Cubic Corporation (NYSE:CUB) Q4 2017 Earnings Conference Call Transcript

Nov 20, 2017 • 04:30 pm ET


Cubic Corporation (NYSE:CUB) Q4 2017 Earnings Conference Call Transcript


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Ladies and gentlemen, welcome to Cubic Corporation's Fourth Quarter Fiscal Year 2017 Earnings Conference Call. (Operator Instructions) Please note that Brad Feldmann, Cubic's President and CEO, will have late-breaking news at the end of today's call. You can advance the slides by using the left and right arrows located in the upper-right hand corner of your window. (Operator Instructions) As a reminder, this conference is being recorded. If anyone has any objections, you may disconnect at this time.

Now I would like to turn the call over to Diane Dyer, Cubic's Director of Investor Relations. Thank you. You may begin.

Diane Dyer

Thank you, operator. Hello, everyone, and thank you for joining Cubic's webcast. Today, after market close, we reported our fiscal year 2017 results. We encourage you to refer to the company's press release and the most recent reports filed with the SEC as well as today's presentation slides. You can access these documents on the Investor Relations tab of Cubic's website at or on the SEC's website.

On today's call, Brad Feldmann, Cubic's President and CEO; and Anshooman Aga, Executive Vice President and CFO, will comment on Cubic's fiscal year 2017 results.

(Forward-looking Cautionary Statements) This conference call also includes a discussion of non-GAAP financial measures as that term is defined in Regulation G. Cubic believes this information is useful to investors because it provides a basis for measuring the company's available capital resources, the actual and forecasted operating performance of the company's business and the company's cash flows. Any discussion of non-GAAP measures is not intended to detract from the importance of comparable GAAP measures.

Having said that, I'll turn the call over to Brad Feldmann, our President and CEO.

Brad Feldmann

Thank you, Diane. Thank you, everyone, for joining us on the call. Today, I'll be providing a summary of our fiscal year 2017 financial performance, a review of our recent investments and an update on our strategy. I'll also be sharing some insight on (inaudible) valued New York City Fare Payment System Award received in mid-October. Then I'll hand the call over to, Anshooman Aga, our new CFO, who will discuss our financial results for the quarter and fiscal year in greater detail.

Starting with Slide 3. To recap the fiscal year results, we have record sales for the fiscal year of $1.486 billion compared to $1.462 billion last year, net of $20 million in foreign exchange headwinds and up 3% on a constant currency basis. We also had record quarterly sales of $445.6 million in Q4 and very strong adjusted EBITDA of $50.2 million.

For fiscal year 2017, adjusted EBITDA was $105.6 million compared to $118 million last year, net of $1.9 million foreign currency exchange headwinds and $20.7 million of additional R&D investment. We're pleased to report that our adjusted EBITDA is in line with our fiscal year guidance.

Increased C4ISR product sales in mission support solutions and improved financial performance in our Transportation segment drove strong results in the fourth quarter.

We also have very strong