The Rising Influence of Rising Affluence

[DewDiligence]

Cubic Reports Record FY2010 Results

[Please see the prologue of #msg-53598437 for the reason I think CUB is a good stock and a beneficiary of The Global Demographic Tailwind. (And be sure to read #msg-53690679 if you have not done so already!)

The fiscal year ended on 9/30/10. Please see actual PR for financial tables. CUB does not hold quarterly CC’s.]

http://finance.yahoo.com/news/Cubic-Corp-NYSE-CUB-Reports-iw-4010290724.html?x=0&.v=1

›Thursday December 9, 2010, 6:00 am

SAN DIEGO, CA--(Marketwire - 12/09/10) - Cubic Corporation (NYSE:CUB) today reported record high sales and earnings for the fiscal year ended September 30, 2010. Sales in fiscal 2010 were $1.194 billion, representing an increase of 17 percent over sales of $1.017 billion in 2009. Net income increased 27 percent, to $70.6 million ($2.64 per share) from $55.7 million ($2.08 per share) in 2009.

Operating income increased 25 percent, from $84.7 million in 2009 to $105.5 million this year, and cash flows from operations were strong, at $111.7 million in 2010.

Transportation Systems Segment

Cubic Transportation Systems (CTS) sales increased 27 percent to $386.0 million in 2010 from $303.4 million in 2009. Sales were higher in 2010 from work in the San Francisco Bay area, London, Southern California and Sydney, Australia.

Operating income from CTS increased 24 percent in 2010 to $54.7 million from $44.1 million in 2009. Increased income resulted from higher sales and margins in North America and from slightly higher operating profits from European operations.

Defense Systems Segment

Cubic Defense Systems (CDS) sales increased 27 percent to $362.8 million in 2010 from $285.4 million in 2009. Sales increased in both the Training Systems and Communications businesses.

Operating income from CDS increased 51 percent to $28.7 million in 2010 from $19.0 million in 2009. Higher sales of training systems and communications products and improved profit margins contributed to the increase. In addition, an allowance for doubtful accounts receivable of $3.1 million established in 2009 was fully recovered in 2010, plus attorney's fees, costs and interest, of $1.1 million.

Mission Support Services Segment

Sales at Mission Support Services (MSS) increased 4 percent to $443.3 million in 2010 from $424.4 million in 2009. Sales were higher in 2010 primarily from increased activity at the Joint Readiness Training Center in Fort Polk, Louisiana.

Operating income from MSS was slightly lower in 2010 at $26.5 million compared to $27.9 million in 2009, due primarily to a provision of $2.0 million recorded in the first quarter of 2010 for a dispute with a customer over contract terms.

Financial Condition

The Company's financial condition continued to be very strong in 2010. Cash and short-term investments at September 30, 2010 were $379.5 million while long-term debt was only $20.5 million.

Backlog

Total backlog was a record high $2.486 billion at September 30, 2010 compared to $2.183 billion at September 30, 2009. Funded backlog was $1.872 billion at September 30, 2010 compared to $1.534 billion at September 30, 2009.

SEC Form 10-K

The Company also announced that it filed its form 10-K with the Securities and Exchange Commission today. This report may be found at www.cubic.com under "Investor Info." Shareholders may also receive a free hard copy upon written request to the Company or by e-mail to [e-mail].

Cubic Corporation is the parent company of three major business segments: defense systems, mission support services and 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. 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.‹