Cubic Corp. Reports Strong Earnings Growth.Business Editors/High-Tech Writers SAN DIEGO--(BUSINESS WIRE)--Dec. 13, 2001 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 reported strong earnings growth for fiscal 2001. Earnings (after tax, profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of and bonus payments) for the fiscal year ended Sept. 30, 2001 were $20,842,000 or $2.34 per share, compared to $674,000 or $0.08 per share for fiscal 2000. Fourth quarter 2001 earnings were $5,884,000 or $0.66 per share, compared to a fourth quarter 2000 loss of $12,723,000 or $1.42 per share. Last year's fourth quarter loss was due primarily to a reserve recorded on one contract. Due to the unusual nature of last year's fourth quarter, perhaps a more meaningful comparison for fiscal 2001 is that this year's income of $20,842,000 or $2.34 per share is an increase of 49 percent from 1999, when net income was $14,008,000 or $1.57 per share. For the fiscal year ended Sept. 30, 2001, total sales were $501,679,000, compared to $531,516,000 in 2000. Sales in the fourth quarter were $131,230,000 in 2001, compared to $138,121,000 in 2000. Defense segment sales for fiscal 2001 grew slightly for the year, primarily due to the company's data link products and computerized computerized adapted for analysis, storage and retrieval on a computer. computerized axial tomography see computed tomography. battlefield 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. business, while transportation segment sales were somewhat lower in fiscal 2001 because of delays in new contract awards, customer requested production delays in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , and anticipated revenue declines in 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. and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . The company reports that earnings should continue to improve steadily over the next few years and bookings are expected to increase in fiscal 2002, which should result in the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of sales growth going into fiscal 2003. Total 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. was $1,095,000,000 at Sept. 30, 2001, compared to $1,071,000,000 at Sept. 30, 2000. Cubic's funded backlog at the end of fiscal 2001 was $738,000,000 compared to $802,000,000 at the end of the prior year. The company reports a positive outlook as the nation puts resources into homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States and the war against terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. . Cubic's technologies, both on the defense and transportation sides of the company, have never been more in demand, and the company's competitive position in both markets is very strong with operations running more efficiently, as reflected in the improved earnings. The Cubic Defense Group produces instrumented air and ground combat training systems, battle command training, simulations and simulation 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 provides 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 -- including the most advanced smart card system -- 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 worldwide. 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 Corp.
Consolidated Statements of Income
Years Ended Three Months Ended
Sept. 30, Sept. 30,
2001 2000 2001 2000
-------- -------- -------- --------
(amounts in thousands, except per share data)
Revenues:
Sales $501,679 $531,516 $131,230 $138,121
Interest and
dividends 3,915 3,819 938 1,078
Other income 3,129 3,890 21 765
-------- -------- -------- --------
508,723 539,225 132,189 139,964
Costs and expenses:
Cost of sales 385,569 449,913 98,375 139,258
Selling, general
and administrative
expenses 76,052 76,016 20,801 16,847
Research and
development 9,755 6,999 3,033 2,482
Goodwill
amortization 2,638 2,327 661 653
Interest 3,601 3,729 869 980
-------- -------- -------- --------
477,615 538,984 123,739 160,220
-------- -------- -------- --------
Income before
income taxes 31,108 241 8,450 (20,256)
Income taxes
(benefit) 10,266 (433) 2,566 (7,533)
-------- -------- -------- --------
Net income $20,842 $674 $5,884 $(12,723)
======== ======== ======== ========
Basic and diluted
net income per
common share $2.34 $0.08 $0.66 $(1.42)
======== ======== ======== ========
Average number of
common shares
outstanding 8,907 8,907 8,907 8,907
======== ======== ======== ========
Cubic Corp.
Consolidated Balance Sheets
Sept. 30,
2001 2000
-------- --------
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $76,837 $69,753
Marketable securities,
available-for-sale 584 3,586
Accounts receivable:
Trade and other receivables 13,087 12,063
Long-term contracts 129,064 111,804
Allowance for doubtful accounts (635) (457)
-------- --------
141,516 123,410
Inventories 30,386 29,499
Deferred income taxes 20,257 18,818
Prepaid expenses and other
current assets 6,526 4,677
-------- --------
TOTAL CURRENT ASSETS 276,106 249,743
-------- --------
PROPERTY, PLANT AND EQUIPMENT
Land and land improvements 12,838 12,838
Buildings and improvements 23,918 23,671
Machinery and other equipment 75,479 77,140
Leasehold improvements 2,856 2,803
Allowance for depreciation and
amortization (81,715) (77,983)
-------- --------
33,376 38,469
-------- --------
OTHER ASSETS
Deferred income taxes 1,309 595
Goodwill, less amortization 18,927 23,193
Miscellaneous other assets 11,629 10,350
-------- --------
31,865 34,138
-------- --------
TOTAL ASSETS $341,347 $322,350
======== ========
Cubic Corp.
Consolidated Balance Sheets -- continued
Sept. 30,
2001 2000
-------- --------
(in thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $11,889 $18,749
Customer advances 30,479 29,976
Accrued compensation 21,011 18,519
Accrued pension liability 6,553 1,460
Other current liabilities 14,641 16,307
Income taxes payable 10,321 6,265
-------- --------
TOTAL CURRENT LIABILITIES 94,894 91,276
-------- --------
LONG-TERM DEBT 50,000 50,000
OTHER LIABILITIES
Deferred compensation 5,558 5,051
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, no par value:
Authorized -- 20,000,000 shares
Issued -- 11,888,243 shares 234 234
Additional paid-in capital 12,123 12,123
Retained earnings 221,095 203,637
Accumulated other comprehensive loss (6,494) (3,908)
Treasury stock at cost:
2001 -- 2,981,579 shares
2000 -- 2,981,554 shares (36,063) (36,063)
-------- --------
190,895 176,023
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $341,347 $322,350
======== ========
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