CUBIC CORP /DE/ - FORM 8-K - EX-99.1

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8-K - 8-K - CUBIC CORP /DE/	f8-k.htm

Exhibit 99.1

Cubic Reports Third Quarter Fiscal 2018 Results;

Strong Growth and Record Backlog

Third Quarter Fiscal 2018 Highlights

Record total backlog of $3.7 billion, up $1.2 billion from fiscal 2017 year end

Brisbane Next Generation Ticketing System contract awarded ($276 million)

Sales of $296.2 million, up 11% year over year

Adjusted EBITDA(1) of $28.2 million, up 123% year-over-year

Operating income of $10.3 million compared to a loss of $6.8 million in the third quarter of 2017

Net income from continuing operations attributable to Cubic of $0.9 million, or $0.03 per share, compared to a loss of $78.2 million, or $2.89 per share, in the third quarter of 2017

Full year 2018 guidance confirmed

Closed sale of Cubic Global Defense Services

SAN DIEGO — August 8, 2018 – Cubic Corporation (NYSE: CUB) today announced its financial results for the third fiscal quarter ended June 30, 2018.

“We are pleased that Cubic is continuing to deliver solid financial performance in fiscal 2018, as we make excellent progress on our strategic initiatives and accelerating our growth,” said Bradley H. Feldmann, chairman, president and chief executive officer. “Cubic reported strong growth in both sales and Adjusted EBITDA in the third quarter, while the Brisbane win further expanded our highest-ever backlog. We remain intensely focused on meeting our commitments to customers, shareholders and our talented employees.”

Financial Results Summary


	Nine Months Ended				Three Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
	(in millions, except per share data)
Sales	$	823.2	$	758.6	$	296.2	$	266.2
Operating income (loss)		(3.3)		(18.6)		10.3		(6.8)
Adjusted EBITDA (1)		55.5		42.0		28.2		12.7

Income (loss) from continuing operations attributable to Cubic before income taxes	$	(9.6)	$	(29.4)	$	6.5	$	(9.3)
Income tax provision from continuing operations attributable to Cubic		4.3		5.9		5.6		68.9
Net income (loss) from continuing operations attributable to Cubic		(13.9)		(35.3)		0.9		(78.2)
Earnings (loss) per share from continuing operations attributable to Cubic		(0.51)		(1.30)		0.03		(2.89)

Net income from discontinued operations before income taxes	$	8.9	$	10.8	$	4.7	$	5.2
Income tax provision (benefit) from discontinued operations		0.5		(0.2)		(0.7)		(51.1)
Net income from discontinued operations		8.4		11.0		5.4		56.3
Earnings per share from discontinued operations		0.31		0.41		0.20		2.08

Acquisition-related costs (excluding amortization) (1)	$	2.5	$	(0.8)	$	0.6	$	(1.5)
Strategic and IT system resource planning expenses (1)		18.8		23.6		5.1		8.9
Depreciation and amortization expense		34.1		35.8		10.6		11.8
Research and development expense		40.1		38.8		13.9		16.9
Income tax provision		4.3		5.9		5.6		68.9

⁽¹⁾

See the section below titled “Use of Non-GAAP Financial Information” for a description of these items and additional information regarding Non-GAAP financial measures.

Sales in the third quarter of fiscal 2018 increased 11% to $296.2 million from $266.2 million in the third quarter of last year. Sales from Cubic Transportation Systems (CTS) and Cubic Mission Solutions (CMS) increased by 21% and 5%, respectively, while sales from Cubic Global Defense (CGD) Systems were flat. Foreign currency translation had a favorable impact of $2.7 million.

Operating income in the third quarter was $10.3 million compared to an operating loss of $6.8 million in the third quarter of last year. The increase was predominately driven by improved profitability at CTS. Operating income increased year-over-year despite an $8.0 million gain recognized on an equitable contract adjustment in the third quarter of 2017 in CGD Systems. Foreign currency translation had a favorable impact of $0.4 million.

Non-GAAP Adjusted EBITDA in the third quarter was $28.2 million, an increase of 123% from $12.7 million in the third quarter of last year. The increase was primarily attributable to the same factors noted above and as described in more detail in the segment discussion below.

Net cash used in continuing operations was $32.8 million in the third quarter compared to a cash use of $45.0 million in the third quarter of last year.

