Cubic Reports FY 2003 Increases in Sales, Earnings and Backlog.Business Editors/High-Tech Writers SAN DIEGO--(BUSINESS WIRE)--Dec. 2, 2003 Cubic Corporation (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 increased sales, earnings and backlog for fiscal 2003. Earnings for the fiscal year ended September 30, 2003 were up 24 percent and sales for the year were up 13 percent from last year. Total backlog, including unfunded contract orders, at the end of the year was 29 percent higher than at September 30, 2002. Net income for fiscal year ended September 30, 2003 was $36.5 million or $1.37 per share, compared to $29.4 million or $1.10 per share for fiscal 2002. Sales for 2003 were $634.1 million compared to 2002 sales of $559.6 million. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (before taxes, interest and other income) for the fiscal year ended September 30, 2003 was $48 million compared to $39.8 million for fiscal 2002, with improvement in both the Company's Defense and Transportation segments. Approximately $5.3 million or 20 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , after taxes, of the 2003 net income was from gains on the sale of unused real estate in the second and third quarters. Net income in 2002 included a fourth quarter tax benefit of $2.5 million, which added 9 cents per share that year. Excluding these items, pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. would have been $1.01 in 2002 and $1.17 in 2003, a 16 percent increase. Fourth quarter 2003 sales were $160.6 million, compared to $149.2 million last year, and earnings for the quarter were $8.5 million or 32 cents per share compared to $10.2 million or 38 cents per share in the fourth quarter of last year ($7.7 million or 29 cents without the fourth quarter 2002 tax benefit). Total backlog at September 30, 2003 was $1.505 billion compared to $1.165 billion at September 30, 2002. "Our backlog reflects increases from both our defense and transportation segments," said Cubic Corporation President and Chief Executive Officer Walter J. Zable. "What's significant about our current backlog is that it reflects a diverse mix of business, a move away from years past when the backlog reflected a more limited number of customers." Management anticipates sales and operating income will grow modestly in fiscal 2004 followed by more accelerated growth in the following two years. Defense Segment -- 2003 Performance Fiscal 2003 sales from the Defense segment were up 16 percent from last year, growing to $365 million from $314 million, with the growth coming primarily from training systems. Operating income in the Defense segment was up 37 percent to $24.6 million from $17.9 million earned in 2002. The increase came primarily from the training systems business, due to sales growth as well as improved profit margins. The Defense segment accounted for $743 million of the Company's total backlog at the end of 2003, compared to $493 million at the end of last year. The biggest increase in Defense segment backlog was in training systems, due to ground combat training systems contracts awarded in Canada and Australia. Excluded from the Defense segment backlog amounts are two indefinite INDEFINITE. That which is undefined; uncertain. INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure. 2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those delivery, indefinite quantity Noun 1. indefinite quantity - an estimated quantity quantity, measure, amount - how much there is or how many there are of something that you can quantify (ID/IQ ID/IQ Indefinite Delivery/Indefinite Quantity ID/IQ Indefinite Duration/Indefinite Quantity ) contracts received in 2003. One is a 10-year contract with a ceiling value of $525 million, awarded exclusively to Cubic to develop and deliver the next-generation of rangeless air-to-air and air-to-ground combat training systems. For the other ID/IQ contract, the U.S. Government has pre-selected Cubic and four other companies to bid on $1.26 billion in task orders on research-and-development services work over five years, with an additional five-year option, aimed at reducing threats to national defense and 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 from Weapons of Mass Destruction Weapons that are capable of a high order of destruction and/or of being used in such a manner as to destroy large numbers of people. Weapons of mass destruction can be high explosives or nuclear, biological, chemical, and radiological weapons, but exclude the means of transporting or . Transportation Systems -- 2003 Performance Sales this year for the Transportation Systems segment increased nearly 10 percent in 2003 to $253 million from $231 million in fiscal 2002. Those sales increases were primarily due to higher sales 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. as well as work on the Prestige contract in London. Operating income in the Transportation Systems segment increased 5 percent to $24.4 million in 2003 from $23.3 million in 2002. Improvement this year over last came primarily as a result of growth in revenues from contracts in North America. At the same time, operating income was impacted by legal costs related to a dispute with a subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. on the Prestige contract and a legal settlement in Australia in the fourth quarter. Of Cubic's total 2003 end-of-year backlog, $762 million is in the Transportation segment compared to $672 million at the close of last year. Transportation backlog increased in 2003 primarily because of a contract for nearly $95 million awarded by the city of Brisbane 'City of Brisbane' can refer to:
The Cubic Defense Applications group provides realistic combat training systems for military forces as well simulation, force modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, , educational services, operations & maintenance and manufacturing services. The group also supplies products and systems for C4ISR C4ISR Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance C4ISR Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance C4ISR Command Control Communications Computers Intelligence Surveillance and Reconnaissance (Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance) applications, search and rescue 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. and radio communications for military and civil markets. 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 , including rail and buses throughout the world. 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 industries, and other competitive and technological factors.
CUBIC CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Years Ended September 30,
2003 2002 2001
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(amounts in thousands, except
per share data)
Net sales $634,061 $559,604 $501,679
Costs and expenses:
Cost of sales 493,377 426,012 385,569
Selling, general and
administrative expenses 87,888 85,459 76,052
Research and development 4,819 8,381 9,755
Goodwill amortization - - 2,638
--------- --------- ---------
586,084 519,852 474,014
--------- --------- ---------
Operating income 47,977 39,752 27,665
Other income (expenses):
Gain on sale of real estate 8,448 - -
Interest and dividends 1,161 2,266 3,915
Interest expense (3,659) (3,538) (3,601)
Other income 1,106 2,441 3,129
--------- --------- ---------
Income before income taxes 55,033 40,921 31,108
Income taxes 18,514 11,484 10,266
--------- --------- ---------
Net income $36,519 $29,437 $20,842
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Basic and diluted net income per common
share $1.37 $1.10 $0.78
========= ========= =========
Average number of common
shares outstanding 26,720 26,720 26,720
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