Cubic Corporation Reports Higher Sales and Earnings for the Fiscal Year Ended September 30, 2006 |
| Cubic Corporation Logo. (PRNewsFoto)
SAN DIEGO, CA USA | |||
SAN DIEGO, Dec. 7 /PRNewswire-FirstCall/ -- Cubic Corporation (Amex:
CUB) today reported higher sales and earnings for the fiscal year ended
September 30, 2006. Sales in fiscal 2006 grew to $821.4 million from $804.4
million last year, while net income more than doubled from $11.6 million or
44 cents per share last year to $24.1 million or 90 cents per share this
year. For the second year in a row cash flow from operations was strong, at
$31.4 million for the year, following $54.7 million in 2005.
The increase in sales came from the defense segment while much of the
earnings improvement came from the transportation segment, which returned
to profitability in 2006 after having posted an operating loss in 2005.
Defense segment operating income also increased in 2006, commensurate with
the increase in sales. Overall operating income improved by 135 percent to
$30.8 million from $13.1 million last year. In addition to the operating
income improvement, the sale of investment real estate in 2006 added
approximately $4.3 million after taxes to net income.
Defense Segment
Sales from the defense segment increased 4 percent to $562.8 million
from $543.4 million in 2005, with each defense business unit contributing
to the increase. Operating income in the defense segment increased to $31.4
million from $30.1 million in 2005, a 4 percent increase. The increase in
operating income was due primarily to improved performance from the
communications and electronics business unit. In addition, the mission
support services business unit posted a 15 percent increase in operating
income, while the training systems business unit saw operating income
decrease due primarily to an investment in new technology and cost growth
in the development of a ground combat training system for a foreign
customer.
Transportation Systems Segment
Transportation Systems sales were nearly unchanged from $245.8 million
in 2005 to $243.9 million in 2006. Sales in North America increased, while
sales in Australia decreased and European sales were consistent from year
to year. The transportation segment returned to profitability in 2006, with
operating income of $2.8 million, compared to an operating loss of $13.8
million last year. Strong operating income from European operations was
partially offset by operating losses from contracts in North America and
Australia.
Walter J. Zable, Chairman and C.E.O., said, "While we are encouraged by
the operating profit improvement in Transportation Systems, we are not
satisfied with the 2006 results and expect further improvement in 2007.
This, along with even stronger performance from our defense business,
should result in additional earnings and cash flow growth in 2007."
Cubic Corporation is the parent company of two major business segments:
defense and transportation. The Cubic Defense Applications group is a world
leader in realistic combat training systems, mission support services and
defense electronics. Cubic Transportation Systems designs and manufactures
automatic fare collection systems for public transit authorities. For more
information about Cubic, see the company's Web site at http://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 STATEMENTS OF INCOME
Year Ended Three Months Ended
September 30, September 30,
2006 2005 2006 2005
Net sales:
Products $489,286 $459,050 $118,056 $130,490
Services 332,100 345,322 86,696 88,099
821,386 804,372 204,752 218,589
Costs and expenses:
Products 411,181 389,555 93,194 113,074
Services 276,032 282,986 73,352 72,475
Selling, general and
administrative
expenses 97,215 110,644 26,795 27,180
Research and
development 6,112 8,083 975 3,469
790,540 791,268 194,316 216,198
Operating income 30,846 13,104 10,436 2,391
Other income (expenses):
Gain on sale of assets 7,237 -- -- --
Interest and dividends 1,891 1,046 570 357
Interest expense (5,112) (5,386) (1,578) (1,544)
Other income 482 2,668 310 895
Minority interest in
loss of subsidiary 985 649 177 453
Income before income
taxes 36,329 12,081 9,915 2,552
Income taxes 12,196 453 2,996 (2,447)
Net income $24,133 $11,628 $6,919 $4,999
Basic and diluted
net income per
common share $0.90 $0.44 $0.26 $0.19
Average number of
common shares
outstanding 26,720 26,720 26,720 26,720
CUBIC CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30,
2006 2005
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $42,380 $48,860
Marketable securities, available-for-sale 8,874 --
Accounts receivable:
Trade and other receivables 15,686 11,085
Long-term contracts 319,847 304,688
Allowance for doubtful accounts (5,086) (5,002)
330,447 310,771
Inventories 20,209 21,530
Deferred income taxes 19,042 18,838
Prepaid expenses and other current assets 17,117 17,871
TOTAL CURRENT ASSETS 438,069 417,870
LONG-TERM CONTRACT RECEIVABLES 2,200 22,900
PROPERTY, PLANT AND EQUIPMENT
Land and land improvements 14,412 14,990
Buildings and improvements 43,779 41,154
Machinery and other equipment 83,301 79,713
Leasehold improvements 5,368 3,665
Accumulated depreciation and amortization (92,296) (87,345)
54,564 52,177
OTHER ASSETS
Deferred income taxes 7,360 9,253
Goodwill 34,750 34,473
Miscellaneous other assets 11,128 10,607
53,238 54,333
TOTAL ASSETS $548,071 $547,280
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings $10,000 $26,302
Trade accounts payable 23,240 30,256
Customer advances 43,752 41,239
Accrued compensation 37,176 36,601
Accrued pension liability 6,283 7,953
Other current liabilities 26,919 27,270
Income taxes payable 7,099 6,571
Current maturities of long-term debt 6,078 6,040
TOTAL CURRENT LIABILITIES 160,547 182,232
LONG-TERM DEBT 38,159 43,776
OTHER LIABILITIES
Accrued pension liability 18,208 16,179
Deferred compensation 7,565 7,584
MINORITY INTEREST 366 351
COMMITMENTS AND CONTINGENCIES -- --
SHAREHOLDERS' EQUITY
Common stock, no par value:
Authorized -- 50,000,000 shares
Issued -- 35,664,729 shares,
outstanding -- 26,719,845 shares 234 234
Additional paid-in capital 12,123 12,123
Retained earnings 338,523 319,200
Accumulated other comprehensive income (loss) 8,415 1,667
Treasury stock at cost -- 8,944,884 shares (36,069) (36,066)
323,226 297,158
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $548,071 $547,280
(Logo: http://www.newscom.com/cgi-bin/prnh/20041206/SDCUBICLOGO)
SOURCE Cubic Corporation
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CONTACT:
Jae Lande of Cubic Corporation,
+1-858-505-2642