On April 18, 2018, Cubic entered into a definitive agreement to sell the Cubic Global Defense (CGD) Services business. This transaction closed on May 31, 2018. In March 2018, all criteria were met for the classification of CGD Services as a discontinued operation. As such, the operating results of CGD Services have been classified as discontinued operations in the condensed consolidated statements of income (loss) for all periods presented. In the application of the accounting requirements for discontinued operations, corporate overhead is not allocated to discontinued operations. Therefore,

certain corporate overhead costs that had previously been allocated to the CGD Services segment have been included in the unallocated corporate expenses amounts below. Such amounts totaled $1.3 million and $1.9 million in the third quarter of fiscal 2018 and fiscal 2017, respectively, and totaled $5.3 million and $5.9 million for the first nine months of fiscal 2018 and fiscal 2017, respectively.

Net income from continuing operations attributable to Cubic in the third quarter was $0.9 million compared to a net loss of $78.2 million in the third quarter of 2017. The year-over-year comparison of net income reflects significant changes in the quarterly effective tax rates on continuing operations, which was impacted by the application of the Financial Accounting Standards Board guidelines requiring the allocation of total tax expense to continuing operations, discontinued operations and other comprehensive income.

Net income from discontinued operations in the third quarter was $5.4 million compared to $56.3 million in the third quarter of 2017. The assets and liabilities of a discontinued operation held for sale are measured at the lower of carrying value or fair value less cost to sell. In the second quarter of fiscal 2018, we recognized a loss of $6.9 million; whereas, in the third quarter of fiscal 2018, we recorded an adjustment of $0.8 million to reduce the total loss to $6.1 million based upon the estimated carrying value of the net assets at the date that the sale closed.

Reportable Segment Results


	Nine Months Ended				Three Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Sales:	(in thousands)
Cubic Transportation Systems	$	478.1	$	407.9	$	164.6	$	136.4
Cubic Global Defense Systems		233.2		247.4		88.9		89.1
Cubic Mission Solutions		111.9		103.3		42.7		40.7
Total sales	$	823.2	$	758.6	$	296.2	$	266.2

Operating income (loss):
Cubic Transportation Systems	$	42.7	$	16.5	$	18.6	$	(0.9)
Cubic Global Defense Systems		13.6		18.4		6.9		10.4
Cubic Mission Solutions		(17.2)		(14.5)		(0.5)		(1.5)
Unallocated corporate expenses		(42.4)		(39.0)		(14.7)		(14.8)
Total operating income (loss)	$	(3.3)	$	(18.6)	$	10.3	$	(6.8)

Adjusted EBITDA:
Cubic Transportation Systems	$	52.4	$	23.6	$	21.8	$	1.7
Cubic Global Defense Systems		20.7		26.9		9.0		14.1
Cubic Mission Solutions		1.1		3.0		4.9		2.4
Unallocated corporate expenses		(18.7)		(11.5)		(7.5)		(5.5)
Total adjusted EBITDA	$	55.5	$	42.0	$	28.2	$	12.7

Cubic Transportation Systems (CTS):

CTS sales increased 21% to $164.6 million compared to $136.4 million in the third quarter of 2017 supported by growth in both products and services. Foreign currency translation had a favorable impact of $2.6 million.

CTS Adjusted EBITDA increased to $21.8 million compared to $1.7 million last year reflecting higher sales, lower research and development expense and operational improvements. Foreign currency translation had a favorable impact of $0.6 million.

Cubic Global Defense (CGD) Systems:

CGD Systems sales were $88.9 million compared to $89.1 million in the third quarter of 2017. While sales of air combat training systems were higher year-over-year, comparative sales were significantly impacted by an $8.0 million gain recognized on an equitable contract adjustment in the third quarter of fiscal 2017 for our littoral combat ship virtual training contract.

CGD Systems Adjusted EBITDA was $9.0 million compared to $14.1 million last year. The decrease reflects the $8.0 million equitable contract adjustment described above, which was partially offset by increased operating profits in both air and ground combat training systems.

Cubic Mission Solutions (CMS):

CMS sales increased 5% to $42.7 million compared to $40.7 million in the third quarter of 2017 due to higher C2ISR (Command, Control, Intelligence, Surveillance and Reconnaissance) sales.

CMS Adjusted EBITDA increased 100% to $4.9 million compared to $2.4 million last year, reflecting higher sales and favorable mix, which more than offset increased research and development expense.

