The Rising Influence of Rising Affluence

[DewDiligence]

CUB Reports FY2Q12 Results

[CUB does not hold quarterly CC’s, does not give guidance, and is followed by few prominent analysts. I’ve seen no analyst reports or newswire stories on these quarterly results, but they look fine. The EPS was an all-time quarterly record and the backlog grew by almost $300M or 9% since the start of the fiscal year. Thus, the 2% drop in the share price today is probably more of an indication of the broad market than anything company-specific. If anyone here thinks otherwise, please post!]

http://finance.yahoo.com/news/cubic-corp-nyse-cub-reports-203000613.html

›3-May-2012 4:31 pm ET

SAN DIEGO, CA--(Marketwire -05/03/12)- Cubic Corporation (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 [i.e. an increase of 9% since the start of the current fiscal year].

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.‹