SAN DIEGO, Calif., — May 3, 2012 — Cubic Corporation (NYSE: CUB) today reported record earnings and higher sales for the quarter ended March 31, 2012. Sales for the second fiscal quarter were $341.0 million compared to $334.0 million last year, an increase of 2 percent. Net income attributable to Cubic shareholders increased by 22 percent for the second quarter to $24.3 million (91 cents per share) this year compared to $19.9 million (75 cents per share) last year.
For the first six months of the fiscal year, sales increased 7 percent to $659.7 million compared to $618.4 million last year. For the six-month period, net income attributable to Cubic shareholders increased by 15 percent to $45.7 million ($1.71 per share) this year compared to $39.9 million ($1.49 per share) last year.
Operating income increased by 20 percent in the second fiscal quarter to $33.7 million, compared to $28.0 million last year, and increased 12 percent for the six-month period to $61.9 million compared to $55.2 million last year. Cash flows used in operations for the six-month period were $39.9 million primarily due to expenditures for large transportation contracts in Australia and Canada where customer payments will not be received until certain milestones are reached.
Other income for the first six months of the fiscal year included a net foreign currency exchange gain of $2.2 million, before taxes. The effective tax rate increased to 29.2 percent for the six-month period this year compared to 27.7 percent last year. The increase in the effective rate was primarily due to the retroactive reinstatement of the U.S. research and development credit in the first fiscal quarter of 2011, which reduced the income tax provision by $1.5 million for that quarter. In contrast, the expiration of this credit at the end of the first quarter this year increased the effective rate for the six-month period ended March 31, 2012.
Total backlog was $3.105 billion at March 31, 2012 compared to $2.837 billion at September 30, 2011.
The Company continues to maintain a strong liquidity position, ending the period with $307.2 million in cash, restricted cash and short-term investments, and total debt of only $11.7 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.
Cubic Corporation is the parent company of three major business segments: Cubic Defense Systems, Mission Support Services and Cubic 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.