Cubic Says Q4 Preliminary Results Lower Than Expected

(RTTNews) - Cubic Corp. (CUB) reported that its Sales, EBITDA, Adjusted EBITDA and GAAP earnings per share were lower than expected in the fourth quarter mainly due to funding delays from the U.S. Department of Defense, specifically for higher margin orders in the Mission Solutions and Training Systems businesses within the defense systems segment.

For the year ended September 30, 2016, the company anticipates that consolidated sales will be in the range of $1.435 billion to $1.455 billion and Adjusted EBITDA will be in the range of $112 to $120 million, both of which are below the range of guidance previously provided. It is also anticipated that GAAP EPS and EBITDA results will be below previous guidance.

Analysts polled by Thomson Reuters expect the company to report earnings of $0.92 per share and revenues of $1.52 billion for fiscal year 2016. Analysts' estimates typically exclude special items.

"We are disappointed by the shortfall in the fourth quarter performance which impacted our FY16 financial results," said Bradley H. Feldmann, president and chief executive officer of Cubic Corporation. "We fully expect that the delayed orders will be received in fiscal year 2017 and we continue to expect improved performance in 2017."

The company noted that the rest of its operations performed in line with expectations. The Company completed the next phase of its Enterprise Resource Planning (ERP) roll out in early October. ERP implementation costs in fiscal year 2016 were in line with previously disclosed projections.

The company anticipates releasing its year-end results in late November and will provide a detailed update and outlook for fiscal year 2017 at that time.