News Column

United States : Cubic Reports Third Quarter Fiscal Year 2014 Results and Lowers 2014 Revenue and EPS Guidance

August 5, 2014



Cubic Corporation today reported its financial results for the quarter and nine-month periods ended June 30, 2014.

Sales for the third quarter of fiscal 2014 were $340.4 million compared to $337.2 million in 2013, as restated, an increase of 1 percent. Net income attributable to Cubic shareholders was $12.2 million, or $0.45 per diluted share, compared to $18.4 million, or $0.69 per diluted share, as restated, in the third quarter of 2013.

Operating income was $19.2 million compared to $26.9 million, as restated, in the third quarter of 2013. Operating income decreased 19 percent in the transportation segment, 50 percent in the mission support segment and 46 percent in the defense systems segment.

Non-GAAP Adjusted EBITDA (as described below) was $26.7 million or 7.9 percent of sales for the quarter compared to $33.3 million or 9.9 percent of sales in the third quarter of 2013.

Backlog was $2.428 billion at the end of the quarter compared to $2.647 billion at September 30, 2013, as restated, a decrease of $218.4 million. Decreases in backlog for the transportation systems and mission support segments were partially offset by an increase in defense systems backlog. First Nine Months Results

Sales for the first nine months of fiscal 2014 were $1.002 billion compared to $1.021 billion in 2013, as restated, a decrease of 2 percent. Net income attributable to Cubic shareholders was $36.7 million, or $1.36 per diluted share, compared to $62.3 million, or $2.33 per diluted share, as restated, in the first nine months of 2013.

Operating income was $53.2 million in the first nine months of 2014 compared to $84.8 million, as restated, in 2013. Operating income decreased 49 percent in the transportation segment and 47 percent in the mission support segment, while increasing 112 percent in the defense systems segment.

Non-GAAP Adjusted EBITDA was $76.0 million or 7.6 percent of sales for the first nine months compared to $102.8 million or 10.1 percent of sales in 2013.

We have had a challenging year thus far primarily due to execution issues on our Transportation System projects in Chicago and Vancouver, as well as the continued adverse impact of the slowdown in U.S. government spending on the operations of our Mission Support Services business, said Bradley H. Feldmann, president and chief executive officer of Cubic Corporation. As a consequence, we are revising our guidance for fiscal year 2014, but continue to expect a strong fourth quarter.

Additionally, we have recently announced multiple contract wins across our businesses. These key wins will give us record backlog and posture us for future growth.


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Source: TendersInfo (India)


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