CUBIC CORPORATION CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) Years Ended September 30, 2012 2011 2010 2009 ----------- ----------- ----------- ----------- (As (As (As Restated) Restated) Restated)Net sales: Products $ 663,287 $ 600,933 $ 607,756 $ 508,167 Services 718,208 694,648 590,436 517,757 ----------- ----------- ----------- ----------- 1,381,495 1,295,581 1,198,192 1,025,924Costs and expenses: Products 451,573 418,279 430,417 378,052 Services 594,662 564,062 511,014 418,292 Selling, general and administrative expenses 163,688 159,791 124,306 119,108 Research and development 28,722 25,260 18,976 8,173 Amortization of purchased intangibles 14,828 14,681 6,846 6,432 ----------- ----------- ----------- ----------- 1,253,473 1,182,073 1,091,559 930,057 ----------- ----------- ----------- -----------Operating income 128,022 113,508 106,633 95,867Other income (expenses): Interest and dividend income 2,994 2,568 1,590 1,664 Interest expense (1,550) (1,461) (1,755) (2,031) Other income - net 821 1,662 3,637 661 ----------- ----------- ----------- -----------Income before income taxes 130,287 116,277 110,105 96,161Income taxes 38,183 32,373 38,011 33,016 ----------- ----------- ----------- -----------Net income 92,104 83,904 72,094 63,145Less noncontrolling interest in income of VIE 204 310 - - ----------- ----------- ----------- -----------Net income attributable to Cubic $ 91,900 $ 83,594 $ 72,094 $ 63,145 =========== =========== =========== ===========Basic and diluted net income per common share $ 3.44 $ 3.13 $ 2.70 $ 2.36 =========== =========== =========== ===========Average number of common shares outstanding 26,736 26,736 26,735 26,731 =========== =========== =========== =========== CUBIC CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands) September 30, 2012 2011 2010 2009 ----------- ----------- ----------- ----------- (As (As (As Restated) Restated) Restated)ASSETSCurrent assets: Cash and cash equivalents $ 212,267 $ 329,148 $ 295,434 $ 244,074 Restricted cash 68,749 - - - Short-term investments - 25,829 84,081 8,127 Accounts receivable: Trade and other receivables 17,543 20,259 11,594 12,833 Long-term contracts 333,617 207,426 201,898 222,709 Allowance for doubtful accounts (463) (395) (663) (4,558) ----------- ----------- ----------- ----------- 350,697 227,290 212,829 230,984 Recoverable income taxes 7,083 24,917 6,810 249 Inventories 52,366 38,359 40,653 57,605 Deferred income taxes 7,587 9,483 14,290 20,191 Prepaid expenses and other current assets 13,977 21,080 26,127 29,957 ----------- ----------- ----------- -----------Total current assets 712,726 676,106 680,224 591,187 ----------- ----------- ----------- -----------Long-term contract receivables 22,070 23,700 28,080 13,400Long-term capitalized contract costs 26,875 - - -Property, plant and equipment - net 55,327 48,467 47,469 48,895Deferred income taxes 16,364 12,824 19,288 14,504Goodwill 146,933 146,355 64,142 59,433Purchased intangibles - net 39,374 54,139 26,295 28,618Miscellaneous other assets 6,648 4,933 6,021 7,536 ----------- ----------- ----------- -----------Total assets $ 1,026,317 $ 966,524 $ 871,519 $ 763,573 =========== =========== =========== =========== CUBIC CORPORATION CONSOLIDATED BALANCE SHEETS-continued (in thousands) September 30, 2012 2011 2010 2009 ----------- ----------- ----------- ----------- (As (As (As Restated) Restated) Restated)LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities: Trade accounts payable $ 47,917 $ 43,984 $ 39,085 $ 32,542 Customer advances 100,764 134,316 98,515 83,978 Accrued compensation 52,680 49,513 48,994 49,134 Other current liabilities 55,988 57,006 61,091 59,644 Income taxes payable 20,733 18,716 27,219 12,099 Current maturities of long-term debt 4,561 4,541 4,545 4,554 ----------- ----------- ----------- -----------Total current liabilities 282,643 308,076 279,449 241,951 ----------- ----------- ----------- -----------Long-term debt 6,942 11,377 15,949 20,570Accrued pension