SAN DIEGO, CA--(Marketwire - 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  
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)  
(amounts in thousands, except per share data)  
                   
    Six Months Ended   Three Months Ended  
    March 31,   March 31,  
    2012   2011   2012   2011  
         
Net sales:                          
  Products   $ 314,942   $ 292,721   $ 157,630   $ 157,350  
  Services     344,799     325,667     183,364     176,618  
      659,741     618,388     340,994     333,968  
                           
Costs and expenses:                          
  Products     221,430     196,597     106,679     106,510  
  Services     278,030     274,264     145,787     152,453  
  Selling, general and administrative     77,666     74,407     43,029     37,377  
  Research and development     12,968     11,526     8,072     5,271  
  Amortization of purchased intangibles     7,707     6,350     3,668     4,312  
      597,801     563,144     307,235     305,923  
                           
Operating income     61,940     55,244     33,759     28,045  
                           
Other income (expense):                          
  Interest and dividend income     1,726     1,239     964     375  
  Interest expense     (678 )   (781 )   (331 )   (374 )
  Other income (expense) - net     1,703     (243 )   12     (16 )
                           
Income before income taxes     64,691     55,459     34,404     28,030  
                           
Income taxes     18,900     15,400     10,100     8,000  
                           
Net income     45,791     40,059     24,304     20,030  
                           
Less noncontrolling interest in income of VIE     96     205     51     84  
                           
Net income attributable to Cubic   $ 45,695   $ 39,854   $ 24,253   $ 19,946  
                           
Basic and diluted net income per common share   $ 1.71   $ 1.49   $ 0.91   $ 0.75  
                           
Dividends per common share   $ 0.12   $ 0.19   $ 0.12   $ 0.19  
                           
Average number of common shares outstanding     26,736     26,736     26,736     26,736  
                           
                           
   
CUBIC CORPORATION  
CONSOLIDATED CONDENSED BALANCE SHEETS  
(in thousands)  
             
 
 		  
 		 March 31, 2012  
 		  
 		 September 30, 2011  
 
    (Unaudited)     (See note below)  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 230,766     $ 329,148  
  Restricted cash     68,584       -  
  Short-term investments     7,895       25,829  
  Accounts receivable - net     292,704       223,984  
  Recoverable income taxes     12,392       20,725  
  Inventories - net     50,664       36,729  
  Deferred income taxes and other current assets     24,325       34,230  
Total current assets     687,330       670,645  
                 
Long-term contract receivables     23,590       23,700  
Property, plant and equipment - net     55,525       48,467  
Goodwill     146,812       146,355  
Purchased intangibles - net     46,493       54,139  
Other assets     18,920       15,534  
    $ 978,670     $ 958,840  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Current liabilities:                
  Trade accounts payable   $ 41,126     $ 38,870  
  Customer advances     168,670       183,845  
  Accrued compensation and other current liabilities     83,499       103,339  
  Income taxes payable     11,922       7,902  
  Current portion of long-term debt     4,556       4,541  
Total current liabilities     309,773       338,497  
                 
Long-term debt     7,191       11,377  
Other long-term liabilities     57,954       57,168  
                 
Shareholders' equity:                
  Common stock     12,574       12,574  
  Retained earnings     641,336       598,849  
  Accumulated other comprehensive loss     (13,923 )     (23,294 )
  Treasury stock at cost     (36,078 )     (36,078 )
Shareholders' equity related to Cubic     603,909       552,051  
  Noncontrolling interest in variable interest entity     (157 )     (253 )
Total shareholders' equity     603,752       551,798  
    $ 978,670     $ 958,840  
                 
                 
Note: The balance sheet at September 30, 2011 has been derived from the audited financial statements at that date.  
   
   
   
CUBIC CORPORATION  
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)  
(in thousands)  
                   
    Six Months Ended   Three Months Ended  
    March 31,   March 31,  
    2102   2011   2012   2011  
Operating Activities:                          
  Net income   $ 45,791   $ 40,059   $ 24,304   $ 20,030  
  Adjustments to reconcile net income to net cash provided by (used in) operating activities:                          
    Depreciation and amortization     11,297     10,086     5,465     6,218  
    Changes in operating assets and liabilities     (97,027 )   (5,916 )   (31,334 )   1,828  
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES     (39,939 )   44,229     (1,565 )   28,076  
                           
Investing Activities:                          
  Acquisitions, net of cash acquired     -     (126,825 )   -     (2,394 )
  Net additions to property, plant and equipment     (10,150 )   (3,575 )   (4,901 )   (2,135 )
  Proceeds from maturities of short-term investments     17,934     41,793     10,977     10,867  
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES     7,784     (88,607 )   6,076     6,338  
                           
Financing Activities:                          
  Principal payments on long-term borrowings     (4,274 )   (4,274 )   (138 )   (137 )
  Purchases of treasury stock     -     (4 )   -     -  
  Dividends paid     (3,208 )   -     (3,208 )   -  
  Change in restricted cash     (68,584 )   -     (68,584 )   -  
NET CASH USED IN FINANCING ACTIVITIES     (76,066 )   (4,278 )   (71,930 )   (137 )
                           
Effect of exchange rates on cash     9,839     4,198     9,044     2,428  
                           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     (98,382 )   (44,458 )   (58,375 )   36,705  
                           
Cash and cash equivalents at the beginning of the period     329,148     295,434     289,141     214,271  
                           
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD   $ 230,766   $ 250,976   $ 230,766   $ 250,976  
                           

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, cyber technologies, asset tracking solutions,  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.


Media Contact:
John D. Thomas
858-505-2989

Investor Contact:
Diane Dyer
858-505-2907