Cubic Corporation (NYSE: CUB) today announced its financial
results for the first quarter ended December 31, 2019.
First Quarter Fiscal Year 2020 Highlights
- Sales of $328.8 million, up 8% year-over-year
- Net loss from continuing operations attributable to Cubic of
$20.0 million, or $0.64 per share, compared to $6.6 million, or
$0.23 per share in the first quarter of fiscal 2019
- Adjusted EPS of ($0.12) per share, compared to $0.32 per share
in the first quarter of fiscal 2019
- Adjusted EBITDA of $11.4 million, compared to $20.0 million in
the first quarter of fiscal 2019
- Signed definitive agreement with Moovit to co-develop
next-generation mobile solutions
- Closed Pixia and Delerrok acquisitions, advancing NextMission™
and NextCity™ strategies
- Reaffirmed fiscal 2020 guidance: Sales $1,580 to $1,640
million; Adjusted EBITDA $170 to $190 million; Adjusted EPS $3.10
to $3.70
“I am pleased with our first quarter sales growth and additional
contract wins across each business, while we continued to make
incremental growth investments in Cubic Mission Solutions,” said
Bradley H. Feldmann, chairman, president and chief executive
officer of Cubic Corporation. “We remain focused on delivering on
Cubic’s strategic growth plan and we are confident in the full year
outlook, which is supported by our large backlog in transportation,
recent bookings in defense training and continued robust demand in
C4ISR.”
Financial Results
Summary(1)
Three Months Ended
December 31,
2019
2018
(in millions, except per share data) Sales
$
328.8
$
305.3
Operating loss
(6.5
)
(0.6
)
Adjusted EBITDA
11.4
20.0
Adjusted net income (loss)
(3.7
)
9.1
Loss from continuing operations attributable to Cubic before
income taxes
$
(13.7
)
$
(4.1
)
Income tax provision from continuing operations attributable to
Cubic
6.2
2.5
Net loss from continuing operations attributable to Cubic
$
(20.0
)
$
(6.6
)
Loss per share from continuing operations attributable to Cubic
$
(0.64
)
$
(0.23
)
Adjusted earnings (loss) per share
(0.12
)
0.32
Acquisition-related expenses (gains), excluding amortization
(0.7
)
2.5
Strategic and IT system resource planning expenses
1.1
1.6
Depreciation and amortization
17.0
16.0
Research and development expense
8.4
12.0
(1) See the section below titled “Use of Non-GAAP Financial
Information” for additional information regarding Non-GAAP
financial measures.
Consolidated First Quarter Fiscal Year 2020 Results
Sales for the first quarter of fiscal 2020 increased 8% as
reported and 6% on an organic basis to $328.8 million, compared to
$305.3 million in the first quarter of fiscal 2019, reflecting
growth in all three segments.
Operating loss in the first quarter of fiscal 2020 was $6.5
million, compared to $0.6 million in the first quarter of fiscal
2019. The increase in operating loss was largely driven by
incremental growth investments in the Missions Solutions segment.
Additionally, unallocated corporate expenses increased to $12.2
million, compared to $9.6 million in the first quarter of fiscal
2019, primarily driven by an increase in stock-based compensation
expense.
Adjusted EBITDA in the first quarter of fiscal 2020 decreased to
$11.4 million, compared to $20.0 million in the first quarter of
fiscal 2019, primarily due to the same factors that drove a higher
operating loss.
Net loss from continuing operations attributable to Cubic in the
first quarter of fiscal 2020 was $20.0 million, or $0.64 per share,
compared to $6.6 million in the first quarter of fiscal 2019, or
$0.23 per share, reflecting an increase in operating loss and
higher taxes. The effective tax rate was negative 64%, compared to
negative 31% for the first quarter of fiscal 2019 and the statutory
rate of 21%. The tax expense recognized on the pre-tax loss was
primarily due to jurisdictional mix of earnings and an increase in
US BEAT and state cash tax expense.
Adjusted net loss was $3.7 million, or $0.12 per share, in the
first quarter of fiscal 2020, compared to Adjusted net income of
$9.1 million, or $0.32 per share, in the first quarter of fiscal
2019, reflecting lower Adjusted EBITDA and an increase in taxes and
depreciation expense.
Net cash used in continuing operations was $47.6 million in the
first quarter of fiscal 2020, compared to $61.2 million in the
first quarter of fiscal 2019. Adjusted Free Cash Flow improved to
negative $33.7 million in the first quarter of fiscal 2020,
compared to negative $67.4 million in the first quarter of fiscal
2019.
