Second Quarter Fiscal Year 2018 Results May 2, 2018
Bradley H. Feldmann
Chairman, President and Chief Executive Officer
Anshooman Aga
Executive Vice President and Chief Financial Officer
2
Safe Harbor & Disclosures
This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, that are subject to the “safe harbor” created by those sections. Any statements about our expectations, beliefs, plans,
objectives, assumptions or future events or our future financial and/or operating performance are not historical and may be forward-
looking. These statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “anticipate,”
“estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “predict,” “potential,” “opportunity” and similar words or
phrases or the negatives of these words or phrases. These statements involve estimates, assumptions and uncertainties, including those
discussed in “Risk Factors” in the Company’s annual report on Form 10-K for the year ended September 30, 2017, and throughout this
presentation that could cause actual results to differ materially from those expressed in these statements.
Because the risk factors referred to above could cause actual results or outcomes to differ materially from those expressed in any
forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statements. In
addition, past financial and/or operating performance is not necessarily a reliable indicator of future performance and you should not use
our historical performance to anticipate results or future period trends. Further, any forward-looking statement speaks only as of the date
on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the
date on which the statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is
not possible for us to predict which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent
to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking
statements
This presentation also includes non-GAAP financial measures as that term is defined in Regulation G. Non-GAAP financial measures
supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most
directly comparable GAAP financial measures can be found in the Appendix to this presentation.
NYSE: CUB
3
$527.0
2Q17 2Q18 2Q17 2Q182Q17 2Q18
2Q18 and 1H18 Results Continuing Operations1
NYSE: CUB
Sales
($m)
Adj. EBITDA
($m)
See appendix for additional information regarding non-GAAP financial measures. 1On April 19, 2018 Cubic announced the planned divestiture of CGD Services; the results have been excluded from the figures above.
Highest historical backlog $3.4 billion (up $873 million since 4Q17) with Boston financial close
Top five U.S. transit agencies are now mobile customers with Limited Notice To Proceed for NFC
mobile solution for Washington Metropolitan Area Transit Authority
2Q18 sales increased 12%, adj. EBITDA increased 35% compared to 2Q17
1H18 sales increased 7%, adj. EBITDA decreased 7% compared to 1H17 due to R&D increase
Advancing strategy with Defense Services divestiture
1H17 1H181H17 1H18
Sales
($m)
Adj. EBITDA
($m)
Strong Execution on Winning the Customer
1H17 1H18
R&D
($m)
R&D
($m)
$248.0 $278.6
$11.7
$15.8 $492.4 $27.3
$29.3 $26.2
$21.9 $14.2
$12.9
4
Spending Bill to Benefit Cubic
$1.3 trillion omnibus spending bill funds remainder of FY18
$700b FY18 defense bill passed with an increase of $55b from FY17
Increase of $56.4m for Cubic programs compared to President’s budget:
Transportable Tactical Command Communications (T2C2) ($80.6m new total)
Secure Live, Virtual, Constructive Advanced Training Environment Advanced
Technology Demonstration (SLATE ATD) ($43.3m new total)
Littoral Combat Ship Training Courseware ($30.2m new total)
Instrumented-Tactical Engagement Simulation System II Force on Force training
systems ($16.3m new total)
Delivers $10b in new transportation and infrastructure funding including Capital
Investment, Transportation Investment Generating Economic Recovery (TIGER)