Backlog

Total backlog increased by $1.2 billion to $3.7 billion from September 30, 2017 to June 30, 2018 primarily due to the award of contracts to CTS in New York, Boston and Brisbane. Changes in exchange rates between the prevailing currency in our foreign operations and the U.S. dollar as of the end of the quarter decreased backlog by $50.4 million compared to September 30, 2017.

Fiscal 2018 Full Year Guidance

Constant currency basis with 2017

Previously adjusted for the sale of CGD Services

 Sales: $1.135 billion to $1.185 billion

 Adjusted EBITDA: $90.0 million to $116.0 million

Conference Call and Webcast

Cubic will host a conference call today, Wednesday, August 8 at 11:00 a.m. Eastern Time to present third quarter fiscal 2018 results. Access the live audio webcast via: https://event.webcasts.com/starthere.jsp?ei=1200926&tp_key=72a34a770f

An archive of the webcast and presentation materials will be made available on the Investor Relations section of Cubic’s website at https://www.cubic.com/investor-relations/financials.

Financial analysts and institutional investors are invited to dial:

877-407-9708

201-689-8259 (international)

To avoid delay in the start time, please dial in beginning 10:45 a.m. Eastern Time.

About Cubic Corporation

Cubic is a market-leading, technology provider of integrated solutions that increase situational understanding for transportation, C4ISR and training customers worldwide to decrease urban congestion and improve the militaries’ effectiveness and operational readiness. Cubic Transportation Systems is a leading integrator of payment and information technology and services to create intelligent travel solutions for transportation authorities and operators. Cubic Mission Solutions provides networked Command, Control, Communications, Computers, Intelligence,

Surveillance and Reconnaissance (C4ISR) capabilities for defense, intelligence, security and commercial missions. Cubic Global Defense is a leading provider of live, virtual, constructive and game-based (LVC-G) training solutions for the U.S. and allied forces. For more information about Cubic, please visit the company’s website at www.cubic.com or on Twitter @CubicCorp.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor created by such Act. Forward-looking statements include, among others, statements about our expectations regarding future events or our future financial and/or operating performance; our expectations regarding organic growth; and the use of our technologies on a transportation contract that was awarded early fiscal 2018. 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 risks, estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in these statements, including, among others: our dependence on U.S. and foreign government contracts; delays in approving U.S. and foreign government budgets and cuts in U.S. and foreign government defense expenditures; the ability of certain government agencies to unilaterally terminate or modify our contracts with them; the effect of sequestration on our contracts; our assumptions concerning behavior by public transit authorities; our ability to successfully integrate new companies into our business and to properly assess the effects of such integration on our financial condition; the U.S. government’s increased emphasis on awarding contracts to small businesses, and our ability to retain existing contracts or win new contracts under competitive bidding processes; negative audits by the U.S. government; the effects of politics and economic conditions on negotiations and business dealings in the various countries in which we do business or intend to do business; risks associated with the restatement of our prior consolidated financial statements, including our identification of material weaknesses in our internal control over financial reporting; competition and technology changes in the defense and transportation industries; the change in the way transit agencies pay for transit systems; our ability to accurately estimate the time and resources necessary to satisfy obligations under our contracts; the effect of adverse regulatory changes on our ability to sell products and services; our ability to identify, attract and retain qualified employees; our failure to properly implement our ERP system; unforeseen problems with the implementation and maintenance of our information systems; business disruptions due to cyber security threats, physical threats, terrorist acts, acts of nature and public health crises; our involvement in litigation, including litigation related to patents, proprietary rights and employee misconduct; our reliance on subcontractors and on a limited number of third parties to manufacture and supply our products; our ability to comply with our development contracts and to successfully develop, introduce and sell new products, systems and services in current and future markets; defects in, or a lack of adequate coverage by insurance or indemnity for, our products and systems; and changes in U.S. and foreign tax laws, exchange rates or our economic assumptions regarding our pension plans. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q. Because the risks, estimates, assumptions and uncertainties referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date hereof, and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date hereof.

