-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, sfQoWig8FI15yUHDxoiINa/9y8SlZbKSRx5rfXKV777t4bVSDt9PLPnOGmsdH4Qe 74xXfwSzy0o+hgzthIu60g== 0000898430-94-000108.txt : 19940214 0000898430-94-000108.hdr.sgml : 19940214 ACCESSION NUMBER: 0000898430-94-000108 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CUBIC CORP /DE/ CENTRAL INDEX KEY: 0000026076 STANDARD INDUSTRIAL CLASSIFICATION: 3812 IRS NUMBER: 951678055 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 34 SEC FILE NUMBER: 001-08931 FILM NUMBER: 94506542 BUSINESS ADDRESS: STREET 1: 9333 BALBOA AVE CITY: SAN DIEGO STATE: CA ZIP: 92123 BUSINESS PHONE: 6192776780 MAIL ADDRESS: STREET 1: PO BOX 85587 CITY: SAN DIEGO STATE: CA ZIP: 92186-5587 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarter Ended December 31, 1993 1-8931 - -------------------------------------------------------------------------------- Commission File Number CUBIC CORPORATION - -------------------------------------------------------------------------------- Exact Name of Registrant as Specified in its Charter Delaware 95-1678055 - -------------------------------------------------------------------------------- State of Incorporation IRS Employer Identification No. 9333 Balboa Avenue San Diego, California 92123 Telephone (619) 277-6780 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- As of January 28, 1994, Registrant had only one class of common stock of which there were 6,041,719 shares outstanding (after deducting 1,883,895 shares held as treasury stock). PART I - FINANCIAL INFORMATION ITEM 1 - FINANCIAL STATEMENTS CUBIC CORPORATION CONSOLIDATED CONDENSED STATEMENT OF INCOME (UNAUDITED) (amounts in thousands, except per share data)
Three Months Ended December 31 1993 1992 --------- -------- Revenues: Net sales $48,407 $52,288 Other income 2,167 1,229 ------- ------- 50,574 53,517 Costs and expenses: Cost of sales 37,900 40,156 Selling, general and administrative expenses 11,233 10,537 Research and development 602 1,146 Interest 589 586 ------- ------- 50,324 52,425 ------- ------- Income from continuing operations before income taxes and cumulative effect of accounting change 250 1,092 Income taxes 50 285 ------- ------- Income from continuing operations before cumulative effect of accounting change 200 807 Discontinued operations, net of applicable income taxes: Income (loss) from operations (153) 408 ------- ------- Income before cumulative effect of accounting change 47 1,215 Cumulative effect of accounting change -- Note C 1,379 ------- ------- Net income $ 1,426 $ 1,215 ======= ======= Average shares of common stock outstanding 6,081 6,123 ======= ======= Per share data: Income from continuing operations $ .03 $ .13 Income (loss) from discontinued operations (.03) .07 Cumulative effect of accounting change .23 ------- ------- Net income $ .23 $ .20 ======= =======
See accompanying notes. 1 CUBIC CORPORATION CONSOLIDATED CONDENSED BALANCE SHEET (thousands of dollars)
December 31 September 30 1993 1993 (Unaudited) (See note below) ------------ ---------------- ASSETS Current assets: Cash and cash equivalents $ 24,218 $ 24,496 Marketable securities 11,092 17,383 Accounts receivable 121,762 114,288 Inventories: Finished products 1,389 1,330 Work in process 7,476 8,475 Raw material and purchased parts 11,522 8,108 ------- ------- 20,387 17,913 Other current assets 5,509 6,646 -------- -------- Total current assets 182,968 180,726 Property, plant and equipment - net 28,185 28,038 Toll equipment under operating leases - net 19,260 19,952 Preferred stock of U. S. Elevator 20,000 20,000 Net assets of discontinued operation 2,848 2,823 Other assets 13,315 13,029 -------- -------- $266,576 $264,568 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and other current liabilities $ 59,956 $ 62,721 Income taxes 53 1,040 Current portion of long-term debt 100 -------- -------- Total current liabilities 60,009 63,861 Long-term debt 41,943 37,343 Deferred income taxes and other 3,817 3,812 Shareholders' equity: Common stock 234 234 Additional paid-in capital 12,123 12,123 Retained earnings 180,292 178,867 -------- -------- 192,649 191,224 Less treasury stock at cost 31,842 31,672 -------- -------- 160,807 159,552 -------- -------- $266,576 $264,568 ======== ========
Note: The balance sheet at September 30, 1993 has been derived from the audited financial statements at that date. See accompanying notes. 2 CUBIC CORPORATION CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) (thousands of dollars)
Three Months Ended December 31 1993 1992 -------- -------- Operating Activities: Net income $ 1,426 $ 1,215 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 2,015 1,996 Change in accounting method (1,379) Undistributed earnings of affiliates, net of distributions (349) (544) Changes in operating assets and liabilities (11,071) (4,034) -------- -------- NET CASH USED IN OPERATING ACTIVITIES (9,358) (1,367) Investing Activities: Decrease in marketable securities 6,291 6,618 Net additions to property, plant and equipment and toll equipment under operating leases (1,541) (10,775) Other items - net (1,573) -------- ------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 4,750 (5,730) Financing Activities: Principal payments on long-term debt (100) (4,775) Long-term borrowing 4,600 Purchases of treasury stock (170) (757) -------- -------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 4,330 (5,532) -------- -------- NET DECREASE IN CASH AND CASH EQUIVALENTS (278) (12,629) Cash and cash equivalents at the beginning of the period 24,496 31,126 -------- -------- CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD $ 24,218 $ 18,497 ======== ========