and Federal Highway Administration grants
4
NYSE: CUB
5
Strategy Update
NYSE: CUB
Named ‘Supplier of the Year’ at the London
Transport Awards
Expanding real-time video processing and image
enhancement with acquisition of MotionDSP
Investment in Beatty and Company Computing to
enhance access to secure cloud operating
systems technology
Secure Live, Virtual, Constructive Advanced Training
Environment Advanced Technology Demonstration
(SLATE ATD) passed systems verification
6
Significant Progress Across Growth Initiatives
NYSE: CUB
Strong contract mobilization with NY and Boston contracts
Cubic │John Laing Consortium financial close agreement with
Massachusetts Bay Transportation Authority
Anticipate Brisbane Next Generation Ticketing System award FY18
Investing in mid-market electronic fare collection platform solutions
Won USAF Theater Deployable Communications ($12.9m)
Transportable Tactical Command Communications (T2C2) full-rate
production decision
Won Tactical Local Area Network CERP ($5.5m)
Lockheed Martin Aero agreement for LRIP 2-4/11; negotiating contract for a
combined buy of 500 units for LRIP 12/14
Received $16m in new Littoral Combat Ship Courseware orders associated
with Combat Systems, Engineering revisions and Learning Management
Canada Urban Operations Training System Phase 2 Long Lead
7
Successfully Living One Cubic
NYSE: CUB
Major ERP system implementation
completed
Implementing Product Lifecycle
Management (PLM)
Expanding India operations to support
growth in international markets
Defense and Transportation engineering
teams consistently working together
8
Continued Strong Execution in 2Q18
Disciplined capital allocation decision – announced agreement to divest CGD Services
• Reflected in discontinued operations at March 31, 2018
All key milestones for quarter achieved
Completed Boston MBTA financial close
Adj. EBITDA improved year over year and sequentially
Improved 2Q Free Cash Flow
Maintaining full year guidance (adjusted for divestiture)
8
NYSE: CUB
9
$1.54
($0.12)
2Q17 2Q18
Earnings per Share
Disc Ops
Consolidated Financial Highlights Continuing Operations
9
1) Growth rates reflects constant currency, adjusted for FX tailwinds of: $0.8m bookings, $31.8m backlog, $7.5m sales, and $1.3m Adj EBITDA.
Unadjusted growth rates: bookings +4x, backlog +34%, sales +12%, adj EBITDA +35% versus 2Q fiscal 2017.
2) Free cash flow, which is a non-GAAP financial measure, is defined as Net Cash Provided by Operating Activities minus capital expenditures. NYSE: CUB
20.1 17.0
Q1 FY17 Q1 FY18
Adj EBITDA
0.4
(33.3)
Q1 FY17 Q1 FY18
Free Cash Flow
334.7 340.7
Q1 FY17 Q1 FY18
Sales
$ in millions, except backlog and EPS
0%1)
-18%1)
-0.11-0.36
Q1 FY17 Q1 FY18
EPS ($)
204.3
832.5
Q1 FY17 Q1 FY18
Bookings
3.1 3.6
Q1 FY17 Q1 FY18
Backlog ($b)
+306%1)
+17%1)
$151.7
$623.8
2Q17 2Q18
Bookings
$2.5 $3.4
Sep 30, 2017 Mar 31, 2018
Backlog ($b)
$248.0 $278.6
2Q17 2Q18
Sales
$11.7
$15.8
2Q17 2Q18
Adj. EBITDA
($5.5)
$7.0
2Q17 2Q18
Free Cash Flow
4x1 33%1 9%1
24%1
Disc
($1.53) $0.05
10
Divestiture Impact on Cubic Financials (fiscal 2Q18)
NYSE: CUB
$278.6
98.1 -
$376.7
Pre-Divestiture CGD Services ContinuingOperations
Total Sales
$15.8
4.7 1.9
$22.5
Pre-Divestiture CGD Services Cost Overhang ContinuingOperations
Adj EBITDA*
$ millions
* See appendix for reconciliation of non-GAAP financial measures
$623.8
181.6 -
$805.4
Pre-Divestiture CGD Services ContinuingOperations
Total Bookings
$7.0
- 1.4
$28.6
20.2
Pre-Divestiture CGD Services Cost Overhang ContinuingOperations
Free Cash Flow
Pre-Divestiture CGD Services Corporate
Costs
Continuing
Operations Pre-Divestiture CGD Services
Corporate
Costs
Continuing
Operations
11
Cubic Transportation Systems Financial Highlights Q2 Comparison ($m)
11
1) Growth rate reflects constant currency basis; Adjusted for FX tailwinds of $0.8m bookings, $7.1m sales and $1.4m Adj. EBITDA.