liability 46,382 41,166 39,855 33,762Deferred compensation 8,619 7,884 8,508 7,902Income taxes payable 4,862 12,129 9,961 11,001Other non-current liabilities 6,527 6,582 4,748 -Commitments and contingenciesShareholders' equity: Preferred stock, no par value: Authorized -- 5,000 shares Issued and outstanding -- none - - - - Common stock, no par value: Authorized-- 50,000 shares 2012, 2011 and 2010 -- Issued 35,682 shares, outstanding--26,736 shares 2009 -- Issued 35,677 shares, outstanding--26,732 shares 12,574 12,574 12,574 12,530 Retained earnings 715,043 629,560 553,452 486,170 Accumulated other comprehensive loss (21,148) (26,493) (16,340) (14,242) Treasury stock at cost - 8,945 shares (36,078) (36,078) (36,074) (36,071) ----------- ----------- ----------- -----------Shareholders' equity related to Cubic 670,391 579,563 513,612 448,387 Noncontrolling interest in variable interest entity (49) (253) (563) - ----------- ----------- ----------- -----------Total shareholders' equity 670,342 579,310 513,049 448,387 ----------- ----------- ----------- -----------Total liabilities and shareholders' equity $ 1,026,317 $ 966,524 $ 871,519 $ 763,573 =========== =========== =========== =========== CUBIC CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Years Ended September 30, 2012 2011 2010 2009 ---------- ---------- ---------- ---------- (As (As (As Restated) Restated) Restated)Operating Activities: Net income $ 92,104 $ 83,904 $ 72,094 $ 63,145 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 22,857 22,341 14,469 15,586 Deferred income taxes (1,486) 2,512 1,130 5,320 Provision for doubtful accounts - - (3,889) 3,038 Changes in operating assets and liabilities, net of effects from acquisitions: Accounts receivable (118,164) 3,566 25,225 41,077 Inventories (13,636) 2,442 17,304 (7,734) Prepaid expenses and other current assets 7,574 5,122 4,167 5,751 Long-term capitalized contract costs (26,875) - - - Accounts payable and other current liabilities 8,525 (1,547) (24,141) 15,083 Customer advances (37,999) 37,143 18,462 34,619 Income taxes 11,929 (23,713) (13,628) (675) Other items - net 494 (2,676) 3,799 1,614 ---------- ---------- ---------- ----------NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (54,677) 129,094 114,992 176,824 ---------- ---------- ---------- ----------Investing Activities: Acquisition of businesses, net of cash acquired - (126,825) (8,250) (19,965) Consolidation of variable interest entity - - 38,264 - Proceeds from sales or maturities of short-term investments 25,829 58,252 82,992 - Purchases of short-term investments - - (158,946) (8,127) Purchases of property, plant and equipment (14,226) (8,728) (6,878) (5,332) Other items - net - - - 41 ---------- ---------- ---------- ----------NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 11,603 (77,301) (52,818) (33,383) ---------- ---------- ---------- ----------Financing Activities: Principal payments on long-term debt (4,549) (4,555) (4,541) (5,970) Proceeds from issuance of common stock - - 44 45 Purchases of treasury stock - (4) (3) - Net change in restricted cash (68,584) - - - Dividends paid to shareholders (6,417) (7,486) (4,812) (4,811) ---------- ---------- ---------- ----------NET CASH USED IN FINANCING ACTIVITIES (79,550) (12,045) (9,312) (10,736) ---------- ---------- ---------- ----------Effect of exchange rates on cash 5,743 (6,034) (1,502) (1,327) ---------- ---------- ---------- ----------NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (116,881) 33,714 51,360 131,378Cash and cash equivalents at the beginning of the year 329,148 295,434 244,074 112,696 ---------- ---------- ---------- ----------CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR $ 212,267 $ 329,148 $ 295,434 $ 244,074 ========== ========== ========== ==========
CONTACTS:
Jay Thomas
Senior Vice President of Finance and Corporate Development
jay.thomas@cubic.com
858-505-2989
Diane Dyer
Director of Investor Relations
diane.dyer@cubic.com
858-505-2907