Use of Non-GAAP Financial Information

We believe that the presentation of Earnings before interest, taxes, depreciation, and amortization (EBITDA) and Adjusted EBITDA included in this report provides useful information to investors with which to analyze our operating trends and performance and ability to service and incur debt. Also, we believe EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations in capital structures (affecting net interest expense), taxation, variations in organic versus inorganic growth (affecting amortization expense) and the age and book depreciation of property, plant and equipment (affecting relative depreciation expense). We believe Adjusted EBITDA further facilitates company-to-company operating comparisons by backing out items that we believe are not part of our core operating performance. Items backed out of Adjusted EBITDA are comprised of expenses incurred in the development of our ERP system and the redesign of our supply chain which include internal labor costs and external costs of materials and services that do not qualify for capitalization, business acquisition expenses including retention bonus expenses, due diligence and consulting costs incurred in connection with the acquisitions, expenses

recognized related to the change in the fair value of contingent consideration for acquisitions, restructuring costs, gains and losses on disposals of fixed assets, and income and expenses classified as other non-operating income and expenses which may vary for different companies for reasons unrelated to operating performance.

EBITDA and Adjusted EBITDA are not measurements of financial performance under GAAP and should not be considered as measures of discretionary cash available to the company or as alternatives to net income as a measure of performance. In addition, other companies may define EBITDA and Adjusted EBITDA differently and, as a result, our measures of EBITDA and Adjusted EBITDA may not be directly comparable to EBITDA and Adjusted EBITDA of other companies. Furthermore, EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider either of them in isolation, or as a substitute for analysis of our results as reported under GAAP.

The following table reconciles EBITDA and Adjusted EBITDA to net income (loss), which we consider to be the most directly comparable GAAP financial measure. On May 31, 2018 Cubic sold the CGD Services business. The operating results of this business and loss on sale have been excluded from the figures for all periods presented.

GAAP to Non-GAAP Reconciliation

Continuing Operations

Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA.


($ In Millions)	Nine Months Ended June 30,		Three Months Ended June 30,
Cubic Transportation Systems	2018	2017	2018	2017
Sales	$478.1	$407.9	$164.6	$136.4
Operating income (loss)	$42.7	$16.5	$18.6	$(0.9)
Depreciation and amortization	9.1	6.9	2.8	2.4
Acquisition related expenses, excluding amortization	-	(0.2)	-	-
Restructuring costs	0.6	0.4	0.4	0.2
Adjusted EBITDA	$52.4	$23.6	$21.8	$1.7
Adjusted EBITDA margin	11.0%	5.8%	13.2%	1.2%

	Nine Months Ended June 30,		Three Months Ended June 30,
Cubic Mission Solutions	2018	2017	2018	2017
Sales	$111.9	$103.3	$42.7	$40.7
Operating loss	$(17.2)	$(14.5)	$(0.5)	$(1.5)
Depreciation and amortization	15.8	18.1	4.7	5.4
Acquisition related expenses, excluding amortization	2.5	(0.6)	0.7	(1.5)
Adjusted EBITDA	$1.1	$3.0	$4.9	$2.4
Adjusted EBITDA margin	1.0%	2.9%	11.4%	6.0%

	Nine Months Ended June 30,		Three Months Ended June 30,
Cubic Global Defense	2018	2017	2018	2017
Sales	$233.2	$247.4	$88.9	$89.1
Operating income	$13.6	$18.4	$6.9	$10.4
Depreciation and amortization	6.1	7.3	2.0	3.5
Acquisition related expenses, excluding amortization	-	-	(0.1)	-
Restructuring costs	1.0	1.2	0.2	0.2
Adjusted EBITDA	$20.7	$26.9	$9.0	$14.1
Adjusted EBITDA margin	8.9%	10.9%	10.2%	15.8%

($ In Millions)	Nine Months Ended June 30,		Three Months Ended June 30,
Cubic Consolidated	2018	2017	2018	2017
Sales	$823.2	$758.6	$296.2	$266.2
Net income (loss) from continuing operations attributable to Cubic	$(13.9)	$(35.3)	$0.9	$(78.2)
Noncontrolling interest in loss of VIE	(1.9)	-	(1.9)	-
Provision for income taxes	4.3	5.9	5.6	68.9
Interest expense (income), net	6.3	11.5	1.8	4.1
Other non-operating expense (income), net	1.9	(0.7)	3.9	(1.6)
Operating income (loss)	(3.3)	(18.6)	10.3	(6.8)
Depreciation and amortization	34.1	35.8	10.6	11.8
Other non-operating (expense) income, net	(1.9)	0.7	(3.9)	1.6
EBITDA	28.9	17.9	17.0	6.6
Acquisition related expenses, excluding amortization	2.5	(0.8)	0.6	(1.5)
ERP/Supply chain initiatives	18.8	23.6	5.1	8.9
Restructuring costs	3.4	1.6	1.6	0.3
Loss on sale of fixed assets	-	0.4	-	-
Other non-operating expense (income), net	1.9	(0.7)	3.9	(1.6)
Adjusted EBITDA	$55.5	$42.0	$28.2	$12.7
Adjusted EBITDA margin	6.7%	5.5%	9.5%	4.8%