Reportable Segment
Results
Three Months Ended
December 31,
2019
2018
% Change
Sales: (in millions)
Cubic Transportation Systems
$
188.6
$
181.8
4
%
Cubic Mission Solutions
58.7
46.4
27
%
Cubic Global Defense Systems
81.5
77.1
6
%
Total sales
$
328.8
$
305.3
8
%
Operating income (loss): Cubic Transportation Systems
$
14.3
$
11.0
30
%
Cubic Mission Solutions
(14.9
)
(4.9
)
nm Cubic Global Defense Systems
6.3
2.9
117
%
Unallocated corporate expenses
(12.2
)
(9.6
)
nm Total operating income (loss)
$
(6.5
)
$
(0.6
)
nm
Adjusted EBITDA: Cubic Transportation Systems
$
22.2
$
19.4
14
%
Cubic Mission Solutions
(9.3
)
0.7
nm Cubic Global Defense Systems
7.5
5.7
32
%
Unallocated corporate expenses
(9.0
)
(5.8
)
nm Total Adjusted EBITDA
$
11.4
$
20.0
(43)
%
Cubic Transportation Systems
(CTS)
CTS sales increased 4% to $188.6 million in the first quarter of
fiscal 2020, compared to $181.8 million in the first quarter of
fiscal 2019. Organic sales growth of 2% was primarily driven by
system development related to our Brisbane, San Francisco Bay Area
and Boston next-generation fare payment systems contracts.
CTS Adjusted EBITDA increased 14% to $22.2 million in the first
quarter of fiscal 2020, compared to $19.4 million in the first
quarter of fiscal 2019, reflecting lower research and development
expense and higher sales.
Cubic Mission Solutions (CMS)
CMS sales increased 27% to $58.7 million in the first quarter of
fiscal 2020, compared to $46.4 million in the first quarter of
fiscal 2019. Organic sales growth of 20% reflects increased
deliveries in all CMS product lines, particularly expeditionary
satellite communications and other secure communications
products.
CMS Adjusted EBITDA decreased to negative $9.3 million in the
first quarter of fiscal 2020, compared to $0.7 million in the first
quarter of fiscal 2019. Adjusted EBITDA reflects incremental growth
investments related to our Troposcatter and MQ-25 contracts.
Cubic Global Defense Systems
(CGD)
CGD sales increased 6% on a reported and organic basis to $81.5
million in the first quarter of fiscal 2020, compared to $77.1
million in the first quarter of fiscal 2019, primarily due to
increased work on air combat training systems.
CGD Adjusted EBITDA increased 32% to $7.5 million in the first
quarter of fiscal 2020, compared to $5.7 million in the first
quarter of fiscal 2019, reflecting cost savings initiatives and
higher sales.
Backlog
Backlog increased by $351.0 million from September 30, 2019 to
December 31, 2019, primarily due to an award for a five-year
extension to upgrade Chicago’s Ventra fare collection system.
Foreign currency had a favorable impact of $76.1 million.
December 31,
September 30,
2019
2019
(in millions)
Total backlog
Cubic Transportation Systems
$
3,245.7
$
2,953.3
Cubic Mission Solutions
114.7
103.7
Cubic Global Defense Systems
391.6
344.0
Total
$
3,752.0
$
3,401.0
Fiscal 2020 Full Year Guidance(1)
FY2020 Guidance
(unchanged from prior
guidance)
Sales ($m)
$1,580 to $1,640
Adjusted EBITDA ($m)
$170 to $190
Adjusted EPS
$3.10 to $3.70
(1) Constant foreign currency. Includes the impact of the
acquisitions of Delerrok and Pixia, which closed in January
2020.
Conference Call and Webcast Information
Date:
February 5, 2020
Time:
5:00 p.m. ET
Hosts:
Bradley H. Feldmann, Chairman,
President and Chief Executive Officer
Anshooman Aga, Executive Vice
President and Chief Financial Officer
Dial in:
844-603-5091
825-312-2261 (international)
Conference ID 3428348
Webcast:
https://event.on24.com/wcc/r/2151353/6792785B46783D5C362AB8A8D093E723
An archive of the webcast will be made available on the Investor
Relations section of the company’s website:
https://www.cubic.com/investor-relations/financials.
