcast
A live webcast of the conference call and presentation slides
will be accessible on our website under the “Investor Relations”
tab at www.cubic.com.
Please visit the website at least 15 minutes prior to the call
to register, download and install any streaming
media software needed to listen to the webcast. A
replay of the broadcast will be available on the "Investor
Relations" tab of Cubic's website.
About Cubic
Cubic Corporation designs, integrates and operates systems,
products and services focused in the transportation, defense
training and secure communications markets. As the parent company
of two major business units, Cubic’s mission is to increase
situational awareness and understanding for customers worldwide.
Cubic Transportation Systems is a leading integrator of payment and
information technology and services to create intelligent travel
solutions for transportation authorities and operators. Cubic
Global Defense is a leading provider of realistic combat training
systems, secure communications and networking and highly
specialized support services for military and security forces of
the U.S. and allied nations. For more information about Cubic,
please visit the Company's website at www.cubic.com or on Twitter
@CubicCorp.
Forward-Looking Statements
This press release contains forward‐looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are subject to the safe harbor created by such Act.
Forward‐looking statements include, among others, statements about
our expectations regarding future events or our future financial
and/or operating performance; making investments in our Company to
drive increased productivity and efficiency in the future;
anticipated lower sales, operating income and gross margin
percentage in the future under our new contract with TfL; and the
potential recovery of certain costs related to a contract for the
development of a virtual training system. 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
risks, estimates, assumptions and uncertainties that could cause
actual results to differ materially from those expressed in these
statements, including, among others: our dependence on U.S. and
foreign government contracts; delays in approving U.S. and foreign
government budgets and cuts in U.S. and foreign government defense
expenditures; the ability of certain government agencies to
unilaterally terminate or modify our contracts with them; our
ability to successfully integrate new companies into our business
and to properly assess the effects of such integration on our
financial condition; the U.S. government’s increased emphasis on
awarding contracts to small businesses, and our ability to retain
existing contracts or win new contracts under competitive bidding
processes; the effects of politics and economic conditions on
negotiations and business dealings in the various countries in
which we do business or intend to do business; risks associated
with the restatement of our prior consolidated financial
statements, including our identification of material weaknesses in
our internal control over financial reporting; competition and
technology changes in the defense and transportation industries;
our ability to accurately estimate the time and resources necessary
to satisfy obligations under our contracts; the effect of adverse
regulatory changes on our ability to sell products and services;
our ability to identify, attract and retain qualified employees;
unforeseen problems with the implementation and maintenance of our
information systems; business disruptions due to cyber security
threats, physical threats, terrorist acts, acts of nature and
public health crises; our involvement in litigation, including
litigation related to patents, proprietary rights and employee
misconduct; our reliance on subcontractors and on a limited number
of third parties to manufacture and supply our products; our
ability to comply with our development contracts and to
successfully develop, introduce and sell new products, systems and
services in current and future markets; defects in, or a lack of
adequate coverage by insurance or indemnity for, our products and
systems; and changes in U.S. and foreign tax laws, exchange rates
or our economic assumptions regarding our pension plans. In
addition, please refer to the risk factors contained in our SEC
filings available at www.sec.gov, including our most recent Annual
Report on Form 10‐K and Quarterly Reports on Form 10‐Q. Because the
risks, estimates, assumptions and uncertainties referred to above
could cause actual results or outcomes to differ materially from
those expressed in any forward‐looking statements, you should not
place undue reliance on any forward‐ looking statements. Any
forward‐looking statement speaks only as of the date hereof, and,
except as required by law, we undertake no obligation to update any
forward‐looking statement to reflect events or circumstances after
the date hereof.
Use of Non-GAAP Financial Information
We believe that the presentation of Earnings before interest,
taxes, depreciation, and amortization (EBITDA) and Adjusted EBITDA
included in this report provides useful information to investors
with which to analyze our operating trends and performance and
ability to service and incur debt. Also, we believe EBITDA
facilitates company-to-company operating performance comparisons by
backing out potential differences caused by variations in capital
structures (affecting net interest expense), taxation, variations
in organic vs. inorganic growth (affecting amortization expense)
and the age and book depreciation of property, plant and equipment
(affecting relative depreciation expense). We believe Adjusted
EBITDA further facilitates company-to-company operating comparisons
by backing out items that we believe are not part of our core
operating performance. Items backed out of Adjusted EBITDA are
comprised of expenses incurred in the development of our ERP system
and the redesign of our supply chain, business acquisition expenses
including retention bonus expenses, due diligence and consulting
costs incurred in connection with the acquisitions, expenses
recognized related to the change in the fair value of contingent
consideration for acquisitions, restructuring costs, and income and
expenses classified as other non-operating income and expenses
which may vary for different companies for reasons unrelated to
operating performance.