Unadjusted growth rates: Bookings ~8.5x, Sales +20% and Adj. EBITDA +74% versus 2Q17 NYSE: CUB
$61.0
$520.5
2Q17 2Q18
Bookings
$139.6
$167.0
2Q17 2Q18
Sales
$9.9
$17.2
2Q17 2Q18
Adj. EBITDA
7.1% 10.3%
2Q17 2Q18
Adj. EBITDA Margin %
+9x1
+60%1
+15%1
+322 bps
Strong bookings reflect Boston
MBTA award
Robust sales growth supported by
New York MTA contract
Margin increase reflects higher
sales, lower R&D spend, and
improved operational performance
12
Cubic Mission Solutions Financial Highlights Q2 Comparison ($m)
12
Bookings increase reflects T2C2
LRIP and Theater Deployable
Communications (TDC) orders
Sales increase reflects higher
Secured Networking deliveries
Margin improved on higher sales
despite higher YoY R&D spend
T2C2 full rate production expected
to drive YoY improvement in all key
line items in FY18
NYSE: CUB
$22.0
$46.1
2Q17 2Q18
Bookings
$28.7 $36.1
2Q17 2Q18
Sales
($3.2) ($2.0)
2Q17 2Q18
Adj. EBITDA
-11.2%
-5.6%
2Q17 2Q18
Adj. EBITDA Margin %
+109% +26%
+37% +561 bps
13
Cubic Global Defense Systems Financial Highlights
Q2 Comparison ($m)
13
All key metrics improve sequentially
from 1Q18
Bookings down YoY due to
order delays; Expect recovery in H2
Sales reflect lower YoY Air Ranges
shipments
Adj. EBITDA in-line with prior year
NYSE: CUB
$68.6 $57.2
2Q17 2Q18
Bookings
$79.7 $75.5
2Q17 2Q18
Sales
$7.4 $7.4
2Q17 2Q18
Adj. EBITDA
9.3% 9.8%
2Q17 2Q18
Adj. EBITDA Margin %
-17% -6%1
+54 bps
1) Growth rate reflects constant currency basis; Adjusted for FX tailwinds of $0.4m sales and headwinds of $0.2m Adj EBITDA.
Unadjusted growth rates: sales -5% and adj EBITDA flat versus 2Q17
+2%1
14
2017
pro forma
2018
Prior Guidance
(with Services)
2018
Updated Guidance
(w/o Services)
Sales $1.108B $1.510B - $1.560B $1.135B - $1.185B
Adj. EBITDA $87.5M $110M - $135M $90M - $116M
2018 Guidance Reflecting CGD Services Divestiture
constant currency
No change to guidance (adjusted for transaction)
Pro forma expected sales growth of ~5% and Adj. EBITDA growth of ~18% (at midpoint)
CGD Services 2018 forecast assumption:
• Revenue: $375 million
• Adj. EBITDA: $11-12 million (net of corp. overhead allocation)
• Corporate overhead: $8 million
Profit seasonality to be somewhat in line with 2017FY
Q3 Adj. EBITDA expected to reflect gradual sequential improvement over Q2; Strong Q4
15
Summary
Strong YoY sales and adjusted EBITDA growth in Q2
Making great strategic progress: CTS is winning, CMS growth secured with T2C2
full rate production, CGD systems pipeline strong
Announced Non-OEM Training Services divestiture
Investments will drive growth and margin expansion in FY18+
Final ERP implementation completed
NYSE: CUB
Winning the Customer and technology investments driving growth
Appendix
17
Appendix Table of Contents
Historical Sales and Adjusted EBITDA - Continuing Operations Basis
Annual: Cubic GAAP to Non-GAAP Reconciliation - Pro-forma Year Ended Sep 30, 2016
