CUBIC CORP /DE/

CIK:0000026076|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Net sales:
Net sales	$ 343,408	$ 321,482	$ 662,202	$ 650,321
Costs and expenses:
Selling, general and administrative expenses	83,141	78,294	146,801	144,209
Research and development	14,368	11,360	26,514	19,782
Amortization of purchased intangibles	15,033	16,493	31,140	26,582
(Gain) loss on sale of property, plant and equipment	125	40	125	(130)
Restructuring costs	7,746	3,807	11,881	5,382
Total costs and expenses	368,963	351,416	686,460	686,738
Operating loss	(25,555)	(29,934)	(24,258)	(36,417)
Other income (expenses):
Interest and dividend income	1,946	1,693	3,735	3,911
Interest expense	(6,734)	(8,219)	(14,905)	(13,582)
Loss on extinguishment of debt		(16,090)		(16,090)
Other income (expense), net	14,543	(19,664)	15,839	(19,791)
Loss from continuing operations before income taxes	(15,800)	(72,214)	(19,589)	(81,969)
Income tax provision (benefit)	3,440	(19,784)	6,929	(13,538)
Loss from continuing operations	(19,240)	(52,430)	(26,518)	(68,431)
Net income (loss) from discontinued operations		129		(455)
Net loss	(19,240)	(52,301)	(26,518)	(68,886)
Less noncontrolling interest in net income (loss) of VIE	16,777	(13,178)	22,494	(9,188)
Net loss attributable to Cubic	(36,017)	(39,123)	(49,012)	(59,698)
Amounts attributable to Cubic:
Net loss from continuing operations	(36,017)	(39,252)	(49,012)	(59,243)
Net loss from discontinued operations		129		(455)
Net loss attributable to Cubic	$ (36,017)	$ (39,123)	$ (49,012)	$ (59,698)
Basic
Continuing operations attributable to Cubic (in dollars per share)	$ (1.14)	$ (1.25)	$ (1.55)	$ (1.89)
Discontinued operations (in dollars per share)				(0.01)
Basic earnings per share attributable to Cubic (in dollars per share)	(1.14)	(1.25)	(1.55)	(1.91)
Diluted
Continuing operations attributable to Cubic (in dollars per share)	(1.14)	(1.25)	(1.55)	(1.89)
Discontinued operations (in dollars per share)				(0.01)
Diluted earnings per share attributable to Cubic (in dollars per share)	$ (1.14)	$ (1.25)	$ (1.55)	$ (1.91)
Weighted average shares used in per share calculations:
Basic (in shares)	31,633	31,296	31,598	31,284
Diluted (in shares)	31,633	31,296	31,598	31,284
Products
Net sales:
Net sales	$ 200,428	$ 187,494	$ 381,917	$ 388,098
Costs and expenses:
Costs	149,671	153,002	287,690	319,845
Services
Net sales:
Net sales	142,980	133,988	280,285	262,223
Costs and expenses:
Costs	$ 98,879	$ 88,420	$ 182,309	$ 171,068