About Cubic Corporation
Cubic is a technology-driven,
market-leading provider of integrated solutions that increase
situational understanding for transportation, defense C4ISR and
training customers worldwide to decrease urban congestion and
improve the militaries’ effectiveness and operational readiness.
Our teams innovate to make a positive difference in people’s lives.
We simplify their daily journeys. We promote mission success and
safety for those who serve their nation. For more information about
Cubic, please visit 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, including achieving our fiscal 2020
full year guidance and delivering on our strategic growth plan.
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 assumptions covering behavior by public
transit authorities; our ability to successfully integrate new
companies, including Trafficware, GRIDSMART, Nuvotronics, Delerrok
and Pixia into our business and to properly assess the effects of
such integration on our financial condition and operating results;
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; negative
audits by the U.S. government; 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;
competition and technology changes in the defense and
transportation industries; the change in the way transit agencies
pay for transit systems; 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,
including our new ERP system; 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; changes in U.S. and foreign tax laws, exchange rates or
our economic assumptions regarding our pension plans; and we may
not be able to achieve our fiscal 2020 guidance. 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 Report 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
In addition to results reported under GAAP, we provide certain
non-GAAP measures. These non-GAAP measures consist of organic sales
growth, Adjusted net income, Adjusted earnings per share (Adjusted
EPS), Adjusted EBITDA and Adjusted Free Cash Flow. We believe that
these non-GAAP measures provide additional insight into our ongoing
operations and underlying business trends, facilitate a comparison
of our results between current and prior periods, and facilitate
the comparison of our operating results with the results of other
public companies that provide non-GAAP measures. We use Adjusted
EBITDA internally to evaluate the operating performance of our
business, for strategic planning purposes, and as a factor in
determining incentive compensation for certain employees. These
non-GAAP measures facilitate company-to-company operating
comparisons by excluding items that we believe are not part of our
core operating performance. Organic sales growth is defined as the
year-over-year percentage change in reported sales relative to the
prior comparable period, excluding the impact of acquisitions and
divestitures over the prior 12 months and the impact of foreign
currency translation. Adjusted EBITDA is defined as GAAP net income
from continuing operations attributable to Cubic before interest
expense, income taxes, depreciation and amortization, other
non-operating expense, acquisition-related expenses, strategic and
IT system resource planning expenses, restructuring costs, and
gains or losses on the disposal of fixed assets. Adjusted net
income is defined as GAAP net income from continuing operations
attributable to Cubic excluding amortization of purchased
intangibles, restructuring costs, acquisition related expenses,
strategic and IT system resource planning expenses, gains or losses
on the disposal of fixed assets, other non-operating expense
(income), tax impacts related to acquisitions, and the impact of
U.S. Tax Reform. Adjusted EPS is defined as Adjusted net income on
a per share basis using the weighted average diluted shares
outstanding. Strategic and IT system resource planning expenses
consists of expenses incurred in the development of our ERP system
and the redesign of our supply chain which include internal labor
costs and external costs of materials and services that do not
qualify for capitalization. Acquisition-related expenses include
business acquisition expenses including retention bonus expenses,
due diligence and consulting costs incurred in connection with the
acquisitions, and expenses recognized related to the change in the
fair value of contingent consideration for acquisitions.
Adjusted Free Cash Flow is defined as Net cash provided by
continuing operations, excluding operating cash flow associated
with the Boston Special Purpose Vehicle (SPV) in which Cubic has a
10% equity stake, less capital expenditures plus proceeds from the
sale of fixed assets and the receipt of withheld proceeds from the
sale of trade receivables. The Boston SPV has contracted with Cubic
for the design-build and operations and maintenance phases of the
next-generation fare collection system for the Massachusetts Bay
Transit Authority and pays Cubic progress payments during the
design-build phase of the project. These payments are primarily
funded by non-recourse debt issued by the SPV. Additional
information regarding the company’s Boston SPV can be found in our
Annual Report on Form 10-K for the year ended September 30, 2019.
Management believes that Adjusted Free Cash Flow is meaningful to
investors because management reviews cash flows generated from
operations after taking into consideration capital expenditures,
which are necessary to maintain and expand Cubic’s business, in
addition to the other adjustments noted above. Adjusted Free Cash
Flow does not represent the residual cash flow available for
discretionary expenditures since other non-discretionary
expenditures are not deducted from the measure.