Year Ended Sep 30, 2017
Quarterly: Cubic GAAP to Non-GAAP Reconciliation - Pro-forma 1Q17 - Quarter Ended Dec 31, 2016
2Q17 - Quarter Ended Mar 31, 2017
3Q17 - Quarter Ended Jun 30, 2017
4Q17 - Quarter Ended Sep 30, 2017
1Q18 - Quarter Ended Dec 31, 2017
GAAP to Non-GAAP Reconciliation - Continuing Operations 2Q18 - Quarter Ended Mar 31, 2018
2Q17 - Quarter Ended Mar 31, 2017
1H18 - Six Months Ended Mar 31, 2018
1H17 - Six Months Ended Mar 31, 2017
NYSE: CUB
18 Cubic Corporation Historical Financials Continuing Operations Basis
NYSE: CUB
($M)
In Millions FY16 FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18
Sales as Previously Reported 1,462$ 1,486$ 335$ 344$ 362$ 446$ 341$ 377$
CGD Services (391) (378) (90) (96) (96) (96) (92) (98)
Sales Continuing Operations 1,071$ 1,108$ 244$ 248$ 266$ 349$ 248$ 279$
Adjusted EBITDA as Previously Reported 118.0$ 105.6$ 20.1$ 16.8$ 18.5$ 50.2$ 17.0$ 22.4$
CGD Services (16.9) (9.9) (0.6) (3.1) (3.9) (2.4) (3.6) (4.7)
Allocated corporate costs (7.7) (8.2) (2.0) (2.0) (1.9) (2.4) (2.0) (1.9)
Adjusted EBITDA Continuing Operations 93.4$ 87.5$ 17.5$ 11.7$ 12.7$ 45.4$ 11.4$ 15.8$
19
GAAP to Non-GAAP Reconciliation Earnings before interest, taxes, depreciation and amortization
(EBITDA) and Adjusted EBITDA - Year Ended Sep 30, 2016
NYSE: CUB
GAAP to Non-GAAP Reconciliation
Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
Year Ended Sep 30, 2016
In Millions
Cubic As
Reported CGD Services
Allocated
corporate costs
Continuing
Operations
Year Ended Sep 30, 2016
Net income (loss) attributable to Cubic 1.7$ (15.1)$ (10.4)$ (23.8)$
Provision for income taxes (9.2) 3.9 2.7 (2.6)
Interest expense (income), net 9.7 - 9.7
Other non-operating (expense) income, net 5.0 - 5.0
Operating Income 7.2$ (11.2) (7.7) (11.7)
Depreciation and amortization 45.5 (5.2) 40.3
Other non-operating expense (income), net (5.0) - (5.0)
EBITDA 47.7$ (16.4)$ (7.7)$ 23.6$
Acquisition related expenses, excluding amortization 28.7 - 28.7
ERP/Supply Chain Initiatives 34.8 - 34.8
Restructuring costs 1.8 (0.5) 1.3
Other non-operating (expense) income, net 5.0 - 5.0
Adjusted EBITDA 118.0$ (16.9)$ (7.7)$ 93.4$
20
GAAP to Non-GAAP Reconciliation Earnings before interest, taxes, depreciation and amortization
(EBITDA) and Adjusted EBITDA - Year Ended Sep 30, 2017
NYSE: CUB
In Millions
Cubic As
Reported CGD Services
Allocated
corporate costs
Continuing
Operations
Year Ended Sep 30, 2017
Net income (loss) attributable to Cubic (11.2)$ (9.1)$ (11.1)$ (31.4)$
Provision for income taxes 15.1 2.4 2.9 20.3
Interest expense (income), net 14.0 - 14.0
Other non-operating (expense) income, net (0.4) - (0.4)
Operating Income 17.5 (6.7) (8.2) 2.6
Depreciation and amortization 51.1 (3.0) 48.1
Other non-operating expense (income), net 0.4 - 0.4
EBITDA 69.0$ (9.7)$ (8.2)$ 51.1$
Acquisition related expenses, excluding amortization (0.3) - (0.3)