Note: The difference between consolidated amounts and segments represents Corporate

Financial Statements

CUBIC CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)


	Nine Months Ended				Three Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Net sales:
Products	$	468,949	$	466,071	$	179,761	$	167,143
Services		354,240		292,523		116,451		99,041
		823,189		758,594		296,212		266,184
Costs and expenses:
Products		334,202		334,590		125,536		120,575
Services		245,075		208,510		80,401		71,075
Selling, general and administrative expenses		183,720		170,730		58,267		56,898
Research and development		40,113		38,779		13,934		16,901
Amortization of purchased intangibles		19,988		22,948		6,153		7,257
Restructuring costs		3,382		1,616		1,631		326
		826,480		777,173		285,922		273,032

Operating income (loss)		(3,291)		(18,579)		10,290		(6,848)

Other income (expenses):
Interest and dividend income		1,872		682		765		235
Interest expense		(8,152)		(12,202)		(2,567)		(4,357)
Other income (expense), net		(1,881)		717		(3,831)		1,648

Income (loss) from continuing operations before income taxes		(11,452)		(29,382)		4,657		(9,322)

Income tax provision		4,299		5,967		5,627		68,914

Net loss from continuing operations		(15,751)		(35,349)		(970)		(78,236)
Net income from discontinued operations		8,364		10,985		5,380		56,279
Net income (loss)		(7,387)		(24,364)		4,410		(21,957)

Less noncontrolling interest in loss of VIE		(1,881)		—		(1,881)		—

Net income (loss) attributable to Cubic	$	(5,506)	$	(24,364)	$	6,291	$	(21,957)

Amounts attributable to Cubic:
Net income (loss) from continuing operations		(13,870)		(35,349)		911		(78,236)
Net income from discontinued operations		8,364		10,985		5,380		56,279
Net income (loss) attributable to Cubic	$	(5,506)	$	(24,364)	$	6,291	$	(21,957)

Net income (loss) per share:
Basic
Continuing operations attributable to Cubic	$	(0.51)	$	(1.30)	$	0.03	$	(2.89)
Discontinued operations	$	0.31	$	0.41	$	0.20	$	2.08
Basic earnings per share attributable to Cubic	$	(0.20)	$	(0.90)	$	0.23	$	(0.81)

Diluted
Continuing operations attributable to Cubic	$	(0.51)	$	(1.30)	$	0.03	$	(2.89)
Discontinued operations	$	0.31	$	0.41	$	0.20	$	2.08
Diluted earnings per share attributable to Cubic	$	(0.20)	$	(0.90)	$	0.23	$	(0.81)

Dividends per common share	$	0.14	$	0.14	$	—	$	—

Weighted average shares used in per share calculations:
Basic		27,221		27,100		27,232		27,110
Diluted		27,221		27,100		27,374		27,110

CUBIC CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands)


	June 30,		September 30,
	2018		2017
ASSETS

Current assets:
Cash and cash equivalents	$	93,274	$	60,143
Cash in consolidated VIE		414		—
Restricted cash		16,695		8,434
Restricted cash in consolidated VIE		10,000		—
Accounts receivable:
Long-term contracts		313,747		354,476
Allowance for doubtful accounts		(1,334)		(436)
		312,413		354,040

Recoverable income taxes		1,103		5,360
Inventories		126,405		87,715
Assets held for sale		8,177		—
Other current assets		45,423		29,951
Current assets of discontinued operations		—		75,900
Total current assets		613,904		621,543

Long-term contract receivables		14,791		17,457
Long-term capitalized contract costs		71,530		56,471
Long-term capitalized contract costs in consolidated VIE		1,159		—
Property, plant and equipment, net		111,775		113,220
Deferred income taxes		4,937		7,385
Goodwill		327,964		321,562
Purchased intangibles, net		74,808		89,858
Other assets		13,229		10,515
Noncurrent assets of discontinued operations		—		98,274
Total assets	$	1,234,097	$	1,336,285

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings	$	—	$	55,000
Trade accounts payable		110,970		88,521
Trade accounts payable in consolidated VIE		268		—
Customer advances		56,769		56,132
Accrued compensation and other current liabilities		102,142		130,126
Income taxes payable		6,677		9,838
Current liabilities of discontinued operations		—		36,862
Total current liabilities		276,826		376,479