These non-GAAP measures are not measurements of financial
performance under GAAP and should not be considered as measures of
discretionary cash available to the company or as alternatives to
net income as a measure of performance. In addition, other
companies may define these non-GAAP measures differently and, as a
result, our non-GAAP measures may not be directly comparable to the
non-GAAP measures of other companies. Furthermore, non-GAAP
financial measures have limitations as an analytical tool and you
should not consider these measures in isolation, or as a substitute
for analysis of our results as reported under GAAP. Investors are
advised to carefully review our GAAP financial results that are
disclosed in our SEC filings. With respect to our fiscal year 2020
Adjusted EBITDA and Adjusted EPS guidance, certain items that
affect GAAP net income cannot be reasonably predicted as we are
unable to quantify certain amounts that would be required to be
included in the comparable forecasted GAAP measures without
unreasonable effort. As such, we are unable to provide a reasonable
estimate of GAAP net income or GAAP EPS, or a corresponding
reconciliation of Adjusted EBITDA and Adjusted EPS guidance to GAAP
net income or GAAP EPS for the full year. In addition, we believe
such reconciliations would imply a degree of precision that would
be confusing or misleading to investors.
We reconcile organic sales growth to sales growth as reported,
which we consider to be the most directly comparable GAAP financial
measure. We reconcile Adjusted EBITDA and Adjusted net income to
GAAP net income, which we consider to be the most directly
comparable GAAP financial measure. We reconcile Adjusted EPS to
GAAP EPS, which we consider to be the most directly comparable GAAP
financial measure. We reconcile Adjusted Free Cash Flow to Net cash
provided by continuing operations, which we consider to be the most
directly comparable GAAP financial measure. The following tables
reconcile these non-GAAP measures to their most directly comparable
GAAP financial measure.
ORGANIC SALES GROWTH RATE RECONCILIATION
Three Months Ended December
31, 2019
Cubic
CTS
CMS
CGD
Sales growth as reported
7.7
%
3.8
%
26.5
%
5.7
%
Contribution from acquisitions
(2.3
%)
(2.3
%)
(6.1
%)
—
Foreign currency translation
0.6
%
0.8
%
—
0.3
%
Organic sales growth
6.0
%
2.3
%
20.5
%
6.1
%
Percentages may not sum due to
rounding.
GAAP NET INCOME TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION (EBITDA) RECONCILIATION
Three Months Ended
($ In Millions)
December 31,
Cubic Transportation Systems
2019
2018
Sales
$
188.6
$
181.8
Operating income
$
14.3
$
11.0
Depreciation and amortization
7.1
7.7
Noncontrolling interest in income of
VIE
(0.9
)
(1.5
)
Acquisition-related expenses, excluding
amortization
1.3
1.8
Restructuring costs
0.4
0.4
Adjusted EBITDA
$
22.2
$
19.4
Adjusted EBITDA margin
11.8
%
10.7
%
Three Months Ended
December 31,
Cubic Mission Solutions
2019
2018
Sales
$
58.7
$
46.4
Operating loss
$
(14.9
)
$
(4.9
)
Depreciation and amortization
7.5
5.4
Acquisition-related expenses (gains),
excluding amortization
(1.9
)
0.2
Adjusted EBITDA
$
(9.3
)
$
0.7
Adjusted EBITDA margin
(15.8
%)
1.5
%
Three Months Ended
December 31,
Cubic Global Defense Systems
2019
2018
Sales
$
81.5
$
77.1
Operating income
$
6.3
$
2.9
Depreciation and amortization
1.7
2.2
Acquisition-related expenses (gains),
excluding amortization
(0.3
)
0.5
Gain on sale of fixed assets
(0.2
)
—
Restructuring costs
—
0.1
Adjusted EBITDA
$
7.5
$
5.7
Adjusted EBITDA margin
9.2
%
7.4
%
Three Months Ended
December 31,
Cubic Consolidated
2019
2018
Sales
$
328.8
$
305.3
Net loss from continuing operations
attributable to Cubic
$
(20.0
)
$
(6.6
)
Noncontrolling interest in net income
(loss) of VIE
4.0
(4.0
)
Provision for income taxes
6.2
2.5
Interest expense, net
3.1
2.8
Other non-operating expense (income),
net
0.1
4.8
Operating loss
$
(6.5
)
$
(0.6
)
Depreciation and amortization
17.0
16.0
Noncontrolling interest in EBITDA of
VIE
(0.9
)
(1.5
)
Acquisition-related expenses (gains),