ERP/Supply Chain Initiatives 34.4 - 34.4
Restructuring costs 2.5 (0.2) 2.3
Gain/Loss on sale of fixed assets 0.4 - 0.4
Other non-operating (expense) income, net (0.4) - (0.4)
Adjusted EBITDA 105.6$ (9.9)$ (8.2)$ 87.5$
21
GAAP to Non-GAAP Reconciliation Earnings before interest, taxes, depreciation and amortization
(EBITDA) and Adjusted EBITDA – Quarter Ended Dec 31, 2016
NYSE: CUB
In Millions
Cubic As
Reported CGD Services
Allocated
corporate costs
Continuing
Operations
Quarter Ended December 31, 2016
Net income (loss) attributable to Cubic (2.8)$
Provision for income taxes (5.1)
Interest expense (income), net 3.3
Other non-operating (expense) income, net 0.5
Operating Income (4.1) 0.4 (2.0) (5.7)
Depreciation and amortization 13.4 (1.0) 12.4
Other non-operating expense (income), net (0.5) - (0.5)
EBITDA 8.8$ (0.6)$ (2.0)$ 6.2$
Acquisition related expenses, excluding amortization 0.8 - 0.8
ERP/Supply Chain Initiatives 8.7 - 8.7
Restructuring costs 0.9 - 0.9
Gain/Loss on sale of fixed assets 0.4 - 0.4
Other non-operating (expense) income, net 0.5 - 0.5
Adjusted EBITDA 20.1$ (0.6)$ (2.0)$ 17.5$
22
GAAP to Non-GAAP Reconciliation Earnings before interest, taxes, depreciation and amortization
(EBITDA) and Adjusted EBITDA – Quarter Ended Mar 31, 2017
NYSE: CUB
In Millions
Cubic As
Reported CGD Services
Allocated
corporate costs
Continuing
Operations
Quarter Ended March 31, 2017
Net income (loss) attributable to Cubic 0.4$
Provision for income taxes (7.0)
Interest expense (income), net 4.1
Other non-operating (expense) income, net 0.4
Operating Income (2.1) (2.0) (2.0) (6.1)
Depreciation and amortization 12.3 (0.7) 11.6
Other non-operating expense (income), net (0.4) - (0.4)
EBITDA 9.8$ (2.7)$ (2.0)$ 5.1$
Acquisition related expenses, excluding amortization (0.1) - (0.1)
ERP/Supply Chain Initiatives 6.0 - 6.0
Restructuring costs 0.7 (0.4) 0.3
Gain/Loss on sale of fixed assets - - -
Other non-operating (expense) income, net 0.4 - 0.4
Adjusted EBITDA 16.8$ (3.1)$ (2.0)$ 11.7$
23
GAAP to Non-GAAP Reconciliation Earnings before interest, taxes, depreciation and amortization
(EBITDA) and Adjusted EBITDA – Quarter Ended Jun 30, 2017
NYSE: CUB
In Millions
Cubic As
Reported CGD Services
Allocated
corporate costs
Continuing
Operations
Quarter Ended June 30, 2017
Net income (loss) attributable to Cubic (22.0)$
Provision for income taxes 17.8
Interest expense (income), net 4.1
Other non-operating (expense) income, net (1.6)
Operating Income (1.7) (3.2) (1.9) (6.8)
Depreciation and amortization 12.5 (0.7) 11.8
Other non-operating expense (income), net 1.6 - 1.6
EBITDA 12.4$ (3.9)$ (1.9)$ 6.6$
Acquisition related expenses, excluding amortization (1.5) (1.5)
ERP/Supply Chain Initiatives 8.9 8.9
Restructuring costs 0.3 0.3
Other non-operating (expense) income, net (1.6) (1.6)
Adjusted EBITDA 18.5$ (3.9)$ (1.9)$ 12.7$
24
GAAP to Non-GAAP Reconciliation Earnings before interest, taxes, depreciation and amortization
