Cubic Reports Third Quarter Fiscal Year 2013 Results

Cubic Corporation (NYSE: CUB) today reported its results for the third quarter of fiscal year 2013. Sales for the third quarter of 2013 were $340.4 million compared to $365.4 million in the third quarter of 2012, a decrease of 7 percent. Net income attributable to Cubic shareholders was $18.4 million, or $0.69 per share compared to $26.7 million, or $1.00 per share, in the third quarter of 2012.

Operating income was $27.0 million compared to $38.6 million last year. In comparison to last year, operating income for the third quarter of 2013 was down due to a defense systems contract settlement that occurred in the third quarter of 2012. This settlement resulted in higher operating income and higher sales of $12.5 million for the third quarter of 2012.

Total backlog of $2.87 billion for the quarter ended June 30, 2013 increased from $2.83 billion at September 30, 2012, reflecting strong domestic and international contract award activity in our two defense segments. The negative changes in currency exchange rates for the nine months ended June 30, 2013 reduced backlog by $69.9 million.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA), a non-GAAP measure (as described below), was $33.4 million in this year’s third quarter compared to $44.4 million last year.

“We have said 2013 would be a transition year compared to our record year in 2012. The transportation segment’s performance for the year has been very good while the defense segments are facing a challenging DoD environment. Despite the challenges, we are encouraged by contract awards in our two defense segments and improved operating profit performance in defense systems in the third quarter compared to earlier in the fiscal year,” said William Boyle, Chief Executive Officer of Cubic Corporation.

Reportable Segment Results

Transportation Systems (39% of consolidated sales)
     
Nine Months Ended Three Months Ended
June 30, June 30,
2013   2012 2013   2012

 
(in millions)
Transportation Systems Segment Sales $ 391.2 $ 383.3 $ 133.8 $ 125.8

 
 
Transportation Systems Segment Operating Income $ 63.6 $ 60.5 $ 18.2 $ 19.2

 
 

Cubic Transportation Systems (CTS) develops and delivers innovative fare collection systems and services for public transit authorities worldwide. In the third quarter of this year, CTS sales increased 6 percent to $133.8 million compared to $125.8 million in the same period last year. The increase resulted from higher sales on contracts in the U.S., including a contract for a suburban bus system near Chicago, and transit system contracts in Minneapolis, and New York. NextBus, a real-time passenger information system business the company acquired in January 2013, contributed sales of $3.1 million for the third quarter of this year.

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