excluding amortization
(0.7
)
2.5
Strategic and IT system resource planning
expenses
1.1
1.6
Gain on sale of fixed assets
(0.2
)
—
Restructuring costs
1.6
2.0
Adjusted EBITDA
$
11.4
$
20.0
Adjusted EBITDA margin
3.5
%
6.6
%
Amounts may not sum due to rounding
GAAP NET INCOME TO ADJUSTED NET INCOME AND GAAP EPS TO
ADJUSTED EPS RECONCILIATION
Three Months Ended December 31,
2019
2018
($ In Millions, Except Per Share Data) GAAP EPS
$
(0.64
)
$
(0.23
)
GAAP Net loss from continuing operations attributable to
Cubic
$
(20.0
)
$
(6.6
)
Noncontrolling interest in the gain (loss) of the VIE
4.0
(4.0
)
Amortization of purchased intangibles
10.1
10.6
Gain on sale of fixed assets
(0.2
)
— Restructuring costs
1.6
2.0
Acquisition-related expenses (gains), excluding amortization
(0.7
)
2.5
Strategic and IT system resource planning expenses
1.1
1.6
Other non-operating expense (income), net
0.1
4.8
Noncontrolling interest in Adjusted Net Income of VIE
(1.2
)
(1.5
)
Tax impact related to acquisitions1 —
(0.3
)
Tax impact related to non-GAAP adjustments2
1.5
—
Adjusted net income (loss)
$
(3.7
)
$
9.1
Adjusted EPS
$
(0.12
)
$
0.32
Weighted Average Diluted Shares Outstanding (in thousands)
31,273
28,492
Amounts may not sum due to rounding
1 Represents the tax accounting impact of
significant discrete items recorded at the time of acquisition.
2 The tax effect of the non-GAAP
adjustments is generally based on the statutory tax rate of the
jurisdiction of the event.
OPERATING CASH FLOW TO ADJUSTED FREE CASH FLOW
RECONCILIATION
Three Months Ended ($ In Millions) December
31, Cubic Consolidated
2019
2018
Net cash used in continuing operating activities
$
(47.6
)
$
(61.2
)
Capital expenditures
(11.8
)
(12.0
)
Operating cash flow associated with SPV
20.2
5.8
Receipt of withheld proceeds from sale of trade receivables
5.5
—
Adjusted Free Cash Flow
$
(33.7
)
$
(67.4
)
CUBIC CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(amounts in thousands, except per
share data)
Three Months Ended December 31,
2019
2018
Net sales: Products
$
200,604
$
182,253
Services
128,235
123,006
328,839
305,259
Costs and expenses: Products
166,843
125,485
Services
82,648
92,785
Selling, general and administrative expenses
65,915
62,986
Research and development
8,422
12,012
Amortization of purchased intangibles
10,089
10,565
Gain on sale of property, plant and equipment
(170
)
— Restructuring costs
1,575
1,992
335,322
305,825
Operating loss
(6,483
)
(566
)
Other income (expenses): Interest and dividend income
2,218
1,234
Interest expense
(5,363
)
(4,032
)
Other income (expense), net
(127
)
(4,753
)
Loss from continuing operations before income taxes
(9,755
)
(8,117
)
Income tax provision
6,246
2,497
Loss from continuing operations
(16,001
)
(10,614
)
Net loss from discontinued operations
(584
)
— Net loss
(16,585
)
(10,614
)
Less noncontrolling interest in net income (loss) of VIE
3,990
(4,027
)
Net loss attributable to Cubic
$
(20,575
)
$
(6,587
)
Amounts attributable to Cubic: Net loss from continuing
operations
$
(19,991
)
$
(6,587
)
Net loss from discontinued operations
(584
)
— Net loss attributable to Cubic
$
(20,575
)
$
(6,587
)
Net loss per share: Basic Continuing operations attributable
to Cubic
$
(0.64
)
$
(0.23
)
Discontinued operations
$
(0.02
)
$
— Basic earnings per share attributable to Cubic
$
(0.66
)
$
(0.23
)
Diluted Continuing operations attributable to Cubic
$
(0.64
)
$
(0.23
)
Discontinued operations
$
(0.02
)
$
— Diluted earnings per share attributable to Cubic
$
(0.66
)
$
(0.23
)
Weighted average shares used in per share calculations:
Basic
31,273
28,492
Diluted
31,273
28,492
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
September 30,
2019
2019
ASSETS Current assets: Cash and cash equivalents
$
61,599
$
65,800
Cash in consolidated VIE
410
347
Restricted cash
22,482
19,507
Restricted cash in consolidated VIE
9,967
9,967
Accounts receivable: Billed
113,493
127,406
Allowance for doubtful accounts
(1,407
)
(1,392
)
112,086
126,014
Contract assets
320,188
349,559
Recoverable income taxes
