Cubic Corp. reported net income of $4.5 million, or 17 cents per share, on sales of $375.2 million in its third quarter, which ended June 30. For the same quarter one year ago, Cubic reported $8.8 million in net income (33 cents per share) on $347.8 million in sales.
Cubic (NYSE: CUB) said its defense services business fell off 10 percent to $100.2 million during the third quarter while its defense system business grew 16 percent to $119.0 million and its transportation system business improved 17 percent to $156.0 million.
Executives are working to improve the organization by integrating several recently acquired companies into the defense part of the house, and by installing an ERP — enterprise resource planning — computer system to streamline and better coordinate Cubic’s disparate businesses.
Adjusted EBITDA for the June quarter was $40.7 million, up 54 percent from $26.4 million in the same quarter one year ago. EBITDA — short for earnings before interest, taxes, depreciation and amortization — is not a measurement that federal securities regulators track, though financial analysts find it meaningful in some cases, such as when measuring the ability to service or incur debt. Cubic’s adjusted EBITDA excludes acquisition-related expenses, expenses related to the ERP system development and supply chain process redesign, restructuring costs and other non-operating income and expenses.
On June 30, Cubic reported an order backlog worth $2.67 billion.
The company plans to ship high-margin defense-system products in the current, fourth quarter, which ought to make it a strong one, CEO Brad Feldmann said in a prepared statement. Cubic expects full-year sales to end up in the range of $1.51 billion to $1.56 billion.