In addition, EBITDA and Adjusted EBITDA are key drivers of the
Company’s core operating performance and major factors in
management’s bonus compensation each year. Management has excluded
the effects of these items in these measures to assist investors in
analyzing and assessing our past and future core operating
performance.
In addition, we believe that EBITDA and Adjusted EBITDA are
frequently used by securities analysts, investors and other
interested parties in their evaluation of companies, many of which
present EBITDA, Adjusted EBITDA and/or other adjusted measures when
reporting their results.
EBITDA and Adjusted EBITDA are not measurements of financial
performance under GAAP and should not be considered as alternatives
to net income as a measure of performance. In addition, other
companies may define EBITDA and Adjusted EBITDA differently and, as
a result, our measures of EBITDA and Adjusted EBITDA may not be
directly comparable to EBITDA and Adjusted EBITDA of other
companies. Furthermore, EBITDA and Adjusted EBITDA have limitations
as analytical tools, and you should not consider either of them in
isolation, or as a substitute for analysis of our results as
reported under GAAP.
Because of these limitations, EBITDA and Adjusted EBITDA should
not be considered as measures of discretionary cash available to us
to invest in the growth of our business. We compensate for these
limitations by relying primarily on our GAAP results and using
EBITDA and Adjusted EBITDA only supplementally. You are cautioned
not to place undue reliance on EBITDA or Adjusted EBITDA.
The following table reconciles EBITDA and Adjusted EBITDA to net
income attributable to Cubic, which we consider to be the most
directly comparable GAAP financial measure to EBITDA and Adjusted
EBITDA.
Six Months Ended Three Months Ended
March 31, March 31, 2016 2015 2016 2015 (in thousands) Net
income (loss) attributable to Cubic $ 4,730 $ (5,872 ) $ 10,144 $
(11,024 ) Add: Interest expense, net 3,180 1,030 2,240 624
Income taxes (24,675 ) 34,304 (21,247 ) 33,609 Depreciation and
amortization 18,977 20,064 10,029 11,117 Noncontrolling interest in
income of VIE - 23 -
13 EBITDA 2,212 49,549
1,166 34,339 Adjustments to
EBITDA: Acquisition related expenses, excluding amortization 23,955
2,565 19,658 880 ERP system development and supply chain process
redesign expense 15,935 1,881 9,429 742 Restructuring costs (75 )
5,258 311 5,406 Other non-operating expense (income), net
(398 ) 900 (223 ) (16 ) Adjusted EBITDA
$ 41,629 $ 60,153 $ 30,341 $ 41,351
Financial Statements
CUBIC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (LOSS) (UNAUDITED) (amounts in thousands, except per share
data) Six Months Ended Three
Months Ended March 31, March 31, 2016 2015 2016 2015 Net sales:
Products $ 280,763 $ 259,122 $ 155,794 $ 130,510 Services
399,074 398,200 210,230
208,324 679,837 657,322 366,024 338,834 Costs and
expenses: Products 219,637 194,545 120,445 90,121 Services 314,594
305,337 159,938 156,045 Selling, general and administrative 138,265
100,476 79,774 52,922 Research and development 9,625 6,892 6,143
2,640 Amortization of purchased intangibles 14,954 14,429 8,499
8,494 Restructuring costs (75 ) 5,258
311 5,406 697,000 626,937
375,110 315,628 Operating
income (loss) (17,163 ) 30,385 (9,086 ) 23,206 Other income
(expense): Interest and dividend income 737 903 339 438 Interest
expense (3,917 ) (1,933 ) (2,579 ) (1,062 ) Other income (expense)
- net 398 (900 ) 223 16
Income (loss) before income taxes (19,945 ) 28,455
(11,103 ) 22,598 Income tax expense (benefit) (24,675
) 34,304 (21,247 ) 33,609
Net income (loss) 4,730 (5,849 ) 10,144 (11,011 ) Less
noncontrolling interest in income of VIE - 23
- 13 Net income (loss)
attributable to Cubic $ 4,730 $ (5,872 ) $ 10,144 $
(11,024 ) Net income (loss) per share attributable to Cubic
Basic $ 0.18 $ (0.22 ) $ 0.38 $ (0.41 ) Diluted $ 0.18 $ (0.22 ) $
0.38 $ (0.41 ) Dividends per common share $ 0.14 $ 0.14 $
0.14 $ 0.14 Weighted average shares used in per share
calculations: Basic 26,968 26,861 26,973 26,862 Diluted 26,986
26,861 26,995 26,862
CUBIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands)
