Cubic Corp. Reports Fiscal 2003 First Quarter Sales up 20 Percent, Earnings up 17 Percent.Business Editors/High-Tech Writers SAN DIEGO--(BUSINESS WIRE)--Feb. 3, 2003 Cubic Corp. (AMEX AMEX See: American Stock Exchange :CUB cub the newborn of a number of animal species as diverse as lion, fox and bear. ) today announced sales of $148.4 million for the first quarter of fiscal 2003, compared to $123.9 million for the same period last year, an increase of 20 percent. Net income for the first quarter of fiscal 2003 increased 17 percent to $6.7 million or 25 cents a share from $5.7 million or 21 cents a share for the same quarter the prior year. The increase in net income was due to improved operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for both Cubic's transportation and defense segments. Operating profits for the two segments increased 32 percent to $10.4 million for the quarter from $7.9 million for the first quarter of last year. Transportation Transportation segment sales increased by 42 percent compared to last year's first quarter, the result primarily of increased activity on the London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. Prestige contract. The company completed several milestones on the contract during the quarter and began work on several contracts awarded in fiscal 2002 in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , including those in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. . The transportation segment's operating profits increased by 40 percent compared to the first quarter of last year. Defense The defense segment experienced an 8 percent increase in sales in the quarter compared to last year, primarily generated from its government services and training systems product lines. Operating profits in the defense segment were up 22 percent from the first quarter of last year, primarily as a result of increased margins from the company's communications products. Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. Total backlog at Dec. 31, 2002, including unfunded customer orders, was $1,163,000,000, compared to $1,165,000,000 at Sept. 30, 2002 and $1,102,000,000 at Dec. 31, 2001. Included in the amounts was funded backlog of $782,000,000 at Dec. 31, 2002, compared to $777,000,000 at Sept. 30, 2002 and $762,000,000 at Dec. 31, 2001. "The demand for our products and services continues to grow. Our backlog is strong, and we are in a good position to continue to meet our customers' needs for defense and transportation products and exceed their expectations for service," said Cubic President and Chief Executive Officer Walter Wal·ter , Bruno 1876-1962. German conductor noted for his interpretations of Mozart and Mahler. Noun 1. Walter - German conductor (1876-1962) Bruno Walter J. Zable. The Cubic Defense Applications group produces instrumented air and ground combat training systems, battle command training, studies and analysis, simulations and simulation The mathematical representation of the interaction of real-world objects. See scientific application and simulator. Simulation A broad collection of methods used to study and analyze the behavior and performance of actual or theoretical systems. support for U.S. and allied military forces. The group also produces high technology avionics avionics (ā'vēŏn`ĭks), electronic instruments used in air or space flight; also the design and production of such instruments. Early planes had few instruments, but as aviation and aircraft became more complex, so did instrumentation. , data links and communications products for government and commercial customers, and a wide range of technical and logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. services. The corporation's other major segment, Cubic Transportation Systems, designs and manufactures automatic fare collection systems for public mass transit mass transit, public transportation systems designed to move large numbers of passengers. Types and Advantages Mass transit refers to municipal or regional public shared transportation, such as buses, streetcars, and ferries, open to all on a authorities. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 transit, in astronomy, passage of a body across a meridian or passage of a small body across the visible disk of a larger one. (The passage of a large body across a smaller one is called an eclipse or occultation. industries, and other competitive and technological factors.
CUBIC CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(amounts in thousands, except per share data)
Three Months Ended
December 31,
2002 2001
---------- ----------
Revenues:
Sales $148,356 $123,877
Other income 676 1,278
---------- ----------
149,032 125,155
---------- ----------
Costs and expenses:
Cost of sales 116,371 93,301
Selling, general and administrative 20,409 20,067
Research and development 1,411 2,605
Interest 871 891
---------- ----------
139,062 116,864
---------- ----------
Income before income taxes 9,970 8,291
Income taxes 3,300 2,600
---------- ----------
Net income $6,670 $5,691
========== ==========
Basic and diluted net income per common share $0.25 $0.21
========== ==========
Average shares of common stock outstanding 26,720 26,720
========== ==========
CUBIC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
December 31, September 30,
2002 2002
(Unaudited) (See note
below)
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $38,550 $78,656
Marketable securities, available-for-sale 408 406
Accounts receivable 209,590 163,283
Inventories 40,501 29,200
Deferred income taxes and other current
assets 25,521 25,262
------------- -------------
Total current assets 314,570 296,807
------------- -------------
Property, plant and equipment - net 43,366 42,419
Goodwill, less amortization 19,967 19,650
Other assets 15,472 15,583
------------- -------------
$393,375 $374,459
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $7,124 $--
Trade accounts payable 15,667 16,374
Customer advances 30,946 30,232
Other current liabilities 35,723 33,424
Accrued pension liability 22,251 22,311
Income taxes payable 4,506 2,558
Current maturities of long-term debt 1,429 1,429
------------- -------------
Total current liabilities 117,646 106,328
------------- -------------
Long-term debt 47,142 48,571
Deferred compensation 6,842 6,397
Shareholders' equity:
Common stock 234 234
Additional paid-in capital 12,123 12,123
Retained earnings 253,638 246,968
Accumulated other comprehensive loss (8,184) (10,096)
Treasury stock at cost (36,066) (36,066)
------------- -------------
221,745 213,163
------------- -------------
$393,375 $374,459
============= =============
Note: The balance sheet at September 30, 2002 has been derived from
the audited financial statements at that date.
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