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Financial Restatement Summary
•Cubic today also filed its restated financial statements for the fiscal years ended September 30, 2011, 2010 and 2009, the quarters ended March 31, 2012 and December 31, 2011, and each of the quarters of 2011 and 2010.
•The restatement resulted in a cumulative increase in retained earnings of $18.3 million as of September 30, 2007, and changes in revenues and net income for 2008 through 2011 as shown in the table below.
September 30, 2011 2010 2009 2008 ----------- ----------- ----------- -----------Sales (previously reported) $ 1,285,203 $ 1,194,189 $ 1,016,657 $ 881,135 Adjustments 10,378 4,003 9,267 11,499 ----------- ----------- ----------- -----------Sales (as restated) $ 1,295,581 $ 1,198,192 $ 1,025,924 $ 892,634 =========== =========== =========== ===========Operating income (previously reported) $ 112,335 $ 105,525 $ 84,708 $ 53,264 Adjustments 1,173 1,108 11,159 9,256 ----------- ----------- ----------- -----------Operating income (as restated) $ 113,508 $ 106,633 $ 95,867 $ 62,520 =========== =========== =========== ===========Net income (previously reported) $ 84,768 $ 70,636 $ 55,686 $ 36,854 Adjustments (1,174) 1,458 7,459 4,638 ----------- ----------- ----------- -----------Net income (as restated) $ 83,594 $ 72,094 $ 63,145 $ 41,492 =========== =========== =========== ===========Earnings per share (previously reported) $ 3.17 $ 2.64 $ 2.08 $ 1.38 Adjustments (0.04) 0.06 0.28 0.17 ----------- ----------- ----------- -----------Earnings per share (as restated) $ 3.13 $ 2.70 $ 2.36 $ 1.55 =========== =========== =========== ===========
•Fiscal year 2012 was a very good year for the corporation in terms of performance. In comparison, the company anticipates that 2013 will be a challenging year. The company's defense businesses, like all companies in the defense industry, continue to face uncertainties related to DoD budget cuts. These cuts, if implemented, could trigger across-the-board spending reductions scheduled to go into effect in 2013.
•Additionally, the defense services market is becoming increasingly competitive. As a result of this market environment, the company's defense services business may experience lower profit margins in 2013 compared to 2012. While the company believes its training services and systems are essential to the U.S. military, Cubic, and the defense industry as a whole, is uncertain as to which programs and technologies could be most affected. Approximately 50 percent of sales in our defense systems business have been international in recent years, which should help mitigate an anticipated slowdown in U.S. spending.
•In 2013 the company expects its transportation business to complete the design/build phase on major automated fare collection projects. During this phase, the transportation business may also face margin pressure until the new systems are operational.
•Although 2013 is anticipated to be a transition year, the company remains confident in its long-term prospects for growth. The company has a diverse portfolio of market leading businesses which provide systems and services to a global customer base. The company plans to leverage and build upon its market leading positions and find additional opportunities for growth in adjacent markets by leveraging both research and development, and acquisitions.