See accompanying notes. 3 CUBIC CORPORATION NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS December 31, 1993 A. Basis for Presentation ---------------------- The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. The information furnished reflects all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods. Results for the quarter are not necessarily indicative of the results to be expected for the year. B. Per Share Amounts ----------------- Per share amounts are based upon the weighted average number of shares of common stock outstanding. 4 C. Change in Accounting for Income Taxes ------------------------------------- Effective October 1, 1993, the Company adopted Financial Accounting Standards Board Statement No. 109, "Accounting for Income Taxes". Under the provisions of this new standard, the Company must now recognize, to a greater degree, the future tax benefits of certain expenses which previously had been recognized in the financial statements without tax benefit. As permitted by the standard, the Company has elected not to restate the financial statements of any prior periods. The change was applied retroactively to certain elements of deferred income taxes originating in prior years and resulted in a cumulative effect adjustment of $1,379,000, which is included in net income for the first quarter of fiscal 1994. Significant components of the Company's deferred tax assets and liabilities for federal and states income taxes as of October 1, 1993 are as follows (in thousands): Deferred tax assets: Accrued liabilities and other $3,894 Inventories 2,354 Long-term contract receivables 2,355 ------ $8,603 ====== Deferred tax liabilities: Leveraged leases $3,755 Property, plant and equipment 2,585 Other - net 1,035 ------ $7,375 ======
D. Review by Independent Accountants --------------------------------- A review of the data presented was made by Ernst & Young, independent accountants, in accordance with established professional standards and procedures, and their report is included herein. 5 CUBIC CORPORATION ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS December 31, 1993 Sales from continuing operations for the quarter ended December 31, 1993, were down 7% from the same quarter in the previous year due to lower sales volume in the defense systems segment. This decrease is a continuation of the trend which has occurred over the last several years, resulting from Department of Defense spending cuts which have caused increased competition in the instrumentation and training market segment. Sales in the automatic revenue collection systems segment were at about the same level as in the first quarter of the previous fiscal year. Operating profits in the electronic defense systems segment were lower than in the first quarter of fiscal 1993, reflecting the lower sales volume and lower profit margins on defense contracts. Operating profits in the automatic revenue collection systems segment were also lower than last year primarily as the result of increased selling, general and administrative expenses, as described below. Selling, general and administrative expenses increased from 20% of sales in the first quarter of fiscal 1993 to 23% of sales in the first quarter of the current fiscal year. This resulted from an increase in international selling activities and legal expenses, primarily in the automatic revenue collection systems segment. The provisions for income taxes in both periods were low in comparison to statutory income tax rates because of the Company's tax exempt interest and dividend income and equity share in the net income of its 50% owned foreign subsidiary. The Company's financial condition remains strong with working capital of $123.0 million at December 31, 1993, up from $116.9 million at September 30, 1993. The Company's subsidiary, Cubic Toll Systems, Inc., borrowed $4.5 million during the quarter, through its revolving credit facility, to finance the on-going construction of toll equipment for lease to customers. The backlog of orders for the continuing operations was $265.6 million at December 31, 1993 compared to $246.7 million at September 30, 1993 and $270.5 million at December 31, 1992. 6 PART II - OTHER INFORMATION ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K (a) The following exhibit is included herein: 28--Independent Accountants' Review Report (b) No reports on Form 8-K were filed during the quarter. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CUBIC CORPORATION Date February 9, 1994 /s/ W. W. Boyle --------------------- -------------------------- W. W. Boyle Vice President Finance and CFO Date February 9, 1994 /s/ T.A. Baz -------------------- ----------------------------- T. A. Baz Vice President and Controller 7 EX-28 2 INDEPENDENT ACCOUNTANT'S REVIEW REPORT EXHIBIT 28 -- INDEPENDENT ACCOUNTANTS' REVIEW REPORT Board of Directors Cubic Corporation San Diego, California We have reviewed the accompanying consolidated condensed balance sheet of Cubic Corporation as of December 31, 1993, and the related consolidated condensed statements of income and cash flows for the three-month periods ended December 31, 1993 and 1992. These financial statements are the responsibility of the Company's management. We conducted our reviews in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, which will be performed for the full year with the objective of expressing an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying consolidated condensed financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of Cubic Corporation as of September 30, 1993, and the related consolidated statements of income, retained earnings, and cash flows for the year then ended (not presented herein) and in our report dated December 8, 1993, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated condensed balance sheet at September 30, 1993, is fairly stated in all material respects in relation to the consolidated balance sheet from which it has been derived. ERNST & YOUNG February 2, 1994 -----END PRIVACY-ENHANCED MESSAGE-----