(EBITDA) and Adjusted EBITDA – Quarter Ended Sep 30, 2017
NYSE: CUB
In Millions
Cubic As
Reported CGD Services
Allocated
corporate costs
Continuing
Operations
Quarter Ended Sep 30, 2017
Net income (loss) attributable to Cubic 13.2$
Provision for income taxes 9.3
Interest expense (income), net 2.6
Other non-operating (expense) income, net 0.3
Operating Income 25.4 (1.9) (2.4) 21.1
Depreciation and amortization 12.9 (0.6) 12.3
Other non-operating expense (income), net (0.3) - (0.3)
EBITDA 38.0$ (2.5)$ (2.4)$ 33.1$
Acquisition related expenses, excluding amortization 0.6 - 0.6
ERP/Supply Chain Initiatives 10.8 - 10.8
Restructuring costs 0.5 0.1 0.6
Other non-operating (expense) income, net 0.3 - 0.3
Adjusted EBITDA 50.2$ (2.4)$ (2.4)$ 45.4$
25 GAAP to Non-GAAP Reconciliation Earnings before interest, taxes, depreciation and amortization
(EBITDA) and Adjusted EBITDA – Quarter Ended Dec 31, 2017
NYSE: CUB
In Millions
Cubic As
Reported CGD Services
Allocated
corporate costs
Continuing
Operations
Quarter Ended Dec 31, 2017
Net income (loss) attributable to Cubic (9.8)$ (3.9)$ (2.7)$ (16.4)$
Provision for income taxes 0.5 1.0 0.7 2.2
Interest expense (income), net 2.2 - 2.2
Other non-operating (expense) income, net 0.1 - 0.1
Operating Income (7.0)$ (2.9) (2.0) (11.9)
Depreciation and amortization 13.1 (0.7) 12.4
Other non-operating expense (income), net (0.1) - (0.1)
EBITDA 6.0$ (3.6)$ (2.0)$ 0.4$
Acquisition related expenses, excluding amortization 1.4 - 1.4
ERP/Supply Chain Initiatives 8.0 - 8.0
Restructuring costs 1.5 - 1.5
Other non-operating (expense) income, net 0.1 - 0.1
Adjusted EBITDA 17.0$ (3.6)$ (2.0)$ 11.4$
26 GAAP to Non-GAAP Reconciliation - Continuing Operations Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
Three Months Ended March 31, 2018
NYSE: CUB
In Millions Consolidated CTS CMS CGD Systems
Three Months Ended March 31, 2018
Net income (loss) attributable to Cubic (3.3)$
Provision for income taxes 1.4
Interest expense (income), net 2.2
Other non-operating (expense) income, net (2.0)
Operating Income (loss) (1.7)$ 14.2$ (7.7)$ 5.2$
Depreciation and amortization 11.1 3.0 5.2 2.0
Other non-operating expense (income), net 2.0 2.4 0.2 (0.1)
EBITDA 11.4$ 19.6$ (2.3)$ 7.1$
Acquisition related expenses, excluding amortization 1 0.5 0.5
ERP/Supply Chain Initiatives 5.7
Restructuring costs 0.2 0.2
Other non-operating (expense) income, net (2.0) (2.4) (0.2) 0.1
Adjusted EBITDA 15.8$ 17.2$ (2.0)$ 7.4$
EBITDA Margin 4.1% 11.7% -6.4% 9.4%
Adjusted EBITDA Margin 5.7% 10.3% -5.6% 9.8%
1 includes transaction costs, retention bonuses and earn out liability changes related to acquired businesses
27 GAAP to Non-GAAP Reconciliation - Continuing Operations Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
Three Months Ended March 31, 2017
NYSE: CUB
In Millions Consolidated CTS CMS CGD Systems