March 31, September 30, 2016 2015
ASSETS
Current assets: Cash and cash equivalents $ 158,808 $ 218,476
Restricted cash 72,759 69,245 Marketable securities 14,380 30,533
Accounts receivable - net 347,617 358,925 Recoverable income taxes
16,678 753 Inventories - net 78,512 63,700 Deferred income taxes
and other current assets 41,744 33,670
Total current assets 730,498 775,302
Long-term contract receivables 46,106 36,809 Long-term
capitalized contract costs 69,837 73,017 Property, plant and
equipment - net 93,910 74,690 Deferred income taxes 1,555 11,443
Goodwill 409,442 237,899 Purchased intangibles - net 143,833 72,936
Other assets 5,906 18,180 $ 1,501,087
$ 1,300,276
LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities: Short-term borrowings $ 240,000 $
60,000 Trade accounts payable 62,853 47,170 Customer advances
60,160 77,083 Accrued compensation and other current liabilities
126,799 143,919 Income taxes payable 1,509 4,675 Deferred income
taxes - 13,404 Current portion of long-term debt 498
525 Total current liabilities 491,819
346,776 Long-term debt 200,872 126,180 Other
long-term liabilities 67,000 71,032 Shareholders' equity:
Common stock 28,178 25,560 Retained earnings 819,674 818,642
Accumulated other comprehensive loss (70,378 ) (51,836 ) Treasury
stock at cost (36,078 ) (36,078 ) Total shareholders'
equity 741,396 756,288 $ 1,501,087
$ 1,300,276
CUBIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in
thousands) Six Months Ended Three
Months Ended March 31, March 31, 2016 2015 2016 2015 Operating
Activities: Net income (loss) $ 4,730 $ (5,849 ) $ 10,144 $ (11,011
) Adjustments to reconcile net income (loss) to net cash provided
by (used in) operating activities: Depreciation and amortization
18,977 20,064 10,029 11,117 Share-based compensation expense 4,088
5,291 1,970 4,238 Changes in operating assets and liabilities, net
of effects from acquisitions (65,490 ) 41,592
(10,251 ) 48,473 NET CASH PROVIDED BY (USED
IN) OPERATING ACTIVITIES (37,695 ) 61,098
11,892 52,817 Investing
Activities: Acquisition of businesses, net of cash acquired
(243,483 ) (89,460 ) (213,765 ) (6,037 ) Purchases of property,
plant and equipment (21,375 ) (2,580 ) (11,015 ) (1,704 ) Purchases
of marketable securities (14,686 ) (4,590 ) (7,145 ) (4,590 )
Proceeds from sales or maturities of marketable securities 29,870
1,196 15,694 1,196 Purchases of other assets -
(2,993 ) - (641 ) NET CASH USED IN INVESTING
ACTIVITIES (249,674 ) (98,427 ) (216,231 )
(11,776 ) Financing Activities: Proceeds from
short-term borrowings 253,300 70,000 180,700 10,000 Principal
payments on short-term borrowings (73,300 ) (15,000 ) (50,700 )
(15,000 ) Proceeds from long-term borrowings 75,000 - 75,000 -
Principal payments on long-term debt (254 ) (269 ) (123 ) (131 )
Purchase of common stock (1,658 ) (1,723 ) - (141 ) Dividends paid
(3,641 ) (3,627 ) (3,641 ) (3,627 ) Net change in restricted cash
(3,514 ) (101 ) (1,102 ) (42 )
Contingent consideration payments related
to acquisitions of businesses
(1,679 ) - - - NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 244,254
49,280 200,134 (8,941 )
Effect of exchange rates on cash (16,553 )
(19,696 ) (8,350 ) (11,259 ) NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS (59,668 ) (7,745 ) (12,555
) 20,841
Cash and cash equivalents at the beginning
of the period
218,476 215,849 171,363
187,263 CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD $ 158,808 $ 208,104 $ 158,808 $
208,104 Supplemental disclosure of non-cash
investing and financing activities: Liability incurred to
acquire GATR, net $ 7,651 $ - $ 7,651 $ - Liability incurred to
acquire TeraLogics, net $ 4,998 $ - $ - $ - Liability incurred to
acquire H4 Global, net $ 952 $ - $ - $ - Liability incurred to
acquire DTECH, net $ - $ 8,854 $ - $ - Liability incurred to
acquire internal use software $ - $ 10,800 $ - $ 10,800
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version on businesswire.com: http://www.businesswire.com/news/home/20160502005938/en/
Cubic CorporationDiane DyerInvestor Relations858-505-2907orJohn
D. ThomasMedia858-505-2989
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