Long-term debt		199,785		199,761
Long-term debt in consolidated VIE		26,562		—
Other long-term liabilities		52,949		70,414
Other long-term liabilities in consolidated VIE		2,090		—

Shareholders’ equity:
Common stock		41,465		37,850
Retained earnings		785,303		794,485
Accumulated other comprehensive loss		(112,924)		(106,626)
Treasury stock at cost		(36,078)		(36,078)
Shareholders’ equity related to Cubic		677,766		689,631
Noncontrolling interest in VIE		(1,881)		—
Total shareholders’ equity		675,885		689,631
Total liabilities and shareholders’ equity	$	1,234,097	$	1,336,285

CUBIC CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


	Nine Months Ended				Three Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Operating Activities:
Net income (loss)	$	(7,387)	$	(24,364)	$	4,410	$	(21,957)
Net income from discontinued operations		(8,364)		(10,985)		(5,380)		(56,279)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		34,133		35,774		10,642		11,750
Share-based compensation expense		5,100		3,586		2,603		395
Change in fair value of contingent consideration		446		(4,713)		(6)		(2,519)
(Gain) loss on disposal of assets		(1,474)		405		—		—
Deferred income taxes		(10,198)		(10,813)		(10,013)		17,660
Changes in operating assets and liabilities, net of effects from acquisitions:		(44,047)		(34,180)		(35,026)		5,928
NET CASH USED IN CONTINUING OPERATING ACTIVITIES		(31,791)		(45,290)		(32,770)		(45,022)
NET CASH PROVIDED BY OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS		14,497		28,776		8,364		16,702
NET CASH USED IN OPERATING ACTIVITIES		(17,294)		(16,514)		(24,406)		(28,320)

Investing Activities:
Acquisition of businesses, net of cash acquired		(9,534)		(12,924)		—		—
Purchases of property, plant and equipment		(21,120)		(25,474)		(9,334)		(10,305)
Purchases of marketable securities		—		(18,944)		—		(189)
Proceeds from sales or maturities of marketable securities		—		18,944		—		6,441
Purchase of non-marketable debt and equity securities		(1,472)		(2,200)		(222)		—
Proceeds from the sale of fixed assets		2,400		—		—		—
NET CASH USED IN INVESTING ACTIVITIES FROM CONTINUING OPERATIONS		(29,726)		(40,598)		(9,556)		(4,053)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS		133,795		1,217		133,795		(16)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		104,069		(39,381)		124,239		(4,069)

Financing Activities:
Proceeds from short-term borrowings		198,820		93,080		79,700		23,800
Principal payments on short-term borrowings		(253,820)		(229,080)		(156,700)		(169,800)
Principal payments on long-term debt		—		(320)		—		(104)
Proceeds from long-term borrowings in consolidated VIE		28,378		—		28,378		—
Deferred financing fees in consolidated VIE		(2,180)		—		(2,180)		—
Stock issued under employee stock purchase plan		710		1,712		(88)		279
Purchase of common stock		(2,355)		(2,449)		(31)		(94)
Dividends paid		(3,676)		(3,679)		—		—
Contingent consideration payments related to acquisitions of businesses		(656)		(1,988)		—		—
Net change in restricted cash		(18,626)		71,084		(12,885)		72,597
NET CASH USED IN FINANCING ACTIVITIES		(53,405)		(71,640)		(63,806)		(73,322)

Effect of exchange rates on cash		175		(2,528)		1,242		4,958

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		33,545		(130,063)		37,269		(100,753)

Cash and cash equivalents at the beginning of the period		60,143		197,127		56,419		167,817

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$	93,688	$	67,064	$	93,688	$	67,064

Supplemental disclosure of non-cash investing and financing activities:
Liability incurred to acquire Vocality, net	$	—	$	1,035	$	—	$	—

CUBIC CORPORATION

BACKLOG


	June 30,		September 30,
	2018		2017
	(in millions)
Total backlog
Cubic Transportation Systems	$	3,208.7	$	2,043.9
Cubic Global Defense Systems		425.6		420.3
Cubic Mission Solutions		66.7		72.3
Total	$	3,701.0	$	2,536.5

CUBIC CORP /DE/ - FORM 8-K - EX-99.1 - August 8, 2018

Attached files

CUBIC CORP /DE/ Reports