Three Months Ended March 31, 2017
Net income (loss) attributable to Cubic 41.9$
Provision for income taxes (52.5)
Interest expense (income), net 4.1
Other non-operating (expense) income, net 0.4
Operating Income (loss) (6.1)$ 7.8$ (9.2)$ 4.7$
Depreciation and amortization 11.6 2.1 5.9 2.5
Other non-operating expense (income), net (0.4) (0.2) 3.1
EBITDA 5.1$ 9.7$ (3.3)$ 10.3$
Acquisition related expenses, excluding amortization 1 (0.1) (0.2) 0.1
ERP/Supply Chain Initiatives 6.0
Restructuring costs 0.3 0.2 0.2
Loss on sale of fixed assets -
Other non-operating (expense) income, net 0.4 0.2 (3.1)
Adjusted EBITDA 11.7$ 9.9$ (3.2)$ 7.4$
EBITDA Margin 2.1% 6.9% -11.5% 12.9%
Adjusted EBITDA Margin 4.7% 7.1% -11.2% 9.3%
1 includes transaction costs, retention bonuses and earn out liability changes related to acquired businesses
28 GAAP to Non-GAAP Reconciliation - Continuing Operations Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
Six Months Ended March 31, 2018
NYSE: CUB
In Millions Consolidated CTS CMS CGD Systems
Six Months Ended March 31, 2018
Net income (loss) attributable to Cubic (14.8)$
Provision for income taxes (1.3)
Interest expense (income), net 4.5
Other non-operating (expense) income, net (2.0) (1.6) (0.2)$ (0.3)$
Operating Income (loss) (13.6)$ 24.1$ (16.7)$ 6.7$
Depreciation and amortization 23.5 6.3 11.1 4.1
Other non-operating expense (income), net 2.0 1.6 0.2 0.3
EBITDA 11.9$ 32.0$ (5.4)$ 11.1$
Acquisition related expenses, excluding amortization 1 1.9 1.9
ERP/Supply Chain Initiatives 13.7
Restructuring costs 1.8 0.2 0.8
Other non-operating (expense) income, net (2.0) (1.6) (0.2) (0.3)
Adjusted EBITDA 27.3$ 30.6$ (3.7)$ 11.6$
EBITDA Margin 2.3% 10.1% -7.9% 7.7%
Adjusted EBITDA Margin 5.2% 9.8% -5.4% 8.1%
1 includes transaction costs, retention bonuses and earn out liability changes related to acquired businesses
29 GAAP to Non-GAAP Reconciliation - Continuing Operations Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
Six Months Ended March 31, 2017
NYSE: CUB
1 includes transaction costs, retention bonuses and earn out liability changes related to acquired businesses
In Millions Consolidated CTS CMS CGD Systems
Six Months Ended March 31, 2017
Net income (loss) attributable to Cubic 42.9$
Provision for income taxes (62.9)
Interest expense (income), net 7.4
Other non-operating (expense) income, net 0.9
Operating Income (loss) (11.7)$ 17.5$ (13.0)$ 8.1$
Depreciation and amortization 24.0 4.4 12.7 4.5
Other non-operating expense (income), net (0.9) (0.6) 1.8
EBITDA 11.4$ 21.3$ (0.3)$ 14.4$
Acquisition related expenses, excluding amortization 1 0.7 (0.1) 0.9
ERP/Supply Chain Initiatives 14.6
Restructuring costs 1.3 0.2 0.9
Loss on sale of fixed assets 0.4
Other non-operating (expense) income, net 0.9 0.6 (1.8)
Adjusted EBITDA 29.3$ 22.0$ 0.6$ 13.5$
EBITDA Margin 2.3% 7.7% -0.6% 9.1%
Adjusted EBITDA Margin 6.0% 8.1% 0.9% 8.5%