About Cubic Corporation
Cubic Corporation is the parent company of three major business segments: defense systems, mission support services and transportation systems. Cubic Defense Systems is a leading provider of realistic combat training systems and defense electronics. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services for U.S. and allied military and security forces. Cubic Transportation Systems is the world’s leading provider of automated fare collection systems and services for public transit 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 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.
SAN DIEGO, Calif., — February 2, 2012 — Cubic Corporation (NYSE: CUB) today reported earnings and sales for the quarter ended December 31, 2011. Sales for the first fiscal quarter were $318.7 million compared to $284.4 million last year, an increase of 12 percent. Net income attributable to Cubic shareholders increased by 8 percent to $21.4 million (80 cents per share) this year compared to $19.9 million (74 cents per share) last year.
Operating income increased by 4 percent in the first fiscal quarter to $28.2 million, compared to $27.2 million last year. Cash flows used in operations were $38.4 million primarily due to increases in accounts receivable caused by increased sales.Other income in the first quarter this year included a net foreign currency exchange gain of $1.9 million, before taxes. The effective tax rate increased to 29.1 percent for this fiscal quarter compared to 27.0 percent for the same quarter last year. The increase in the effective rate was primarily due to the retroactive reinstatement of the U.S. research and development credit in 2010, which reduced the income tax provision by $1.5 million for the quarter ended December 31, 2010. In contrast, the expiration of this credit during this fiscal year increased the effective rate for the quarter ended December 31, 2011.
Total backlog was a record high $3.184 billion at December 31, 2011 compared to $2.837 billion at September 30, 2011, the Company’s previous high backlog. During the quarter ended December 31, 2011, Cubic Transportation Systems signed a contract with the Chicago Transit Authority (CTA) to design, build, operate and maintain CTA’s next-generation open payment fare system which added $454 million to backlog as of December 31, 2011.
The company continues to maintain a strong liquidity position, ending the period with $308.0 million in cash and short-term investments, and total debt of only $11.8 million.
The Company also announced that it filed its form 10-Q with the Securities and Exchange Commission today. A link to this report may be found at www.cubic.com under “Investor Relations.” Shareholders may also receive a free hard copy upon written request to the Company or by e-mail to Investor.Relations@Cubic.com.