10,295
7,754
Inventories
122,912
106,794
Other current assets
48,941
38,534
Other current assets in consolidated VIE
79
33
Total current assets
708,959
724,309
Long-term contracts financing receivables
33,685
36,285
Long-term contracts financing receivables in consolidated VIE
124,576
115,508
Property, plant and equipment, net
151,218
144,969
Operating lease right-of-use asset
80,747
— Deferred income taxes
5,169
4,098
Goodwill
582,549
578,097
Purchased intangibles, net
155,862
165,613
Other assets
77,264
76,872
Other assets in consolidated VIE —
1,419
Total assets
$
1,920,029
$
1,847,170
LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities:
Short-term borrowings
$
226,500
$
195,500
Trade accounts payable
109,827
180,773
Trade accounts payable in consolidated VIE —
25
Contract liabilities
62,500
46,170
Accrued compensation and current liabilities
102,933
95,013
Other current liabilities in consolidated VIE
171
191
Income taxes payable
5,893
773
Current portion of long-term debt
10,714
10,714
Total current liabilities
518,538
529,159
Long-term debt
189,118
189,110
Long-term debt in consolidated VIE
82,984
61,994
Operating lease liability
73,924
— Other noncurrent liabilities
63,670
64,734
Other noncurrent liabilities in consolidated VIE
17,267
21,605
Shareholders’ equity: Common stock
276,497
274,472
Retained earnings
841,549
862,948
Accumulated other comprehensive loss
(130,349
)
(139,693
)
Treasury stock at cost
(36,078
)
(36,078
)
Shareholders’ equity related to Cubic
951,619
961,649
Noncontrolling interest in VIE
22,909
18,919
Total shareholders’ equity
974,528
980,568
Total liabilities and shareholders’ equity
$
1,920,029
$
1,847,170
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
Three Months Ended December 31,
2019
2018
Operating Activities: Net loss
$
(16,585
)
$
(10,614
)
Net loss from discontinued operations
584
— Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
16,950
16,011
Share-based compensation expense
4,477
2,720
Change in fair value of contingent consideration
(3,005
)
429
Change in fair value of interest rate swap in VIE
(4,337
)
6,133
Other items
4,295
462
Changes in operating assets and liabilities, net of effects from
acquisitions
(49,941
)
(76,308
)
NET CASH USED IN OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
(47,562
)
(61,167
)
NET CASH USED IN OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS
(44
)
— NET CASH USED IN OPERATING ACTIVITIES
(47,606
)
(61,167
)
Investing Activities: Acquisition of businesses, net of cash
acquired —
(247,150
)
Purchases of property, plant and equipment
(11,833
)
(12,045
)
Receipt of withheld proceeds from sale of trade receivables
5,521
— NET CASH USED IN INVESTING ACTIVITIES
(6,312
)
(259,195
)
Financing Activities: Proceeds from short-term borrowings
157,500
372,000
Principal payments on short-term borrowings
(126,500
)
(307,500
)
Proceeds from long-term borrowings in consolidated VIE
20,186
5,798
Proceeds from stock issued under employee stock purchase plan
1,169
— Purchase of common stock
(3,621
)
(3,419
)
Contingent consideration payments related to acquisitions of
businesses —
(435
)
Proceeds from equity offering, net —
215,832
NET CASH PROVIDED BY FINANCING ACTIVITIES
48,734
282,276
Effect of exchange rates on cash
4,021
1,962
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(1,163
)
(36,124
)
Cash, cash equivalents and restricted cash at the beginning
of the period
95,621
139,608
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT THE END OF THE
PERIOD
$
94,458
$
103,484
Supplemental disclosure of non-cash investing and financing
activities: Receivable recognized in connection with the
acquisition of Trafficware, net —
1,588
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200205005806/en/
Media Contact Laura Chon Corporate Communications Cubic
Corporation PH: +1 858-505-2181 Laura.Chon@cubic.com
Investor Contact Kirsten Nielsen Investor Relations Cubic
Corporation PH +1 212-331-9760 Kirsten.Nielsen@cubic.com
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