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Operating Activities:
Net loss	$ (19,240)	$ (52,301)	$ (26,518)	$ (68,886)
Net income (loss) from discontinued operations		(129)		455
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	25,055	23,414	49,716	40,364
Share-based compensation expense	6,472	5,382	11,151	9,859
Change in fair value of contingent consideration	1,260	(1,473)	684	(4,478)
Deferred income taxes	161	2,909	(977)	2,909
Loss on extinguishment of debt		16,090		16,090
Other items	2,094	13	5,705	4,308
Changes in operating assets and liabilities, net of effects from acquisitions	(37,150)	(36,281)	(80,027)	(86,222)
NET CASH USED IN OPERATING ACTIVITIES FROM CONTINUING OPERATIONS	(36,439)	(26,557)	(58,609)	(74,119)
NET CASH PROVIDED BY OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS		129		85
NET CASH USED IN OPERATING ACTIVITIES	(36,439)	(26,428)	(58,609)	(74,034)
Investing Activities:
Acquisition of businesses, net of cash acquired		(234,538)		(234,538)
Purchases of property, plant and equipment	(13,389)	(13,478)	(20,053)	(25,311)
Purchase of non-marketable debt and equity securities	(1,446)		(1,446)
Receipt of withheld proceeds from sale of trade receivables	641		2,483	5,521
NET CASH USED IN INVESTING ACTIVITIES	(14,194)	(248,016)	(19,016)	(254,328)
Financing Activities:
Proceeds from short-term borrowings	104,786	727,000	186,644	884,500
Principal payments on short-term borrowings	(32,956)	(616,500)	(123,646)	(743,000)
Principal payments on long-term borrowings	(3,653)	(199,833)	(5,625)	(199,833)
Debt extinguishment make-whole payment		(15,856)		(15,856)
Deferred financing fees		(2,517)		(2,517)
Principal payments on finance lease liability	(673)		(691)
Proceeds from stock issued under employee stock purchase plan	1,170		1,170	1,169
Purchase of common stock	(1,004)	(39)	(4,014)	(3,660)
Shares repurchased for tax withholdings	(5,243)		(5,243)
Dividends paid	(4,270)	(4,225)	(4,270)	(4,225)
Contingent consideration payments related to acquisitions of businesses	(1,006)		(1,006)
NET CASH PROVIDED BY FINANCING ACTIVITIES	77,126	341,066	85,828	389,800
Effect of exchange rates on cash	(2,448)	(11,224)	6,078	(7,203)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	24,045	55,398	14,281	54,235
Cash, cash equivalents and restricted cash at the beginning of the period	147,220	94,458	156,984	95,621
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT THE END OF THE PERIOD	171,265	149,856	171,265	149,856
PIXIA Corp
Supplemental disclosure of non-cash investing and financing activities:
Receivable recognized in connection with the acquisition of net		1,214		1,214
Delerrok Inc.
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of contingent consideration			(900)
Supplemental disclosure of non-cash investing and financing activities:
Contingent consideration liability incurred with the acquisition		1,600		1,600
Cubic Corporation Excluding VIE
Financing Activities:
Proceeds from long-term borrowings	1,008	450,000	1,008	450,000
VIE
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of interest rate swap	(15,091)	15,819	(18,343)	11,482
Financing Activities:
Proceeds from long-term borrowings	$ 18,967	$ 3,036	$ 41,501	$ 23,222

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Accounts receivable:
Billed	$ 109,604	$ 161,473
Allowance for doubtful accounts	(1,450)	(1,498)
Accounts receivable - net	108,154	159,975
Contract assets	321,545	268,773
Recoverable income taxes	20,502	17,434
Inventories	132,803	127,251
Total current assets	796,195	763,074
Property, plant and equipment, net	168,783	166,301
Operating lease right-of-use asset	83,076	87,167
Financing lease right-of-use asset, net	12,766	500
Deferred income taxes	5,483	4,790
Goodwill	788,027	784,882
Purchased intangibles, net	179,460	210,361
Other assets	25,424	21,759
Total assets	2,401,458	2,324,221
Current liabilities:
Short-term borrowings	279,000	215,716
Contract liabilities	74,779	75,546
Accrued compensation and current liabilities	131,465	126,388
Income taxes payable	719	799
Current portion of long-term debt	11,250	11,250
Total current liabilities	644,579	586,786
Operating lease liability	76,971	80,568
Financing lease liability	10,002	395
Shareholders' equity:
Common stock	304,293	295,986
Retained earnings	797,190	850,472
Accumulated other comprehensive loss	(132,408)	(149,603)
Treasury stock at cost - 9,031 shares at March 31, 2021 and 8,945 at September 30, 2020	(41,321)	(36,078)
Shareholders' equity related to Cubic	927,754	960,777
Total shareholders' equity	977,651	988,180
Total liabilities and shareholders' equity	2,401,458	2,324,221
Cubic Corporation Excluding VIE
Current assets:
Cash and cash equivalents	133,817	128,619
Restricted cash	28,580	25,478
Accounts receivable:
Other current assets	41,926	32,626
Long-term contracts financing receivables	72,605	64,642
Current liabilities:
Trade accounts payable	147,223	156,953
Long-term debt	425,498	430,115
Other noncurrent liabilities	58,163	68,939
VIE
Current assets:
Cash and cash equivalents	1,546	1,065
Restricted cash	7,322	1,822
Accounts receivable:
Other current assets	18	31
Long-term contracts financing receivables	257,185	221,245
Other assets	12,454
Total assets	278,525	224,163
Current liabilities:
Trade accounts payable	35	49
Other current liabilities	108	85
Long-term debt	208,594	163,348
Other noncurrent liabilities		5,890
Shareholders' equity:
Shareholders' equity related to Cubic	2,628	129
Noncontrolling interest	49,897	27,403
Total liabilities and shareholders' equity	$ 278,525	$ 224,163